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.
Blue Mountain Apartments
New Port Antonio Apartments
Roxbury Hills and Cass House Apartments
LEE’S SUMMIT, MISSOURI
SALT LAKE CITY, UTAH
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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