KENT, Wash., April 05, 2023 (GLOBE NEWSWIRE) -- Preservation Equity Fund Advisors, LLC (PEF Advisors), a real estate private equity group focused on preserving existing affordable housing in high-cost markets, announced their recent acquisition of Webster Court, a 92-unit apartment community in Kent, WA, a suburb located 20 miles south of Seattle. PEF Advisors purchased the 4-story development in March 2023 and has budgeted approximately $1.2M ($12,915 per unit) to address deferred maintenance, improve curb appeal, and elevate the quality of housing and competitiveness of the property.
Property amenities available to residents include a community room, elevator, gated access, four on-site laundry facilities, a courtyard, a BBQ and picnic area, and a leasing office. Resident parking consists of 38 uncovered spaces. All 92 apartment units are one-bedrooms and average 458 square feet. Unit amenities include patios in select units, and come furnished with refrigerators, and self-cleaning ovens. As of March 2023, the property was 88% occupied, with occupancy numbers expected to rise as property improvements are completed.
“This is the second property that we’ve acquired in this area, so we know this market and asset type well,” said Ann Caruana, President & Chief Investments Officer at PEF Advisors. “In March 2021, we acquired Rainier Vista, another senior housing development just 15 minutes away from Webster Court which is 97% occupied. With the planned improvements and high walkability of Webster Court, we believe it can stabilize within a year and provide high-quality affordable housing for seniors.”
As the sixth largest city in Washington, Kent is known for its mix of urban and green space. Its parks system provides 68 parks and an abundance of open spaces for residents to enjoy, while its downtown provides an urban, city center with convenient access to multiple medical centers (including an urgent care center), Kent Station Retail Center, ShoWare Center and a Sound Transit Light Rail Stop. Webster Court is situated within walking distance of downtown Kent.
Webster Court primarily serves seniors aged 55+ and people with disabilities. It was originally built in 1994 with tax credits from the Washington State Housing Finance Commission (WSHFC) and is governed by a LIHTC LURA that restricts 24 units at 35% AMI, and 66 units at 60% AMI.
“The LIHTC LURA extended-use period ends in 2030 which positions our hold period to align perfectly with an exit that can identify a developer or non-profit to keep the property affordable,” states Caruana. “With the property being at-risk of losing its affordability in 7 years, we anticipate that there will be more options available to keep it in the low-income housing tax credit program which is our ultimate goal.”
About Preservation Equity Fund Advisors, LLC
Since 2016, Preservation Equity Fund Advisors, LLC (PEF Advisors) has focused on acquiring and preserving existing affordable housing in high-cost markets through private equity funding. PEF Advisors is an affiliate of the WNC & Associates, Inc. (WNC) family of companies with access to WNC’s more than 51 years’ experience in acquiring more than 1,700 properties representing $17 billion in affordable housing nationwide, including through tax credit and/or preservation equity strategies.
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