NEWPORT NEWS, Va., Sept. 30, 2021—Hunt Capital Partners has teamed up with developers Pennrose LLC and the Newport News Redevelopment & Housing Authority (“NNRHA”) to close approximately $4 million in Low Income Housing Tax Credit equity for the construction of 38 mixed-income housing units near the James River and Hampton Roads Bay in Newport News, Va.
The 1.04-acre property known as Carrier Point II is located directly adjacent to the first phase of the development, Carrier Point I. Both phases closed concurrently and are being constructed at the same time. Carrier Point II will include one four-story building consisting of one-, two-, and three-bedroom apartments with 34 units set aside for households earning up to 30%, 50%, 60%, 70% and 80% of area median income (AMI), and four market rate units. Twenty-one of the units will receive Section 8 project-based vouchers under the Housing Assistance Payments program from the Newport News Redevelopment & Housing Authority. The project will allow renters with up to 80 percent of AMI lease certain units under the income averaging provision allowed by the Consolidated Appropriations Act of 2018.
“Carrier Point II is part of a larger neighborhood initiative to transform the Marshall-Ridley neighborhood into a premier waterfront location,” said Dana Mayo, Executive Managing Director at Hunt Capital Partners. “Not only does Carrier Point II provide quality housing, but also attractive amenities. Its ground floor will include a community room, fitness room, social services room and 1,400 square feet of commercial space that will be leased to local retailers.”
Unit amenities will include kitchen appliances (refrigerator, range/oven, dishwasher, and in-unit washers/dryers), central heating and air conditioning, blinds, and coat closets. Additional project amenities will consist of a courtyard, on-site management, and Wi-Fi in community areas. The Project will offer 38 off-street parking spaces. The master site of the Carrier Point development is split into three condominiums previously held by NNRHA, two of which comprise the residential units in Phases I and II and the third of which comprises 2,900 square feet of commercial space at the two phases. Construction is expected to be completed by December 2022.
Other partners at Carrier Point II include Pennrose Management Co., the management agent. Breeden Construction LLC will be the contractor and will build both phases of Carrier Point. The architect for the project is Wallace, Roberts & Todd.
Financing includes a $6.8 million tax-exempt construction loan from Citi Community Capital, via a private placement of tax-exempt bonds issued by Newport News Redevelopment & Housing Authority, and a $1.1 million tax-exempt Freddie Mac permanent loan provided via Citi Community Capital. Newport News Redevelopment & Housing Authority will also make a $2.4 million permanent loan with hard interest payments as well as a $4.68 million soft loan. Total development cost for the project is just under $12.6 million. Hunt Capital Partners syndicated the federal tax credits through its fund, Hunt Capital Partners Tax Credit Fund 43.
About Hunt Capital Partners
Hunt Capital Partners (HCP) is the tax credit syndication division of Hunt Companies, Inc. (Hunt). HCP specializes in the sponsorship of Federal and State Low-Income Housing, Historic, and Solar Tax Credit Investments funds. Since its inception in 2010, HCP has raised over $2.4 billion in tax credit equity in over 40 proprietary and multi-investor funds. HCP manages almost 760 project partnerships representing over 75,000 homes in 51 states and territories. 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, asset management, property management, development, construction, consulting and advisory. For more information on HCP, please visit www.huntcapitalpartners.com, or for Hunt, please visit www.huntcompanies.com.