HUD-Financed-Hillside Manor-HUD Financed-New Ulm-Minnesota

Sale of Former HUD-Financed Apartments in New Ulm, Minnesota

On June 6th, AHIB completed the Sale of former HUD-financed apartments in New Ulm, Minnesota known as Hillside Manor. The property was originally developed under the HUD 236 program and had units subsidized by the local housing authority. Both buyer and seller are repeat clients of the firm, and the deal was structured off-market after the successful sale of the Western Manor apartments in Austin, Minnesota in 2016. The deal closed at an unusually low cap rate due to the [...]

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Project-Based Section 8 Sale-Sage Crest-Section 8-HAP Contract-Section 42-LIHTC-Aurora-Illinois

Project-Based Section 8 Sale

On April 26, 2017, AHIB completed a Project-Based Section 8 Sale to a LIHTC Developer in Suburban Chicago. Sage Crest, a 102 unit family property, was on the market for less than 30 days before receiving multiple offers. The property had recently undergone window and boiler replacements prior to going on the market. Existing Fannie Mae debt with a 5.25% rate was paid at closing, including a yield maintenance prepayment penalty. Sage Crest was marketed prior to the 2016 presidential [...]

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RAD II HAP Contract Sale-Carriage House-Section 8-HAP Contract-RAD-Adrian-Michigan

RAD II HAP Contract Sale in Adrian, Michigan

On April 6, 2017, AHIB closed on an 85 unit RAD II HAP contract sale in Adrian, Michigan. Of the units, 11% were covered by a Project-Based RAD II HAP Contract. The remaining units are operating under a HUD 236 Use Agreement through 2020. Carriage House has a current occupancy of over 96% with up-side potential through expense reduction and long-term rent growth. The property is located in Southeast Michigan, less than an hour from both Ann Arbor, MI [...]

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Conventional Apartment Sale- Hawthorn Ridge - Section 8 - HAP Contract - Woodridge, Illinois

Suburban Chicago Project-Based Section 8 (HAP Contract) and Conventional Apartment Sale

In January, 2017, AHIB completed a suburban Chicago project-based Section 8 (HAP Contract) and conventional apartment sale in Woodridge, Illinois. The 176 unit family property had 40% of the units covered by a project-based Section 8 (HAP Contract) contract administered by IHDA and the remaining units operating as market rate. Ownership had recently placed an FHA-insured, HUD 223f loan, which had an attractive interest rate at 3.58%, but high reserve requirements and a low loan-to-value at the target pricing, [...]

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Elm Street-Section 8-HAP Contract-Marysville, Kansas

Senior LIHTC and Project-Based Section 8 (HAP Contract) Sale in Kansas

In December of 2016, AHIB closed on the first of a two-property Senior LIHTC and Project-Based Section 8 (HAP Contract) Sale in Kansas.  The Elm Street Apartments closed and the adjacent property, Pony Run, a 24 unit USDA 515 community, is scheduled to close in the first quarter of 2017.  Both properties were renovated utilizing Section 42 Low Income Housing Tax Credits (LITHC) and were currently beyond their initial compliance periods. The properties are located in Marysville, Kansas, a rural community [...]

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Senior LIHTC -Lincoln-Villas-Section-42-LIHTC-Racine-Wisconsin

Senior LIHTC and Project-Based Section 8 (HAP Contract) Sale in Wisconsin

On December 15th, AHIB completed a Senior LIHTC (Low Income Housing Tax Credit) and Project-Based Section 8 (HAP Contract) Sale in Wisconsin. AHIB was hired to market Lincoln Villas by a court-appointed receiver after the property’s parent company entered bankruptcy. A full HAP contract was in place in addition to LIHTC restrictions from a 2009 renovation financed by the Tax Credit Exchange Program. Furthermore, the deal was originally built under the HUD 202 program, but was refinanced in a [...]

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AHF LIVE: Trump’s Impact on Project-based Section 8 (HAP) and Low Income Housing Tax Credit (LIHTC) Sales

With the 2016 Presidential Election in the rearview mirror, it is time to look forward to how the Trump Administration will affect the Section 8 (HAP) and Low Income Housing Tax Credit (LIHTC) programs.  This was the primary focus of the AFH Live 2016 conference in Chicago with many industry leaders sharing their insights and perspectives on the topic. We know with certainty that Donald J. Trump will be our next President.  There is uncertainty to his agenda and views [...]

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Three property project-based section 8 sale-Janesville-Neenah-Section 8-HAP Contract-Menasha-Wisconsin

Three Property Project-Based Section 8 Sale in Wisconsin

In November, AHIB completed a three property project-based Section 8 sale in Wisconsin. The properties totaled 96 units and were spread between three markets; Janesville, Neenah and Menasha, but operated under two HAP contracts and one FHA-insured loan. Due to the distance between the properties (Janesville is over a two hour drive from Neenah and Menasha), the market of buyers was primarily made up of of parties actively managing affordable housing in Wisconsin. After a brief marketing period, the private [...]

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Family Project-Based Section 8-Hillcrest-Section 8-HAP Contract-McHenry-Illinois

$100K a Unit For a Family Project-Based Section 8 (HAP Contract) Sale to a LIHTC Developer

On October 26th, AHIB completed a deal that produced a price of over $100K a unit for a family project-based Section 8 (HAP Contract) sale to a LIHTC developer. AHIB was introduced to the potential seller in late 2015 by an outside party who knew the needed price would be very difficult to support. The owner had highly leveraged the property several years prior with an FHA-Insured mortgage, an selling the property for much more than the debt appeared [...]

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Minnesota Project-Based Section 8 Sale - Western Manor-Section 8-HAP Contract-HUD 236-Austin-Minnesota

Minnesota Project-Based Section 8 Sale

On October 19th, AHIB closed on a Minnesota project-based Section 8 sale in Austin. The property was owned by a family business that was the original developer, who had never sold a property before. The deal formerly operated under a HUD 236 mortgage, which regulated the non-Section 8 units. Over a period of several years, Kyle Shoemaker of AHIB consulted with the owners to better position the property for sale, due primarily to artificially low rents coming off of [...]

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