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Deals

Clear Blue prices the legislated spread in Dickson

At roughly $386,000 a unit with 60 voucher-backed homes, the 228-unit Tennessee start shows where apartment capital still clears without rent growth.

Clear Blue Company has broken ground on Honeywood Dickson, a 228-unit affordable community of nine buildings on 16.14 acres at 841 Cowan Road in Dickson, Tennessee, and the deal is a clean look at the legislated spread clearing affordable multifamily capital. Connect CRE reported the approximately $88.1 million project is financed through tax-exempt multifamily housing revenue bonds alongside federal and state tax credits, with Studio A Architecture as architect and BACAR Constructors as general contractor; first units deliver in fall 2027 ahead of a March 2028 completion.

The income mix sizes the capital stack more precisely than the amenities list. Of the 228 homes, 114 are reserved for households earning up to 60% of area median income and 57 for households up to 80%, while the deepest band — households up to 30% of AMI — arrives without a unit count and subtraction from the total leaves 57. The Dickson Housing Authority layers development-based vouchers onto 60 of the homes, so roughly a quarter of the property carries a subsidy contract alongside whatever the credits deliver. Spread over 228 units, $88.1 million works out to about $386,000 a unit, a figure the rent-restricted homes cannot support on their own: the bonds, credits and vouchers are not sweeteners here; they are the deal.

That is what separates Honeywood from the market-rate apartment business. The apartment bid has split into an income half and a scarcity half, with value-add buyers setting the clearing basis lower while patient capital underwrites the 2028-29 supply gap. Affordable housing runs a third lane, where the spread is legislated rather than underwritten and holds only as long as the allocation and the credit pricing hold — exposure to rent growth gives way to exposure to whoever writes the housing credit rules, and the bond exemption is doing the work that a rent premium cannot.

Deliveries begin in fall 2027 and run to March 2028, inside a window that reads as a financing problem rather than a demand one, so Honeywood will compete for construction and permanent debt against market-rate projects that lack a subsidy rail. If Clear Blue's next groundbreaking prices near $386,000 with a similar credit and voucher structure, the affordable lane has a repeatable template; a materially different figure would say Dickson was assembled for this site alone.

Honeywood Dickson units by income band
228 homes across three AMI bands; 60 also carry housing authority vouchers
Up to 30Up to 60Up to 80
CONNECT CRE; 30% AMI COUNT DERIVED BY SUBTRACTION FROM THE 228-UNIT TOTAL
Sources & further reading
Connect CRE
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