Property sold 24 hours after listing in $11 million transaction—highest HUD per-unit sale in Inland Empire on record
IRVINE, CA – April 24, 2017 – Just 24 hours after listing the property, a team of affordable housing brokers from Colliers International received 17 bids and negotiated the sale of Desert Oasis Apartments, a 90-unit affordable housing development in Indio, Calif. that sold for a federal Housing & Urban Development (HUD) record $11 million, or approximately $122,000 per unit, company officials have reported.
Senior Vice President John Nguyen and Vice President Jesse Elsanhuty of Colliers’ affordable housing team, based in Irvine, began sifting through the multiple offers minutes after the property was publicly listed for sale. Within 24 hours, the property was in escrow and is expected to close within 30 days.
Located at 46211 Jackson Street, the soon-to-be-renovated HAP-qualified development is comprised of one and two bedroom units near Highway 111 and Interstate 10.
“The Inland Empire continues to be a strong market for investors, owners and others in this sector and this sale offers up even more proof of the growing demand for multi-family and other affordable investment properties,” said Nguyen, who with Elsanhuty represented the seller, WNC & Associates of Irvine. Buyer was Community Preservation Partners LLC. “Within a mere 24 hours, we not only had 17 offers, but closed the sale at a record price for a HUD project in the Inland Empire.”
This was the first sale for the Irvine-based team since joining Colliers less than 30 days ago after being recruited by Regional Managing Director Robert Caudill, who oversees brokerage operations in Orange County and the Inland Empire.
“It’s a another notch in the belt of this very experienced team and demonstrates the growing need for affordable housing in Southern California and the nation,” said Caudill. “Although the team is based here, its focus is national in scope. This deal just happened to be local and a great way for the team to hit ground the running in its first month with us.”
Colliers’ Affordable Housing team specializes in Section 8 (Low-Income Housing), HUD Section 202 (Housing for the Elderly), state-assisted and other value-add affordable housing projects nationally. Overall, the team is broadening the Colliers affordable housing platform and extending its reach as thousands of owners are seeing their 10-15-year ownership requirements expiring each month, Caudill noted.
In terms of sheer numbers, there are more than 1,400 Low-Income Housing Tax Credit (LIHTC) projects and another 10,000 Section 8 developments coming onto the market each month, swelling the number of new opportunities for investors seeking tax credits that are the primary motivating factor in financing, investing in, and owning existing and new affordable housing developments.
“We are providing a valuable service to communities by finding investors interested in renovating, preserving and expanding affordable multi-family units in parts of the country where there are severe shortages of affordable housing,” said Elsanhuty said. “This is a growing necessity for not only cities and states, but for those in the community who need and rely on affordable housing options.”
About Colliers International Group
Colliers International Group Inc. (NASDAQ and TSX: CIGI) is an industry-leading global real estate services company with 15,000 skilled professionals operating in 68 countries. With an enterprising culture and significant employee ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting.
Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice that help clients accelerate their success. Colliers has been ranked among the top 100 global outsourcing firms by the International Association of Outsourcing Professionals for 12 consecutive years, more than any other real estate services firm.
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