TODAY’S DEALS: SoCal LIHTC Property Trades for $23.4M
Marcus & Millichap arranges the $23.4 million sale of LIHTC property; SBV Communities enters South Carolina with a 332-unit buy; and Alliant Capital closes on a $4.95 million loan.
Escondido, Calif.—The Tax Credit Group of Marcus & Millichap has arranged the sale of The Terraces, a 190-unit apartment community located just north of San Diego in Escondido, Calif. The sales price was $23.4 million, or $123,158 per unit. Marcus & Millichap represented the seller, Escondido Terraces, and procured the buyer, Avanath Capital Partners.
“The new owner has taken advantage of an excellent investment opportunity,” says Jeff Kunitz, a senior director of the Tax Credit Group. “The Terraces is a Section 42 LIHTC apartment community that is outside of the initial tax credit compliance period. The property has had occupancy of more than 95 percent for the past three years and Affirmed Housing did an excellent job of maintaining a quality apartment community throughout their ownership.”
The property was built in 1995 and features one-, two-, three- and four- bedroom floor plans. Amenities include a private community room, computer lab, swimming pool, three laundry facilities, a playground and controlled access.
SBV Communities buys first South Carolina property
Columbia, S.C.—SBV Communities has purchased Quail Run Apartments, a 332-unit community located in Columbia, S.C. This is the first property that SBV Communities has acquired in the Palmetto State and it represents the firm’s entrée into its fifteenth market.
“Columbia represents a fundamentally solid investment with significant upside potential at measured risk,” says Chris Thomson, director of multifamily acquisitions at SBV Communities. “Occupancy rates have declined significantly since 2010 and rental rates have increased 3 percent during that time. With rental demand expected to continue and new construction not projected to meet that demand for several years, we are extremely excited about the prospects for Quail Run.”
Alliant closes on $4.95M loan
Saginaw, Mich.—Alliant Capital LLC announced the closing of a $4.95 million refinance loan on Green Acres Village Apartments, a 224-unit garden style multifamily property, located in Saginaw, Mich. This transaction was originated by John Marr, Alliant’s senior vice president for the Midwest and Northeast regions.
The loan was closed on Feb. 7, 2013 with a 3.72 percent interest rate and a 10-year fixed-rate term.
