Valbridge Property Advisors | Boston recently appraised 41 La Grange Street, a proposed development of a 19-story building with 126 apartments. Located in the Theater District of Boston, the development will be subsidized by LIHTC equity and soft/grant money financing, and all units will be restricted to between 30 and 80 percent AMI, with 70 units set aside for formerly unhoused tenants.

Project-Based Section 8 subsidy for 57 units and Project-Based MRVP subsidy for 13 units. The prospective condominium ownership structure will contain two units, known as the four and nine percent components, given the bifurcated financing structure.

LIHTC properties typically require multiple values, adding complexity to the appraisal assignment. In particular, this assignment’s scope included several prospective values, as-stabilized values, and intangible values. Each of these required numerous extraordinary assumptions and hypothetical conditions. Gaining a sound understanding of the restrictions on the property, and in turn how they will impact the property value, are usually the most important details to consider when appraising complex developments like 41 La Grange Street.