LITTLE ROCK, Ark., Nov. 19, 2019 –Hunt Capital Partners announced the closing of $6.3 million in federal low-income housing tax credit (LIHTC) equity financing for the new construction of Valley Estates at Mabelvale Phase III. Located eight miles southwest of Little Rock in Mabelvale, Ark., Valley Estates at Mabelvale Phase III will offer 48 units spread across two, three-story garden-style buildings.
Built in 2011, Valley Estates at Mabelvale Phase I and Phase II report an occupancy rate of 97 percent with a combined waiting list of 261 households. Once constructed, Phase III will add 47 LIHTC units and one employee unit for households earning up to 30, 50 and 60 percent of the area median income (AMI). One LIHTC unit will also be restricted as a low HOME unit, while an additional four LIHTC units will be restricted as high HOME units.
“The National Low Income Housing Coalition reports that Arkansas has a shortage of more than 48,000 affordable homes that are actually available to low-income renters,” said Hunt Capital Partners Executive Managing Director Dana Mayo. “We are glad to partner with Burleson Development again to complete phase three of Valley Estates at Mabelvale to increase the affordable housing stock in an area that truly needs it.”
Valley Estates at Mabelvale Phase III is Hunt Capital Partner’s third project with Burleson Development, who was the developer for Phase I and Phase II. The project also marks Hunt Capital Partners’ fourth transaction with RichSmith as developer consultant. RichSmith and its affiliates are also serving as the general contractor, architect and property management agent for Phase III.
The total development cost of Valley Estates at Mabelvale Phase III is $7.2 million. Hunt Capital Partners facilitated the federal tax credits through its proprietary fund with BancorpSouth Bank referred to as Hunt Capital Partners Tax Credit Fund 32. BancorpSouth Bank also provided a construction loan of $4.25 million. Arkansas Development Finance Authority provided a $450,000 construction to permanent loan through its HOME program. Dougherty Mortgage provided a $471,654 permanent loan.
“We are pleased to invest in projects that fulfill the affordable housing needs in the area,” said Will Shurtleff, first vice president and tax credit manager at BancorpSouth Bank. “BancorpSouth Bank continues to be committed to financing deals that strengthen all of our communities.”
Construction for Valley Estates at Mabelvale Phase III is underway and scheduled for completion by November 2020. When finished, units will feature modern appliances, vinyl and carpet flooring, central heating and air conditioning, washer/dryer connections, and patios/balconies. The development will also have access to common areas shared by Phases I and II, including a clubhouse, kitchen, pool, picnic area, exercise room and equipment, playgrounds, sports facilities and laundry facilities.
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 $1.9 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.