In its newest venture, Related is loaning Carlisle $24.8 million in two funding packages for the development of Lenox Court, a planned 360-unit, 15-building undertaking on 26 acres in West Jacksonville, FL, 230 miles north of Downtown Orlando.
The complex broke ground April 1 and is scheduled for completion in fall 2003. Related is giving Carlisle $12 million in equity for tax credits that will be generated by the property. Another $12.8 million in permanent financing will come from PW Funding, a Related-sponsored firm specializing in multifamily financings.
Lenox Court is believed to be the first new construction of affordable housing in west Jacksonville in 20 years, according to Related managing director Marc D. Schnitzer. In a prepared statement, Schnitzer says he is confident the project will benefit Related, Carlisle and the community because West Jacksonville "boasts low multifamily vacancy rates with virtually no new construction in years, or planned."
Schnitzer calls the financial alliance with Carlisle "a win-win situation that is an excellent investment (for Related) and also serves to fulfill a void in affordable housing in Jacksonville."
Related has funded 12 Carlisle projects in the last three years and plans to fund at least six more in 2002. Lenox Court's three-story buildings will be at Lenox Avenue and Plymouth Road. Monthly rents will be $250 to $784 for one to four-bedroom units. To qualify, tenants must have incomes of 60% or less of the average median income for the area.
In Arcadia, FL, 100 miles south of Downtown Orlando, Related is funding Carlisle's $3 million, 50-unit affordable housing structure under construction. Carlisle plans to break ground on eight new ventures this year, totaling 2,000 units, with an estimated project cost of $160 million.
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