Hunt Capital Partners Redevelops Sherman Plaza in El Paso, Texas
LOS ANGELES, Jan. 24, 2017– Hunt Capital Partners, in partnership with the Housing Authority of the City of El Paso (HACEP), announced the closing of $16.078 million in low-income housing tax credit equity financing for the new construction of Sherman Plaza, which is located in El Paso, Texas. The deal, which closed on Nov. 4, 2016, marks the fifth transaction that Hunt Capital Partners and HACEP have collaborated on in the last two years.The Sherman Plaza development will not only demolish and reconstruct 144 multifamily units, but it will also build an additional 34 units, addressing the growing need for affordable housing in the El Paso community.
The 18 residential buildings that originally comprised Sherman Plaza were built in 1953. However, six decades of wear and tear left the property in critical condition. Redeveloping Sherman Plaza enables it to continue operating as a viable affordable housing community for low-income residents. It also brings HACEP closer to achieving its plan to revitalize its entire 6,100-unit public housing portfolio through the Rental Assistance Demonstration conversion program.
“Every family deserves quality housing, and the new construction of Sherman Plaza gives families the opportunity to experience modern living and contemporary amenities,” said Hunt Capital Partners Executive Managing Director Dana Mayo. “Additionally, because the redevelopment expands Sherman Plaza’s current portfolio by 34 units, more El Paso residents, who were on HACEP’s waiting list,will have access to affordable housing.”
The groundbreaking for Sherman Plaza took place on Nov. 2. The construction cost per unit is approximately $126,000, and the reconstruction is scheduled for completion by December 2017. During the redevelopment period, HACEP will temporarily relocate residents, who will retain the right to return once the units are finished.One hundred fifty three units at Sherman Plaza will be restricted to households at or below 30 or 50 percent of the area median income (AMI) while 25 units will be restricted to 60 percent AMI. Once completed, the units will have notable new features including energy star appliances and central heating and air conditioning. Tenants will also enjoy community spaces and benefits including a child daycare facility, clubhouse, basketball/sport court, playground, adult education programs and service coordination.
For the Sherman Plaza development, Hunt Capital Partners facilitated the investment of federal tax credit equity by J.P. Morgan Capital Corporation through its proprietary investor fund, Hunt Capital Partners Tax Credit Fund 16.Paisano Housing Redevelopment Corporation (PHRC), a wholly owned subsidiary of HACEP,is the developer and general partner. Sundt Construction, Inc. is the master subcontractor, and EP Home is the property manager.
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.
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