Avanath Pays $34M for Affordable Denver Community

Fox Crossing. Image courtesy of CBRE

Fox Crossing, a 220-unit affordable housing property in southwest Denver, has changed hands for $34.3 million. According to Yardi Matrix data, Avanath Capital Management is the new owner of the 1997-built community. The sale was subject to a $20.6 million Fannie Mae loan, per the same data provider.

CBRE’s Dan Woodward, David Potarf and Matt Barnett from the company’s Denver office, together with Spencer Hurst, Tim Flint and Taylor Froland with CBRE Affordable Housing in Seattle, acted on behalf of seller, Legacy Partners. Recently, Flint was also part of the team that facilitated the sale of another fully affordable property in Santa Maria, Calif.

Located at 8350 E. Yale Ave. along the Cherry Creek Trail, Fox Crossing is roughly 5 miles from the junction between interstates 25 and 225, within the Cherry Creek School District and close to two light rail stations. The community encompasses 11 buildings on almost 13 acres, with a mix of one-, two- and three-bedroom floorplans. Amenities include a basketball court, business center, outdoor picnic area, barbecue, swimming pool and community garden.  

Recent capital improvements 

Fox Crossing operates under the Section 42 low-income housing tax credit program and was recently upgraded by the former owner. Property improvements focused on sustainability, according to Spencer Stuart, senior managing director at Legacy Partners. Through these upgrades, water consumption at the property was reduced by approximately 2.8 million gallons per year.

Affordable housing properties are in strong demand in Denver. According to a CBRE Affordable Housing report, the LIHTC sector recorded a 3.3 percent year-over-year through September rent growth, despite robust new supply.

If you’d like to be featured in Brokers’ Corner, send your deal to deals@cpe-mhn.com.