LOS ANGELES, Nov. 1, 2016– Hunt Capital Partners, in partnership with the Housing Authority of the City of El Paso (HACEP), announced the closing of $5.97 million in low-income housing tax credit equity financing for the rehabilitation of George W. Baines and Charles R. Morehead Apartments. The transaction closed on Aug. 18, 2016 and the development will renovate 58 units at Baines and 62 units at Morehead for families and seniors.
While the city of El Paso is home to a vibrant culture and history, it is also home to some of the poorest neighborhoods in the United States. Refurbishing Baines and Morehead, which were built in 1982 and 1984, will provide much needed upgrades to HACEP’s aging public housing properties and significantly improve the appeal of the neighborhood. The Baines-Morehead rehabilitation also brings HACEP one step closer to completing its ambitious goal of revitalizing its entire 6,100-unit public housing portfolio through the Rental Assistance Demonstration program (RAD).
“We are thrilled to partner with HACEP once again to finance the renovation of the Baines and Morehead apartments,” said Hunt Capital Partners Executive Managing Director Dana Mayo. “Over the last 18 months, Hunt Capital Partners and HACEP have rehabilitated and redeveloped over 2,000 units. We are proud to continue to help HACEP achieve its goal of converting its entire portfolio under RAD and to ensure low-income families in El Paso have access to high quality affordable housing. ”
Rehabilitation for Baines and Morehead began August 2016 and is scheduled for completion by August 2017. When finished, residents will enjoy new comforts such as Energy Star appliances, central heating and air conditioning, and outdoor picnic areas. Regarding community amenities, Baines will have central laundry facilities,on-site management and a clubhouse while More head will provide barbeque grills and off-street parking.Units at both locations will be restricted to households at or below 60 percent of the area median income.
For the Baines-Morehead development, 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 provided equity bridge financing via the purchase of unsecured, tax-exempt Series B bonds; this allowed the transaction to take advantage of a Freddie Mac tax-exempt loan bond structure,which lowered the properties’ long term financing costs.
Paisano Housing Redevelopment Corporation (PHRC), a wholly owned subsidiary of HACEP, partnered with Hunt Development Group as co-developer of Baines-Morehead. PHRC is also the general partner. Affordable Housing Enterprises is the general contractor, Pavilion Construction is the prime 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.