THE ASSET
- 298-310 St. Johns Place & 212-220 Crown Street are currently subsidized under the project-based section 8 program of HUD and are operating at rent levels of approximately 60% of the current market. With its next mark-up-to-market due in 2017 and the HAP agreement expiring in 2019, the assets are well positioned to take advantage of the area’s continued growth.
- Combined, the buildings contain 75 units consisting of 6 studio, 24 one- bedroom, 30 two-bedroom and 15 three-bedroom apartments. There is also a legal super’s apartment. The buildings are subsidized under the project-based section 8 program of HUD and corresponding rent / income regulations apply.
CHALLENGE
- The properties are encumbered by various agreements which mandate that the units be rented to tenants within a certain income bracket. The agreements also limit the amount of rent which can be charged.
- Seller requested that we market the properties to a targeted audience, as opposed to a broad marketing campaign.
