Related Capital Investing in Puerto Rico Multifamily

PUERTO RICO-Related Capital Company said this week it has provided $8.6 million in equity to Desarrollos Insulares Inc. of Puerto Rico in exchange for tax credits from the development of a 132-unit senior affordable housing development, Jardin Del Atlantico.

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.