Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Affordable housing is making all of the headlines these days. Affordable housing is different than workforce housing because it serves a low-income segment of the community and is often built with LIHTC. While the investment pool in this market segment is small, recent demand for affordable has caught the attention of institutional capital. However, there are limited opportunities for institutional buyers to gain significant market share in this space.

“The players that have been in the business for several years, of which there are three of four, have been the same. We have seen some bigger portfolio sales over the last two years, which has allowed new entrants to take some big bites into affordable housing,” Jonathan Needell, president and chief investment officer at KIMC, tells GlobeSt.com. “That obviously affects pricing and cap rates, and probably already has. It isn’t across the board, though. It is mainly in downtown, higher density areas where the check sizes are big enough.”

Kelsi Maree Borland

Kelsi Maree Borland is a freelance writer and editor living in Los Angeles whose work has appeared in such publications as Travel + Leisure, Angeleno and Los Angeles Magazine.

More from this author

GlobeSt. Apartments 2020Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.