Foothill Affordable Housing has acquired Clipper Cove, a significant 384-unit workforce housing community located in Boynton Beach, Florida. The transaction marks the end of a 31-year ownership period for TPI, signaling a new chapter for the well-established property.
Key Takeaways
- Foothill Affordable Housing purchased the 384-unit Clipper Cove community in Boynton Beach, Florida.
- The acquisition was financed through a package of three loans totaling $70.3 million.
- Clipper Cove has been owned by TPI for 31 years prior to this sale.
A Strategic Acquisition and Financing Package
Foothill Affordable Housing secured a substantial financing package totaling $70.3 million to facilitate the acquisition of Clipper Cove. This package includes:
- $53.3 million in Freddie Mac-enhanced bonds issued by the Public Finance Authority, maturing in 2036 with a 4 percent interest rate.
- $15.3 million in bonds from the Public Finance Authority, featuring an 11-year maturity and a 7.5 percent interest rate.
- A 10-year, $1.8 million Freddie Mac loan originated by CBRE Capital Markets.
Clipper Cove: A Community Focused on Essential Workers
Completed in 1985, Clipper Cove is a sprawling community spread across 35 acres, featuring 25 buildings with one- and two-bedroom units that average 961 square feet. Residents benefit from amenities such as a swimming pool, gym, and clubhouse. The community’s management, TAM Residential, actively supports its residents through an Essential Living Program. This program is specifically designed to assist healthcare workers, educators, first responders, and military personnel. To qualify for residency, individuals must earn within certain thresholds of the area median income, typically not exceeding 50, 60, 80, or 120 percent.
Addressing the "Missing Middle" Housing Gap
Clipper Cove’s acquisition highlights the growing need to address the "missing middle" in housing affordability. While many programs cater to lower income brackets, a significant portion of the workforce struggles to find attainable housing options. This trend is exacerbated by rising construction costs and interest rates, making alternative investment strategies crucial for developing and preserving affordable housing. The sale of Clipper Cove represents a strategic move to maintain and potentially enhance housing options for essential workers in the South Florida region.