Hunt Real Estate Capital announced today it provided two HUD 221 (d)(4) New Construction Loans to finance the development of two multifamily properties in South Florida. The total funding equals $67 million.

“Both loans were structured under the U.S. Housing and Urban Development’s (HUD) 221 (d)(4) loan program. This is a very attractive finance product for investors working to develop new multifamily options,” explained Marc Suarez, Director at Hunt Real Estate Capital. “These loans offer developers high leverage with a longer-term – up to 40 years – and the flexibility they need to complete construction with permanent financing in place.”

“We are pleased to offer our clients this specialty finance product that provides them an efficient, cost-effective way to secure well leveraged, long-term, low-cost debt financing,” added Suarez. “Hunt Real Estate Capital has extensive knowledge about this specialized HUD product and local market expertise in South Florida. The combination of product and market intelligence is extremely valuable to our clients.”

Both loans will amortize over 40 years and include two years of interest only. The properties include Boardwalk 280 and San Filippo Apartments.

Boardwalk 280

Hunt Real Estate Capital provided a $42 million HUD 221 (d)(4) New Construction Loan to finance Boardwalk 280 Apartments, a new multifamily development that will feature 280 apartment units, a leasing office, community common area, and a mix of outdoor public courtyards and gathering spaces. The property will consist of seven four-story apartment buildings with elevator access. The borrower is Boardwalk 280, LLC and the deal is backed by Gerardo Aguirre and Hector Garcia, seasoned commercial real estate investors with a combined 50 plus years of knowledge and experience in home building and real estate sales. The borrowers are first time HUD borrowers that have owned the land for more than 10 years. 

The property is located just two miles from American Dream Miami, a new mega-mall and shopping theme park that will be built in the near future on land at the intersection of Florida’s Turnpike and Interstate 75. This 200-acre shopping and entertainment complex will become the largest mall in the United States, creating solid housing and job demand in the local area.

Boardwalk 280 is located on a 12.52+ acre site in the City of Miramar, which is in Broward County, Florida. Property amenities will include two swimming pools, cabana beds, playground areas, a dog park, grilling areas, tennis tables, and Wi-Fi connectivity/stations throughout the common areas. The luxury clubhouse has a lounge/social room, café bar, business center, and fitness center.

“The financing and underwriting experts at Hunt Real Estate Capital were able to streamline the loan approval process through their experienced staff. Their knowledge of HUD and this particular product made the loan process smooth and efficient,” noted Gerardo Aguirre and Hector Garcia, owners of SH Communities. “Hunt’s expertise and the ability to move quickly with a rather complex loan product proved invaluable for us and the success of this project.”

San Filippo Apartments

Hunt Real Estate Capital provided a $25 million HUD 221 (d)(4) New Construction Loan to finance San Filippo Apartments, a to-be-built multifamily community that is located on a 10-acre site in the City of Palm Bay within Brevard County, Florida. San Filippo Apartments will feature 197 apartment units housed in three, four-story mid-rise buildings with a clubhouse with desired amenities.

The Borrower is Alliance Palm Bay Holdings, LLC, whose General Partner is Robert Cambó, of Alliance Companies. Alliance Companies was founded in 1994 and has developed over 30 projects in 16 counties in the State of Florida. The property is in the booming Space Coast market where commercial space companies like SpaceX, founded by billionaire entrepreneur Elon Musk, and Blue Origin, started by Inc. Chairman Jeff Bezos, are setting up facilities. 

The project is classified as green/energy-efficient housing and will feature on-site management and maintenance, secured access entries, a resort-style swimming pool with cabanas, outdoor grilling areas, fitness center, and a dog park.

San Filippo Apartments project will have a total of 362 parking spaces, including 334 standard surface spaces, 19 garage spaces and nine accessible spaces. The Palm Bay/Melbourne Market projects population and employment growth allowing the market to remain stable and further improve.

“Hunt Real Estate Capital is uniquely qualified to execute the 221 (d)(4), with a long history of completed transactions with HUD and the ability to dedicate a small army of professionals to address every detail in the process. Hunt’s transaction back office is second to none when it comes to HUD,” noted Robert Cambó.

“Both the San Filippo and Boardwalk 280 Apartments are to-be-built multifamily projects that will provide market-rate housing for working professionals and families,” added Suarez. “We were pleased to leverage our HUD expertise to close these deals efficiently. Jeff Jones, our internal HUD expert with our Dallas team, worked tirelessly to close these two loans. His expertise proved invaluable. We have two happy clients largely because of him,” concluded Suarez.