Partial HAP Contract Sale with HUD 236 in Louisville, KentuckyKyle Shoemaker
In April, 2016, AHIB closed on the partial HAP Contract sale of the Watterson Lakeview Apartments. The partial HAP Contract sale was 20% covered by the project-based Section 8 program. The deal also had a HUD 236 loan and is located in Louisville, Kentucky. The deal was completed as a co-listing with Cushman Wakefield of Cincinnati, who invited AHIB as a partner due to our affordable housing marketing expertise. After a short marketing period, eight offers were procured, including three above the targeted asking price, and one that offered a non-refundable deposit at contract execution. The buyer closed with a bridge loan and is in the process of a renovation utilizing Low Income Housing Tax Credits (LIHTCs), HOME Funds, and a new HUD-insured permanent mortgage.
The deal was originally marketed by a successful conventional multi-family broker who had a long-standing relationship with the seller. The broker quickly realized that he did not have the experience to effectively market the opportunity presented by the combination of the 236 loan and partial HAP contract. In an admirable move to do right by the client, he refereed the deal back to AHIB, who executed the marketing promptly. The seller was given multiple options to choose from, demonstrating and creating a market while providing back-up options. The buyer performed exactly as promised, closing at the contract price.