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Affordable Housing Investment Brokerage Closes $21.1 Million Sale of Senior Apartment Property in Illinois
“Valkommen presents its buyers with a unique opportunity to square a well-maintained, safe independent senior community of scale only a short distance from a major metro area,” said Shoemaker. “The property is well-positioned to add value and drive revenue for the next phase of its life.
Valkommen Plaza is a nine-story, elevator building with commercial spaces on the first floor, providing excellent amenities including a beauty salon, police sub-station and grocery for the local community.
In addition to the commercial spaces, every resident enjoys a storage locker and on-site laundry facilities, as well as a large lobby and community room which leads to a second floor roof.
The property itself recently received a number of upgrades, including a roof replacement, new elevator machines, a new transformer and central air handlers. A number of unit kitchens and baths have also been updated. The building is an excellent combination of good current maintenance conditions, coupled with the opportunity for improvement.
Rockford, Ill., boasts a population of 150,000 just 70 miles northwest of Chicago on Interstate 90. Officials just announced a $200M planned development for a Hard Rock Cafe casino and hotel in the city.
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.
Affordable Housing Investment Brokerage Inc. (AHIB) recently sold a 120-unit independent senior living community in Lyons, Illinois for $8,800,000. Managing Director Kyle Shoemaker represented the seller, Barron Development LLC, and buyer, New Frontier Companies, to complete the transaction.
“There are very few competing properties for affordable, independent senior apartment options in the area,” Shoemaker said. “We’re glad to see this property go for above asking price to an investor that will continue to provide quality, affordable housing for residents.”
Riverwalk is a 120-unit, six-floor complex 15 miles outside Chicago, Illinois. Built in 2003, the community is located at 8019 Ogden Ave, within close proximity to a Metra train stop and grocery store. Being one of only a few properties of its nature, Riverwalk offers its new investors a great growth opportunity in the densely populated market of Lyons. The complex provides on-site parking for residents and includes 99 one-bedroom apartments and 21 two-bedroom units, the majority of which are rented under affordable housing guidelines. Only 16 units are rented at market value.
“Riverwalk is a unique opportunity to acquire a large-scale affordable housing community in an area on track for great growth,” Shoemaker said. “Overall, it’s just a great location, with many of the property’s units overlooking the river.”
The property was developed using funds from the Low Income Housing Tax Credit and the Illinois Housing Development Authority (IHDA). Current affordability restrictions remain in place until 2033, and the buyer intends to operate as affordable housing for the foreseeable future.
Affordable Housing Investment Brokerage (AHIB) is pleased to announce that Levy House, located at 1221 W. Sherwin Ave. in Chicago’s East Rogers Park neighborhood, has sold for $8.1 million. The brokerage firm partnered on the listing with Kiser Group so that the seller had the benefit of AHIB’s expertise in affordable housing and Kiser Group’s mid-market multifamily expertise in Rogers Park. Kyle Shoemaker, Managing Director of AHIB represented the buyer, Preservation of Affordable Housing (POAH), and seller, a non-for-profit.
Levy House is a 57-unit, seven-story apartment building that offers one-bedroom, one-bathroom floor plans. The multifamily property previously operated as elderly housing and Preservation of Affordable Housing plans to keep and expand the property’s rent affordability.
“This is a wonderful property and a great opportunity for us to preserve affordable housing in a rising real estate market,” said Vice President Konrad Schlater, POAH’s project manager. “We’re excited to be working in Rogers Park and adding to our growing North Side portfolio.”
Upon acquisition, POAH will work with the City of Chicago and Chicago Housing Authority to expand the property’s affordability and execute a rehab and modernization plan. POAH now owns roughly 2,000 apartment units in Chicago.
“As someone specializing in affordable housing sales, it’s great to see that the new ownership will continue with the property’s currently targeted demographic,” said Shoemaker. “While a portion of the property operated with a rent subsidy from the Chicago Low Income Housing Trust Fund, POAH will be able to expand the property’s affordability with additional assistance from the Chicago Housing Authority.”
“We are honored to have assisted AHIB in this transaction and to close another deal with Kyle,” said Lee Kiser, Principal and Managing Broker at Kiser Group.
Affordable Housing Investment Brokerage Inc. recently sold a 14-building, 249-unit affordable housing portfolio in Gary, Indiana for $10,375,000. Managing Director Kyle Shoemaker represented both the purchaser, a private investor, and seller, a private investor, to complete the transactions.
“All units at the property are covered by a Mark to Market HAP contract that expires in January of 2024,” said Shoemaker. “The properties were well-positioned for a preservation transaction, selling to a regional landlord experience with running HAP properties.”
All 14 buildings in the portfolio are all located within a one-mile radius, with the majority of the properties located along West 5th Avenue. The portfolio comprises 106 one-bedroom units, 110 two-bedroom units and 33 studio units. Rents range from $836 to $1,021 per month.
“The stability provided by the HAP contract is appealing to real estate investors with the hands-on capability to operate in Gary, making this an excellent opportunity for the buyer,” said Shoemaker.
Affordable Housing Investment Brokerage Inc. recently sold two Waterloo, Iowa apartment complexes, Mt. Carmel and Mt. Village, for $2,800,000. Managing Director Kyle Shoemaker and Senior Vice President Dan Piatkowski, represented both the purchaser, a non-profit, and seller, a private investor, to complete the transactions.
“Operating under a senior designation, both complexes have 100% project-based Section 8 coverage through two HAP contracts,” said Shoemaker. “The buyer will preserve and commit to long-term affordability by completing a Low Income Housing Tax Credit (LIHTC) renovation post-closing.”
The properties are adjacent and operate as one out of the same office. Mt. Carmel, located at 1603-1609 Mt. Carmel Dr., is a 13-building apartment complex comprising 50 units. Originally built in 1980, floor plans include 48 one-bedroom units and 2 two-bedroom units. Mt. Village, located at 1702-1705 Mt. Village Dr., is an eight building apartment complex comprising 30 units. Originally built in 1992, floor plans include 22 one-bedroom units and eight studio units.
“Senior residents are attracted to these properties for many reasons including floorplans with single story construction and individual entrances, as well as a quiet location adjacent to Allen Hospital.” said Dan Piatkowski, who focuses his brokerage efforts throughout the Central and Southwest part of the country.