AUSTIN, Texas, Nov. 1, 2022 – In partnership with O-SDA Industries, Travis County Housing Finance Corporation, and Saigebrook Development, Hunt Capital Partners (HCP) announced the closing of $14.1 million in federal low-income housing tax credit (LIHTC) equity for the construction of Saison North. Located in Austin, Texas, Saison North will provide 116 units in one five-story, elevator-serviced midrise building situated on a 1.7-acre parcel. Saison North will be located on the site of the previous North by Northwest Restaurant and Brewery, paying homage to the original structure by reusing various materials from the restaurant and brewery as part of the overall design.
In recent years, the need for affordable housing in Austin has grown significantly. A new report by the Kenan Institute ranks Austin as the second fastest growing city in the United States. The median home value in Austin increased from $349,156 in August 2020 to $566,479 in August 2022, with average multifamily rents rising 10% year over year. In 2021, GoBanking reported that out of 50 cities studied, Austin experienced the highest increase in cost of living at $18,531, which was roughly 34% more expensive than the previous year. In Austin, the city currently faces a shortage of affordable housing options with only 22 affordable homes available for every 100 low-income renters.
“The significant influx of new residents and jobs in Austin has spurred economic development, but it has also started to increase rent and living expenses for longtime and low-income residents alike,” said HCP Executive Managing Director Dana Mayo. “Saison North and other developments like it allow for growing cities like Austin to remain affordable for those that live and work there while still promoting growth.”
Once completed in May 2024, the newly constructed Saison North will offer 48 one-bedroom, 44 two-bedroom and 24 three-bedroom units set aside for family households earning up to 30%, 50% and 60% of AMI, as well as 34 market rate units. Each unit will feature modern amenities, including a refrigerator, oven, dishwasher, washer/dryer connections, and both a coat and walk-in closet. There will also be a business center, leasing center, fitness center, bicycle parking, and a fully furnished, two-story clubhouse with a community room.
In accordance with O-SDA Industries’ efforts towards a green, more sustainable future, Saison North will be built to meet National Green Building and Austin Energy Green Building certifiable standards, as well as boast eco-conscious features such as Energy Star appliances, high efficiency lighting, and low flow plumbing fixtures. The development will also offer supportive services through Portfolio Resident Services which include transportation, childcare, adult supportive services, as well as health and community support.
The developer for Saison North is O-SDA Industries. Saigebrook Development is the consultant. TCC Country Hill Development Corporation is the general contractor, with Skybeck Construction acting as prime subcontractor. Three Bar Architecture, Inc. will serve as the architect. Accolade Property Management, Inc. will be the property manager.
Development costs for Saison North total $39.2 million. HCP facilitated the federal LIHTCs through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 43 (HCPTCF 43). Lenders include Bank OZK, who will provide a $19.5 million construction loan and JPMorgan Chase, who will provide a $12.9 million permanent loan. Other financing sources include a $2.4 million construction-to-permanent loan from Travis County, a $6.2 million soft loan from Austin Housing Finance Corporation, and a $375,000 soft loan from Texas State Affordable Housing Corporation.
Environmental Social and Corporate Governance (“ESG”) Investing
Hunt Capital Partners recognizes that its institutional investors are seeking to increase the social value of their investments to help further their ESG initiatives. An investment in affordable housing not only improves the living conditions of its residents, but it also helps to remove obstacles that stand in the way of creating a healthy, safe and stable home environment for low-income families and seniors. When families spend less on housing related expenses, they have more resources available for other essentials such as food and clothing, or even extracurricular activities and educational programs. One of the most significant benefits to providing quality affordable housing is an increase in an individual’s physical and mental health. Hunt Capital Partners’ affordable housing investments create a lasting effect on the people and communities they serve for generations to come.
About Hunt Capital Partners
Hunt Capital Partners (HCP) is the tax credit syndication division of Hunt Companies, Inc. (Hunt). HCP specializes in the sponsorship of Federal and State Low-Income Housing, Historic, and Solar Tax Credit Investments funds. Since its inception in 2010, HCP has raised over $2.8 billion in tax credit equity in over 48 proprietary and multi-investor funds. HCP manages almost 760 project partnerships representing over 75,000 homes in 51 states and territories. Founded in 1947, Hunt is a privately held company that invests in businesses focused in the real estate and infrastructure markets. The activities of Hunt’s affiliates and investors include investment management, asset management, property management, development, construction, consulting and advisory. For more information on HCP, please visit www.huntcapitalpartners.com, or for Hunt, please visit www.huntcompanies.com.
