Home Finance Low-Income Housing Asset in Everett Sells for $39MM

Low-Income Housing Asset in Everett Sells for $39MM

Torrance, CA-based Parkside Acquisition Preservation Limited Partnership sold a low-income housing complex, Parkside Apartments, to a limited partnership in which it has ownership for $39 million in a deal that closed on February 28th.

Public records show $1,015,000 was deducted in personal property resulting in a taxable selling price of $37,985,000.

Parkside Apartments is a multi-family, very low-income housing at 900 West Casino Road in Everett. Currently, the building operates under HUD’s Project Based Section 8, 236 programs and Section 42 program.

Built in 1970, the two-story apartment complex has 202 subsidized units with 21 one-bedrooms, 111-two-bedrooms, 59 three-bedrooms and 11 four-bedrooms, according to HUD’s website. The facility also includes a clubhouse, a daycare center, a playground and a laundry area.

Burien-based F&M Development is the property manager for the complex. According to the firm’s website, “The rehabilitation of Parkside Apartments has been an integral part of cleansing the Everett multi-family submarket off of Casino Road.” The rehabilitation utilized the 221 (d) 4 program for the rehab and permanent financing as well as tax exempt bond proceeds and 4 percent low income housing tax credits. “At the time of the loan closing, Parkside Apartments was deemed one of the most complicated financing packages HUD had ever dealt with which required FHA to enhance the bonds, a “non recourse” construction period and Section 236 IRP “Decoupling,” according to F&M Development’s website.

William E. Szymczak is the founding managing partner of Preservation Partners Development (PPD) and sits on the board of directors at the Institute for Responsible Housing Preservation, which is headquartered in Washington D.C. According to a release from LINC Housing Corporation, a California nonprofit developer of affordable housing, Szymczak, through PPD, has acquired, rehabilitated and preserved more than 30 Section 8 housing projects with more than 3,000 units and about 10,000 very low income residents.

A March 2016 report from the U.S. Department of Housing and Urban Development Seattle Regional Office states that in order to qualify for low-income housing, residents in Snohomish County must make $48,550 for one person and no more than $62,400 for three people in a household. To quality for very low income, individuals must make $31,650 for one person and no more than $40,650 for three people.