Investors Have Growing Appetite for Florida's Affordable Housing
A 128-unit apartment complex in Sarasota area with a low income housing tax credit status sells for $11 million.
SARASOTA, FL–Best-known for its rich cultural scene with over 30 art galleries and its many millionaire residents, the Sarasota area is not widely recognized for affordable housing. But a recent report found 24 housing apartment complexes in Sarasota County with some units set aside for lower income tenants.
Its LIHTC (low income housing tax credit) property status, however, was a key factor in the recent sale of one of those developments: the 128-unit Grande Court North Port in North Port, just over 30 miles from downtown Sarasota.
Colliers’ Senior Vice President Kevin Morris, who specializes in affordable housing, says the deal is an example of the growing appetite for LIHTC investments offering good investor returns.
“The combination of the fees generated during ownership, coupled with the benefits of the tax liability written off over a ten-year time frame, makes the program a great opportunity for investors” he tells GlobeSt.com.
Morris represented both the buyer, Grande Court North Port, Inc, and the seller, Courtelis Company, in the sale. The buyer was a partnership between Southport Financial and Raymond James Tax Credit Funds, with the Freddie Mac loan coordinated by JLL.
The 5-building, 115,303 SF GBA Multi-Family apartment complex located at 5203 Greenwood Ave sold for $11 million. The fully leased complex is among Sarasota County LIHTC properties.
“As a affordable housing broker I see the many owner benefits of operating a LIHTC deal. Based on the North Port submarket this property should receive consistent rental increases due to the strong rental market there,” Morris says.
The complex is in a quiet neighborhood regarded as a suburb of Sarasota.
“The property will be available for re-syndication down the line and the buyer plans to renovate and update the building so that it remains a high-class property. The off-market deal before year 15 is indicative of the growing appetite for affordable housing assets in Florida,” Morris says