R4 CAPITAL AND R4 CAPITAL FUNDING FINANCED 768 UNITS OF AFFORDABLE HOUSING IN JACKSONVILLE, FLORIDA
— Over $121 million in debt and equity provided —
R4 Capital, a national affordable housing tax-credit syndicator and asset manager, and R4 Capital Funding (R4CF), its affiliated mortgage lending platform, announced they jointly arranged $40,873,000 in equity funding and $81,600,000 of tax-exempt financing for the acquisition, rehabilitation, and rebranding of four existing low-income housing developments in the Jacksonville, Florida area: Calloway Cove, Palmetto Glen, Valencia Way, and The Weldon.
The four properties that make up the Jacksonville Portfolio are part of a larger portfolio of HUD-assisted properties that have struggled in recent years due to a lack of capital re-investment. In late 2016, Millennia Housing Development, Ltd. (MHD) was selected to purchase the portfolio by HUD. MHD’s property management arm, Millennia Housing Management (MHM), assumed management of the properties in March 2017.
James Spound, President of R4 Capital Funding, notes, “We have a unique ‘one-stop shop’ capability with R4 Capital and R4 Capital Funding that allows for a cohesive structuring of tax credit equity and mortgage capital under one roof. With this combined approach, our firm offers seamless and efficient transactions to both our developer and investor partners.”
The properties will be restricted to residents earning up to 60% of the area median income (AMI), and include 208 three-bedroom units, 450 two-bedroom units, and 110 one-bedroom units – all of which will be newly renovated. Each of the four properties is at least 97% occupied; most existing residents are expected to remain post-renovation.
“Fewer than half the people living in the lower-wage sections of Jacksonville have enough income to afford the average rent.” said Paul Connolly, Executive Vice President of R4 Capital, “Financing multiple affordable properties within a five mile radius of the city center means we will have a substantial impact on the community providing safe, quality, affordable housing.”