The NHP Foundation, a New York-based not-for-profit organization known for preserving and developing affordable housing, just acquired its first Chicago-area senior apartment building, and fourth property overall in the metro area. Built in 1991, the Section 8 community has 57 total units in the Woodlawn neighborhood, near the new Obama library. It sold for $4.933 million, or about $86,500 per unit.
To fund the purchase, NHP secured $4.515 million in financing from Low Income Investment Fund and $817,000 of its own equity from NHPF Equity. The $400,000 above the purchase price was for transaction and closing costs, plus HUD-required repairs. Through partnerships with financial institutions, the public sector, faith-based initiatives and other not-for-profit organizations, NHP has grown its portfolio to 53 properties and over 8,000 units in 15 states and Washington, D.C.
In recent years, most of the attention in the seniors housing industry has been paid to the high-end market, and that is where much of the development and dollars have been going. However, since there is only a finite portion of the population that will be able to pay for that, there is a lot of room for the affordable senior apartment sector to grow. NHP is poised to be a part of that growth.