Ventana is a 171-unit Low-Income Housing Tax Credit (LIHTC) community located in Kent, WA approximately 25 minutes south of downtown Seattle. Built in 1968 with a large-scale rehab in 2005, the property is two-story garden-style with wood-frame and flat roofs.
The Property offers studio, one-bedroom, and two-bedroom unit types, including 57 two-story townhomes. The Property is the low-cost provider in the market. In-place rents are well below the maximum allowable and trail competing LIHTC properties by $100-$200 and renovated market-rate product by $300+.
This investment reflects a Value-Add execution strategy to improve the Property’s operations and infrastructure while implementing a light renovation plan on the unit interiors. KDF budgeted $3,200,000 in capital expenditures over the hold period. This includes reserves for building envelope replacements (siding, windows, and roofs), landscaping upgrades, and interior-unit renovations, among other items. Operational improvements will include increases in onsite payroll staffing and contract services (landscaping and security). The affordable restrictions expire in 15 years. The all-in basis of $127,519/unit reflects a significant discount to both replacement cost and comparable sales of multifamily properties in the area.
At the time of purchase sales of B/C quality market-rate properties in Kent averaged $232,364/unit, while the most recent sale of a LIHTC property sold for $149,254/unit (7 miles south in Federal Way).
Purchased by KDF with its own equity in June 2020.
171-unit apartment community located in Kent, Washington, approximately 40 minutes south of downtown Seattle.