Jonathan Rose Cos. has purchased a 188-unit development in Denver as part of its efforts to acquire and preserve affordable housing in key urban markets.
Juanita Nolasco Apartments was sold by a limited liability entity to the firm for $31.25 million, according to Greystone a real estate lending, investment, and advisory firm. Its Real Estate Advisors group represented the seller.
Built in 1972 and substantially rehabilitated in 2007 and 2008 with 4% low-income housing tax credits (LIHTCs), the development is a 100% project-based Sec. 8 high-rise building. The 13-story property offers housing to very low-income elderly and disabled residents and features a number of amenities for residents, including a fitness center.
“We have a long history of investing and developing in Denver” says Nathan D. Taft, managing director of acquisitions at Jonathan Rose Cos. “We have been pleased to support the mayor and the Denver Office of Economic Development’s focus on preservation of key affordable housing assets in the community.”
In 2017, Taft’s firm closed on the $233 million Rose Affordable Housing Preservation Fund IV, which raised funds for the company to acquire developments like Juanita Nolasco Apartments in targeted markets nationally. Once it acquires an affordable housing community, the firm completes a green renovation to improve the development’s energy efficiency and integrates social services for residents while keeping the housing affordable for the long term, according to Taft.
The latest acquisition is in an urban infill neighborhood with a nearby transit line and greenway. “We’ve seen development move in this direction from downtown Denver,” Taft says. “We felt that the acquisition of Juanita was a great opportunity for us to fulfill our mission by preserving affordability and enriching social services as the neighborhood continues to improve and change.”
The sale of Juanita Nolasco Apartments included several 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, according to Greystone.
Greystone's Aaron Hargrove and Eric Taylor represented the seller.
“We are thrilled with the highly competitive sale of Juanita Nolasco Apartments, proving that the asset is a solid investment for Jonathan Rose Companies,” says Hargrove.
