THOMASVILLE, STATESBORO and DUBLIN, Ga., April 23, 2020—Hunt Capital Partners announced the closing of $14.07 million in federal as well as Georgia State low-income housing tax credit (LIHTC) equity financing for the acquisition and rehabilitation of 200 units of affordable housing across three sites located throughout southern Georgia. These sites include Wood Valley Apartments in Thomasville, Morris Heights Apartments located in Statesboro, and Groveland Terrace Apartments in Dublin. Each site has its own distinct allocation of tax credits and all units at all sites will be set-aside for households earning up to 60 percent of the area median income. Each property also benefits from a Section 8 Project Based Rental Assistance HAP contract covering all units.
According to the 2019 Out of Reach report by the National Low Income Housing Coalition, minimum wage workers in Georgia would need to work 87 hours per week to afford a modest one bedroom rental home at fair market rent. The Georgia Budget and Policy Institute reports that several factors have contributed to the state’s housing affordability challenges, including the fact that Georgia’s wages have mostly remained stagnant and are still below pre-Great Recession levels for all workers. Investing in affordable housing across the state is crucial.
“We are proud to partner with Envolve Community Management to preserve 200 units of affordable housing across Georgia,” said Hunt Capital Partners Executive Managing Director Dana Mayo. “While this is the second time we have worked with Envolve Community Management as a developer, they have served as the management agent for 10 projects in the Hunt Capital Partners portfolio.”
For the rehabilitation of the three Georgia properties, Envolve Community Management is serving as the developer, guarantor and management agent. Empire Corporation of Tennessee, Inc. is the general contractor. Dyke Nelson Architecture, LLC is the project architect.
Construction began on April 13, 2020 and is scheduled to be completed by April 2021. The scope of rehabilitation work across the three sites includes general site work; new windows and siding for each building; kitchen and bathroom remodels; installation of energy efficient HVAC systems and lighting fixtures; and the conversion of certain units into handicap accessible units, along with modifications to create audio/visual impaired units.
Wood Valley Apartments is an 88-unit family development consisting of 11 two-story garden style apartment buildings, along with a community/management office building located at 1325 Warner Street in Thomasville. Originally constructed in 1974, Wood Valley offers one-, two-, and three-bedroom units, including five accessible units that will be brought up to current standards as part of the rehabilitation effort.
Originally built in 1972, Morris Heights consists of eight two-story garden style apartment buildings along with a single-story community/management office building. The development provides 60 apartments comprising one-, two-, and three-bedroom units for families. The complex is located at 24 Morris Street in Statesboro. This is the first comprehensive rehabilitation of the development.
Groveland Terrace features 52-units spread across five existing two-story garden style buildings, and will feature a newly constructed community/management office as part of the renovation. Built in 1971, this will be the first comprehensive rehabilitation of the development. The property is located at 1717 Telfair Street in Dublin.
The total development cost for the rehabilitation of all three sites is $30.45 million. Hunt Capital Partners facilitated the investment of federal and state LIHTC equity through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 37. Red Stone provided a $20.27 million construction tax exempt bond loan, along with a $12.27 million permanent bond loan. Groveland Terrace, LLC, provided $1.2 million in acquisition and permanent subordinate seller financing. Morris Heights, LLC provided $158,842 in acquisition and permanent subordinate seller financing. Summit Wood Valley, Ltd. provided $982,368 in acquisition and permanent subordinate seller financing.
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 $2 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.