Corylus
Portland, OR • 120 units • preservation
Two post year 15 LIHTC properties in Portland that were developed by a non-profit under the 9% tax credit program to provide critical family-size homes for families earning 30-60% of Area Median Income. After years of challenging compliance and physical issues, Great Expectations acquired the properties and executed a comprehensive stabilization and renovation program, increasing year-one NOI from $189,725 under prior ownership to $494,625 under Great Expectations operations.
The Challenge
Following the original 15-year compliance period, both properties had experienced years of deferred maintenance, compliance challenges, and serious physical issues including frequent break-ins, an unfortunate flood, and roof failure. The properties were in dire need of professional management and capital improvements to serve their family residents adequately.
Our Approach
- • Quickly mobilized comprehensive property improvement program upon acquisition
- • Installed security fencing to address break-in issues and improve resident safety
- • Executed complete unit renovations to restore living conditions to modern standards
- • Completed full interior paint program throughout both properties
- • Replaced failed roofs to prevent further damage and ensure structural integrity
- • Assembled capital stack with Key Bank senior debt, Oregon Affordable Housing Tax Credits, and local regulatory agreements
- • Established new regulatory agreements with State of Oregon and City of Portland to extend long-term affordability
- • Brought properties into full compliance with all LIHTC and local regulatory requirements
The Result
Achieved meaningful year-one financial improvement while restoring the properties to stable operations: (1) Full LIHTC compliance restored within 3 months of acquisition, avoiding loss of tax credits, (2) Occupancy improved from 75% to 100% through professional management, (3) NOI increased from $189,725 under prior ownership to $494,625 under Great Expectations operations, a 160.7% increase driven by higher income and lower expenses. Successfully preserved 120 units of critical family housing for families earning 30-60% AMI, while demonstrating that distressed LIHTC properties can be stabilized with proper expertise and capital. The properties are also home to a Head Start pre-school, serving the broader community with early childhood education.
Year-One NOI Improvement
Great Expectations increased NOI by 160.7% in the first year of operations by modestly increasing income and materially reducing expenses.
Location
Portland, OR
Project Overview
- 36 units at 30% AMI
- 48 units at 50% AMI
- 36 units at 60% AMI
Key Dates
Capital Structure
- Key Bank senior debt
- Oregon Affordable Housing Tax Credits
- Regulatory agreements with State of Oregon and City of Portland
