LAKEWOOD, CO-Hendricks & Co. has brokered the sale of the Cliffs at Lakewood Apartments at 1388 Garrison St. in this city, west of Denver. The community sold for $12.3 million, or $61,500 per unit. The property consists of 200 units in nine two-and-a-half story garden-style buildings and one clubhouse/leasing/recreation building located on 9.2 acres.
The buyer was Fairfield Timberleaf LP, a California entity consisting of the affordable division of Fairfield Residential, one the nation's largest multifamily developers, and the Lakewood Housing Authority. Fairfield has a strong presence locally, this was Fairfield's third property financed with low income housing tax credits in the Denver metro area.
The community was eligible for the Low Income Housing Tax Credit program that was established by Congress under the Tax Reform Act of 1986 because of the following:The property has been owned by the seller for at least 10 years; more than $6,500 per unit in rehab will be performed; and at least 40% of the units will be rented to residents earning less than 60% of the median household income for the area.
The deal was financed with tax-exempt private activity bonds which allowed for the low income housing tax credits. The bonds were underwritten by the locally based investment banking firm, Newman & Associates, a division of GMAC Commercial Holding Capital Markets Corp. Other affiliates of Newman assisted in closing of this transaction.
“This is a model for the type of deals that will be completed in the future,” Chuck Sweeney, a top broker with Hendricks & Co. tells GlobeSt.com. “A large percentage of the sales we see will be the type of deals like this one that are eligible for the Low Income Housing Tax Credit program.”
A total of 74% of the units in the community have either two or three bedrooms, which is very high for the metro area, Sweeney tells GlobeSt.com. There are a total of four floor plans in these garden-style buildings. This variety of floor plans accommodates a wide range of resident profiles and income levels.
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