Hunt Real Estate Capital announced today it provided two loans to finance the acquisition and rehabilitation of an affordable senior housing property located in Pinellas Park, Florida. Hunt Real Estate Capital provided an $11 million affordable multifamily loan and a bridge loan in the amount of $8.8 million.
The property is a 104-unit affordable senior housing property that was built in 1981 and is located on 4.1 acres of land. It is comprised of two three-story buildings. There is a third building on the property that houses both a community room, as well as an arts and crafts room.
The loan is an affordable rate refinance structured under Section 223(f) of the National Housing Act. The property benefits from project-based rental assistance via a Section 8 Housing Assistance Payment Contract and a new 20-year HAP Contract that was executed prior to closing.
Hunt Real Estate Capital also provided a bridge to 223(f) LIHTC 4% structure. Additionally, the borrower received $5.9 million in tax credit equity via the sale of 4% Low-Income Housing Tax Credits.
“This community has an insatiable appetite for quality affordable apartments, especially those geared towards the elderly resident,” noted Kevin Deegan, Director at Hunt Real Estate Capital. “The majority of residents are aged 62 and older, and those that are not are rented to tenants who are disabled and have special needs.”
“The borrower is taking advantage of the favorable interest rate environment to recapitalize the asset with long-term, FHA-insured financing. The borrower plans to invest approximately $3.6 million in renovations after the purchase is complete,” added Deegan.
Planned renovations include various unit upgrades, such as a full kitchen and bathroom remodel, new interior paint and the installation of packaged terminal air conditioners in each unit. Exterior upgrades include two new elevators, exterior paint, asphalt repair and restriping, landscaping improvements and the repair and installation of various outdoor amenities. In addition, the borrower plans to bring the property into ADA compliance.
“This deal is significant in that there were two loan closings, a bridge loan to facilitate the original acquisition of the property, and then a long-term 223(f) permanent loan to lock in long-term, low fixed-rate financing. This transaction showcases our ability to structure both sides of these deals, which are becoming increasingly common due to the competitive acquisition market,” concluded Deegan.
All of the units have one bedroom and one bathroom, and the property has a net rentable area of 69,368 square feet. Property amenities include a gazebo and patio used for community events. There are additional community spaces on each floor of the two residential buildings, onsite parking is available to tenants, and there are laundry facilities located in each building.
Pinellas Park is located approximately 16 miles northwest of St. Petersburg.