NGKF Capital Marketing Six Affordable Housing Assets

PHOENIX—NGKF Capital Markets has been selected as the exclusive listing agent to sell six affordable housing complexes in Arizona. The private, non-profit property owner retained NGKF’s Multi-Housing Investment Group to sell the assets to a buyer or buyers that will continue to make the properties available to renters at affordable rates. 

“The seller devoted a number of years to establish safe housing and affordable rents in these communities, and has charged our team with finding buyers that are able and motivated to keep these properties affordable to residents,” said Brad Pickering, who with Sally Schwenn, Karl Abert and Samuel Gillespie, is handling the assignment. The team specializes in affordable housing—including low-income housing tax credits (LITHC), USDA, HUD and HOME financing structures—providing these real estate services nationwide.

“The assets carry assumable loans under a variety of federal, state and local programs,” Schwenn said. “That creates savings opportunities for buyers, but will require new owners to meet ongoing compliance requirements that vary from loan to loan. Loan assumptions are subject to approval by various agencies as well. We expect to draw national interest from the affordable housing investor community.”

Compliance requirements won’t deter potential buyers, who are likely to be experienced affordable-housing investors, Ms. Schwenn predicts.

“All of these assets are in markets where renter demand is strong and growing stronger for both affordable and market-rate housing,” Ms. Schwenn said. “Based on their condition and quality of construction, these complexes could compete with conventional properties nearby even without the advantage of controlled rents.”

The listings include:

Chandler Terrace Apartments, a community consisting of two- and three-bedroom apartment units located in Chandler, Arizona.

Esperanza Apartments, including a single-story affordable housing community for seniors and a two-story affordable housing complex for families. These properties are sister communities located in Bisbee, Arizona.  

Spring Valley Terrace and Spring Valley Manor, both affordable housing communities located in Mayer, Arizona. Developed in 1998 using LIHTC, the compliance period associated with those credits recently ended.

West Hill Apartments, an affordable housing complex in Avondale, Ariz. Built in 1980 in Old Town Avondale, the asset offers assumable financing for a qualifying buyer that meets annual compliance requirements through August 2017.