BELLE GLADE, FL - Housing Trust Group (HTG), one of the nation’s leading developers of affordable housing, in a joint venture with The Spectra Organization, Inc. (an affiliate of the Palm Beach County Housing Authority), has closed on financing to acquire and rehabilitate Covenant Villas, a 144-unit apartment community in Belle Glade, Florida. The previously market-rate apartments will be converted to affordable housing and set aside for families earning at or below 60% and 33% of the Palm Beach County area media income (AMI).
The total development cost for the project, which includes renovation, is approximately $22 million. Funding sources include $18.2 million in 9% Low Income Housing Tax Credit equity invested by Raymond James Tax Credit Funds; loans totaling $2.2 million from Palm Beach County; permanent financing from National Lending Partners of $1.9 million; and a $13.5 million construction loan from TD Bank. Construction will commence September 30, 2016 and is expected to be completed September 2017.
“Palm Beach County and the Belle Glade community in particular has a great need for safe, clean and affordable housing,” said HTG President and CEO Matthew Rieger. “Knowing our track record in affordable housing and long-standing ties to the community, Palm Beach County approached HTG for assistance. We were able to secure financing sufficient to buy the property, allowing the previous owner to pay back the County’s first mortgage in full, and initiate a full-scale comprehensive rehabilitation program. Once the renovation is completed, Covenant Villas will be the nicest housing that the City of Belle Glade has ever seen and will serve as a catalyst for the revitalization of the surrounding neighborhood.”
“Given our experience repositioning more than 13,000 units across the US, we are proud to partner with HTG to bring quality multifamily housing to the community of Belle Glade,” said Jose More, Principal at Newport Property Construction.
The Palm Beach County Housing Authority will provide project-based housing choice vouchers for 116 of the 144 units of family housing to assist tenants who would not otherwise be able to afford the rents.
Located at 601 Covenant Drive in Belle Glade, Covenant Villas was built in 1988 and consists of 144 one-, two- and three-bedroom apartments in 18 garden-style buildings. HTG’s renovation program will bring the property up to local code and satisfy all Florida Housing Finance Corporation affordable housing guidelines. All buildings will get new metal roofs, impact-resistant windows, new electrical, plumbing and HVAC systems, and new interior carpentry, drywall, paint and cabinetry. There will also be enhanced landscaping and paving/re-stripping, and enhanced site lighting.
The general contractor on this project is Newport Property Construction, a leading provider and builder of construction services in South Florida. Palm Beach County local, Kimberly A. Dellastatious, PA, is the architect and West Palm Beach Land Developers Consortium are the engineers for the rehabilitation of Covenant Villas.
HTG recently completed construction of Courtside Family in Miami, FL, in partnership with Alonzo Mourning and has four other affordable housing communities currently under construction in Florida including Wagner Creek in Miami, Valencia Grove in Eustis, Freedom Gardens in Brooksville, and Park at Wellington in Holiday. HTG also has two market rate communities in development outside of Florida, Forest Cove in Chattanooga, TN and Aviva in Mesa, AZ.
About Housing Trust Group: Housing Trust Group (HTG) is an award-winning full-service developer of multifamily residential communities whose real estate transactions exceed $2 billion in commercial, land and residential developments across Florida, the Southeastern U.S. and Arizona. HTG develops, builds and manages a diverse portfolio of affordable housing, workforce housing, market-rate housing, and mixed-use developments. For more information, please visit www.htgf.com.
About Newport Property Construction: Founded in the mid 2000’s South Florida-based Newport Property Construction is a leading provider of building and construction services. Newport is a state-certified General Contractor, specializing in construction management in the areas of Multi-Unit Repositioning and Commercial Construction. Based in South Florida, Newport has grown to successfully manage projects in more than 10 states across the Southeastern U.S., repositioning more than 13,000 units since its founding. For information visit infonpc@npvltd.com.