New York, NY — October 3, 2023 — Lument’s affordable housing investment sales team recently represented the seller of a GP interest portfolio of low-income housing tax credit (LIHTC) properties. Located throughout Tennessee, the portfolio consists of 11 properties and 868 units.
The sellers are East Tennessee-based partners who have been developing LIHTC properties in the state for over 20 years. The longtime Lument clients were seeking to divest, and this sale, which included their property management company, represented most of their portfolio.
Timothy Bracken, a managing director on Lument’s affordable housing investment sales team focused on LIHTC and Section 8 properties, represented the sellers.
“Given the wide range of compliance period maturities, along with numerous limited partners and lenders involved, portfolio GP interest sales are complex even in normal times,” said Bracken. “Rising interest rates created additional challenges. Thanks to the close collaboration of all parties involved, we successfully worked through the process and reached the closing table.”
Padam Singh, a director in affordable housing mortgage banking production at Lument, had previously closed loans for the seller and brought in Lument’s M&A and affordable investment sales teams to consult on marketing the portfolio.
“We often see our clients’ goals and priorities shift and intensify, which is why having a diverse platform of capabilities and expertise is important,” added Singh.
The buyer was a New York-based affordable and workforce housing investor and the terms of the transaction were not disclosed.
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.