University Club Apartments 4707 Anthony Wayne Dr

University Club Apartments were built in 1993 and have been well maintained over the years. This community boasts 120 spacious apartment homes. The mix consists of 24 one-bedroom, one-bathroom units; 74 two-bedroom, one-bath units and 22 two-bedroom and two-bathroom units. Currently the property is operating at 82% physical occupancy and is pre-leased at 88%. This is in large part due to the renovation of 15 units that are being outfitted with new kitchens, baths, flooring and fixtures. Ownership is targeting rental rates $100
above standard units, and it is our expectation that once these units are completed, they will quickly lease, and occupancy will exceed 90%.
Ownership originally built University Club through the Low-Income Housing Tax Credit program, but just recently competed the QCP effectively removing the property from the program on April 1st, 2024. Now the 36 low-income units at University Club can be rented at market rates when they become vacant through normal turnover. Per MSHDA guidelines, upon the release of the LIHTC restrictions any existing low-income tenant is permitted to stay with restricted rents for a 3-year period following this date. As of today, there are only 28 of the 36 low-income units rented and encumbered by this restriction.
Once the property achieves 100% market rates, we estimate the NOI to easily eclipse $980K based on existing expenses and an increased tax consequence. As it pertains to taxes, the property is currently on a PILOT program, which will cease upon termination of the income restrictions. To account for this, we have based the increased taxes on the assessed value of numerous like-kind properties that have recently sold in the area.