Puerto Rico LIHTC Property Lands $26M

Mirador Las Casas. Image courtesy of Merchants Capital

Fernando L. Sumaza & Co. has landed $25.9 million in financing for the renovation of Mirador Las Casas, a 294-unit Section 8 and Low-Income Housing Tax Credit property in San Juan, Puerto Rico. The revolving bridge loan comes from Merchants Bank of Indiana and is meant to collateralize a $56 million bond issuance from the Puerto Rico Housing Finance Agency. The financing was arranged by Merchants Capital and LIHTC equity was syndicated by The Richman Group.

The property comprises 21 three-story buildings which incorporate two-, three- and four-bedroom floorplans ranging from 787 to 1,168 square feet. Supportive services will be implemented such as the reservation of 16 units for residents with functional diversity, three of which will be sensory accessible for tenants with hearing impairments.

Extensive amenity upgrades

The improvement plans include upgrades to kitchens and baths, as well as the installation of in-unit washers and dryers. Funds are also meant for the construction of new amenities such as a digital library building, basketball court, playground and storage sheds. Moreover, new sidewalks will be installed on the property.

Located on Avenue Eduardo Conde, the community is roughly 7 miles from downtown San Juan and some 4 miles from the Isla Verde beach. It is also less than 4 miles from Luis Muñoz Marin International Airport. In its vicinity there are some retail options and sports courts.

Senior Vice President of originations at Merchants Capital New York Ben Levine stated in prepared remarks that the loan complies with federal LIHTC 50 percent test requirements and will reduce development costs. Levine emphasized the need for affordable residential options in Puerto Rico as the island is still recovering after Hurricane Maria in 2017.