News Michaels Ramps Up Acquisitions Efforts
Michaels Ramps Up Acquisitions Efforts

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The Michaels Organization is currently seeking affordable and workforce housing communities to add to our portfolio in several markets, including Texas. A major part of Michaels’ growth over the past two decades has been the result of acquisitions, as we acquired individual communities and portfolios. We are especially interested in connecting with private owners who are looking to leave their real estate portfolios in good hands as their communities reach the end of their affordability periods or as owners seek to exit the business for other, more personal reasons.  Michaels has the ability to recapitalize and add value to existing assets, while committing to both long-term ownership and our mission of lifting the lives of our residents. Working with private owners directly whose properties are currently off-market is beneficial not only to Michaels but to the private owners. For more information, please review the acquisition criteria below or contact our Vice President of Acquisitions, Kunal Chothani.

Major criteria for these acquisitions include the following:

Affordable- Low Income

• LIHTC, Section 8, USDA, or other HUD programs

• 100+ unit single sites or portfolios

• LIHTC 4% Development Land

• 300+ unit single site

• GP Interests

• 1,000+ unit portfolio

• Rural Development in Secondary Markets

• Naturally occurring Affordable to Affordable

• Prewar, Mid Century, 60’s, and 70’s vintage

• Purchase with non-profit exception to 10 year rule

• Purchase with option rights

Acquisitions Criteria-Workforce- Moderate Income

• 1980 to 2010 built

• 200+ units

• Average rents 80% and 100% AMI

• 10%-20% of project cost construction related

• Below replacement cost

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