AUGUST ISSUE: Land Rush
- Jul 30, 2014
Despite Tough Competition, LIHTC Developers Find Sites in Major Markets
By Keat Foong, Finance Editor
The apartment development cycle is in full swing, especially in many of the high-cost markets, and that has made it even harder for tax-credit developers to battle their market-rate housing counterparts for development sites. But opportunities remain outside—and within—core markets.
Paul Woodworth, head of SunTrust Community Capital, which provides both debt and equity financing for Low Income Housing Tax Credit development, observes that the market is not necessarily suffering from lack of land. “We have a robust pipeline of new construction deals getting done,” he said. Although “there are higher land prices and rising costs, there is still a lot of work that does get to pencil out.”
SunTrust provides financing in the Southeast and Mid-Atlantic, including markets such as Washington, D.C., Atlanta, Raleigh, Charlotte, Nashville, Tampa Bay, Orlando and Memphis. “We are seeing new deals, preservation of older deals, and also ground-up new construction getting executed across our footprint,” said Woodworth.
Read the full article in the August 2014 issue of CPE. Access is free!