About Viking Companies
Viking Companies is an aﬃliated group of commercial real estate investment companies based in Seattle, Washington. Viking owns and manages a substantial portfolio of multi-family housing properties located in select areas throughout the United States. Since its formation in 1997, Viking has participated in the acquisition, funding and/or development of medical and commercial oﬃce buildings, light industrial/warehouse facilities, neighborhood shopping centers and multi-family apartment complexes with a total value in excess of $500 million. Viking Companies’ investment strategy focuses on the acquisition of improved income-producing properties which, through a thoughtful approach to cost, ﬁnancing and operations, generate above-market cash ﬂow returns and deliver substantial appreciation over a reasonable holding period.
Viking Affordable Housing
Since 2008 Viking Companies has assembled a substantial portfolio of fully-rented apartment complexes that are part of the United States Housing Act of 1974 - Section 8 Project-Based Housing Assistance Program (“HAP”) and are tenant-subsidized under long-term renewable contracts with the U.S. Department of Housing & Urban Development (“HUD”).* Viking’s aﬀordable multi-family housing acquisitions have been assembled utilizing its historical approach to property acquisition that focuses on improved income-producing property with existing, stable long-term cash ﬂow. Consistent with these eﬀorts, Viking’s Section 8 portfolio has generated strong and reliable cash ﬂow; provided protection against adverse market/economic conditions; and generally outperformed its market-rate investment competition. Viking is currently generating average annual cash ﬂow returns of over 11% on its portfolio of Section 8 properties.
* Under the HAP program an owner enters into from one to twenty-year renewable contracts with HUD under which HUD agrees to subsidize rental payments for a speciﬁed number of qualiﬁed units in an apartment project. Under this contract, HUD and the owner establish fair market rents at the outset of the contract period (and, importantly, HUD approves annual rent increases based on inﬂation, property improvements and local market conditions) and then pays the owner of the apartments directly for the subsidized portion of the established rent monthly. Currently there is, and historically there has been, an average twelve to eighteen month waiting list for tenants in Viking’s portfolio properties. While HUD programs can be complicated and require compliance with a number of government policies and procedures, these policies have their own advantages. In addition to the direct beneﬁts associated with rent support, owners of HUD properties are required to produce annual certiﬁed ﬁnancial statements, a procedure that is rarely performed by most apartment owners; and HUD properties are required to undergo regular property inspections by professional inspection companies hired by HUD, a requirement which forces owners to maintain the properties in good physical condition and which owners therefore also require of their tenants through the owners’ own regular inspections.