RENO, Nev., May 3, 2022 – Hunt Capital Partners announced the closing of $3.6 million in federal low-income housing tax credit equity financing for the acquisition and rehabilitation of Sagebrush Place II, formerly known as Centennial Park. Located on a 2.2-acre site in the heart of Reno, Nev., Sagebrush Place II was originally constructed in 1970, renovated in 2007 with LIHTC equity, and currently exhibits average condition. This acquisition and rehabilitation project, spearheaded by developer Integra Property Group, LLC, represents the second of a two-phase renovation of Sagebrush Place II’s eight, two-story townhome-style structures. Following renovations, Sagebrush Place II will offer 40 two- and three-bedroom units restricted to family households earning up to 60 percent of AMI. Of those 40, 38 units will benefit from a Section 8 Housing Assistance Payments contract, where tenants contribute 30 percent of their income toward rent.
“The pandemic affected every city differently, but Reno was hit especially hard with so much of its tourist economy going dark, throughout lockdown,” said Hunt Capital Partners Executive Managing Director Dana Mayo. “With the cost of housing in the area soaring, preserving affordable housing developments like Sagebrush Place is more important now than ever.”
To see Sagebrush Place II through to completion, Integra Property Group, LLC enlisted PacifiCap Management as management agent, J4 Development, LP as general contractor, and RDL Architects Inc. as architect. The scope of the rehabilitation for Sagebrush Place II includes various upgrades and improvements around the site as well as to the buildings’ interiors and exteriors. Beyond repaving parking lots and sidewalks, proposed exterior works includes replacing doors and windows to comply with energy codes, integrating adaptations for accessibility, and adding insulation to each units’ attic. Key interior upgrades include new kitchen appliances and flooring, bathroom upgrades, as well as the installation of energy efficient appliances. Construction is already underway and scheduled for completion in December 2022.
The total development cost for Sagebrush Place II is $10.6 million. Hunt Capital Partners will syndicate the federal tax credits through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 48. Lenders include Stifel, Nicolaus & Company Inc., who provided a $5.2 million tax-exempt construction bond loan, and Grandbridge Real Estate Capital, LLC, who provided a $6.2 million construction to permanent loan through Fannie Mae.
Environmental Social and Corporate Governance (“ESG”) Investing
Hunt Capital Partners recognizes that its institutional investors are seeking to increase the social value of their investments to help further their ESG initiatives. An investment in affordable housing not only improves the living conditions of its residents, but it also helps to remove obstacles that stand in the way of creating a healthy, safe and stable home environment for low-income families and seniors. When families spend less on housing related expenses, they have more resources available for other essentials such as food and clothing, or even extracurricular activities and educational programs. One of the most significant benefits to providing quality affordable housing is an increase in an individual’s physical and mental health. Hunt Capital Partners’ affordable housing investments create a lasting effect on the people and communities they serve for generations to come.
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 $2.6 billion in tax credit equity in over 43 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.