Hunt Capital Partners announced the closing of $3.46 million in low-income housing tax credit equity financing for the acquisition and rehabilitation of Pacific Rim Apartments, an existing affordable housing development in Sacramento, Calif., with 32 units spread across garden style buildings. When updated, Pacific Rim Apartments will offer 31 three-bedroom units to residents and a single three-bedroom employee unit.
Pacific Rim Apartments is located approximately eight miles southeast of downtown Sacramento, a city with just over 508,500 residents. Sacramento has a 19.8 percent poverty rate, which is seven points higher than the poverty rate in California and nearly 10 points higher than the overall poverty rate in the United States. Pacific Rim Apartments was originally built in 2004. Hunt Capital Partners’ investment will help to preserve the long-term operation of the affordable housing credits awarded and extend the life of the development.
“Pacific Rim Apartments is currently 100 percent occupied with a waiting list of 12 households,” said Hunt Capital Partners Executive Managing Director Dana Mayo. “We are glad to be able to work with such a tenured developer like Alliance Property Group and breathe new life into this affordable housing community.”
This will be Hunt Capital Partners’ eighth transaction with Alliance Property Group, Inc. (APG). For Pacific Rim Apartments, APG’s development team comprises Day Builders, Inc., Musser: Architects, Inc. and FPI Management, Inc. The construction and renovations are estimated to take approximately 10 months and are scheduled for completion in July of 2021. Site and exterior improvements include pavement; fencing and landscaping repair; installation of additional barbeque and playground areas; a new roofing overlay; and construction of a new management office/community room with a laundry room. Units will be outfitted with new kitchen appliances, flooring, various automatic sensors, as well as fresh paint.
When completed, Pacific Rim Apartments units will be leased to family households earning up to 50 percent and 60 percent of the area median income. Additionally, resident services will be provided by All Things Are Possible, a non-profit organization that works with property ownership teams to provide community service programs throughout California, such as Food Distribution, Parenting and Mentoring workshops, English Second Language Classes, Veteran Services, Toddler Support, Employment Search and Resume Assistance.
The total development cost for Pacific Rim Apartments is $11.19 million. Hunt Capital Partners resyndicated the federal LIHTCs through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 37. California Bank & Trust provided a $5.5 million tax-exempt construction bond loan and a $2.3 million tax-exempt permanent bond loan. The Sacramento Housing and Redevelopment Agency issued $2.46 million in construction-to-permanent financing, as well as $2.5 assumed construction-to-permanent financing.
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.
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