PNC Real Estate Acquires Nearly 700 Affordable Housing Units for Preservation

Demand for affordable housing is growing while the number of units remains flat or is falling. Much of this is due to market rate buyers obtaining expiring Low Income Housing Tax Credit (LIHTC) developments and other affordable housing at an accelerating pace and with the intent to convert the properties to market rate housing as soon as possible.

In the meantime, the number of rent-burdened households is growing; market rate rents are increasing; and more people are moving from home ownership to rentals. For these reasons, preservation of our existing affordable housing stock is critical. 

PNC Real Estate has developed an investment platform that acquires existing “at-risk” affordable housing. Structured similarly to private equity, PNC’s preservation funds offer investors an alternative to LIHTC funds. These funds acquire the fee simple or partnership interests in public welfare opportunities such as former LIHTC developments and hold the properties for a period of time, with the intention to sell them back into a LIHTC syndication transaction — extending the affordability for 30 years or more.  

Following are some of PNC Real Estate’s recent successes — nearly 700 affordable housing units — in this unique space in the commercial real estate market.

 

BOSTON, MASSACHUSETTS
Closing Date: October 2015

Blue Mountain Apartments
Equity: $17,167,748
Debt: $32,890,000 (Balance Sheet)
Units: 217

New Port Antonio Apartments
Equity: $22,267,568
Units: 227

Roxbury Hills and Cass House Apartments
Equity: $2,464,741
Debt: $8,350,000 (Balance Sheet)
Units: 111

LEE’S SUMMIT, MISSOURI
Closing Date: August 2015

Ashbrooke Townhomes
Equity: $2,320,204
Debt: $3,607,500 (Balance Sheet)
Units: 75

SALT LAKE CITY, UTAH
Closing Date: November 2015

Riverview Apartments
Equity: $2,265,317
Debt: $4,140,500 (Balance Sheet)
Units: 61

 

PNC Real Estate is taking a leading role in financing the renovation of the affordable housing stock to help to maintain a balance of supply and demand for decades to come.

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