Property details
Low Income Housing Tax Credit (LIHTC) Multifamily Property, Southeast Region
Property Description
Low Income Housing Tax Credit (LIHTC) Multifamily Property
Extremely Rare LIHTC Opportunity!
600 units in major Georgia city.
1980's vintage.
This is a Low-Income Housing Tax Credit (LIHTC) deal.
Initial overview is this is a B-Class property located in a C-Location.
This is a very, very confidential and off market.
Buyer responsible for commissions in the sale (there are no seller-paid commissions).
NOI is $3.15m, however, the Low Income Tax Credits are set to expire at the end of 2021 (when eligibility ton convert this property to market rates can begin). In the market this asset is located in, Low Income Tax Credit deals then to be valued at 60% of Fair Market Value. This leaves a HUGE upside available to the buyer.
In essence, eligibility will occur while this asset is still under contract.
Also, one of the two properties is located in an opportunity zone.
This end-of-the year date represents the end of the LIHTC restrictions and there are no further LIHTC restrictions beyond this date.
In conversation to market rates, the buyer will have to go through the normal qualified contract process.
The buyer converting will simply need to comply.
This property has been maintained in immaculate condition. Well kept and beautifully landscaped as well.
The owners have maintained this asset very well
With regards to Value-Add, there is still a lot of meat left on the bone for the opportunistic buyer.
Potential pockets of value-add include: (1) the bigger asset is located in an Opportunity Zone; (2) The aforementioned LIHTC conversion to market; (3) the property is designated as located in a "High Performance Community" which directly leads to potential rent increases that the new buyer can take advantage of. As examples, an extra $35 per unit if kept as low income and up to $135 per unit without the tax credit.
Images
Highlights
- Status:
- Available
- Price:
- $82,000,000
- Cap Rate:
- 3.84%
Property Information
- Property Type:
- Apartments
- Industry Type:
- Apartment - Multifamily
- Units/Spaces:
- 600
- Purchase Tenure:
- Fee Simple
Existing financing information
- N/A
The information contained herein contains confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient will be prohibited. The information contained herein has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about the accuracy or completeness of the information. As a buyer, it is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this property to you depends on factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. We have no knowledge of this offering other than the information received from Seller or their representatives. We are neither your agent or an agent for the seller. We will not participate in the negotiation of the purchase price or attend the showing of this property. As a buyer, you will be required to indemnify us and hold us harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.