HAMPTON, Va., Sept. 30, 2021— Hunt Capital Partners has closed $5 million in Low Income Housing Tax Credit equity for the acquisition and rehabilitation of 144 mixed income affordable family units in Hampton, Va. by developer Envolve Communities LLC.
Upon completion of the renovations, Magruder Run II will consist of 12 garden-style buildings on 11.49 acres of land. The project, located in the Hampton Roads Center neighborhood of the city, will consist of 96 two-bedroom and 48 three-bedroom units. One hundred sixteen of the units will be available to residents earning up to 60 percent of the Area Median Income (AMI), while 28 will go to workforce households earning up to 150 percent of AMI.
“This much-needed rehab of units dating back to 1995 will greatly benefit residents, including eight units built to specifications of the Americans with Disabilities Act,” said Hunt Capital Partners Executive Managing Director Dana Mayo. “It will also achieve a nice symmetry with its adjacent sister project, Magruder Run Apartments I, whose 160 units were rehabbed by Envolve in 2019.”
There will be a minimum of disruption for existing residents, as only occupants of ADA units will have to temporarily relocate. Three additional units have also been set aside for those with visual/hearing impairment. Post-rehabilitation, Magruder Run II units will have modern features and common amenities will include a clubhouse/community room, on-site management, a playground and a swimming pool. Extensive work will also be done on the site and building exteriors.
Total development cost is $22.7 million. Hunt Capital Partners syndicated the federal LIHTCs through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 41. The lender for this deal is Virginia Housing Development Agency, which is supplying a $9 million tax-exempt construction to permanent bond loan and is also extending a $5.4 million permanent loan under VHDA’s REACH program. Other financing includes a seller’s note of $1.5 million.
The management agent at Magruder Run II is Envolve Community Management. Empire Corp. of Tennessee, Inc. will be the general contractor. Dyke Nelson Architecture LLC of Baton Rouge, La. will be the architect. Magruder Run II has a projected 50-week construction period.
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.