Investment manager Moline Investment Management (MIM), which owns and operates workforce apartment communities, has acquired a LIHTC portfolio encompassing 17 properties totaling 613 units. Acquired from a private equity firm well established in the development and operation of LIHTC projects, the portfolio is spread across 10 cities, one in Nebraska and nine in Missouri.
“There were numerous challenges because the portfolio was so spread out, and in such different markets,” company CEO Charlie Moline, told Multi-Housing News. ”Each individual property had to be underwritten as if it were an individual investment . . . Working with limited partners on buyouts and simplifying the deals (was another) of the biggest challenges that took several months to work through.”
The multifamily communities acquired by MIM are in Fremont, Neb., and Joplin, Shell Knob, Kennett, Perryville, Dardenne Prairie, Hannibal, Kirksville, Excelsior Springs and Kearney, Mo., Moline said.
“As everyone knows, America is dealing with an affordable housing crisis. Mature LIHTC projects that have expired tax credits really need a facelift by the time they are eligible to be sold,” Moline added. “We also found there is an entire demographic of Americans that do not have access to affordable housing but also can’t afford the market rents these days. Our mission is to convert these housing developments to unrestricted affordable housing communities. So that even someone who is making over 60 percent of the average median income levels could be allowed to move in.”
In a prepared statement, MIM reported it plans to scale its platform in the next one to two years, eventually acquiring units at a rate of several thousand per quarter. Four months ago, a report noted multifamily construction growing in one Missouri metro.