Wisteria Walk is a 120-unit Low-Income Housing Tax Credit (LIHTC) community located in Lakewood, WA approximately 45 minutes from downtown Seattle. Built in 1965, the Property is a two-story garden-style built with wood-frame and flat roofs. The Property went through a large-scale rehab in 2007 which included new siding, new windows, and roof repairs, among other improvements. Historical occupancy has been 97%+ at the property.
It is the low-cost provider in the area and there is a $200+ gap to comparable unrestricted market rents. This investment reflects a Core+ execution strategy for stable cash flow. The goal is to maintain high occupancy while continuing to increase rents towards the maximum allowable. The Pierce County rent and income limits increased 8.86% in 2020 and another 4.27% in 2021.
No major renovations are planned throughout the hold period other than reserves for roof and siding repairs, and in-unit replacements of appliances and flooring. The all-in basis of $103,563/unit is a 50%+ discount to replacement cost. At the time of purchase, sales of comparable quality market-rate properties in Lakewood averaged $149,926/unit.
Purchased by KDF with its own equity in June 2020.
120-unit apartment community located in Lakewood, Washington.