Hunt Capital Partners announced the closing of $5.8 million in low-income housing tax credit equity financing for the acquisition and rehabilitation of Magnolia Terrace Apartments, located in Tallahassee, Fla. Originally 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 percent of the area median income.
Magnolia Terrace Apartments is currently 97.2 percent 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 The planned rehabilitation, intended to address outdated systems and building components, as well as interior restoration, is scheduled for completion by March 2021.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 8:00 a.m. to 6:00 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 poverty rate in Tallahassee is 27.1 percent,” said Hunt Capital Partners Executive Managing Director Dana Mayo. “We are glad to invest in Magnolia Terrace Apartments and work again with Jacob Levy and Wilshire Pacific Builders.”
For Magnolia Terrace Apartments, the developer is Magnolia Terrace Developer, LLC, which is wholly owned by Jacob Levy. Levy is also the sponsor and guarantor for the project while Wilshire Pacific Builders, LLC, 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 on budget and on time.
When Magnolia Terrace Apartments is completed, the 108-unit development will notably include six units converted to fully accessible ADA units. Another five units will be built with sight or hearing impaired accessibility upgrades, including horn strobe smoke/CO detectors and audio/visual doorbells. Regarding amenities, the development will offer a central laundry facility, on-site management office, basketball court, business center, community room, picnic areas and a playground. Magnolia Terrace Apartments will also include new security systems and protocols to enhance crime prevention.
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, Inc. to provide a $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., LLC as development consultant, Pacific Rim Architects as project architect, and RAM Partners, LLC, as the property management agent.
About Hunt Capital Partners
Hunt Capital Partners (HCP) is the syndication division of Hunt Companies, Inc. (Hunt). HCP specializes in the syndication of Federal and State Low-Income Housing, Historic and Solar Tax Credits. Since the successful launch of its first fund in the fall of 2011, HCP has raised over $2 billion in tax credit equity. Founded in 1947, Hunt is a privately held company that invests in businesses focused in the real estate and infrastructure markets. The activities of Hunt’s affiliates and investors include investment management, mortgage banking, direct lending, loan servicing, asset management, property management, development, construction, consulting and advisory. For more information on Hunt Capital Partners, please visit www.huntcapitalpartners.com, or for Hunt Companies, please visit www.huntcompanies.com.