Tennessee LIHTC SaleBill Brading
Affordable Housing Investment Brokerage, Inc. represented the seller of the 72-unit Overlook at Elk Hill Apartments in Knoxville, Tennessee. The Low Income Housing Tax Credit (LIHTC) property was placed in service in 2008 and is still operating inside of its initial compliance period with restrictions continuing through 2038. The tax credit property is in a Qualified Census Tract but not inside an opportunity zone.
The Overlook at Elk Hill offers one- and two-bedroom units with private entrances. The tax credit property has 4 vacant units at the time of sale. The LIHTC property has 57 units with rent restricted at 60% AMI and 15 units restricted at 50% AMI. The majority of the tenants at the tax credit property are utilizing Section 8 housing choice vouchers, allowing the site to easily meet its 50% AMI requirements. Affordable Housing Investment Brokerage, Inc. received multiple offers from national buyers over the target price for the tax credit property. AHIB’s Kyle Shoemaker and Bill Brading successfully brought the tax credit property to close within 45 days of having a signed PSA. At the time of sale, the trailing cap rate was 3.7%.