LOS ANGELES, Sept. 13, 2016 – Hunt Capital Partners announced today the financing of Magens Junction, an affordable housing development in the U.S. Virgin Islands, which closed June 23, 2016. Magens Junction is located on St. Thomas, overlooking the popular tourist beach, Magens Bay. The property is just three miles from Charlotte Amalie, the capital of the U.S. Virgin Islands and one of the busiest ports in the Caribbean.
The transaction will fund the new construction of 48 units in two six-story buildings on 2.31 acres, with 43 units restricted to households at or below 60 percent of the area median income (AMI) and five units restricted to households at or below 30 percent AMI. Additionally, 10 percent of the units (five units) will be available for individuals with disabilities. Construction began earlier this summer and is scheduled for completion in July 2017.
Magens Junction will have the ability to provide its own electricity and water, as well as process its own wastewater. Electric power will be entirely sourced from on-site electric generation through microturbines and a large photo-voltaic solar system.The microturbines are approximately 33 percent more efficient than the traditional electric grid and provide generation efficiency up to 90 percent. As an added value,the heat waste generated by the microturbines will be used to heat the water for all of the units. The property will also provide its own water from on-site wells percolated through a reverse-osmosis system. All wastewater will be processed through an on-site wastewater treatment facility.
Magens Junction was awarded $24.3 million in Federal LIHTCs from the Virgin Islands Housing and Finance Authority and has an estimated total development cost of $26.3 million.Hunt Capital Partners facilitated the investment of $23.8 million in tax credit equity through its proprietary fund, Hunt Capital Partners Tax Credit Fund 19, with Citi. Jackson Development Company, LLC is the developer for the property.
“We are thrilled to collaborate with both Citi and Jackson Development to provide new, affordable housing to low-income families in the U.S. Virgin Islands that are both environmentally friendly and sustainable.” said Dana Mayo, Executive Managing Director at Hunt Capital Partners.
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.