Hallmark at Truesdell: Section 42 with HOME restrictions in South Carolina
Affordable Housing Investment Brokerage, Inc represented the seller of two South Carolina properties, The Hallmark at Truesdell and The Hallmark at Greenwood. The properties were marketed and sold as a portfolio to the same buyer.
In late November of 2022, AHIB Inc. completed the sale of The Hallmark at Truesdell, a 64-unit tax credit property. The Low Income Housing Tax Credit (LIHTC) apartment community is located 20 minutes north of Columbia, South Carolina in Kershaw County. The property was placed in service in 2009 with initial compliance not ending until 2024.
The South Carolina tax property was partially financed using HOME funding. HOME loan funding results in an additional layer of rent restrictions further complicating the transaction. Kershaw County has welcomed a 45% increase in AMI rate growth and 33% increase in allowable Max LIHTC rent in the last year alone, providing the opportunity for the right buyer to see great potential upside in the future. However, the buyer will have to comply to the HOME restrictions through 2031. AHIB Inc’s Senior Vice President, Bill Brading, and Managing Director, Kyle Shoemaker, were able to produce multiple offers from experienced, qualified regional and national buyers with experience in HOME restrictions. Ultimately the seller chose to sell both properties in one deal to the same regional investor.