Smith & Henzy Buys Affordable Housing Complex for $22M
By Julia Echikson February 21, 2024 3:43 pm
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Smith & Henzy Affordable Group purchased the ground lease for an affordable housing complex in Deerfield, Fla., for $22.4 million, property records show.
Called Palms of Deerfield Beach Townhomes, the property features 56 units on 5 acres at 533 S Dixie Highway.
Forty-four of the 56 units are reserved for families earning less than 60 percent of Broward County’s average median income, while the remaining 12 are designated for those earning 50 percent of AMI, according to the Deerfield Beach Housing Authority, which assigned the ground lease for the property. The lease runs through 2099.
Delray Beach-based Smith & Henzy secured $32 million in financing. The debt includes a $14 million loan from Citibank that matures in 2026; a $13 million loan from the Deerfield Beach Housing Authority that’s scheduled to mature in 2079, and a $5 million loan from the Broward County’s Housing Finance Authority.
The loan amounts, which total more the value of the ground lease, suggests the property will undergo renovations. Representatives for Smith & Henzy Affordable Group did not respond to a request for comment.
Julia Echikson can be reached at jechikson@commercialobserver.com.
