Western Wealth Capital has expanded its affordable housing portfolio with the acquisition of two Low-Income Housing Tax Credit (LIHTC) multifamily properties in Tennessee. The company purchased River City North Apartment Homes in Chattanooga and Meadow Creek Apartment Homes in Goodlettsville, just north of Nashville, in a recently closed portfolio transaction.
Western Wealth Capital, in partnership with FSO Capital Partners, acquired the 192-unit portfolio for a combined purchase price of $20.7 million. The deal brings together an experienced multifamily investor and an equity partner specializing in LIHTC investments, reflecting continued interest in income-restricted housing assets across secondary Tennessee markets.
River City North Apartment Homes totals 108 units and was completed in 2007. The community is located in Chattanooga and operates under a Section 42 LIHTC Land Use Restriction Agreement, which keeps rents below prevailing market levels. The property is financed with an $8.47 million loan featuring a 6.17% fixed interest rate and five years of interest-only payments.
Meadow Creek Apartment Homes, built in 2003, comprises 84 units and is located at 919 S. Dickerson Pike in Goodlettsville. Like River City North, Meadow Creek is subject to a Section 42 LIHTC Land Use Restriction Agreement, maintaining restricted rents for residents. In this case, Western Wealth Capital assumed the property’s existing $7.79 million mortgage, which carries a 4.60% blended interest rate.
The acquisition was brokered by Taylor Froland of CBRE, who handled the sale of the two-property portfolio. On the financing side, Brian Mumaw and Brian Liu of Northmarq arranged the debt package, including the new loan on River City North and the assumption of the existing loan on Meadow Creek.
Both communities continue to operate with LIHTC-related restrictions in place, preserving affordability within their respective markets. By combining new fixed-rate debt with a below-market assumed mortgage, the investors structured the capital stack around existing regulatory and rent constraints while securing long-term control of two relatively modern LIHTC assets.
