Moline Investment Management (MIM), an affordable and market-rate housing specialist investment manager focused on the development, redevelopment, ownership, and operation of multifamily assets across the Midwest and Central U.S. has acquired a 214-unit mature LIHTC portfolio.
“The portfolio consists of six (6) seasoned LIHTC assets strategically located in key markets throughout the state (of Missouri)” stated Charles Moline, Founder and CEO of MIM. “By design, the portfolio overlays nicely with our existing communities and is a strong addition to our ongoing LIHTC-to-market rate conversion strategy.”
The portfolio was acquired from an established private equity firm prominent in the operation of LIHTC projects. This is the second transaction MIM has completed with this group.
The properties are seasoned LIHTC assets located in Springfield, Saint Joseph, West Plains. “Each of the properties feeds off and benefits from the demand drivers of their respective cities,” said Paul Arena, Chief Operating Officer at MIM. “Springfield is a thriving city in the southeastern portion of the state, a highly-rated apartment market in a university town; St. Joseph is a bedroom community north of Kansas City, and benefits from the dynamic demand generated from that employment center; and West Plains sees demand from both Southern Missouri as well as northern Arkansas, which is booming,” continued Arena.
“Four of the six acquired assets have all begun their decontrol period,” continued Moline, “and the other two will begin their eligibility period within a three-to-four-year period.” “By then,” continued Moline, “we will have been able to make significant inroads toward improving operations and readying these properties to be fully competitive as market-rate apartment communities.”
“As part of our value-add and pre-asset management operating philosophy, we’ve already identified additional upside in the retail portion of the St. Joseph asset,” continued Moline, “and are in dialogue with commercial brokers to identify an appropriate tenant for the space, which could potentially take the form of a restaurant or lounge space.” said Moline.
“The acquisition is fully accretive and in line with MIM’s overall investment strategy of acquiring mature, seasoned LIHTC properties, and taking them through the decontrol period, in a way that is respectful of our residents, and in fact, improves upon their quality of occupancy,” said Arena.