AHIB Sells Low Income Housing Tax Credit (LITHC) Apartments in St Louis, MOKyle Shoemaker
In March, working jointly with the St. Louis investment sales team of DTZ (formerly Cassidy Turley), AHIB sells Low Income Housing Tax Credit (LIHTC) Apartments in St Louis, MO at the Lewis and Clark Apartments. The sale included both the real estate and over $1M in remaining LIHTC. The complex was in default with US Bank after the developer who executed the original rehab could not meet high debt service obligations. DTZ was in position to earn the assignment because of an existing relationship with US Bank, and brought in AHIB to complete the team with an affordable housing focused broker.
US Bank did not file for foreclosure, keeping the partnership and LIHTC compliance in tact. This situation required a specialized broker who not only needed to be able to access multi-family buyers qualified and interested in acquiring properties within tax credit compliance, but also those who could monetize a small amount of remaining tax credits. The deal was further complicated by a recently re-drawn flood plain, leading to rising insurance costs that were difficult to quantify.
AHIB was able to bring multiple buyers to the table, as well as multiple investors ready to pay for the remaining tax credits. The deal closed for $2,835,169 to an owner with both management and tax credit syndication experience in a smooth transaction that took just over three months to complete.