Senior LIHTC Sale in Kansas CityKyle Shoemaker
Closing out 2020, AHIB closed on a Senior LIHTC Sale in Kansas City. The Cottages of Belton and Cottages of Kansas City East offer a total of 180 affordable units specifically designated for those 55 and older. Both properties were built and placed-in-service in 1996 using Low Income Housing Tax Credits. Both sites are well-maintained and stabilized with an extensive waitlist. Cottages of Belton and Cottages of Kansas City East are approximately twenty miles from each other and offer identical floorplans. Each unit has a porch, private entrance, and attached garage. The sale also included roughly 5.5 acres of residential zoned land.
The Senior LIHTC Sale procured multiple offers above list price before call for offers. The seller was non-profit and looking to take advantage of a strong market. He was also looking to exit the affordable space to pursue other endeavors. Ultimately, the deal went under contract with an out-of-state buyer looking to grow a significant footprint in Kansas City market. The attractive debt market place and a 1031 exchange requirement further motivated the purchaser to submit an aggressive offer. The deal closed at roughly $68k per unit.
A six figure non-refundable deposit was made at contract execution. There was collaborative effort between buyer and seller to split yield maintenance north of $1.4 MM. The deal was complete in less than 70 days.