Hunt Capital Partners Breaks Ground on New Affordable Housing Property in Puerto Rico
LOS ANGELES, Sept.6, 2016– Hunt Capital Partners announced today the financing of Las Gladiolas, a mixed financed development located in San Juan, Puerto Rico, which closed on Aug. 2, 2016.The development will result in the new construction of 140 units in 17 buildings across 7.2 acres of land. Nearly80 percent of the units will be restricted to households at or below 60 percent of the area median income. Construction is underway and scheduled for completion in March 2018.
Built in 1969, Las Gladiolas was originally comprised of four high-rise buildings that contained676 units before the complex was demolished in 2011. The new construction of Las Gladiolas will provide much needed affordable housing to San Juan’s business district and economic hub.
“Hunt Capital Partners is proud to partner with Citi in providing equity for140 units of quality affordable and market rate housing in Puerto Rico,” said Dana Mayo, executive managing director of Hunt Capital Partners. “The new units and facilities will feature state-of-the-art appliances and amenities, significantly improving the community’s standard of living for years to come.”
Las Gladiolas is the first mixed finance development in Puerto Rico’s history combining public housing, low-income housing tax credit (LIHTC) and market rate units. Out of 140 units, there will be 56 public housing units, 55LIHTC units and 29 market rate units. When construction is finished, tenants will be able to choose from one, two, and three bedroom units in townhouse and garden style buildings. Each dwelling will be furnished with energy star appliances. Families will also enjoy several community amenities including a community center, indoor exercise facility, computer room, swimming pool, playground, garden area and barbecue grills. Additionally, the developmentincludes4,500 square feet of commercial space.
Las Gladiolas was awarded $25.7 million in federal LIHTCs from the Puerto Rico Housing Finance Authority and has an estimated total development cost of $33.5 million.Hunt Capital Partners facilitated the investment of nearly $24 million in tax credit equity through its proprietary tax credit investment fund,Hunt Capital Partners Tax Credit Fund 19, with Citi. Additional financing for the development was provided through a public partnership with the Puerto Rico Department of Financing. McCormack Baron Salazar and its affiliates are the general partner, developer and property manager. F&R Construction Group, Inc. is the general contractor and Álvarez-Díaz & Villalón is the architect.
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.