Greystone Advises on $31.2 Million Sale of 188-Unit Affordable Housing Property in Denver
January 16, 2018
Greystone announced its Real Estate Advisors group closed the sale of Juanita Nolasco Apartments, a 188-unit affordable housing community in Denver, CO. Greystone’s Aaron Hargrove and Eric Taylor represented the seller, a limited liability entity, in the sale to Jonathan Rose Companies, for $31,250,000 in December 2017.
Juanita Nolasco Apartments, built in 1972 and substantially rehabilitated in 2007/2008 via 4% Low Income Housing Tax Credits, is a 100% Elderly Project-Based Section 8 high-rise building. The income-restricted property offers housing to very low-income elderly and disabled residents. The fully-occupied 13-story property includes a number of modern comforts for residents, including a fitness center.
The sale of Juanita Nolasco Apartments included a number of complex issues, including defeasance of the underlying bonds, recapturing bond float, and a number of agency approvals. Additionally, the property was in year 10 of its 15-year LIHTC compliance period, which required consent for an early exit. All of these existing obstacles were overcome for a closing in under 90 days upon engaging Greystone Real Estate Advisors.
“We are thrilled with the highly competitive sale of Juanita Nolasco Apartments, proving that the asset is a solid investment for Jonathan Rose Companies,” said Aaron Hargrove, Managing Director, Greystone Real Estate Advisors. “That said, tax credit properties present a unique set of challenges in both the acquisition and disposition process, and we have the ability to execute knowledgably and swiftly on our clients’ behalf for an optimal outcome.”