Valbridge Property Advisors | Boston appraised another low-income housing tax credit (LIHTC) property in Dorchester, one of Boston’s largest neighborhoods. The subject property consists of an existing five-story 131-room hotel developed in 1984 proposed to be renovated and converted into 99 for-rent apartments. The conversion will include supportive amenity space subsidized by LIHTC equity and soft/grant financing sources. All 99 units will be income-restricted to 30 percent AMI (area median income) or below, with a Project-Based Section 8 subsidy for all units. The units will represent supportive housing reserved for formerly homeless tenants, with an age preference of 62+, and a range of supportive services to be provided by a local service provider.

The appraisal assignment included several prospective and current valuation scenarios typical of LIHTC properties. The still-operating hotel added complexity, with its sale price being well above a typical shell building purchased for redevelopment. An additional consideration for this property was its January 2024 purchase and sale with affordability and use restrictions in place. Valbridge’s Boston team was able to identify and use sales comparables of lodging properties purchased for redevelopment to affordable or mixed-income multi-family housing, ultimately supporting their value conclusions.