Mark-to-Market HAP Property Sold in PennsylvaniaKyle Shoemaker
Recently, AHIB brokered the sale of a 96-unit, full HAP Contract apartment community for $6.1 million in Somerset, Penn. The community, known as Laurel Village I and Laurel Village II, are two separate properties adjacent to each other and operated as one. Each property has its own HAP contract and set of financials. Laurel Village I was formerly operated under the 515 program, but that debt has been paid off and there are no USDA or 515 restrictions in place. It has a 20 year exception rent renewal HAP contract placed in 2015. Laurel Village II units are covered by a 20 year HAP contract that was placed in 2016.
The two-phase community provides 96 affordable housing units total. The unit mix is comprised of one, two and three bedrooms with varying floor plans. The properties are in above average physical condition and have been properly maintained over the years. Historically, each property has also retained high occupancy. Laurel Village I & II are located in a QCT and an Opportunity Zone in a metro area, approximately 65 miles from Pittsburgh.
Neal Wolf represented both the buyer, a regional investment group, and seller, a local housing provider in this transaction.