After several years as market-rate apartments, a development will be converted back to affordable housing in Clearwater, Florida.
Sunrise Affordable Housing Group recently acquired The Indigo Apartments, with plans to restore all 208 units as permanent affordable housing for low-income families and seniors.
Originally built as Prospect Towers to serve Clearwater’s senior community, the property operated as affordable housing for more than 50 years before it was converted to market-rate apartments with higher rents in 2020.
Through its recent acquisition, Sunrise Affordable is returning the property to its roots, says Eric Ray, founding partner of the company.
“This is a community victory we are proud to be a part of,” he says. “Under Sunrise stewardship, The Indigo will transform into a source of accessible, high-quality housing at an irreplaceable location.”
Sunrise has a $10 million rehabilitation effort planned to better serve its target residents earning between 30% and 80% of the area median income.
Ray attributes the deal to strong public-private partnerships, saying his firm worked with the city, Pinellas County, and others to structure the project. The Indigo is the first time that the Pinellas County Land Trust participated in an affordable housing preservation deal.
The transaction was structured to ensure that 100% of the apartments will be affordable. In addition, the Clearwater Housing Authority has awarded The Indigo new rental subsidies on 52 units, which will ensure access for Clearwater’s lowest-income residents.
“Moving forward, we’ll be able to offer a voucher to the lower-income members of the community, opening the accessibility of the property,” Ray says.
The downtown location is one that would otherwise be inaccessible to affordable housing, and the acquisition and conversion will be roughly half or a third of the time faster than new construction, estimates Ray.
The Indigo is one of the most rewarding projects so far the company, which was founded about five years ago and has nearly 1,000 units. “The mission element of this project is second to none that I’ve been a part of,” Ray says.
Financing for the $51 million transaction included federal low-income housing tax credit equity from R4 Capital, a Department of Housing and Urban Development Section 221(d)(4) loan originated by Berkadia, and support from the Housing Finance Authority of Pinellas County, Clearwater Community Redevelopment Agency–Downtown, Clearwater Housing Authority, and the city of Clearwater Economic Development Division.
