BTI Partners and 13th Floor Investments have raised raised $8.7 million in alternative financing through a tax-exempt bond offering to build a residential community in Riviera Beach, Florida. The transaction which closed on Oct. 30. was raised through the Mediterranea Community Development District to fund construction of infrastructure of the project, Arbor Parc’s, including roads, streetlights, water & sewer. Miami-based FMSbonds, Inc. served as the underwriter and Greenberg Traurig and the firm Billing Cochran Heath Lyles & Morrow served as Bond Counsel and as Issuers Counsel. The CDD bonds are backed by special assessments levied on the land within the Mediterranea Community Development District, which raised the tax-exempt bond financing for the district.
Once completed, Arbor Parc will consist of 500 single-family homes and townhomes. The first homes will be delivered in the second quarter of 2018 with prices ranging from $278,000 to $336,000 for floor plans of 1,558 to 2,086 square feet. The community is located just west of I-95 and just north of Blue Heron Blvd in Palm Beach County. In August, Arbor Parc secured a $14 million loan from Florida Community Bank to start construction of the community.
“We are very pleased with the execution of today’s transaction by our highly experienced team of professionals” said Noah Breakstone, BTI’s Managing Partner. “CDD bonds lower our construction cost and allow us to provide quality homes at attainable prices to first-time home owners. This financing mechanism is an important tool to make homes affordable to a growing sector of our community.”
