NEW YORK – Nov. 6, 2018 – Colliers' Senior Vice President Kevin Morris, who specializes in affordable housing, says the recent sale of the 128-unit Grande Court North Port in a suburb of Sarasota is an example of the growing appetite for low income housing tax credit (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 10-year timeframe, makes the program a great opportunity for investors," says Morris, who 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 an affordable housing broker, I see the many owner benefits of operating a LIHTC deal," says Morris. "Based on the North Port submarket, this property should receive consistent rental increases due to the strong rental market there."
Morris says the property will eventually be available for re-syndication. "The off-market deal before year 15 is indicative of the growing appetite for affordable housing assets in Florida."
Source: GlobeSt.com (10/30/18) Wilkening, David
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