Hunt Capital Partners announced the financial closings for two affordable housing developments.
The firm is working with the Jackson Development Co. to finance Magens Junction II, a new affordable housing community in St. Thomas in the U.S. Virgin Islands. The development is the second phase of the adjacent and completed Magens Junction I, a 48-unit family development. Hunt Capital Partners also teamed with the developers on the first phase, which is fully occupied with a waiting list of 200 families.
In September 2017, the area was hit by hurricanes Irma and Maria in the span of several days. The storms destroyed over 18,500 homes and businesses on the islands, contributing to the severe shortage of affordable housing. Magens Junction II is the first new construction multifamily project to break ground since the hurricanes and will expand the number of housing options available to low-income families in the area.
Construction is scheduled for completion in early 2021. When finished, Magens Junction II will provide 30 one-bedroom, one-bath units and 30 two-bedroom, two-bath units leased to households with incomes up to 30% and 60% of the area median income (AMI). Additionally, six units will be allocated for households with disabilities.
Magens Junction II will feature modern appliances and design upgrades such as hurricane impact windows. Its amenities include a community center, indoor exercise facility, a computer room, and a playground. The community will be a self-sufficient development that does not rely on local utility companies for water, sewer, or electricity. Its Capstone microturbines will provide electricity for the entire project. The development will also have its own water wells, producing potable water, and a wastewater treatment facility.
The total development cost for Magens Junction II is $34.9 million. Hunt Capital Partners syndicated $30.5 million in 9% low-income housing tax credits (LIHTCs) through its proprietary fund with Citi Community Capital. Hunt Capital Partners also provided a $26.9 million construction loan. Jackson Development provided a $1.8 million soft site acquisition loan. The Virgin Islands Housing Finance Authority lent $3.5 million in Community Development Block Grant Disaster Recovery funds.
Jackson Development’s team includes contract GEC, architect Steven E. Hutchins, and property management agent Royal American Management.
In a separate deal, the firm is providing $12.2 million in LIHTC equity to Brookmore Apartment Corp. for the acquisition and rehabilitation of Simpson Arbor Apartments in North Hollywood, Calif.
Originally built in 1963 and renovated in 2001, Simpson Arbor consists of six two-story garden-style and townhome buildings across 2.06 acres. It is fully occupied. Once renovated, the development will continue to offer 82 LIHTC one-, two-, and three-bedroom units set aside for households with incomes up to 40%, 45%, and 50% of the AMI. There will also be one employee unit.
The total development cost for Simpson Arbor is $41 million. Hunt Capital Partners facilitated its LIHTC investment through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 31. Citibank provided a $20 million construction loan, along with a $10.56 million permanent loan. The seller, Simpson Arbor Apartments, provided a $15.69 soft seller-financing note.
Brookmore Apartment Corp.’s development team includes Precision General Commercial Contractors as the general contractor, Front Porch as the contract developer, TDM Architects as the architect, and CARING House Ministries as the management agent.
The rehabilitation cost per unit is $135,000. Construction is underway and is expected to be completed in September 2020. Site and building improvements will include the replacement of asphalt, fencing, sewer lines, roofs, door frames, kitchen and bath fixtures, countertops, vinyl flooring, and electric unit panels. The management office, laundry facilities, and activity room also will be remodeled. During construction, Overland, Pacific & Cutler will spearhead the relocation program. Households will be relocated to off-site temporary housing, eight units at a time, in phases.
The development also has a service agreement with Lutheran Social Services of Southern California to provide a case manager and supportive services to residents. Options for supportive services include instructor-led educational health, wellness, and skill-building classes.
