Hunt Capital Partners and Tri-Star Affordable Development Bring Critically Needed Affordable Housing to the Florida Keys
LOS ANGELES, Jan.31, 2017– Hunt Capital Partners, in partnership with Tri-Star Affordable Development,announced the closing of $10 million in low-income housing tax credit (LIHTC) equity financing for the new construction of Caya Place.The transaction closed on Dec. 30, 2016, and the deal will create 42 multifamily units in Marathon and Big Pine Key, Florida, in the Florida Keys.
The Monroe County Workforce Housing Stakeholder Assessment Report from 2015 indicated there was a severe shortage of affordable housing in the Florida Keys, stemming from the concentration of hospitality and tourism jobs, the high cost of housing,and restrictive development laws.Specifically, the Rate of Growth Ordinance in the Keys, which is designed to maintain the population’s hurricane evacuation time to 24 hours, restricts the number of new housing units in the area.
“The reduced inventory of workforce housing in the Florida Keys has created challenges for the community, including extensive commutes for employees and congestion on Highway 1,” said Tri-Star Affordable Principal Martin Flynn. “We are proud to spearhead the development of Caya Place with Hunt Capital Partners as it will provide much needed affordable housing options for families within closer proximity to employment destinations.”
“Tri-Star Affordable Development has an exceptional track record of success and we are thrilled to join forces with them on the Caya Place development,” saidHunt Capital Partners Executive Managing Director Dana Mayo. “Florida Keys is an area that is critically under served when it comes to affordable housing. We are proud to work with our investment partner, Citi, on a development that changes this narrative and provides quality affordable housing.”
Caya Place is the second new construction affordable housing development Tri-Star Affordable and Hunt Capital Partners have sponsored together in the Keys in the last 13 months. The first project was 73 Ocean Apartments, located in the city of Marathon. Financing for 73 Ocean closed in December 2015, and the construction of the 51 multifamily units was completed in October 2016.In addition to having ADA handicap and sensory impaired units, 73 Ocean achieved the highest possible “Platinum” certification from the Florida Green Building Coalition.
Tri-Star Affordable and Hunt Capital Partners will host a grand opening for 73 Ocean and a groundbreaking ceremony for Caya Place on Feb. 10, 2017.Construction for Caya Place is scheduled for completion by October 2017. When finished, the homes will feature new amenities such as stainless steel appliances, granite counter tops and in-unit washers and dryers. Of the 42 units at Caya Place, 37 will be restricted to households at or below 60 percent of the area median income (AMI) and five units will be restricted to households at or below 25 percent of AMI.
The Florida Housing Finance Corporation awarded Caya Place$10 million of9% federal LIHTC and $3.5 million of favorable subordinate financing through its State Apartment Incentive Loan program. Caya Placehas an estimated total development cost of $15.7 million.Hunt Capital Partners facilitated the investment of federal tax credit equity by Citi through its proprietary investorfund,Hunt Capital Partners Tax Credit Fund 19. Sherwood Construction Inc., an affiliate of Tri-Star Affordable, is the general contractor for the development.
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 $1.4 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 investees 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.
About Tri-Star Affordable Development
Tri-Star Affordable Development constructs and operates affordable housing projects in areas of critical need throughout the Florida Keys,with a dedication to both the environment and the communities they build. The principals of Tri-Star Affordable have developed more than 8,000 affordable units throughout the United States during the past 28 years. For more information, visit www.tristarad.com.