New York, NY — June 14, 2023 — Lument’s affordable housing real estate investment sales group, in cooperation with commercial real estate services firm CBRE, recently represented the seller in the sale of a portfolio of affordable housing communities for a total cost of $1.2 billion. Located across nine states, the communities consist of 12,561 units in 133 buildings, with 11,375 of the units designated for low-income housing tax credits (LIHTCs) and preparing to exit their initial compliance periods. Cliff McDaniel, managing director, led the sale for Lument.
“Collaborating with the client in the sale of this affordable housing portfolio was an efficient process that led to an optimal outcome, as it allowed the buyer to acquire a high-quality national portfolio and presented an ideal opportunity for a large institutional sponsor looking for volume in Texas,” said McDaniel.
The 133 affordable communities are in North Carolina, South Carolina, Texas, Wisconsin, Illinois, Indiana, Kentucky, Florida, and New York. The most units are in Texas (3,204) while the fewest are in New York (160). The communities offer an array of notable amenities and social programs, including health and wellness initiatives, educational and professional resources, and seasonal events and activities.
“Further benefiting the buyer, the portfolio was structured with long-term, cost-efficient debt via Fannie Mae, allowing the buyer to assume the portfolio without the ramp-up time and carrying costs typically associated with the lease-up process,” McDaniel added.
Lument, a subsidiary of ORIX Corporation USA, is a national leader in commercial real estate finance and delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, real estate investment sales, investment banking, and investment management solutions. The company has approximately 600 employees in over 30 offices across the United States. Securities, investment banking, and advisory services are provided through Lument Securities, LLC, member FINRA/SIPC. Lument Investment Management, LLC, is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit www.lument.com.