The Challenge
- East Gate Apartments is a small, 24 unit apartment complex in Gordonsville Virginia.
- It was under contract to a Low Income Housing Tax Credit (LIHTC) developer that did not receive the credits from the Virginia Housing Development Authority (VHDA) and was subsequently taken off the market.
Our Solutions
- Commonwealth Commercial Partners contacted the owner who still wanted to sell due to health reasons.
- We listed the property for sale and marketed the asset to a number of different investor and developers.
- The property was encumbered with an existing USDA loan under their Rural Development program which complicated matters, but we found a qualified buyer that combined their LIHTC expertise and assumed the existing USDA loan and received the necessary tax credits from VHDA.
The Results
- The buyer successfully closed on the property using a combination of the existing loan with new VHDA financing.
- They have recently rehabilitated the property, slightly raised the rents and are providing safe and secure lodging for the residents.
