FL Affordable Senior Community Gets $20M in Loans
- Apr 12, 2019
Hunt Real Estate Capital has provided two loans totaling $19.8 million to finance the acquisition and rehabilitation of Oceanside Estate Apartments, a fully affordable senior community in Pinellas Park, Fla.
The first loan is an $11 million affordable multifamily refinancing structured under Section 223(f) of the National Housing Act. The property will receive 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. The second is an $8.8 million bridge loan to 223(f) LIHTC 4-percent structure. The owner also received $5.9 million in tax credit equity via the sale of 4 percent Low-Income Housing Tax Credits.
Located at 6700 102nd Ave. N., Oceanside Estate Apartments is approximately 11 miles southeast of Clearwater. Interstate 275 is roughly 5 miles away and Tampa International Airport is within a 25-minute drive.
The 104-unit senior housing property was built in 1981 on a 4.1-acre parcel. The two three-story buildings have a net rentable area of 69,368 square feet and feature one-bedroom floorplans of 644 square feet each. A third on-site building houses a community room and an arts and crafts room. Common-area amenities include a gazebo and patio suitable for events, two laundry facilities and 200 parking spaces, according to Yardi Matrix data.
“The borrower is taking advantage of the favorable interest rate environment to recapitalize the asset with long-term, FHA-insured financing and plans to invest approximately $3.6 million in renovations after the purchase is complete,” said Kevin Deegan, director at Hunt Real Estate Capital, in prepared remarks.
Planned renovations include interior and exterior upgrades, from full kitchen and bathroom remodeling and adding two new elevators, to asphalt repair and landscaping improvements. In addition, the owner intends to make the property ADA-compliant.