Minnesota-based Dominium Inc., one of the nation's largest developers and managers of affordable housing, has a 228-unit townhome property near Mall at Millenia under contract, with closing expected in March and $5 million in renovation planned for this year, a development associate for the company told GrowthSpotter.
Located at 1813 Buchanan Bay Circle, Buchanan Bay Townhomes lies on 23.4 acres at the southeast corner of S. Texas and Holden avenues, two miles east of The Mall at Millenia. The affordable housing community was built in 1999, and is owned by an LTD affiliate of McCormack Baron Salazar of St. Louis, an affordable housing developer and manager.
"This opportunity allows us to acquire an asset in good condition, in a market that we know and that we believe in," said Neal Route of Dominium. The company owns six affordable housing properties in Greater Orlando, totaling 1,604 units.
Through affiliate Orlando Leased Housing Partners V, LLLP, Dominium will source a $20 million equity bridge loan to finance acquisition and rehabilitation of the property from CITI, which will serve as both construction lender and Freddie Mac Seller Servicer.
The developer is working through Orange County government for that $20 million to be sourced as mortgage revenue bonds, which will allow for both the permanent Freddie Mac Tax-Exempt loan and the construction loan to be financed on a tax-exempt basis.
Orange County Commissioners should approve via consent agenda on Tuesday the tax exempt status of an original $16 million in mortgage revenue bonds that were approved by resolution in December, and an additional $4 million.
If approved on Tuesday, Dominium will apply for tax credits through the Florida Housing Finance Corporation, with closing on the purchase and management takeover in late March, Route said.
A $5 million budget is projected for renovation on the property, which will include exterior improvements, landscaping, in-unit upgrades and clubhouse improvements, he said. Work should start in early April, with ZMG Construction hired as general contractor and e+a Architecture of St. Louis as architect.
Route declined to confirm the contracted purchase price for the property. Dominium is working through the low income housing tax credit group of CBRE as its broker in the deal.
Dominium will continue to seek acquisition opportunities in Greater Orlando this year, with preference for properties built after 1990 with 100 units or more, and some sort of existing affordability designation, Route said.