RSRC acquired a 48-unit townhome community in the suburbs of Minneapolis, MN. RSRC offered on the property knowing it had recently exited the Section 42 affordable housing program in Spring of 2016 and the sale marketing process was only 2 weeks due to the Seller needing to fulfill a reverse 1031 exchange. As a result of the previously in-place Section 42 program, in-place rents are lagging well below market rates and there was no income being generated from the private parking garages. The anticipated hold for the project is seven years with a projected IRR of 17.1%. The property has been rebranded with unit interior upgrades completed on unit turns. The property’s in place rents have increased 12% since acquisition.
