Greystone Housing Impact sells student housing property in San Diego for $40.7M

Greystone Housing Impact announced that on December 6, it sold Suites on Paseo, a 384-bed student housing property in San Diego, California, to an affiliate of San Diego State University. The gross sales price was approximately $40.7M when including the contract purchase price and accelerated master lease payments. The Partnership originally acquired a tax-exempt mortgage revenue bond secured by Suites on Paseo in December 2013 and obtained outright ownership of the property via a deed in lieu of foreclosure in September 2015. The Partnership estimates it will recognize a gross gain on sale of approximately $9.9M within net income for the fourth quarter of 2023, before settlement of final proceeds and expenses. The partnership does not expect that the sale will materially impact its reported cash available for distribution as the gain on sale represents a recovery of prior depreciation expense that was not reflected in the partnership’s previously reported CAD. The partnership expects to report a taxable gain on sale of approximately $5.9M, which will be allocated to investors on Schedule K-1 for tax year 2023 in accordance with the rules and regulations of the Internal Revenue Service.