National CORE, a prominent nonprofit developer, has secured significant funding to construct Hawthorne Heights, an 86-unit affordable housing project specifically designed for seniors in Gainesville, Florida. This development aims to address the growing need for accessible and affordable living options for the elderly in the region.
Key Takeaways
- KeyBank Community Development Lending and Investment provided a $13 million construction loan.
- KeyBank Commercial Mortgage Group facilitated a $6.5 million Freddie Mac permanent loan.
- Red Stone contributed Low-Income Housing Tax Credit (LIHTC) equity and bonds from the Florida Housing Finance Corp.
- The property benefits from tax abatement, ensuring long-term affordability.
- Hawthorne Heights will cater to seniors aged 62 and older, with dedicated units for individuals with special needs.
Project Details and Funding
KeyBank Community Development Lending and Investment has committed a $13 million construction loan to National CORE for the development of Hawthorne Heights. Complementing this, KeyBank Commercial Mortgage Group has arranged a $6.5 million Freddie Mac permanent loan. Further financial backing for the project comes from Red Stone, which provided Low-Income Housing Tax Credit (LIHTC) equity and bonds issued by the Florida Housing Finance Corp. The project also qualifies for tax abatement, a crucial incentive that exempts nonprofit-owned properties committed to affordable housing for a minimum of 99 years from property taxes.
Addressing Senior Housing Needs
Hawthorne Heights is designed to serve seniors aged 62 and above. A key feature of the development is the allocation of five units specifically for individuals with special needs, ensuring inclusive housing solutions. The five-story building will be situated on a 3-acre site. In addition to the special-needs units, the development will include three apartments designated for residents earning no more than 22 percent of the area median income (AMI). Nine apartments will be available for households earning up to 40 percent of AMI, and the majority, 74 apartments, will be for households earning 60 percent or below AMI, reflecting a commitment to a range of income levels.
Timeline and Operations
The completion of Hawthorne Heights is anticipated by November 2026, with the lease-up period scheduled to commence in August 2026. National CORE has appointed The CT Group to manage and operate the community, ensuring efficient and resident-focused services.
Sources
- National CORE Obtains Funding for Affordable Seniors Housing Development in Gainesville, Florida –
REBusinessOnline, REBusinessOnline.