McCormack Baron Salazar Hold Groundbreaking for Caguas, Puerto Rico

The Puerto Rico Department of Housing and national affordable housing developer, McCormack Baron Salazar, Inc., celebrated the groundbreaking of critically-needed, intergenerational, mixed-income housing in the Barrio Turabo. Located on vacant land that was previously a public housing site, the new community includes housing options that are affordable to families and seniors with a broad array of incomes.

When completed, the 20-acre site in Barrio Turabo will have 238 apartments for families in townhomes and walk-up apartments and a 200-unit apartment building for seniors. The new community will also include a 6,400 square foot administrative building with a community room with a business area and Wi-Fi, a fitness room and management space. The community will have integrated health and safety features including an enhanced lighting plan, security-controlled parking, smart keys and smart home security, fitness and walking trails, small playgrounds, a community gathering public-park with a main plaza and multiple gazebos. The entire community has been designed to be resilient to major storm events.

The Department of Housing, McCormack Baron Salazar, and private investors financed the development through a public/private partnership that used public dollars to leverage private equity, resulting in just under $130 million invested in the effort. The new family apartments include with one-, two-, three-and four-bedroom units affordable to families with a range of incomes: 60 percent are reserved for very-low income families, 20 percent are reserved for workforce, and 20 percent have market-rate rents. The senior building has 190 one-bedroom units and ten two-bedroom units, of which 95 percent are reserved for very-low income seniors and five percent are reserved for low-income seniors.

The new community elevates the standard for community design in Caguas by connecting to nearby commercial centers with restaurants and shopping, medical facilities, hospitals, an elementary school and surrounding residential neighborhoods. In addition, the site is adjacent to the Villa del Carmen Recreational Park – which features a small community center, a running track, play equipment and a Skate Park.

McCormack Baron Salazar is also the lead developer in the redevelopment of housing sites in Historic Old San Juan and in in the Central Business District in San Juan.

A core component of the McCormack Baron Salazar development approach is layering public and private funds to transform communities across the country. In Caguas, HUD and Puerto Rico Department of Housing have committed significant funding including the first use of CDBG-DR funds for a housing development in Puerto Rico. The Puerto Rico Housing Finance Authority has provided LIHTCs. RBC Capital Markets with Freddie Mac is providing tax credit equity. Citi Community Capital is serving as the construction lender. Planning and architectural services are provided by Álvarez-Díaz & Villalón. F&R Construction Group, Inc. is the general contractor.