Kansas City HAP LIHTCKyle Shoemaker
On November 19th 2015, AHIB closed on the sale of Kansas City HAP LIHTC apartments. The Woodbridge Apartments, a 118 unit property, with 67% project-based Section 8 coverage and all units still under LIHTC compliance from a renovation fifteen years prior. The purchaser of the Kansas City HAP LIHTC was a Maryland-based LIHTC developer with extensive experience in Missouri, who closed the deal in x months with bridge debt form a bank relationship. The buyer has submitted applications for a new bond and credit allocation along with several soft money programs in an effort to renovate the property post-closing.
AHIB earned the marketing assignment from a seller reluctant to engage a broker after his direct negotiations with a buyer stalled. The seller had successfully sold one Section 8 property to this buyer, and was working on making a direct deal on Woodbridge when AHIB was enlisted to analyze and value the deal. Our conclusion was that the seller’s hunch was right, a better price was not only possible but likely, and we commenced to marketing the project. AHIB’s efforts produced eight offers in under 45 days, several of which were higher than the off-market bid already on the seller’s desk, even when our fee was taken into consideration. Our process produced not only a better price, but excellent deal terms as well, including hard earnest money early in the escrow process, short time-lines to get government approval paperwork submitted, and good back-up options in place should something have gone wrong.
The seller is glad we got his ear at the right time and stepped in to prevent him from leaving money on the table. Our valuation and advisory services come with no commitment required beyond some of your time. If a sale is a consideration anytime in your future, let’s discuss to see how our firm can create value for your business.