Affordable Housing Investment Brokerage Inc. (AHIB) recently advised on the $8,450,000 sale of Heritage Apartments, a 120-unit apartment community operating with a project-based Section 8 contract (HAP Contract).
AHIB’s Senior Vice President Bill Brading and Managing Director Kyle Shoemaker marketed the deal and represented the seller, a private developer.
“Heritage Apartments currently has 94% HAP coverage and 98% occupancy, which made it appealing for affordable housing investors,” said Brading. “We had multiple competitive offers and achieved a sale above the target price.”
Spread across seven acres, Heritage Apartments features a mix of two-bedroom/one-bathroom and three-bedroom/two-bathroom units. Amenities include a playground and close proximity to retail and grocery.
Heritage Apartments has seen an 11.7% increase in Average Median Income (AMI) growth rate in the last year. The current rent levels are also below both HUD’s Fair Market Rents and market rate, providing opportunity for the new owner.
“We are proud to have closed this deal within 132 days,” said Shoemaker. “HAP deals typically take between 6-8 months to close, and our expertise in this type of real estate investment and network got the deal done.”
Affordable Housing Investment Brokerage assists buyers and sellers throughout the country with niche real estate investments, including Project-Based Section 8, Section 42, and HUD-financed properties. Based in Glen Ellyn, Illinois, the firm has successfully facilitated deals in 35 different states.