Irvine, Calif.—WNC announced it has closed WNC Institutional Tax Credit Fund 38 LP, a $150.5 million institutional low-income housing tax credit (LIHTC) fund. The fund will acquire 24 properties nationally—a mix of family and senior properties, including 15 new construction projects and nine slated for rehabilitation.
The properties expected to comprise WNC Institutional Tax Credit Fund 38 will deliver more than 2,100 units of affordable housing in 18 states, increasing the company’s acquisition portfolio to nearly 70,000 units nationwide.
“This is the second largest fund in WNC’s 42-year history, as well as the second national multi-investor fund this fiscal year, representing more than $275 million,” Michael Gaber, executive vice president and chief operating officer of WNC, says. “WNC Institutional Tax Credit Fund 38 welcomes four new banks to our LIHTC funds, along with six existing insurance company and bank investors to our latest fund.”
Gaber adds, “There is a significant shortage of affordable housing options available to those individuals and families who cannot afford traditional housing.” According to the National Low Income Housing Coalition’s Out of Reach 2013, in some states, minimum wage workers need to work between 81 and 97 hours per week to afford an apartment, while in others 98 hours per week or more are required. Additionally, the report states that there are only 30 affordable rental units available for every 100 extremely low-income renters.
“We hope to increase the inventory of available affordable housing units with the projects included in this fund, and are pleased to continue to work with both new and existing development partners and investors to make this happen,” says Gaber.
Breeden acquires Virginia asset from Harbor Group
Virginia Beach, Va.—Breeden Realty has added a new community to its hometown with the acquisition of Pembroke Lakes, a 300-unit, garden-style community located in Virginia Beach. The property was purchased from Harbor Group International in a transaction brokered by ARA.
The 1974-built Class B community was identified by Breeden as a value-add investment opportunity in a strong rental market surrounded by many large employers. Pembroke Lakes was 97 percent occupied at the time of sale.
“Similar to Chase Arbor which we sold earlier this year, Pembroke Lake Apartments offers an extremely compelling unit-upgrade potential with its proximity to Town Center at Virginia Beach—one of the fastest growing areas in Hampton Roads,” says ARA’s Wink Ewing. “With strong fundamentals and a wide spread between Class A and B rents, Breeden will do very well with their planned capital improvements.”
Ewing, a broker, worked alongside ARA principals Drew White and Mike Marshall.
Colorado apartments trade for $2.7M
Lakewood, Colo.—Marcus & Millichap has brokered the sale of Reed Street Apartments, a 34-unit community located in Lakewood, Colo. The asset carried a $2.7 million price tag. Marcus & Millichap represented both the buyer and seller in the transaction.
Reed Street Apartments is located just south of the Bel Mar Shopping District at 1175 S. Reed Street. It consists of 26 one-bedroom units and eight two-bedroom units.
“The buyer added to his Lakewood portfolio with the purchase, and will upgrade the exterior, landscaping, and perform some minor unit renovations,” says Greg Price, an investment specialist in Marcus & Millichap’s Denver office. “Reed Street Apartments is an example of a property, that with proper upgrades, will attract a tenant who is willing to pay higher rent for renovated product in south Lakewood, and cannot quite afford A class property at nearby Bel Mar, for example.”