Recap closes Leland, Grossman and Sandpiper RAD Transaction
Recap closes Leland, Grossman and Sandpiper RAD Transaction|News|
Recap Real Estate Advisors (Recap) announces the closing of a Rental Assistance Demonstration (RAD) deal on behalf of the Housing Authority of the County of Santa Barbara (HACSB). The transaction was for Leland, Grossman, and Sandpiper, three scattered site properties, two of which were formerly public housing and one of which was an existing affordable housing development.
The three properties were combined in one transaction to create a viable 4% low income housing tax credit (LIHTC) transaction. The two RAD properties, Leland and Grossman, are small – with 14 and 16 units, respectively – and neither could generate enough equity on its own for an investor to be interested. Combining these 30 units with the 68 units at Sandpiper creates a transaction large enough to finance the needed repairs.
This innovative structure of combining RAD units with non-RAD units provides a necessary solution to the challenge of converting smaller public housing properties under RAD.