Related Capital describes the affordable housing supply on the island as "severely constrained" and says the two companies plan to partner on numerous affordable developments. "Puerto Rico represents a large untapped housing market … with all the right components for success: huge pent-up demand, limited supply and an experienced local developer," said Related Capital's Executive Vice President Justin Ginsberg.
Puerto Rico residents typically pay up to 50% of their gross income on rent, with over one-quarter of total island housing demand coming from senior households, according to Related Capital. Juan Carlos Albors, president and sole shareholder of Desarrollos Insulares, says already there is a waiting list of residents for The Jardin del Atlantico complex, which will benefit from a new law allowing for rent subsidies to alleviate the strong market pressure on the island's many senior residents.
The development will be located on the Atlantic Ocean side of Puerto Rico, 81 miles west of San Juan in Aguadilla, the largest municipality in the region with 64,700 residents. Studio and one-bedroom units will range in size from 469 sf to 640 sf and be situated in a six-story "L" shaped high-rise building with exterior walkways.
Subsidized rents will be up to 51% less than comparable market-rate units, with the net maximum rents payable by residents ranging from $174 to $183 per month, or 10% of the adjusted household income under the new law. All of the units will be restricted to residents age 60 and over earning 60% or less of the median income.
Desarrollos Insulares, based in Hato Rey, Puerto Rico, is a member of the Albors Development Group, which has completed 1,100 units of new Section 8 rental assistance and tax credit properties in the territory. Related Capital, a multifamily financial services firm, is the second largest owner of multifamily properties in the country, with ownership interests in over 280,000 units.
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