Case Study / Core Investment Strategy

Acquiring existing low-income housing for superior returns with considerably less downside risk

Opportunity / Impact

Property Details:

Viewcrest Village

Viewcrest Village

3401 Spruce Avenue/Bremerton, WA

Year Built:

1952
Unit Count:

300

Opportunity

Post acquired an existing low-income housing tax credit property in Bremerton, Washington. 100% of the property is restricted to low-income tenants with rents 34% below market, creating highly attractive fundamentals, including 99% occupancy and tenant turnover significantly below the national average. This 300-unit property spans 15 acres in a desirable metro location.

Impact

With affordability restrictions already in place, and as a preferred borrower of Fannie Mae, this property qualified for attractive financing for the 10-year term. With a significant capital infusion of $1,500,000, the property now has 20 new roofs, a fresh coat of paint, and other upgrades, and an additional $750,000 has been set aside for future capital needs. As an LIHTC property at acquisition, the property is encumbered by rent restrictions until 2032. Thanks to strong operational performance, we are working to extend affordability restrictions or convert the property to workforce housing, and to allocate an additional $2M to fund new upgrades.