LOS ANGELES, Aug. 6, 2019 – Hunt Capital Partners, in collaboration with the Jackson Development Company, announced the financial closing of Magens Junction II, a new affordable housing complex offering 60 multifamily units in a nine-story building. Located on the island of St. Thomas within the U.S. Virgin Islands, the development is the second phase of the adjacent and completed Magens Junction I, which is a 48-unit family development. Hunt Capital Partners also worked with the Jackson Development Company on Magens Junction I, which is now 100 percent occupied with a waiting list of 200 families.
Magens Junction II is located on St. Thomas, home to 50,000 residents and frequently visited by tourists for its scenic locale and world renown Magens Bay Beach. In September 2017, the U.S. Virgin Islands were hit by two category 5 hurricanes, Irma and Maria, in the span of several days. The storms destroyed over 18,500 homes and businesses on the islands, contributing to the severe shortage of affordable housing. Magens Junction II is the first new construction multifamily project to break ground since the hurricanes. This project will expand the number of housing options available to low-income families in the area.
“We are glad to partner with the Jackson Development Company on Magens Junction II, which is our third development in the U.S. Virgin Islands together,” said Hunt Capital Partners Executive Managing Director Dana Mayo. “Jackson Development has put together an experienced team who has worked on multiple affordable housing developments in the U.S. Virgin Islands. They know how to get these projects completed on time and on budget.”
For Magens Junction II, construction is scheduled for completion in early 2021. When finished, Magens Junction II will provide 30 one-bedroom, one bath units and 30 two-bedroom, two bath units leased to households with incomes up to 30 percent and 60 percent of the area median income. Additionally, six units will be allocated for households with disabilities.
Magens Junction II will feature modern appliances and design upgrades such as hurricane impact windows. Its amenities include a community center, indoor exercise facility, computer room and playground. Most notably, Magens Junction II will be a self-sufficient development that does not rely on local utility companies for water, sewer or electricity. Its Capstone microturbines will provide electricity for the entire project. The development will also have its own water wells, producing potable water and a wastewater treatment facility.
The total development cost for Magens Junction II is $34.9 million. Hunt Capital Partners syndicated $30.5 million in 9% federal low-income housing tax credits (LIHTC) through its proprietary fund with Citi Community Capital called, Hunt Capital Partners Tax Credit Fund 19. Hunt Capital Partners also provided a $26.9 million construction loan. Jackson Development provided a $1.8 million soft site acquisition loan. The Virgin Islands Housing Finance Authority lent $3.5 million in CDBG DR funds.
Jackson Development’s team comprises GEC, LLC as the contractor, Steven E. Hutchins as the architect and Royal American Management, Inc. 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 $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.
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