PALATKA, FL - Affordable Housing Investment Brokerage Inc. (AHIB) has sold Kay Larkin Apartments, a 60-unit garden-style apartment complex, along with Grand Pines Apartments, a 78-unit senior living apartment community in Palatka, Florida for $4,850,000. Managing Director Kyle Shoemaker and Senior Vice President Bill Brading represented both the buyer, The Grey Rock Group LLC, and the seller, a private investor, to complete the transaction. Kay Larkin and Grand Pines were both developed using LIHTC and SAIL funding and are subject to regulatory agreements for 50 years from their Placed-in-Service date.
"Kay Larkin and Grand Pines are well-positioned to serve the affordable housing needs of Palatka, with each property serving tenants both at the LIHTC income restriction, and at the lower income requirements required from the SAIL loans, which the buyer was successfully able to assume,” said Shoemaker. “The deep-skewed income limits resulted in a cap rate below 4% on trailing NOI.”
"Both properties currently operate well below max LIHTC/SAIL rents and below market rents at comparable properties,” said Brading. “Both properties have reached the end of their initial compliance periods and are in their 35-year extended use periods of the LIHTC use agreements. This provides a path to revenue growth for the buyer, even under the current affordability restrictions.”
Kay Larkin Apartments is a 67,112-square-foot two-story property located on the west side of Palatka near the Palatka Kay Larkin Airport at 301 Kay Larkin Dr. Amenities of the property include a basketball court, two playgrounds, car wash station, clubhouse, barbeque area, playroom, library and on-site management.
The tri-story senior residential property known as Grand Pines is located at 2501 Prosper St. near the Palatka downtown area and includes an on-site management office, two elevators, an outdoor pavilion, putting green, fitness center, clubhouse and shuffleboard recreational area.
Both properties are located one hour outside of Jacksonville and two hours from Daytona - providing city access with a small town feel. Palatka is home to St. Johns River State College.
About Affordable Housing Investment Brokerage: Affordable Housing Investment Brokerage, Inc.’s (AHIB) sole purpose is the direct, confidential sale of affordable housing. Driven by a passion for maximizing client wealth and serving an industry that provides a vital social need, AHIB’s principals have sold over $1 billion in niche real estate investments, including Project-Based Section 8, Section 42, and HUD-financed properties. AHIB maximizes value through marketing by agents who provide a single source for affordable housing and local real estate knowledge. Learn more about AHIB at www.affordablehousingbrokerage.com