Cambridge Pointe
Henderson, KY Affordable Asset with Clear Path to Market-Rate Conversion
Marketing description
Cambridge Pointe is a 48-unit affordable housing community located in Henderson, Kentucky, within the Evansville, IN MSA. Built in 1998, the property offers a compelling investment opportunity through its scheduled 2028 LIHTC restriction expiration, creating a clear path to market-rate conversion with no decontrol period provisions.
The asset has been well maintained with approximately $17,300/unit in capital improvements, including flooring, appliances, asphalt overlay, siding, roofs, entry doors, and HVAC replacements. Cambridge Pointe also benefits from a supply-constrained Henderson market, 91.67% occupancy, all 2- and 3-bedroom floor plans, in-unit washer/dryer connections, and meaningful future rent upside supported by nearby market-rate comparables.
Investment highlights
2028 LIHTC RESTRICTION EXPIRATION CREATES PATH TO MARKET-RATE UPSIDE
Existing Low-Income Housing Tax Credit (LIHTC) restrictions are scheduled to expire in 2028, with no exposure to decontrol period provisions, providing a clear and executable path to market-rate conversion. Upon expiration, the property is well-positioned to capture significant rental upside, supported by nearby market-rate comparables such as Canoe Creek, where 2BD and 3BD units achieve rents of $1,075 and $1,219, representing a meaningful premium to Cambridge Pointe’s current in-place rents of $836 and $961.
WELL-MAINTAINED ASSET WITH COMPELLING BASIS
Cambridge Pointe is a well-maintained 1998-vintage asset positioned at a basis below comparable market-rate trades within the submarket. While an unrestricted, market-rate version of the property would likely command a higher valuation, the asset’s affordable structure creates an opportunity to acquire the property at a more attractive basis while benefiting from the same underlying physical quality and location fundamentals.
SIGNIFICANT CAPITAL INVESTMENT
Cambridge Pointe has benefited from approximately $17,300/unit in capital improvements completed over the course of ownership. Major investments include flooring ($213,262), appliances ($159,556), asphalt overlay ($102,850), siding ($88,317), roofs ($62,599), and entry doors ($40,800), while HVAC replacements account for an additional $109,985 of spend since 2022.
SUPPLY-CONSTRAINED MARKET FUNDAMENTALS
Henderson County remains a stable, supply-constrained market with zero new deliveries over the past 12 months, supporting fundamentals, while rents continue to grow 3.4% year-over-year.
RECENT HENDERSON ECONOMIC DEVELOPMENTS
Multiple major announcements have been made in Henderson recently, including:
- Tyson Foods: $23.5M expansion that will support 1,100 jobs
- Project Wire Expansion: $12.8M capital investment to upgrade their facilities
- Henderson County Mine: Multi-million-dollar operation that began in 2023 with 400+ employees by the end of 2025
- AllState: $850,000 expansion project
- Henderson Distilling Company: New whiskey distillery, late 2025 production
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