Fox Crossing, a 220-unit affordable rental housing property located at 8350 East Yale Avenue in Denver, has sold for $34.25 million. The property operates under the Section 42 Low Income Housing Tax Credit (LIHTC) program.
Dan Woodward, David Potarf and Matt Barnett with CBRE’s Denver office and Spencer Hurst, Tim Flint and Taylor Froland with CBRE Affordable Housing in Seattle represented the seller, Legacy Partners from Foster City, Calif., in a sale that closed Dec. 5. Fox Crossing was purchased by Avanath Affordable Housing IV LLC and Legacy will remain as the property management firm of record.
“Fox Crossing appealed to investors because it combines affordable housing with a highly desirable location. The property is within the Cherry Creek School District, close to two light rail stations and located right along the Cherry Creek Trail. With affordable housing in strong demand in Denver, Fox Crossing is anticipated to continue to operate at or close to 100 percent occupancy going forward,” said Dan Woodward, executive vice president, CBRE Capital Markets.
Built in 1997, Fox Crossing totals 206,946 rentable square feet across 11 buildings on 12.79 acres. The property offers a mix of one-, two- and three-bedroom floor plans with an average unit size of 941 square feet. Community amenities include a basketball court, business center, outdoor picnic area and barbecue, outdoor swimming pool and a community garden. Legacy Partners completed several capital improvements prior to Fox Crossing’s sale.
“Over the past three years, our team completed several community-wide upgrades that focused specifically on sustainability—from energy-efficient LED lights to the installation of low-flow water fixtures and appliances,” said Spencer Stuart, senior managing director at Legacy. “We’re proud of the fact that the property is expected to reduce water consumption by over 2.76
million gallons per year.”
According to CBRE Affordable Housing’s September 2019 brief, the LIHTC sector recorded 97.7 percent occupancy and year-over-year rent growth of 3.3 percent despite robust new supply; the U.S. added 41,000 new affordable units over the 12-month period ending June 2019.