Cincinnati, OH, March 22, 2019 (GLOBE NEWSWIRE) -- SVN Affordable | Levental Realty (SVN Affordable) announced today that the second tranche of a 3,751 unit Southeast Affordable Housing Portfolio has sold. SVN Affordable acted as the exclusive listing broker and facilitated a discrete, “invite-only” marketing campaign on behalf of the seller.
The second tranche of the two-part portfolio is comprised of 1,776 units located in Virginia, North Carolina, South Carolina, Georgia, and Florida. This part of the portfolio is comprised of twelve properties, all of which are covered by Project-Based Section 8 HAP Contracts. The properties were rehabbed with 4% or 9% Low-Income Housing Tax Credits between 2000-2006 and are at or near the end of their initial tax credit compliance periods. Eleven of the twelve projects have a family designation while one of the properties is designated elderly.
The first tranche of the two-part portfolio was comprised of 1,975 Low-Income Housing Tax Credit units located in Virginia, North Carolina, and Georgia and closed in September 2018.
The seller acquired the distressed assets under a value add strategy, implementing a substantial restabilization effort. Significant capital improvements were completed, addressing deferred maintenance and improving property operations and occupancy over a 3-year period. The stabilized portfolio was acquired by the buyer with the intent of preserving the long-term affordability of the assets.
“Given the scale, geographic footprint, and affordable component of this portfolio, we were looking for a very specific buyer who had the motivation to expand in the SE, had access to a flexible capital stack, along with the deal team and capacity to take on this type of acquisition in order to assure a smooth escrow, “ said Gene Levental, Managing Director, SVN Affordable. “After working collaboratively with the seller, we hand-selected an exclusive group of Affordable Housing developers and investors that fit the profile and invited them to bid on the opportunity. After a best and final round, followed by buyer interviews, we were confident the buyer selected for this tranche had the desire and ability to execute.”
About SVN AFFORDABLE | Levental Realty
SVN AFFORDABLE | Levental Realty is a nationally recognized leader in the niche market of Affordable Housing brokerage focusing solely on valuing, marketing and selling Project-Based Section 8 and Section 42 housing through their national platform and proprietary database. Our financial, regulatory and statutory expertise, paired with our strategic alliance of industry professionals, allows us to successfully identify a customized disposition strategy and transaction structure that ensures maximum value and minimal risk for our clients.
About SVN®
SVN International Corp. (SVN), a full-service commercial real estate franchisor of the SVN® brand, is one of the industry’s most recognized names based on the annual Lipsey Top Brand Survey. With 200 offices and over 1600 Advisors and staff, SVN provides sales, leasing, corporate services and property management services to clients across the globe. SVN Advisors also represent clients in affordable housing, auction services, corporate real estate, distressed properties, golf & resort, hospitality, industrial, investment services, land, medical, multifamily, office, retail, self-storage and single tenant investments. All SVN offices are independently owned and operated. For more information, visit www.svn.com.