2-Property, Project-Based Section 8 Portfolio Located in Milwaukee, WI

Available as a Portfolio or Individual Sale

Pictured: Winchester Village

Portfolio Opportunity

Located on the south side of Milwaukee, arguably one of the most dynamic areas in the Midwest in terms of growth and opportunity, this portfolio consists of two, project-based, affordable multifamily assets. Euclid Arms is age-restricted Section-8 community offering 89 apartment homes, including 88 one-bedrooms and a single two-bedroom floorplan, with several community rooms and common area. Euclid is situated along South 20th Street and within walking distance to two major hospitals. Winchester Village is a project-based, family community located in the Bay View neighborhood of Milwaukee and offers a mix of 1-3-bedroom floor plans with an average size of 711 square feet. Built as an adaptive reuse of a former 1897 school, the community is situated in a tranquil setting with mature trees, green space and is steps away from downtown Bay View. Both locations also offer excellent access to shopping and restaurants. This represents an exceptional opportunity to acquire two well-positioned affordable assets with good proximity to each other.

HAP Contracts Already in Place - Both Euclid Arms and Winchester Village benefit from Project Based Section 8 contracts that run until mid-2021 and 2032, respectively. Both Euclid Arms and Winchester Village are eligible for Mark Up to Market contracts providing a new buyer with significant NOI upside through increased HUD subsidies. This is an especially attractive option with both properties located in constantly rising, high-rent markets.

Purchase as Portfolio or Individually - While these assets are being sold as a portfolio, there is an opportunity to bid on them individually. The two assets together present a better opportunity for some economies of scale but ownership would look at individual offers as well. Even as a portfolio, and because of the partnership structure of each asset, ownership would like potential buyers to value each asset in offers for the portfolio.

Pricing Below Replacement Cost - As construction costs have continued to escalate over the last several years, older, well-positioned assets continue to increase in value as well. While these assets are being offered without a formal asking price, they are expected to trade at well below today’s estimated replacement costs. ​ In Milwaukee today, likely above $150,000 per unit.

New Financing Opportunity - Both assets are being offered free and clear of any debt. This gives the potential buyer the opportunity to take advantage of favorable current capital markets and long-term financing option. Our debt team would be happy to discuss those options in more detail.

Portfolio Highlights

  • 145 Total Apartment Homes in Two Communities
  • Project-Based HAP Contracts In-Place
  • Well Maintained with Numerous Capital Upgrades
  • Good Locations and Walkability
  • Long-term Ownership on Both Assets
  • New Financing Opportunity
  • Opportunity to Buy as Portfolio or Individually

Pictured: Euclid Arms

The Location

Milwaukee, WI

CONTACT US

INVESTMENT ADVISORS

MORTGAGE BANKER

CHICAGO OFFICE

125 South Wacker Drive, Suite 400 ​ | ​ Chicago, IL 60606

Phone: 312.957.7391

Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. ​ ​ This advertisement is not intended to solicit commercial mortgage loan brokerage business in Nevada.
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