Kaiser Portfolio Case Study
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$6,535,000
120​
All three properties are project-based section 8 properties, which was important to the seller to retain as such. The seller wanted to work with everyone who is local and had a desire to keep the disturbance to the tenants at a minimum, while keeping the services to them robust, even after purchase. All three properties were to be sold together and close together. The buyer was trying to put a single 20-year HAP contract on all three properties that were in two different cities. The lender had to be swapped out mid-transaction as well due to performance issues.
The buyer was successful in putting a scattered site purchase together, although had to put individual HAP contracts on each property at the direction of HUD, as well as obtaining tax credits for the purchase. They were able to continue robust services to the tenants, including a school supply program the seller was very proud of. The switch in lender did not have an effect on the closing date due to existing strong relationships and the sale closed per the agreed to terms of the agreement.
Section 8 and other affordable property transactions have a lot of moving parts and can be extremely cumbersome dealing with the state and federal governments who do not care about investor agreements and timelines. It is important to have knowledgeable people (buyers, brokers, lenders, & escrow) handling the transaction who know what pitfalls to look out for and how to push the transaction along amicably.
Hillhouse
1900 Hill St SE
Albany, OR 97322
Santiam Terrace
855 Chicago St SE
Albany, OR 97322
Walnut Court
842 NE 2nd St
Corvallis, OR 97330