Affordable Housing Sales Market Heats Up

The affordable housing sales market continues to see strong interest this year. CBRE Affordable Housing reports that its activity is up “double digits” in the number of deals closed compared with the same time last year. “The market is still continuing to grow,” says Robert Sheppard, managing director, explaining that the affordable housing stock continues to expand as more low-income housing tax credit properties age and come to the end of their initial 15-year compliance periods. His firm recently arranged the sale and financing of Diamond at Prospect, a 140-unit affordable community in Denver to Hamilton Zanze Real Estate Investments for $20.5 million. It represented Security Properties in the sale of the property, which contains 98 apartments with income restrictions. The property has averaged 96% occupancy for the last three years. CBRE Real Estate and Andrew Behrens of CBRE’s San Francisco office secured $12.3 million in acquisition financing on behalf of the borrower. The 10-year fixed-rate loan was provided by Fannie Mae at CBRE’s lowest rate to date—3.07%.


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