Property Summary
Located in the heart of Richmond’s thriving Manchester district, Manchester Grand was originally built as a school in 1922 and converted to 45 one-bedroom apartments in 2001 using IRC Section 42 low-income housing tax credits. Occupancy is restricted to seniors aged 55+ earning up to 50% of area median income (“AMI”). The property is convenient to public transit and enjoys steady demand among the target renter cohort. Current ownership has renovated 24 of the apartments since 2019, achieving monthly premiums of $100 or more. The supply-demand imbalance in affordable senior living supports continued movement towards HUD’s maximum allowable rents ($923 in FY 2023). HUD adjusts these rents each year to offset rising operating costs, providing an excellent hedge against inflation. The income restrictions at Manchester Grand expire in 2032, presenting investors an array of options for recapitalization, repositioning, or even redevelopment.
*Contact agents for pricing guidance.
INVESTMENT HIGHLIGHTS
CAPTURE DELTA BETWEEN IN-PLACE & MAXIMUM ALLOWABLE RENTS
- The opportunity to grow NOI considerably by pushing rents to the latest max allowable LIHTC rents, currently $137/month above the average in-place rents.
RECENT CAPITAL INVESTMENT
- Seller’s building upgrades and unit renovations provide a proven path to rent growth and a hedge against obsolescence during the extended use period.
NON-PROFIT SUBSIDIES & THE HOUSING SHORTAGE
- Buyers can partner with non-profits like The Salvation Army and Richmond’s Affordable Housing Trust Fund to grow voucher payments, which can boost occupancy with minimal marketing, limit collection loss, and help close the region’s affordable housing gap.
EXIT OPTIONALITY
- Buyers will have the option to syndicate new low income and historic rehab tax credits or undertake a conversion to market rate at expiration of the EUA in 2032. Current studio and 1-bedroom apartments in Manchester and Richmond’s other hot submarkets are renting for more than $1,600 per month.
THRIVING MANCHESTER LOCATION
- Manchester Grand offers buyers an excellent mark-to-market rental upside opportunity in a strong, well-positioned 55+ community.
PROPERTY DETAILS
| Units | 45 |
|---|---|
| Parcel ID | S0000154014 & S0000154014B |
| Const. Materials | Masonry |
| Zoning Desc. | R-63 |
| Construction Date | 1922 |
| Renovation Date | 2019 |
| Co-broker Fee | No |