An affordable housing property in Tallahassee, Fla., will undergo a major rehabilitation after receiving a commitment of low-income housing tax credits (LIHTCs).

When the rehabilitation of Magnolia Terrace Apartments is completed, the development will include six homes converted to fully accessible ADA units. Another five units will be built with sight- or hearing-impaired accessibility upgrades, including horn strobe smoke and carbon monoxide detectors and audio/visual doorbells. The development will offer a central laundry facility, an on-site management office, a basketball court, a business center, a community room, picnic areas, and a playground. There will also be new security systems and protocols to enhance crime prevention.
When the rehabilitation of Magnolia Terrace Apartments is completed, the development will include six homes converted to fully accessible ADA units. Another five units will be built with sight- or hearing-impaired accessibility upgrades, including horn strobe smoke and carbon monoxide detectors and audio/visual doorbells. The development will offer a central laundry facility, an on-site management office, a basketball court, a business center, a community room, picnic areas, and a playground. There will also be new security systems and protocols to enhance crime prevention.

Constructed in 1974 and rehabilitated in 2002 through a bond transaction, Magnolia Terrace Apartments is a 108-unit LIHTC and Section 8 development. Post-rehabilitation, the complex will offer a mix of 25 one-bedroom, 50 two-bedroom, 25 three-bedroom, and eight four-bedroom units to households earning up to 60% of the area median income.

Hunt Capital Partners, the syndication arm of Hunt Cos., announced the financial closing of $5.8 million in LIHTC equity for the acquisition and rehabilitation of the property.

Magnolia Terrace Apartments is currently 97.2% occupied. The planned rehabilitation, intended to address outdated systems and building components as well as interior restoration, is scheduled for completion by March 2021. As a tenant-in-place rehab, in-unit work will be executed over the course of five consecutive days with tenants required to be out of their units from 8 a.m. to 6 p.m. While units are being worked on, tenants can stay in fully furnished vacant units, and they will also have access to the community room.

The developer is Magnolia Terrace Developer, wholly owned by Jacob Levy. Levy is also the sponsor and guarantor for the project while Wilshire Pacific Builders is the general contractor. This will be Hunt Capital Partners’ second project with Levy and Wilshire Pacific Builders. The first was Willow Key Apartments, a 384-unit rehabilitated complex in Orlando, Fla., that recently completed construction.

“The poverty rate in Tallahassee is 27.1%,” said Dana Mayo, executive managing director at Hunt Capital Partners. “We are glad to invest in Magnolia Terrace Apartments and work again with Jacob Levy and Wilshire Pacific Builders.”

The total development cost for Magnolia Terrace Apartments is $22.8 million. Hunt Capital Partners facilitated the investment of federal tax credit equity through its proprietary fund, Hunt Capital Partners Tax Credit Fund 30. The Housing Finance Authority of Leon Country issued tax-exempt bonds, which were purchased by CBRE Multifamily Capital to provide an $11.76 million permanent loan. An additional $1.25 million was provided through seller carryback financing.

The development team also includes J.M. Waterbury & Co. as development consultant, Pacific Rim Architects as project architect, and RAM Partners as the property management agent.