INVESTMENT HIGHLIGHTS
HOME Restrictions are Set to Expire in 2028, Offering Significant Rental Upside as the 50% Set-Asides will Burn Off Along with the Required Approval on all Rental Increases
Strong Historical Operations as the Approved Rents are at a $500+ Per Month Discount to Comparable Market Rate Properties
A Rental Increase Approval of $100 Per Unit was Received in 2023, with $50 Allowed on Current Tenants, Resulting in Additional Rental Upside to Captured in Subsequent Years
Senior LIHTC Property with a Vacancy Rate Below 1.0% in 2022
Raleigh is the Capital and Second-Most Populous City in the State and One of the Fastest Growing Cities in the Country
The LIHTC Restrictions are Set to Expire at the End of 2037, at Which Time the Property Can be Converted to Market Rate
Potential to assume very favorable financing through the in-place NCHFA State Tax Credit Loan with no interest due until maturity
The Raleigh, NC MSA HERA Special Rent and Income Limits are Projected to Increase by 5.18% in 2023
EXECUTIVE SUMMARY
Terrace Spring is a 48-unit affordable housing community for seniors 55 and older located in Raleigh, NC. The property is conveniently located minutes from major retailers including the shops at the Triangle Town Center, Hobby Lobby, Target, and The Home Depot. Numerous restaurants, outdoor recreation, pharmacies, health care facilities, and major transportation arteries are nearby as well. Downtown Raleigh, less than 15 minutes from the property, offers residents even more entertainment and restaurants.
The property was built and placed in service in 2007 under the Section 42 Low-Income Housing Tax Credit (LIHTC) program. There are existing regulatory agreements in place which require all units to be rented to income qualifying residents earning no more than 30%, 50%, and 60% of the Area Median Income (AMI) limits, which are provided by the North Carolina Federal Tax Reform Allocation Committee.
Both the City and the RPP HOME Restrictions are expected to expire in 2028. The 50% set-aside requirements will expire along with these agreements leaving only the 30% and 60% set-aside requirements under the LIHTC LURA. Additionally, the required approval of rental increases will no longer be applicable.
Terrace Spring offers one and two bedroom apartment homes featuring washer/dryer connections, a refrigerator, stove, dishwasher, and extra storage. Community amenities include a community room, picnic/grilling area, exercise room, gazebo, on-site laundry facilities, game room, library, tv/lounge area, on-site management, and 24-hour maintenance.
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AMENITIES
• Community Room
• Game Room
• 24 Hour Emergency Maintenance
• On-Site Laundry Facility
• On-Site Management
• Library
APARTMENT FEATURES
• Washer and Dryer Connections
• Full Kitchen Appliance Package
• Extra Storage
THE ASSET
GALLERY
4000 St. James Church Rd. - Raleigh, NC 27604
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4000 St. James Church Rd. - Raleigh, NC 27604
2007
BUILT
40,248
SQ FT
48
UNITS
The Opportunity
The Asset
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Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage loan brokerage business in Nevada.
© 2023 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by the Tax Credit Syndication group. For state licensing details for the above entities, visit: https://www.berkadia.com/licensing/.
Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage loan brokerage business in Nevada.
© 2023 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by the Tax Credit Syndication group. For state licensing details for the above entities, visit: https://www.berkadia.com/licensing/.
• Washer and Dryer Connections
• Full Kitchen Appliance Package
• Extra Storage
BOISE OFFICE
6225 North Meeker Place
Suite 210
Boise, ID 83713
RALEIGH OFFICE
3700 Computer Drive
Suite 315
Raleigh, NC 27609
CONTACT US
THOMAS COLAIEZZI
Director
Multifamily
704.565.9391
thomas.colaiezzi@berkadia.com
MARK BOYCe
Managing Director
Multifamily
843.628.3765
mark.boyce@berkadia.com
CALEB TROOP
Managing Director
Multifamily
314.607.3481
caleb.troop@berkadia.com
ADAM TOMBERG
Director
Affordable Housing
425.999.1152
adam.tomberg@berkadia.com
JEFF IRISH
Senior Managing Director
Affordable Housing
208.286.5013
jeff.irish@berkadia.com
INVESTMENT SALES
BOISE OFFICE
6225 North Meeker Place
Suite 210
Boise, ID 83713
RALEIGH OFFICE
3700 Computer Drive
Suite 315
Raleigh, NC 27609
CONTACT US
THOMAS COLAIEZZI
Director
Multifamily
704.565.9391
thomas.colaiezzi@berkadia.com
MARK BOYCe
Managing Director
Multifamily
843.628.3765
mark.boyce@berkadia.com
CALEB TROOP
Managing Director
Multifamily
314.607.3481
caleb.troop@berkadia.com
ADAM TOMBERG
Director
Affordable Housing
425.999.1152
adam.tomberg@berkadia.com
JEFF IRISH
Senior Managing Director
Affordable Housing
208.286.5013
jeff.irish@berkadia.com
INVESTMENT SALES
