Exclusive: TPI Trades South Florida Workforce Housing Community
A $70 million financing package was involved in the deal.
Foothill Affordable Housing has acquired Clipper Cove, a 384-unit workforce housing community in Boynton Beach, Fla., according to Yardi Matrix data. TPI sold the asset after 31 years of ownership.
In conjunction with the acquisition, Foothill also secured three loans totaling $70.3 million for the property. The financing package includes:
- $53.3 million in Freddie Mac-enhanced bonds issued by Public Finance Authority, set to mature in 2036, carrying a 4 percent interest rate
- $15.3 million in bonds issued by Public Finance Authority with an 11-year maturity and a 7.5 percent interest rate
- 10-year, $1.8 million Freddie Mac loan originated by CBRE Capital Markets.
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Completed in 1985, Clipper Cove comprises one- and two-bedroom units averaging 961 square feet across 25 buildings. Amenities include a swimming pool, gym and clubhouse.
TAM Residential, the community’s manager, provides assistance through its Essential Living Program, which is designed to aid healthcare workers, educators, first responders and military personnel. To apply, residents must earn no more than 50, 60, 80 or 120 percent of the area median income.
Located at 1500 Southern Cross Lane on a 35-acre site, the community is more than 1 mile from Boynton Beach’s downtown area, with employers such as Forest Park and Crosspointe elementary schools, as well as Baptist Health, operating within less than 3 miles.
Investment addressing the “missing middle”
While many local, state or federal rental assistance programs help residents whose income levels often fall between 30 and 60 percent of AMI, a growing part of the population remains left out—the so-called “missing middle”.
As workforce housing shortages continue and, according to Wendover Housing Partners Founder & COO Ryan von Weller, development often faces strain points related to construction costs and interest rates, an alternative for attainable housing emerges through investment.
TruAmerica closed its second workforce housing fund at $708 million earlier this year. The company aims to purchase assets at meaningful discounts to replacement cost, while also undertaking on-site renovations, CFO Noah Hochman told Multi-Housing News.
