Affordable Housing Investment Brokerage Inc. (AHIB) recently advised on the sale of two affordable, multifamily properties in New York – Briarwood Meadow Apartments outside Watertown and Summit Apartments in Syracuse. Both transactions total $11.3 million.
Summit Apartments, located at 301 Columbus Ave. in Syracuse, NY, is a 108-unit affordable housing community that is spread between five sites within a two-mile radius of Syracuse University. Ninety-three of the 108 units are covered by a 20-year HAP contract that was entered in 2006. AHIB’s Managing Director Kyle Shoemaker and Associate Neal Wolf represented both the purchaser, a national affordable housing developer, and the seller, a private individual, to complete the $8.8 million transaction.
“Summit Apartments provides the investor with a manageable scale of apartments with HAP coverage in a major university market,” said AHIB Associate Neal Wolf. “The structure of this deal is well-positioned to either cash flow with continued improvement of operations, or be restructured with Low Income Housing Tax Credits.”
“Occupancy across the buildings has been over 90% for years. With rents estimated at 20% below market level for non-HAP units, the purchase offers its buyer a solid investment with strong potential for growth in the coming years,” said AHIB Managing Director Kyle Shoemaker.
Briarwood Meadow Apartments, just outside Watertown, New York in Black River, is a 33-unit apartment community with full HAP coverage from a project-based Section 8 contract that sold for $2.5 million. Briarwood features 27 two-bedroom units, with three one-bed units and three three-bedroom units. The property has undergone significant exterior renovations in recent years, including new roofs, windows, siding, parking lots and doors. The property’s current rents trail the market. Shoemaker and Wolf also represented the buyer and seller in this transaction.