Sunset Bay Apartments

Affordable Housing in Cutler Bay, Florida

Constructed in 2001, the Sunset Bay Apartments are located in Cutler Bay, an area in the southern part of Miami, Florida. The property includes 308 apartments in 13 separate three-story residential buildings. There are two auxiliary structures and 562 parking spaces. Property amenities include a clubhouse, business center, fitness center, pool, playground, and car care center.

REDEVELOPMENT
Total Cost

$79,383,103

Description
Sunset Bay, NHPF’s 308-unit property in Miami-Dade County, was built in 2001 and had been well-maintained but has building systems that were past their useful life. The property had become dated in comparison with other properties in the Cutler Bay submarket. The redevelopment of Sunset Bay furthered a successful joint venture between NHPF and TPI, Inc. This rehabilitation preserved the property’s affordability for the long term, increased marketability, and addressed long term capital needs of an existing affordable housing property serving over 500 residents.

Financing
Secured financing and funding for this redevelopment project included:

$25,378,000	4% LIHTC Equity
$23,585,117	FHA 223(f) Loan Assumption
$13,800,000	FHA 241(a) Loan
$12,145,000	Seller Note
$2,900,531	Deferred Developer Fee
$934,455	GP Capital Contribution
$640,000	Cash from Operations

ACQUISITION / PRESERVATION
Total Cost

$26,170,000

Description
Sunset Bay is comprised of 45 one-bedroom, 149 two-bedroom, and 114 three-bedroom units. Sunset Bay is a 100% Tax Credit Property and subject to a Land Use Restriction Agreement (“LURA”). Eight units are restricted to households earning 33% or less of Area Median Income (“AMI”), while the balance is restricted to households earning 60% or less AMI. The initial tax credit compliance period has expired.

Financing
This transaction was limited to a transfer of limited partner interests only, in partnership with The Partnership Inc. (TPI), a non-profit affordable housing owner, developer, and property manager founded in 1994 and based in Florida. Secured financing and funding for this project included:

$25,620,000	Wells Fargo Bank
$550,000	Owner Equity