Hampstead Development Lands $28M for Salt Lake City Asset
- Jun 24, 2020
Hampstead Development Partners has received $27.5 million in financing for the acquisition and renovation of Jackson Apartments, an 80-unit affordable senior community in Salt Lake City. Working on behalf of the borrower, KeyBank Community Development Lending and Investment secured a $17.6 million construction and permanent loan, as well as $9.9 million in tax credit equity for the opportunity zone asset. Additionally, the property will remain affordable for 20 more years under a new Section 8 HAP contract.
Financing included different types of funds: tax-exempt bonds issued by the Utah Housing Corp., 4 percent low-income housing tax credit equity, state historic tax credit equity, an Opportunity Zone equity investment and a loan from the Redevelopment Agency of Salt Lake City. As part of the LIHTC, 80 percent of the units will be set aside for adults aged 55 and older, while the rest will be available to non-seniors.
Located at 274 W. 200 S. in downtown Salt Lake City, Jackson Apartments consists of two four-story buildings developed in 1916. The unit mix features studios and one-bedroom floorplans averaging 416 square feet, according to Yardi Matrix information. All units cater to residents earning 60 percent of the area’s median income. Amenities include a community room and laundry facilities. The property is surrounded by shopping, dining and cultural venues, with several light rail stations within walking distance.
KeyBank CDLI’s Hector Zuniga and Jennifer Seamons structured the financing. Earlier this month, another KeyBank team secured $25 million in Fannie Mae financing for the acquisition and renovation of a 127-unit affordable community in Chandler, Ariz.