Pine Meadows, at 3451 Saland Way, is expected to be ready for occupancy in late 2005, says Landmark principal Francisco Rojo. Unit sizes will be 719 sf to 1,155 sf.
"Rents at Pine Meadows will be lower for every unit as compared to similar-sized units in the area," Rojo says. "These lower rents, together with excellent amenities, a convenient location and resident services, give Pine Meadows an advantage in this market."
Pine Meadows rents will start at $272 per month for a one-bedroom apartment, $329 for two bedrooms and $378 for three bedrooms. Comparable market rents in the area are about $800 to $850 per month for a two-bedroom apartment, Rojo says.
On the financing component of the project, Related managing director Patrick Martin tells GlobeSt.com his company's equity in the deal is derived from tax credits. "Each state is allocated a certain amount of low-income housing tax credits each year, based on population, that it can use as an incentive to build affordable housing," Martin says. "Developers compete to receive those credits to help in financing their projects, and they sell the tax credits to companies such as Related Capital. Those companies, in turn, find corporate investors such as banks, insurance companies and other financial institutions, that can use the tax credits to offset their tax liability." In this case, the Landmark Cos. received tax credits that Related purchased for $10 million in cash.
Martin says the tax credit program is considered "a good-sense housing program that combines public and private funds--public tax credits and equity from private investors to aid in addressing the dire shortage of affordable housing" in the US. Citing data from HUD, Martin says there are about 4.9 million households needing affordable housing nationally.
The three-story buildings, consisting of one- to three-bedroom residences, will surround a clubhouse. Landmark Cos. has acquired, developed, sponsored and managed more than 2,500 apartment units to date, according to Rojo.
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