Maiker Housing Partners, a progressive housing authority and socially conscious community developer in Adams County, Colo., and The Community Development Trust (“CDT”), a national investor in affordable housing, announced today a $42 million investment in Westminster’s 252-unit Toscana Apartments that will help ensure the community remains affordable for the long-term.
The announcement reflects a commitment by Maiker and The Community Development Trust to promote affordable housing in a metropolitan Denver region where reports show an estimated 35% of Adams County households do not earn enough to afford a two-bedroom apartment at fair market rent.
“As we navigate the current affordable housing crisis, Maiker knows how crucial it is to invest in real estate that will increase housing affordability in Adams County and create thriving spaces for community building,” said Eva J. Henry, Maiker’s Board Chair and Adams County Commissioner for District 1.
“I’m so proud to have Maiker working alongside CDT on this important next step for Toscana that will provide affordable, safe housing to those who need it most,” Henry said.
The CDT-Maiker acquisition is hailed as a major boost toward providing long-term peace of mind to residents at Toscana Apartments in Westminster, located at 84th and Sheridan just off Highway 36, in one of Adams County’s most thriving market-driven real estate markets.
The property – which is now the largest affordable housing community in Maiker’s portfolio – currently operates under the Low-Income Housing Tax Credit program and serves residents at 50%, 55%, and 60% Area Median Income (AMI). CDT is investing $8 million to acquire a 75% interest in the Toscana property through the joint venture with Maiker Housing Partners. Under the joint ownership agreement, CDT and Maiker will increase the proportion of units serving very low-income (50% AMI) households. They also will capitalize nearly $2 million in immediate repairs and capital reserves to ensure the property is preserved as high-quality affordable housing for the foreseeable future.
Adams County is at a critical point in its development – never in its history has the county experienced such growth.
From 2000-2019, the county’s population swelled to 517,421, an increase of nearly 50% that is outpacing the seven-county metropolitan Denver region and the entire state, according to the Colorado State Demography Office. The Denver Regional Council of Governments projects Adams County will be the fastest-growing county in Colorado over the next 20 years, both in population and employment.
But increasing population is also increasing housing costs, which Adams County officials say makes partnerships like the CDT-Maiker acquisition essential to promoting livable communities that allow for sustainable economic and housing growth.
The average estimated hourly wage of renters in Adams County is $16.92. At that wage, the average full-time worker can afford $880 in rent. But in Adams County’s high-demand housing market, the average fair-market rent for a two-bedroom apartment is $1,508 per-month, according to findings from the National Low Income Housing Coalition “Out of Reach 2020: Colorado” report.
That’s why CDT’s innovative strategy with Maiker and Adams County government authorities could serve as “a model for other communities and public housing agencies to consider replicating,” said Michael Lear, CDT Senior Vice President, Head of Acquisitions.
“Providing stable, long-term capital to strong and nimble housing authorities like Maiker has been a priority for CDT over the past many years,” Lear said. “We look forward to continuing to expand our relationships with Maiker and other forward-thinking housing authorities nationwide.”
The Toscana investment is CDT’s first with Maiker, and is another example of CDT’s focus on partnering with housing authorities. Maiker chose CDT to finance this acquisition and assist in executing a purchase option that Maiker held under prior ownership. CDT currently owns 3,900 units in joint venture partnerships with nonprofit partners throughout the country, including over 2,200 in partnership with local housing authorities.
The acquisition aligns strongly with CDT and Maiker’s goal of placing the property under the long-term control of mission-aligned ownership and ensures that 100% of the 252 units will remain affordable to families earning less than 50% and 60% of the area median income.
“It’s an honor to work alongside CDT on this acquisition that will preserve more affordable homes for community members in Adams County,” said Maiker’s Executive Director Peter LiFari. “The Toscana investment shows how a public-private partnership can be maximized to overcome the barriers facing the development of affordable housing today in Colorado.”
CDT and Maiker are retaining Echelon Property Group, the current property manager, who has successfully managed and maintained the property for the past 15 years. Debt financing was provided by Hunt Real Estate Capital.