Hunt Capital Partners Invests in Second Puerto Rico Affordable Housing Development
LOS ANGELES, Jan.17, 2017– Hunt Capital Partners, in partnership with the Puerto Rico Housing Finance Authority,announced the closing of $27.6 million in low-income housing tax credit (LIHTC) equity financing for the new construction of Puerta de Tierra.The transaction closed on Nov. 22, 2016 and the development will result in the new construction of 174 units for families in San Juan, Puerto Rico. Construction has already begun and is scheduled for completion in the summer of 2018.
Puerta de Tierra is the second development in Puerto Rico’s affordable housing revitalization plan. The property will provide quality housing to low-income families in one of the largest sub barrios of Old San Juan. Puerta de Tierra is less than 10 miles away from the Las Gladiolas public housing property, which is currently under construction as well. Las Gladiolas was the first development to be reconstructed under Puerto Rico’s renovation initiative and Hunt Capital Partners provided tax credit equity financing for the deal in the summer of 2016.
“We are proud to be a part of Puerto Rico’s second affordable housing, new construction development,” said Hunt Capital Partners Executive Managing Director Dana Mayo. “We appreciate the dedication and commitment of investors like Citi, whose contribution helps make all of this possible.”
Puerta de Tierrais amixed-income and mixed-finance development. Out of 174 units, there will be 92 public housing units, 43 LIHTC units and 39 market rate units.When completed, tenants will live in brand new apartments in townhouse and garden style buildings. They will enjoy community amenities such as a fitness room, business center, playground, and garden. The development also includes 6,000 square feet of commercial space.
Puerta de Tierra was awarded $29.2million in federal LIHTCs from the Puerto Rico Housing Finance Authority and has an estimated total development cost of $41.3million.Hunt Capital Partners facilitated the investment of federal tax credit equity by Citi through its proprietary investor fund, Hunt Capital Partners Tax Credit Fund 19. Citi also provided the construction loan. Additional financing for the development was provided through a public partnership with the Puerto Rico Department of Finance. 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.