Low Income Housing Tax Credit Opportunity

Brookside Investment Sales is pleased to present the exclusive opportunity to acquire Creekside Apartments located in Pulaski, Tennessee. The apartment community has 88 units with three floor plans across 10 buildings located in the southeast neighborhoods of Pulaski. This is an opportunity for investors to buy a stable, well occupied LIHTC community where 70% of the residents qualify to pay higher rents than the current Asking Rents. Asking Rents reflect the Maximum Asking Rent for Vouchers in Giles County. The Max HUD Allowable Rents exceed the Max Voucher Rent schedule for one-, two- and three-bedroom units by 24%, 35% and 46%, respectively. Creekside is a LIHTC community built in 2002 and subject to the 2000 LIHTC - 9% program targeting families. It was placed in service in 2002 and was contract eligible in 2021. A LURA agreement extends the Use Period to 2031. In addition, the mortgage matures in 2029.

70% of units qualify to pay higher rents based on their incomes.
Upside potential by increasing current Asking Rents to the 2024 Max Hud Allowable Rents.
Recent increase in Giles County Income Limits (5.5%) increases the pool of eligible residents.
Average term of residency nearly 4-years
Underwriting based on the in-place rents and September 2024 trailing 12-month expenses.
Site plan for Creekside provides excess land for playground and basketball court.
New interior upgrades would add value to the community and help promote market rents.
Asking price substantially below replacement cost

As of 9/30/24 Subsidized: 26 Non-Subsidized: 56 Employee Occupied: 1 Vacant: 5 Total: 88 % of Non-Subsidized Units: 70%

Original Loan Balance: $1,540,000 Current Balance: $1,401,265 (9/30/2024) Loan Term: 120 Months Amortization Period: 360 Months Fixed Annual Interest Rate: 4.55% Origination Date: 06/01/2019 Maturity Date: 05/01/2029 Balance at Maturity Date: $1,235,343 Monthly Debt Service: $7,849

Placed in service: 2002 End of Federal Compliance Period (TCCP): 2016 End of State Compliance Period: 2021 End of Extended Use Period: 2031 Qualified Contract Eligible: After the 19th full year of Compliance Period Other Restrictions: No

2023 One Person: $31,740 Two People: $36,240 Three People: $40,800 Four People: $45,300 Five People: $48,900 Six People: $52,560 2024 One Person: $33,480 Two People: $38,220 Three People: $43,020 Four People: $47,760 Five People: $51,600 Six People: $55,440

The community is in Giles County and sits 75 miles south of Nashville via I-65. Pulaski is the county seat and 3rd largest city in Giles County.
Residents are a 5-minute drive from the intersection of US-31 (North/South artery) and College St (East/West artery). Here residents can dine at restaurants like: Sonic, IHOP, Domino’s, McDonald’s and Little Ceasars; buy groceries at Walmart and household items at Home Depot, O’Reilly Auto Parts, and Walgreens.
Located within a 10-minute drive to the two largest employers in Giles County: - Magneti Marelli Co – 1,194 Employees - Frito-Lay Inc – 567 Employees - In 2021 Frito-Lay expanded its operation in the city of Pulaski, creating 100 new jobs and investing $100 million in adding four new manufacturing lines. - Frito-Lay has been a key contributor to the Pulaski economy operating since 1973.
Located 2 miles from the University of Tennessee Southern, making this a convenient location for students and employees of UT Southern. - In 2021, the University of Tennessee System merged with Martin Methodist College in Pulaski to form the University of Tennessee Southern. This was the first addition to the UT System in more than 50 years. - In 2020, Martin Methodist had an enrollment of 671 full-time students before it transitioned to UT Southern. In 2021 UT outlined plans to grow that number between 1,000 and 1,500 full-time students. As of 2023, total enrollment increased to 978 (46% increase).