#United States #Pittsburgh #Hilco Real Estate #Homewood

Hilco Real Estate Sells 110-Unit Affordable Housing Portfolio in Bankruptcy Sale

Hilco Real Estate Sales (HRE) has announced an exciting opportunity for investors with the upcoming bankruptcy sale of a 110-unit affordable housing portfolio located in the vibrant Homewood South neighborhood of Pittsburgh, Pennsylvania. This portfolio, spreading across 21 distinct buildings, is set to be sold, but the event is contingent upon approval from the United States Bankruptcy Court, with all bids due by August 14, 2025.

Each of the 110 units in this portfolio is under a Housing Assistance Payments (HAP) contract, which guarantees immediate income for prospective owners. Currently, the properties maintain an occupancy rate of approximately 80%, considerably lower than the local market average of 96%. This discrepancy presents a prime opportunity for investors to enhance occupancy through stabilization efforts, renovations, and operational improvements.

With a trailing 12-month net operating income estimated at $614,000, alongside the security of the in-place HAP contract, this portfolio establishes a solid groundwork for growth and superior returns. It is particularly appealing to both established affordable housing providers eager to expand their collections and newcomers seeking a scalable entry point into this vital sector of the real estate market.

Pittsburgh's robust economic fundamentals make it an attractive location for multifamily and HUD housing investments. The city's healthcare, education, and technology sectors consistently generate strong rental demand. Within Pittsburgh, Homewood presents noteworthy opportunities for affordable housing initiatives, including Section 8 programs, Rental Assistance Demonstration (RAD) conversions, and Low-Income Housing Tax Credit (LIHTC) redevelopment projects.

Long-term city planning initiatives further solidify the area's appeal, with efforts such as the Homewood Comprehensive Community Plan and Choice Neighborhoods signaling sustained public investment in housing and infrastructure. Such investments inherently reduce risks for investors while fostering long-term value creation. The current revitalization of Homewood serves as a perfect backdrop for multifamily investments poised for future returns.

Active revitalization plans, initiated by the Urban Redevelopment Authority of Pittsburgh, emphasize community transformation. Notably, in February 2025, the city collaborated with the Homewood Community Development Collaborative to target underdeveloped properties for remediation and demolition. This foundational work will pave the way for new developments within the neighborhood. As part of this initiative, the allocation of $2 million in federal American Rescue Plan Act funds is set to enhance key locations adjacent to the area's business corridor.

Jamie Coté, Vice President at Hilco Real Estate, remarked, “This portfolio presents a compelling opportunity for investors looking to scale in the growing metro area of Pittsburgh. The already established HAP-backed income combined with the potential for localized property improvements makes this offering uniquely advantageous. By implementing targeted management and modest upgrades, investors have a clear pathway to long-term value, as the city continues its dedication to revitalizing Homewood.”

It’s also key to note that this sale is subject to the approval of the United States Bankruptcy Court for the District of New Jersey (Trenton). All bids must be received by the specified deadline of August 14, 2025, at 4:00 PM (ET), along with a Purchase and Sale Agreement (PSA), which is accessible for review on the official Hilco Real Estate Sales website.

On-site inspections are scheduled for July 23 and August 6, but are available by appointment only. Interested bidders can find necessary terms of sale, alongside prerequisites for participation in the bidding process, also on the Hilco Real Estate website.

Investors seeking additional information on the property, sale process, and available due diligence documents can visit HilcoRealEstateSales.com or reach out at (855) 755-2300.

In previewing the extensive expertise of Hilco Real Estate Sales, it’s important to acknowledge that the organization represents a critical resource for optimizing real estate assets. Backed by decades of reliable performance, the Hilco team guides clients in navigating complex transactions, ensuring maximum cash flow, and optimizing asset values to secure sustained success in ever-fluctuating markets.