Feb 2026
Adaptive reuse spaces — such as turning defunct warehouses into apartments — often require complex financing to achieve completion. However, according to a November 2025 article from the National Association of REALTORS® (NAR), thousands of examples of adaptive reuse projects across the U.S. demonstrate the viability and desirability of these repurposed structures.
A challenge to completing an adaptive reuse property is capital. However, NAR points out that capital stacking — a multipronged financing strategy — makes reuse projects possible. Sources of capital for adaptive reuse projects can include:
- Grants
- Tax credits
- Tax abatements
- Tax increment financing
- Loans from nonprofits
- Public policy changes
An excellent example of how capital stacking makes reuse spaces possible is the former Coca-Cola bottling plant in Gadsden, Alabama. The 100-year-old building was destined for demolition until Main Street America, Downtown Gadsden Inc., RePurpose Capital and other sources of capital backed the project, allowing the developer to turn the plant into a commercial and community center.
