Hunt Capital Partners Renovates 76-Year-Old Multifamily Development in Virginia
LOS ANGELES, Oct. 18, 2016– Hunt Capital Partners announced the Aug. 31, 2016 closing of the rehabilitation of Dale Homes Phase I,a 76-year-old public housing property for families in Portsmouth, VA. The property is being recapitalized through the Department of Housing and Urban Development’s (HUD) Rental Assistance Demonstration program (RAD).
Built in 1940, Dale Homes is Portsmouth Redevelopment and Housing Authority’s (PRHA) oldest property. It was in critical need of repairs, with renovations costing nearly $55,000 per unit. Through RAD, PRHA was able to leverage both public and private resources to raise capital for the rehabilitation of Dale Homes Phase I, which comprises 146 multifamily and duplex units. Rehabilitation began in September 2016and is scheduled for completion in March 2018.
“Dale Homes is an important public housing community in Portsmouth, and after serving families for 76 years, it was time to update the property,” said Hunt Capital Partners Executive Managing Director Dana Mayo. “We are proud to partner with the Portsmouth Redevelopment and Housing Authority and support its mission to breathe new life into one of its historic neighborhoods.”
Dale Homes Phase I is the first of a two-phase rehabilitation development that will not only enhance the aesthetic appearance of the homes, but also modernize the units to ensure their functionality and long-term viability as quality affordable housing for the Portsmouth residents that need it most. Units will be restricted to households at or below 50 percent of the area median income. When renovation is finished, families will enjoy amenities such as new appliances, central heating and air conditioning, and community picnic areas.
The rehabilitation of Dale Homes Phase I will also provide benefits for PRHA, including additional cash flow. The property is expected to generate income and part of the proceeds will go directly to PRHA to pay developer fee and repay the loans contributed by PRHA. These revenue streams will help PRHA sustain itself and provide means for the organization to pursue initiatives that improve and preserve PRHA’s affordable housing portfolio for years to come.
Dale Homes Phase I was awarded $7.4 million in federal low-income housing tax credits. Hunt Capital Partners facilitated the investment of federal tax credit equity through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 20.Hunt Capital Partners also helped secure funding for Dale Homes Phase I by successfully utilizing a unique financing structure that combined a Freddie Mac tax-exempt senior loan with equity bridge bonds privately placed with TowneBank.
PRHA partnered with Hunt Development Group and The Communities Group as co-developer of Dale Homes Phase I. PRHA is also serving as property manager, general partner and guarantor. Mutual Builders Inc. is the general contractor.
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.