Case Study / Core Investment Strategy

A non-traditional tax-exempt bond investment structured to deliver superior equity-style returns

Opportunity / Impact

Property Details:

The Fairways

350 Powell Rd/Columbia, SC

Year Built:

1992
Unit Count:

240

The Paddock Club Columbia

4824 Smallwood Rd/Columbia, SC

Year Built:

1991
Unit Count:

336

Opportunity

Post created an opportunity for investors to participate in a federally tax-exempt bond secured by two multifamily assets, Fairways & The Paddock Club Apartments. This involved a unique partnership between two leading non-profits, who partnered to own the real estate outright, and Post, who manages and oversees the day-to-day as project sponsor and administrator. These 576 units are situated in a key economic hub with a stable job base, strong employment, and a resilient economy, despite a lack of new supply in the market.

Impact

With three bond tranches comprising the acquisition financing, Post sponsored a $9,585,000 subordinate bond for investment. Additionally, Post has set aside $7,473 per unit ($4.3M total) to maintain and upgrade the properties to preserve and enhance their value. 20% of units are offered at 50% AMI and 55% at 80% AMI, with the remaining units at market rates. Together with two non-profit owners dedicated to the creation and preservation of affordable housing, we have created a thoughtfully priced, high-quality community designed for essential professionals, including healthcare workers, educators, first responders, military personnel, and others who keep our city thriving.