Jonathan Rose Buys Affordable Denver Asset
- Jan 18, 2018
Jonathan Rose Cos. has acquired a fully affordable, 188-unit community in Denver. Greystone facilitated the $31.2 million transaction of Juanita Nolasco Apartments through its Real Estate Advisors group, working on behalf of the seller, a limited liability company.
The property is located at 4550 W. 9th Ave. Since its construction in 1972, the building was rehabilitated in 2007 and 2008 via 4 percent Low Income Housing Tax Credits (LIHTC). Juanita Nolasco is a 100 percent Elderly Project-Based Section 8 development. The 13-story asset is income-restricted to very low-income elderly and disabled residents. It comprises 128 one-bedroom, 12 two-bedroom and 48 studio units, ranging in size from 380 to 680 square feet. At the time of the sale, the property was 100 percent occupied.
The residential neighborhood features multiple parks and green spaces along Lakewood Gulch. The community is near several shopping and dining options, situated along routes 95 and 6. The Denver Broncos’ football stadium is about two miles away, near Interstate 25 and Platte River. Multiple schools are in the vicinity, while the Metropolitan State University of Denver is about three miles away from Juanita Nolasco. Downtown Denver can be reached in about 12 minutes.
The transaction of the age-restricted community was facilitated by Greystone Managing Directors Eric Taylor and Aaron Hargrove. Working on behalf of the seller, the duo faced several issues. The sale required defeasance of underlying bonds, recapturing bond float and approvals from various agencies. Juanita Nolasco Apartments was in its 10th year of LIHTC compliance, requiring consent for an early exit.
“We are thrilled with the highly competitive sale of Juanita Nolasco Apartments, proving that the asset is a solid investment for Jonathan Rose Cos. Tax credit properties present a unique set of challenges in both the acquisition and the disposition process, and we have the ability to execute knowledgeably and swiftly on our clients’ behalf for an optimal outcome,” said Hargrove in a prepared statement.
Image courtesy of Yardi Matrix