FORT MEYERS, FL-In a rare Section 42 sale, PacificaCos. snapped up Edisto Lake Apartments. The distressedasset fetched $7 million, or $18,617 a unit. JonathanRichards and Thomas Fischer ofCBRE brokered the transaction on behalf of theseller.
Built in 1996 under the Section 42 tax credit program, EdistoLake Apartments offers 376 units. Eighty percent of the units aremandated for households with income equal to or less than 60% ofarea median income. The remaining 20% of the units are reserved forhouseholds whose income is equal to or less than 40% of the areamedian.
“Typically, if these Section 42 properties aren’t managed wellor if there is a lot of deferred maintenance they go into what Icall the death spiral and they start losing tenants,” Richardstells GlobeSt.com. “That’s what happened here. Occupancy is onlyabout 83%.”
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