A vacant office building is being turned into affordable housing in Denver.
In addition to the adaptive reuse, The Caraway will include new construction to create 116 affordable housing units in five three-story buildings. The units will serve families and individuals who earn between 30% and 70% of the area median income. Eight units will be reserved for youths transitioning out of foster care.
To assist Maiker Housing Partners with the approximately $41.7 million development, KeyBank Community Development Lending and Investment (CDLI) secured $30 million of construction financing and KeyBank Real Estate Capital’s (KBREC) Commercial Mortgage Group secured a $16 million, fixed-rate Freddie Mac TEL permanent loan.
The Caraway will operate under a Declaration of Land Use Restrictive Covenants for low-income housing tax credits (LIHTCs) and be subject to a ground lease between the Adams County Housing Authority and The Caraway, LLLP.
Additional financing sources include a LIHTC equity investment from RBC Community Investments, a HOME and Community Development Block Grant from Adams County, and a state housing development grant.
Sarah Geis of KeyBank’s CDLI team and Jonathan Woodland of KBREC’s Commercial Mortgage Group structured the financing.