Investment Overview

Olde Salem Village is a 200-unit multifamily property constructed in 1983, operated by the current non-profit for over 20 years and located in Shreveport, Louisiana. MARKET RATE CONVERSION Olde Salem Village currently offers four floorplans at market rate. Upon sale and bond payoff, the only stipulation is 80 units (40% of total units) are to be rented to tenants income-restricted at 60% of AMI. The property is governed by a Regulatory Agreement that was executed in 2011. All income restrictions will terminate in January 2026 upon expiration of the Regulatory Agreement, 15 years after the origination date. Based on a rent comparable study, the 80 units income-restricted at 60% AMI are competitive with the current market range for classic units and support a ~$108 rent increase for upgraded floorplans while still in compliance with the income restrictions. VALUE-ADD OPPORTUNITY Thirty-eight units have recently (March 2023) been renovated and brought online with new paint and appliances, modern fixtures and finishes, faux granite countertops, and luxury vinyl plank flooring. Renovated units are targeting $699 for 1Bd/1Ba; $799 for 2Bd/1Ba; $840 for 2Bd/2Ba; and $1,000 for 3Bd/2Ba. Most recent leases on renovated units for 2Bd/1Ba and 3Bd/2Ba units are $799 and $1,000, respectively. The renovated rental premium average indicates a $108/month rent premium for upgrades.