- IN-PLACE, PROVEN VALUE ADD OPPORTUNITY THROUGH CONTINUED SYSTEMATIC INTERIOR UPGRADES
- IMPRESSIVE RECENT FINANCIAL PERFORMANCE AND TRENDING REVENUES
- HIGHLY COVETED, MARKET-RATE CONVERSION PLAY | REVENUE POTENTIAL UNLOCKED
- POTENTIAL OTHER INCOME GENERATORS
- $2.7MM IN RECENT CAPITAL EXPENDITURES | STRONG FOUNDATION FOR CONTINUED REPOSITIONING
- STRONG SURROUNDING DEMOGRAPHIC PROFILE
- STRATEGICALLY LOCATED ASSET PROXIMATE TO OMAHA’S MAJOR DEMAND DRIVERS
- DESIRABLE UNIT MIX LOCATED IN AN EXCELLENT SCHOOL DISTRICT
- OFFERED FREE AND CLEAR OF EXISTING DEBT
IN-PLACE, PROVEN VALUE ADD OPPORTUNITY THROUGH CONTINUED SYSTEMATIC INTERIOR UPGRADES
The property demonstrates a proven value-add business model that can be continued property wide for the remaining 136 (52%) classic units that are primed for modernization. Cosmetic upgrades to kitchen cabinets, countertops, lighting, bathrooms, and new appliances, will allow a buyer to push annual rental income by more than $268,320.
IMPRESSIVE RECENT FINANCIAL PERFORMANCE AND TRENDING REVENUES
T3 Revenue (Feb-Apr ’21) is up 17% (+$400,000) over 2020 Revenue showcasing strong trending financials and providing evidence of the value-add model and ability to increase rental income as the property progresses through the decontrol period of the LIHTC Program.
HIGHLY COVETED, MARKET-RATE CONVERSION PLAY | REVENUE POTENTIAL UNLOCKED!
Bellevue Hills was substantially upgraded under the Section 42 Low Income House Tax Credit (“LIHTC”) program in 2003. The initial 15-year Tax Credit Compliance Period (“TCCP”) has ended. Ownership exercised the Qualified Contract option provided in the Land Use Restriction Agreement (LURA) to remove the long-term LIHTC restrictions unlocking significant revenue potential.
The property is nearly through the three-year market conversion/decontrol period allowing for significant upside with the revenues to a new owner. As such, the LURA is no longer recorded on title, but the requirements remain in place through the end of the de-control period in December 2021. Over the normal course of business, and as affordable units turnover, a new owner can renovate and rent these units at current market rates (with NO rent or income restrictions!).
Currently, 60% of the units (102 units) are still affordable units, all of which will be converted to unrestricted market-rate units as they turnover. A new owner must remain in compliance with the existing LURA for current affordable tenants only.
POTENTIAL OTHER INCOME GENERATORS
Previous LIHTC restrictions limit the amount of fees and other revenue that can be generated to affordable residents. Now that ownership has removed the property from the LIHTC program, a new investor can further penetrate other income charges (parking charges, RUBs / Utility Billback, recurring pet fees, trash fees, pest fees, etc.) further unlocking the potential value of this well-located value-add asset.
