Greystone Housing Impact Investors LP Announces Sale of Vantage at Tomball
Greystone Housing Impact Investors LP (NYSE: GHI) has announced the sale of Vantage at Tomball, a 288-unit market rate multifamily property in Tomball, TX, on January 31, 2025. The Partnership's initial equity investment of $11.4 million, originated in August 2020, was fully redeemed, with the company receiving net cash of approximately $14.2 million at closing.
The return on investment was lower than historical performances due to rising insurance costs in the Houston metropolitan area and the higher interest rate environment since their last joint venture equity sale of Vantage at Conroe in June 2023. The Partnership expects no gain, loss, or Cash Available for Distribution from this sale but plans to reinvest the proceeds into new accretive investments across their investment classes.
Greystone Housing Impact Investors LP (NYSE: GHI) ha annunciato la vendita di Vantage at Tomball, una proprietà multifamiliare di mercato composta da 288 unità a Tomball, TX, il 31 gennaio 2025. L'investimento iniziale in capitale della Partnership di 11,4 milioni di dollari, originato nell'agosto 2020, è stato completamente rimborsato, con l'azienda che ha ricevuto un incasso netto di circa 14,2 milioni di dollari alla chiusura dell'affare.
Il ritorno sull'investimento è stato inferiore rispetto alle performance storiche a causa dell'aumento dei costi assicurativi nell'area metropolitana di Houston e dell'ambiente di tassi di interesse più elevati dalla loro ultima vendita di capitale in joint venture di Vantage at Conroe nel giugno 2023. La Partnership non prevede alcun guadagno, perdita o liquidità disponibile per la distribuzione da questa vendita, ma intende reinvestire i proventi in nuovi investimenti redditizi attraverso le loro classi di investimento.
Greystone Housing Impact Investors LP (NYSE: GHI) ha anunciado la venta de Vantage at Tomball, una propiedad multifamiliar de mercado con 288 unidades en Tomball, TX, el 31 de enero de 2025. La inversión inicial en capital de la Asociación de 11,4 millones de dólares, originada en agosto de 2020, fue totalmente reembolsada, y la compañía recibió un efectivo neto de aproximadamente 14,2 millones de dólares al cierre.
El retorno de la inversión fue inferior al rendimiento histórico debido al aumento de los costos del seguro en el área metropolitana de Houston y al entorno de tasas de interés más altas desde su última venta de capital en joint venture de Vantage at Conroe en junio de 2023. La Asociación no espera ninguna ganancia, pérdida o efectivo disponible para distribución de esta venta, pero planea reinvertir los ingresos en nuevas inversiones rentables a través de sus clases de inversión.
Greystone Housing Impact Investors LP (NYSE: GHI)는 2025년 1월 31일 텍사스주 톰볼에 위치한 288세대의 시장 가격 다가구 주택인 Vantage at Tomball의 매각을 발표했습니다. 파트너십의 초기 자본 투자액 1,140만 달러는 2020년 8월에 시작되어 전액 상환되었으며, 회사는 마감 시점에 약 1,420만 달러의 순 현금을 받았습니다.
투자 수익률은 휴스턴 대도시 지역의 보험료 인상과 2023년 6월 Vantage at Conroe의 마지막 조인트 벤처 자본 판매 이후 상승한 금리 환경으로 인해 역사적인 성과보다 낮았습니다. 파트너십은 이번 판매로 인해 이익, 손실 또는 분배 가능한 현금을 기대하지 않지만, 수익금을 각 투자 클래스에 걸쳐 새로운 가치 있는 투자에 재투자할 계획입니다.
Greystone Housing Impact Investors LP (NYSE: GHI) a annoncé la vente de Vantage at Tomball, une propriété multifamiliale de 288 unités à prix de marché à Tomball, TX, le 31 janvier 2025. L'investissement initial en capital de la Partenariat de 11,4 millions de dollars, initié en août 2020, a été entièrement remboursé, l'entreprise recevant environ 14,2 millions de dollars en espèces nettes lors de la clôture.
Le retour sur investissement a été inférieur aux performances historiques en raison de l'augmentation des coûts d'assurance dans la région métropolitaine de Houston et du climat de taux d'intérêt plus élevés depuis leur dernière vente de capitaux en coentreprise de Vantage at Conroe en juin 2023. Le Partenariat ne prévoit aucun gain, perte ou liquidités disponibles à distribuer de cette vente, mais prévoit de réinvestir les produits dans de nouveaux investissements rentables à travers leurs classes d'investissement.
Greystone Housing Impact Investors LP (NYSE: GHI) hat den Verkauf von Vantage at Tomball bekannt gegeben, einem 288-Einheiten-Mietwohnprojekt in Tomball, Texas, am 31. Januar 2025. Die anfängliche Eigenkapitalinvestition der Partnerschaft in Höhe von 11,4 Millionen US-Dollar, die im August 2020 entstand, wurde vollständig zurückgezahlt, wobei das Unternehmen bei der Schließung netto etwa 14,2 Millionen US-Dollar erhielt.
Die Rendite war aufgrund gestiegener Versicherungskosten im Ballungsraum Houston und des höheren Zinsumfelds seit dem letzten gemeinsamen Verkauf von Vantage at Conroe im Juni 2023 niedriger als die historischen Leistungen. Die Partnerschaft erwartet aus diesem Verkauf keinen Gewinn, Verlust oder verfügbares Bargeld zur Verteilung, plant jedoch, die Erlöse in neue wertsteigernde Investitionen in ihren Anlageklassen zu reinvestieren.
- Full redemption of $11.4 million equity investment
- Net cash receipt of $14.2 million from sale
- Proceeds available for reinvestment in new accretive opportunities
- Lower return on investment compared to historical performance
- No gain or Cash Available for Distribution expected from the sale
- Impact of rising insurance costs affecting property returns
- Higher interest rate environment reducing investment performance
Insights
The sale of Vantage at Tomball provides critical insights into the current state of multifamily investments and reveals important market dynamics affecting the sector. The $14.2 million return on an $11.4 million investment over approximately 4.5 years represents a notably lower return compared to the Partnership's historical performance, highlighting two key market challenges:
1. The rising insurance costs in the Houston metropolitan area signal a broader trend affecting real estate operations in climate-vulnerable regions. This operating cost pressure is becoming increasingly significant for property valuations and investment returns.
2. The higher interest rate environment has materially impacted property valuations and transaction dynamics. The contrast with the Vantage at Conroe sale in June 2023 demonstrates how rapidly market conditions have evolved.
The transaction's break-even outcome (no gain or loss) reflects the challenging market conditions but also demonstrates the resilience of Greystone's investment structure, which protected the initial capital through preferred return mechanisms. The company's strategy to redeploy capital across different investment classes suggests a tactical shift to optimize returns in the current environment.
For investors, while the muted returns might raise concerns, the preservation of capital and ability to receive full repayment in a challenging market environment demonstrates the defensive characteristics of the Partnership's investment structure. The company's acknowledgment of market challenges while maintaining commitment to the joint venture equity strategy indicates a balanced approach to risk management.
OMAHA, Neb., Feb. 04, 2025 (GLOBE NEWSWIRE) -- Greystone Housing Impact Investors LP (NYSE: GHI) (the “Partnership”) announced today that on January 31, 2025, Vantage at Tomball, a 288-unit market rate multifamily property located in Tomball, TX, was sold at the direction of its managing member. The Partnership’s investment in Vantage at Tomball was originated in August 2020 and the Partnership contributed equity totaling
“The proceeds from the sale of Vantage at Tomball will allow the Partnership to deploy capital into new accretive investments across our investment classes,” said Kenneth C. Rogozinski, Chief Executive Officer of the Partnership. “The Partnership’s overall return on the Vantage at Tomball investment was less than what has historically been achieved on prior equity investments due to rising insurance costs in the Houston metropolitan area as well as the higher interest rate environment since the last joint venture equity sale of the Vantage at Conroe investment in June 2023. However, we continue to believe in the long-term value of our multifamily property joint venture equity investment strategy.”
Disclosure Regarding Non-GAAP Measures
This report refers to Cash Available for Distribution (“CAD”), which is identified as a non-GAAP financial measure. We believe CAD provides relevant information about the Partnership’s operations and is necessary, along with net income, for understanding its operating results. Net income is the GAAP measure most comparable to CAD. There is no generally accepted methodology for computing CAD, and our computation of CAD may not be comparable to CAD reported by other companies. Although we consider CAD to be a useful measure of our operating performance, CAD is a non-GAAP measure and should not be considered as an alternative to net income that is calculated in accordance with GAAP, or any other measures of financial performance presented in accordance with GAAP. For the amounts disclosed herein related to this transaction, there are no reconciling items between net income per BUC, basic and diluted, and CAD per BUC, basic and diluted.
About Greystone Housing Impact Investors LP
Greystone Housing Impact Investors LP was formed in 1998 under the Delaware Revised Uniform Limited Partnership Act for the primary purpose of acquiring, holding, selling and otherwise dealing with a portfolio of mortgage revenue bonds which have been issued to provide construction and/or permanent financing for affordable multifamily, seniors and student housing properties. The Partnership is pursuing a business strategy of acquiring additional mortgage revenue bonds and other investments on a leveraged basis. The Partnership expects and believes the interest earned on these mortgage revenue bonds is excludable from gross income for federal income tax purposes. The Partnership seeks to achieve its investment growth strategy by investing in additional mortgage revenue bonds and other investments as permitted by its Second Amended and Restated Limited Partnership Agreement, dated December 5, 2022, taking advantage of attractive financing structures available in the securities market, and entering into interest rate risk management instruments. Greystone Housing Impact Investors LP press releases are available at www.ghiinvestors.com.
Safe Harbor Statement
Information contained in this press release contains “forward-looking statements,” which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to, risks involving current maturities of our financing arrangements and our ability to renew or refinance such maturities, fluctuations in short-term interest rates, collateral valuations, mortgage revenue bond investment valuations and overall economic and credit market conditions. For a further list and description of such risks, see the reports and other filings made by the Partnership with the Securities and Exchange Commission, including but not limited to, its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Readers are urged to consider these factors carefully in evaluating the forward-looking statements. The Partnership disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
INVESTOR CONTACT:
Andy Grier
Senior Vice President
402-952-1235
MEDIA CONTACT:
Karen Marotta
Greystone
212-896-9149
Karen.Marotta@greyco.com
FAQ
How much did GHI receive from the Vantage at Tomball property sale?
What factors affected GHI's return on investment for Vantage at Tomball?
When did GHI initially invest in the Vantage at Tomball property?
Will GHI shareholders receive any distribution from the Vantage at Tomball sale?
