HOLIDAY, FLA. — Housing Trust Group (HTG) has broken ground on Phase I of Park at Wellington, a $37.9 million affordable housing community located at 4369 Sunray Drive in Holiday, roughly 30 miles north of Tampa. Phase I of the 220-unit property will span 110 units, and HTG plans to open the complex in late 2017. The units will be reserved for renters earning at or below 40 percent to 60 percent of area median income (AMI). Rents will range from $367 to $783 per month. Construction of Phase II is expected to start in November 2016. Phase I development funding sources include $16 million in 9 percent Low Income Housing Tax Credit Equity provided by Indianapolis-based City Real Estate Advisors and a $15.5 million construction loan provided by KeyBank, which converts to a $3.5 million permanent loan after completion. HTG has five affordable housing communities currently under construction in Florida. The project team for Park at Wellington includes architect Fugleberg Koch PLLC; civil engineer High Point Engineering Inc.; and general contractor HTG Hennessy LLC.
OMAHA — Dougherty Funding LLC has provided a $16.1 million loan for a 196-unit affordable housing property in Omaha. The borrower, Omaha Leased Housing Associates II LLLP, will use the loan proceeds to refinance the property and complete unit and amenity renovations. Bluff at Cherry Hills Apartments includes a fitness center, garages, playground, clubhouse and swimming pool. Unit amenities include kitchen appliances, in-unit washers and dryers, walk-in closets and patios or balconies. The complex offers two-, three- and four-bedroom townhomes. Dougherty Funding arranged the financing.
CHICAGO — U.S. Bank has invested $5.9 million in low-income housing tax credits equity and provided a $6.8 million construction loan for a 30-unit apartment project in the Chicago Lawn neighborhood. Southwest Organizing Project and Brinshore Development are heading up the project that will turn nine vacant buildings into apartments that are below the market rate. The nine buildings will provide two one-bedroom, 16 two-bedroom, 10 three-bedroom and two four-bedroom units. Four of the units will be fully disabled-accessible. Tenants will earn between 30 percent and 60 percent of the area median income, and rents will range from $270 to $1,005 per month. Construction on the buildings, which cover a six-block area, is expected to be complete next June.
NASHVILLE, TENN. — Love Funding has closed a $19.7 million construction loan through the U.S. Department of Housing and Urban Development’s (HUD) 221(d)(4) loan program for the construction of The Paddock at Grandview in Nashville. The new 240-unit affordable housing community will feature residences reserved for families earning 60 percent or less of area median income. Bruce Gerhart of Love Funding secured the non-recourse loan, which features a 40-year amortization schedule beginning when construction ends. Funding was also provided by 4 percent Low Income Housing Tax Credits (LIHTC) and HOME funds on behalf of the borrower, LDG Development.
TAMPA, FLA. – The Wilson Co., a Tampa-based affordable housing developer and manager, has sold a 31-property portfolio of affordable housing communities in Florida for $563.5 million. Totaling 8,498 units, the portfolio is heavily concentrated in Orlando and Tampa. Starwood Property Trust (NYSE: STWD), an affiliate of Starwood Capital Group, purchased the assets, which were developed between 1995 and 2004 using Low Income Housing Tax Credits (LIHTC). On average, maximum allowable rents across the portfolio are approximately $350 below average rents at nearby market-rate communities. The portfolio was more than 97 percent occupied at the time of sale. “This transaction represents the beginning of a new era for LIHTC investment sales,” says Doug Childers, managing director of HFF’s investment sales team, which represented The Wilson Co. in the transaction. “Traditionally, LIHTC transactions have attracted primarily private, regional capital providers. HFF’s affordable housing experts were able to educate institutional investors regarding the portfolio’s relatively low cash-flow volatility and the regulatory and operational nuances associated with LIHTC communities. As a result, we were able to create a competitive bidding process that included large, institutional investors,” added Childers. Childers led HFF’s investment sales team in the transaction, along with HFF’s senior managing director …
DIXON, ILL. — Evergreen Real Estate Group has completed a $3.3 million renovation of Dixon Square Apartments, a 72-unit affordable housing community in Dixon, approximately 90 miles north of Peoria. Evergreen teamed up with HUD, the Illinois Housing Development Authority (IHDA) and City Real Estate Advisors to complete the project. The three-building property had not been significantly upgraded since it was completed in 1980. Evergreen made improvements to the laundry facilities, on-site playground, community garden and replaced the roof on each building. Renovations were also made to the units and included new flooring, appliances, cabinetry, countertops, plumbing fixtures, air conditioners and television hookups. The rehabilitation project, which started last spring, also included a 20-year extension of the community’s Section 8 Housing Assistance Payment contract, preserving the affordability of the residences through 2036. Dixon Square Apartments is located at 540 Freedom Walk.
CAPE CORAL, FLA. — Marcus & Millichap has brokered the $8.5 million sale of Crossings at Cape Coral, a 168-unit affordable housing community located at 1150 Hancock Creek S. Blvd. in Cape Coral. The property was constructed and placed into the Low Income Housing Tax Credit program in 2000. The community comprises eight three-story buildings and a freestanding clubhouse. Evan Kristol of Marcus & Millichap’s Fort Lauderdale office represented the seller, an institutional owner based in New York City, and the private, Florida-based buyer in the transaction.
VERO BEACH, FLA. — KeyBank Real Estate Capital has provided $12.1 million in FHA financing for Pemberly Palms Apartments, a 200-unit affordable housing community located in Vero Beach. Built in 1996, the 17-building complex was more than 95 percent occupied at the time of financing. Pemberly Palms operates under the Section 42 Low Income Housing Tax Credit and is sponsored by Harmony Housing, a 501(c)(3) nonprofit organization that provides affordable rental housing throughout the U.S. John Gilmore IV and Jeff Rodman of KeyBank’s community development lending team arranged the financing, which was used to pay off an existing KeyBank bridge loan.
MADISON, WIS. — Associated Bank has provided two loans totaling $6.7 million for an 80-unit multifamily property in Madison. The financing consisted of an affordable housing construction loan and a Low-Income Housing Tax Credit (LIHTC) bridge loan. Maple Grove Commons, which will located at 3204-3228 Golden Copper Lane, will consist of one-, two- and three-bedroom units, 68 of which will be reserved for tenants earning below 60 percent of the median income for the county. The project, situated on 3.2 acres, will be delivered next summer. Maple Grove Housing LLC is the borrower, and McGann Construction of Madison is the general contractor. Knothe & Bruce is the design architect of record, and Oakbrook Corp. and Movin’ Out Inc. are co-developing the project. Steve Sosnowski of Associated Bank originated the loan. Associated Bank provided the majority of the loan tax credit equity through a Boston Capital syndicated fund.
BURLINGTON, WIS. — Boston Capital has invested approximately $4 million in the construction of a 32-unit apartment community in Burlington, 40 miles southwest of Milwaukee. Boston Capital is teaming up with Bear Development to deliver Fox Crossing II, which will utilize the Low-Income Housing Tax Credit (LIHTC) program. The property will consist of three market-rate units, 29 units for tenants earning less than 60 percent of the area’s median income and eight units for tenants earning 30 percent less. Units will feature dishwashers, washer and dryer hookups, walk-in closets and patios or balconies. Community amenities will include a 635-square-foot community room with a kitchen, fitness center, laundry facility, interior storage units and secure entry.