Low Income Housing Institute Closes Another Rapid Acquisition for Use as Affordable Housing

We congratulate client Low Income Housing Institute (LIHI) on closing its acquisition of the Heron Apartments in Tacoma, Wash. The 82-unit, new-construction building was opened in January 2022 to market-rate tenants and will be leased to lower income tenants. The building offers underground parking, a clubhouse, gym, workspace center, dog spa, and community space. The $22 million acquisition will be primarily funded by a $21.3 million loan from the Washington State Department of Commerce’s Rapid Capital Housing Acquisition program awarded in September and a $3 million loan from the City of Tacoma. KeyBank provided an acquisition bridge loan. The state’s Rapid Capital Housing Acquisition loans are intended to provide financing to rapidly convert newly built market-rate housing and existing hotels into permanent housing and enhanced shelters for homeless people.

Seattle-based LIHI, which was founded in 1991, is a nonprofit affordable housing developer that develops, owns, and manages more than 2,600 affordable apartments and operates 17 tiny house villages at more than 70 sites in six counties in the Puget Sound region. The organization dedicates the majority of its housing to households earning less than 30% of the area median income. LIHI also acts locally and nationally as an advocate for equitable housing policies and offers a range of supportive service programs to its tenants.

LIHI has closed on seven rapid acquisition projects since March 2021. The Stoel Rives team that assisted LIHI in acquisition of these projects was led by real estate partner Sallie Lin and included attorneys Christal Harrison-Delgado, Shelsea Voigt, Aušra Dedman, Scott Pritchard, Michael Rubin, and Celeste Ajayi, and paralegal Marrji Padden.

More information on the transaction can be found in the LIHI press release and a Puget Sound Business Journal article.