The Hunt Cos. has bought back the low-income housing tax credit (LIHTC) syndication business from Alden Torch Financial.
Officials announced that they have closed on an agreement to acquire Alden Capital Partners. Terms of the deal were not disclosed.
The new syndication arm will be called Hunt Capital Partners, the name the business operated under before it was acquired by Alden Torch in 2015.
“We are pleased to welcome Hunt Capital Partners back into the Hunt family of companies,” said Hunt CEO Chris Hunt. “This acquisition represents our continued commitment to the affordable housing industry.”
This is the second big move that the El Paso, Texas–based company has made to expand its affordable housing business this year. It recently completed an investment in Pennrose Properties, a leading affordable housing developer. Hunt is also working as the development partner with housing authorities across the country to deliver more than 6,600 units. The firm is one of the most active developers working to rehabilitate public housing properties using the federal Rental Assistance Demonstration (RAD) program.
The executive leadership at the syndication business will remain as it transitions to Hunt. Jeff Weiss, a LIHTC industry veteran, will continue as president, and Dana Mayo will be executive managing director, overseeing acquisitions and project management.
Other senior leaders include Dan Kagey, CFO; Carl Wise, managing director; Mark Gronemeyer, chief credit officer; and Jenette Smith, managing director.
“The senior management team that was running the syndication business on a day-to-day basis is the same team that will do so under Hunt,” Weiss told Affordable Housing Finance.
Hunt’s investment in Pennrose and Hunt Capital Partners affirms the company’s commitment to affordable housing, according to Weiss, who is based in Southern California.
Since the launch of its first LIHTC fund in 2011, Hunt Capital Partners has raised more than $1.35 billion in housing tax credit equity. The platform has 35 institutional investors and investments in 41 states, Puerto Rico, and the U.S. Virgin Islands.
The syndication team continued to do business with Hunt even after joining Alden Torch, according to Weiss. This ongoing collaboration has, to date, included partnering on seven RAD developments involving over $150 million in federal and state LIHTCs. Looking ahead, Hunt has a robust pipeline of additional RAD deals that will involve the syndication group.