Matthew Rieger’s Housing Trust Group just nabbed the land and financing it needs to move forward with a new 100-unit senior housing development in Margate.
The developer received a pair of loans from TD Bank and non-profit Neighborhood Lending Partners totaling $21.2 million, according to county records. Both mortgages are secured by HTG’s 2.5-acre development site at 3100 North State Road 7.
Known as Arbor View, the project calls for a mid-rise apartment community with rent-controlled units reserved for the elderly. Some of the complex’s amenities include shuffleboard courts, a fitness center, dog park and a resort-style swimming pool.
Of the 100 apartments, 90 will be held for tenants earning below 60 percent of the area’s median income, according to the developer’s website. The remaining 10 will be reserved for tenants earning below 33 percent of that figure.
Construction is expected to start imminently, as evidenced by a notice of commencement filed with the county. State documents show the project’s total cost is estimated at $25 million, including a $3 million developer fee for HTG.
The Miami-based affordable housing developer paid $2.75 million for the land where it’s building Arbor View.
As recently reported by The Real Deal, low-income residential projects are notoriously difficult to fund. Developers often lean on lucrative tax credits granted by the state that can be sold to investors, which in turn helps build the capital stack needed to start construction.
While the majority of HTG’s funding for this project appears to be coming from the $17.7 million lent by TD Bank, a traditional lender, $3.5 million came from a consortium of banks acting under a non-profit called Neighborhood Lending Partners. Its 32 members help finance affordable housing projects to meet requirements set by the federal government’s Community Reinvestment Act.