LOS ANGELES, Aug. 8, 2019 – Hunt Capital Partners announced the closing of $12.2 million in low-income housing tax credit (LIHTC) equity financing for the acquisition and rehabilitation of Simpson Arbor Apartments in North Hollywood, a city within Los Angeles county in California. All LIHTC units will continue to benefit from a Project Based Section 8 subsidy where all tenants will continue to pay 30 percent of their income towards rent.
Originally built in 1963 and renovated in 2001, Simpson Arbor consists of six two-story garden style and townhome buildings across 2.06 acres. It is fully occupied. Once renovated, the development will continue to offer 82 LIHTC one, two, and three-bedroom units, set aside for households with incomes up to 40, 45, and 50 percent of the area median income (AMI). There will also be a single employee unit.
“We are excited to partner with Brookmore Apartment Corporation on Simpson Arbor Apartments, which marks our third collaborative LIHTC development,” said Hunt Capital Partners Executive Managing Director Dana Mayo. “This investment will help to enhance both the quality of affordable housing and the quality of life for residents in the North Hollywood community.”
The rehabilitation cost per unit is $135,000. Construction is underway and is expected to be completed in September 2020. Site and building improvements will include the replacement of asphalt, fencing, sewer lines, roofs, door frames, kitchen and bath fixtures, counter tops, vinyl flooring, and electric unit panels. The management office, laundry facilities and activity room will also be remodeled. During construction, Overland, Pacific & Cutler, LLC, a multi-lingual consulting firm, will spearhead the relocation program. Households will be relocated to off-site temporary housing, eight units at a time, in phases. The development also has a service agreement with Lutheran Social Services of Southern California to provide a case manager and supportive services to residents. Options for supportive services include instructor-led educational health, wellness and skill-building classes.
The total development cost for Simpson Arbor is $41.02 million. Hunt Capital Partners facilitated its investment in the federal LIHTCs through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 31. Citibank provided a $20 million construction loan, along with a $10.56 million permanent loan. The seller, Simpson Arbor Apartments, LP, provided a $15.69 soft seller-financing note.
Brookmore Apartment Corporation’s development team includes Precision General Commercial Contractors Inc. as the general contractor, Front Porch as the contract developer, TDM Architects, Inc. as the architect, and CARING House Ministries, Inc. as the 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.