DENVER (Jan. 31, 2022) – Enterprise Community Partners (Enterprise) announced today three deal closings through the Denver Regional Transit-Oriented Development Fund (TOD Fund). Since 2010, the TOD Fund has created and preserved affordable homes with access to public transit throughout the seven-county metro Denver region. The new communities to be developed through these latest investments—Crosswinds at Arista in Broomfield, Johnson and Wales Family Housing in Denver and Bonsai Apartments in Sheridan—will collectively create nearly 400 new affordable homes.
Managed by Enterprise’s community development financial institution (CDFI) Enterprise Community Loan Fund, the TOD Fund is a partnership among state and local housing agencies, philanthropic institutions, CDFIs and major banks. A total of $50 million has been invested in 22 properties which will result in the development or preservation of more than 2,000 affordable homes, the initial stated goal of the fund.
“For most families, transportation is the second-largest expense after housing costs. Bringing housing and transit closer together means families can make better use of public resources and save money for other necessities, like healthy food, medical care or education,” said Jennie Rodgers, Vice President and Mountain, Tribal Nations, and Rural Market Leader, Enterprise. “We are so grateful to our many partners, including the Colorado Housing Finance Authority, the State Division of Housing, Denver HOST, Mercy Community Capital, Impact Development Fund, Denver Foundation, Gates Family Foundation, Rose Community Foundation, First Bank, US Bank and Wells Fargo for making these investments possible.”
The 22 properties that have received investments through the TOD Fund are spread throughout the region and include rehabilitations of existing apartment communities as well as land acquisitions for new construction.
In addition to housing, TOD Fund communities include more than 150,000 square feet of commercial and nonprofit space, including a new public library. Additionally, all developments must meet or exceed the Enterprise Green Communities Criteria, the leading national green building standard for the affordable housing sector, or an equivalent.
The three recent investments include:
- Crosswinds at Arista (Broomfield), a $1.8 million loan to acquire a plot of vacant land that will be developed into 159 one-, two- and three-bedroom affordable apartments. Its proximity to rapid bus routes and bike pathways will give residents easy access to both Denver and Boulder. Gorman & Company is the sponsor of the community, and it is expected to be completed in fall 2023.
- Johnson and Wales Family Housing (Denver), a $5 million loan to acquire two dormitory buildings on the former Johnson and Wales University campus. The two buildings will be converted into 80 affordable apartments ranging from studios to three-bedroom units and are expected to be completed in fall 2023. The buildings are part of a larger project by the sponsor, Archway Community Investment, to create a total of 154 affordable homes on the former campus, supported by a full-time service coordinator who will provide community resources, including health and fitness, financial education, a weekly food bank and more. The project is part of a larger redevelopment plan that will transform the former campus into an education, economic development and affordable housing hub in the South Park Hill neighborhood.
- Bonsai Apartments (Sheridan), the most recent TOD Fund closing, a $2 million loan to acquire the former Bonsai Nursery, will result in the new construction of 149 one-, two- and three-bedroom affordable apartments. The development will be the first new construction in the City of Sheridan to be created through the Low-Income Housing Tax Credit program. The project will include a part-time resident service coordinator and a community center that will provide gathering space for neighborhood groups. Medici Development, LLC is the sponsor of the project, which is expected to be completed in early 2024.
Kimball Crangle, Colorado Market President of Gorman & Company, said the TOD Fund helped secure a prime transit location in between Boulder and Denver that also offers high-quality services and amenities nearby.
“Our residents indicate that transportation options are important to them, including rapid bus routes and bike pathways,” Crangle said. “To Gorman, being able to construct high-quality apartments that bring affordability in such a neighborhood of choice is a huge win. When completed, Crosswinds at Arista will join an array of market-rate developments and provide new housing options to a spectrum of incomes.”
The TOD Fund brings flexible, favorable and fast capital to support work that stabilizes communities and prevents displacement of long-term residents, noted Sebastian Corradino, Archway Communities CEO.
“We operate in a very competitive real estate environment, and the only way we can secure new properties for affordable homes is generally to purchase assets on the open market or through arrangements such as the one behind the Johnson and Wales campus acquisition,” Corradino said. “In either case, we need access to capital from partners who understand our business and can move quickly with reasonably priced capital.”
As TOD Fund loans are repaid, the capital is available to revolve into new property acquisitions allowing the fund to continue to serve a growing list of developers seeking to build or preserve affordable homes throughout the metro Denver area.
To find out more about the fund or how to access loan fund capital, contact Joseph Mattingly.