Financing has been arranged for the adaptive reuse of the historic Carnation milk factory into a 33-unit development for seniors in Tupelo, Mississippi.
Hunt Capital Partners announced closing $13.3 million in federal low-income housing tax credit (LIHTC) and historic tax credit (HTC) equity as well as $2.5 million in Mississippi HTC financing for Carnation Village.
The milk plant opened its doors in 1927 and was a key economic engine for the dairy industry in the region, providing consistent income for thousands of local dairy farmers until its closing in 1972. Over the years, the aging building had been considered for several other uses, including a police department and jail, city offices, and, most notably, a new home for the Oren Dunn Museum. However, none of these plans came to fruition.
Intervest Corp. is now set to adapt the property into housing with 31 units for seniors earning between 30% and 60% of the area median income and two market-rate units.
“We are excited to partner with Intervest to breathe new life into the historic Carnation Milk Pant and transform it into affordable housing,” said Hunt Capital Partners executive managing director Dana Mayo. “In its heyday, the Carnation Milk Plant was a staple, not only for Tupelo residents but also for the entire Northeast Mississippi dairy industry. The factory employed dairy farmers for two-and-a-half generations, even surviving the Great Depression. With this historic rehabilitation, the factory will remain an important beacon for the community, now operating as Carnation Village and ushering in a new age where seniors will have a stable and safe place to call home.”
The total development cost for Carnation Village is $16.9 million. Hunt Capital Partners raised the federal LIHTC, federal HTC, and state HTC equity through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 43. Cadence Bank provided a $10.9 million construction loan, and the Financial Institutions Housing Opportunity Pool provided a $475,000 permanent loan.
Once finished, units will be outfitted with a modern complement of amenities. A community clubhouse, an exercise facility, a central laundry facility, elevators, walking trails, and a butterfly garden are just some of the notable amenities for residents. In addition, seniors will benefit from being within walking distance to grocery and drug stores, places of worship, restaurants, and medical services.
Intervest will also provide supportive services to residents to improve the overall well-being of individuals and families in Mississippi. This includes personal development services to promote awareness of health and nutrition; counseling programs such as financial and budgeting classes; and community engagement events such as a health fair.
Intervest will serve as the property manager. Additional partners include Century Construction Group as the general contractor and Wallace Architects as the project architect.
