LOS ANGELES, April 30, 2019 – Hunt Capital Partners, in collaboration with Plesko Properties, LLC, announced the closing of federal and state low-income housing tax credit (LIHTC) equity financing for the new construction of Fitchburg Senior Apartments. Located at 2001 Traceway Drive in Fitchburg, Wis., the LIHTC development will provide 160 affordable housing units to seniors who are 55 and older. Units will be restricted to households who earn up to 30, 40, 60, 70, and 80 percent of the area median income.
The city of Fitchburg has over 25,000 residents in which nearly 20 percent are 55 and older, according the U.S. Census. The area suffers from a persistent lack of affordable housing options, only heightened by historically low vacancies in the rental market. Fitchburg Senior Apartments will provide much needed housing for the elderly in the region.
“We welcomed the opportunity to partner with Plesko Properties on their first LIHTC deal,” said Hunt Capital Partners’ Executive Managing Director Dana Mayo. “While Fitchburg Senior Apartments is Plesko’s first LIHTC deal, the firm has over 40 years of real estate experience, with particular expertise in developing senior multifamily developments. We’re glad to partner with them and invest in Fitchburg Senior Apartments.”
The development team broke ground on Fitchburg Senior Apartments in March 2019. Once completed in July 2020, Fitchburg Senior Apartments will consist of one four-story, elevator serviced building providing 80 one-bedroom/one-bathroom units and 80 two-bedroom/two-bathroom units. Unit amenities will include central heating and air conditioning, energy efficient appliances, walk-in closets, and in-unit storage. Design features will be implemented to accommodate seniors, including wide doorways and hallways, bathrooms with shower seats and grab bars, and raised electrical outlets. The apartments will provide 111 subterranean and 74 surface parking spaces available to tenants and guests. The development will offer on-site management, a community center, interior mail room, service kitchen, fitness studio, and screened porch for residents.
The total development cost for Fitchburg Senior Apartments is $34.4 million. Fitchburg Senior Apartments was awarded $15 million in federal and state LIHTCs. Hunt Capital Partners facilitated the federal tax credits through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 27; Advantage Capital purchased the state LIHTC credits through Fund 27 as well. The Wisconsin Housing and Economic Development Authority (WHEDA) provided $23 million in taxable and tax-exempt construction and permanent financing and $1.5 million in soft financing.
Plesko Properties is the project developer, who contracted Baker Tilly Virchow Krause, LLP as the project consultant. Stevens Construction Corp. is the general contractor. JLA Architects is the project architect, and Oakbrook Corporation is the property management agent.
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 $1.7 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, or for Hunt Companies, please visit www.huntcompanies.com.
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