Capstone Apartment Partners is pleased to present Cedar Key Apartments, a 48-unit affordable garden-style apartment complex located in Summerville, South Carolina. Cedar Key Apartments is currently subject to rent restrictions based on the in-place LURA and HOME contracts, limiting all 48 units to 50% and 60% AMI restrictions. Participation in these affordable programs ensures investors are acquiring a high-quality asset that meets the strenuous criteria to be eligible for tax credits through the program. Although rent restrictions are in place, Cedar Key currently trails the max allowable rent by a significant amount and has a significant loss-to-lease, allowing new ownership to immediately reduce loss-to-lease, raise rents, and substantially increase rental income. Additionally, the opportunity exists to convert 29 units from rent restricted to market rate in years 2 and 3, leading to significant rent premiums on 60% of the units. Cedar Key presents investors the rare opportunity to acquire a high-quality asset, located in the booming Charleston submarket of Summerville, that is set to reduce rent restrictions in the next 2 years, paving the way for unprecedented upside and rental growth.
Affordable Housing Restrictions
Loss-to-Lease Reduction and Max Allowable Rent
Opportunity to Convert 29 Units to Market Rate in Years 2 & 3
NOI Increases Through Expense Reduction
Explosive Economic Growth in Charleston
Booming Charleston Submarket