A $42 million investment in the 252-unit Toscana Apartments will help ensure that the Westminster, Colorado, community will remain affordable for the long term.
The investment was announced by Maiker Housing Partners, a progressive housing authority and socially conscious community developer in Adams County, Colorado, and The Community Development Trust (CDT), a national investor in affordable housing.
Officials said the deal reflects a commitment by the partners 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.
The CDT-Maiker acquisition will provide long-term peace of mind to residents at Toscana Apartments.
The property—the largest affordable housing community in Maiker’s portfolio—operates under the low-income housing tax credit program and serves residents at 50%, 55%, and 60% of the area median income (AMI).
CDT is investing $8 million to acquire a 75% interest in the Toscana property through the joint venture with Maiker. Under the agreement, the team will increase the proportion of units serving very low-income (50% of the 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.
The investment is CDT’s first with Maiker and is an example of the firm’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 owns 3,900 units in joint-venture partnerships with nonprofit partners throughout the country, including over 2,200 in partnership with local housing authorities.
“Providing stable, long-term capital to strong and nimble housing authorities like Maiker has been a priority for CDT over the past many years,” said Michael Lear, CDT senior vice president and head of acquisitions. “We look forward to continuing to expand our relationships with Maiker and other forward-thinking housing authorities nationwide.”
CDT and Maiker are retaining Echelon Property Group, which has managed and maintained the property for the past 15 years. Debt financing was provided by Hunt Real Estate Capital.
In a separate transaction, CDT, nonprofit developer Aeon, and Minnesota Housing announced a $42.5 million refinancing of Seasons Park Apartments.
The 422-unit property is in Richfield, Minnesota, a few miles from the Mall of America and the Minneapolis-St. Paul International Airport. The new plan will help preserve long-term affordability for more than 1,200 residents at a time when developers are increasingly buying these properties to convert them into market-rate housing.
Aeon and CDT initially partnered on the acquisition of Seasons Park in September 2017. CDT and Aeon assumed the existing financing placed on the property by the prior owner, with the understanding that, to provide quality, affordable homes for the long term, Seasons Park needed an infusion of capital.
Now, after two years of work with the state housing agency, the team recently closed on a $42.5 million refinancing plan from Minnesota Housing. The financing consists of a 35-year first mortgage of $34.5 million from the Low to Moderate Income Rental program and $8 million in subordinate financing from the agency’s Flexible Financing for Capital Costs program.
