A partnership between Skyline, LLC, and ND Consulting has purchased a 160-unit affordable housing development in Kansas City, Kan.
The deal for Silver City Apartments was brokered for $8.9 million, with Dan Piatkowski of Affordable Housing Investment Brokerage (AHIB) working with the buyer and the seller, Commercial Group of Topeka, Kan., to complete the transaction.
Built in the 1970s, the property underwent a low-income housing tax credit-financed renovation in the mid-1990s.
“The in-place exception rent HAP (Housing Assistance Payment) contract was appealing to the purchaser and necessary to remain in order for the deal to pencil out appropriately,” said Piatkowski.
The Department of Housing and Urban Development (HUD) recommended a significant renovation due to necessary capital improvements and poor REAC inspections, according to AHIB.
“Timing was of the essence due to concerns from HUD regarding operations and physical conditions of Silver City,” Piatkowski said, noting that AHIB his firm has sold several other affordable housing communities to the same buyer. “The purchaser plans to expedite renovations required at the property. While the property has had its challenges in recent years, we were able to close for over $55,500 per unit.”
