For 70 years, Herman & Kittle Properties, Inc. (HKP) has strategically built a team that offers a turnkey approach to real estate development, including finance. Our dedicated financial team provides our partners with an experience that is seamless, transparent, and trustworthy.
We have an intricate understanding of complex deal structures that involve several sources of funding, as well as strong relationships with the local, regional and national financial institutions that help us not only get the deal done, but done well.
We have expertise in the following areas:
- Conventional Loans
- IRS Section 42 (Low Income Housing Tax Credit)
- Tax exempt and taxable bonds
- Gulf Opportunity Zone (GOZone) credits
- Rural Development Section 538
- HOME Investment Partnerships Program (HOME)
- Community Development Block Grant (CDBG)
- Federal Home Loan Bank Programs (FHLB)
- Section 1602 and TCAP
- Neighborhood Stabilization Program funds (NSP3)
- Fannie and Freddie Debt Products
HKP is also interested in acquiring general partnership interests in properties or portfolios with IRS Section 42- Rental Housing Tax Credits (RHTC) or Project Based Section 8. We are open to looking at both performing and non-performing assets. We have a proven track record in repositioning RHTC properties by:
- Conducting an in-depth market study to identify trends and areas for improvement
- Working with our property management team to improve operations
- Working with lenders to restructure debt
- Resolving compliance related issues
- Optimize performance for the remainder of the investment period
Our financial expertise in dealing with governmental agencies and complex deal structures can provide dividends to almost any property owner interested in finding a solution.
As we seek new development and acquisition opportunities, we will focus on the following criteria outlined below.
Primary Target Markets
We are typically seeking opportunities in the Midwest, Gulf Coast and Southeast regions, but we will consider options outside of this area for acquisition of general partnership interest.
For acquisitions of existing apartment communities, properties of 100 units or greater are desired but smaller communities will be considered on a select basis. We are looking for properties that need significant capital improvements/updates ($15,000 per unit or greater) with an additional preference for communities with an existing HUD or Rural Development financing or rental assistance in place. Properties owned by the current ownership for at least 10 years or those recently foreclosed upon are an ideal fit.
HKP looks to finance the acquisition of a property through the use of Rental Housing Tax Credits, a conventional mortgage, and some form of soft money (e.g., grant, below market interest rate loan, etc.).