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Overview
In May of 2008, Avanath acquired Simpson Housing Solutions ("SHS") and its portfolio of 273 properties, which totals 26,000 affordable rental apartments in 33 states, the District of Columbia and Puerto Rico. SHS, which was a wholly owned subsidiary of Simpson Housing LLLP, specialized in the development, rehabilitation and management of rental apartment communities that qualify for federal Low Income Housing Tax Credit ("LIHTC"), an indirect subsidy to facilitate private-sector investment in affordable housing.
Investment Rationale
- Strong property-type fundamentals
- Significant market demand for LIHTC properties given the dearth of affordable housing
- Limited supply mitigates long-term occupancy risks
- More rapid lease-up relative to market-rate rental housing properties
- Well-diversified portfolio
- Located primarily in Western and Southwestern U.S. markets with strong growth characteristics
- Portfolio diversified by property type: family- and senior-focused
Sample Portfolio Properties
