DTC office conversion, nine other Colorado housing projects awarded tax credits

Peter Culshaw is one step closer to turning old offices into new bedrooms.

The developer and executive with Shea Properties has been awarded over $4 million in federal and state tax credits needed to finance the firm’s office-to-residential conversion at 4340 S. Monaco St. near the Denver Tech Center.

“There’s very few affordable projects in that immediate area … and they’re all full,” Culshaw said.

The project is one of 10 income-restricted housing projects within the state that was awarded tax credits by the Colorado Housing and Finance Authority last month. Culshaw believes it won out in part due to it being a conversion.

“Everyone talks about that, but we’re the first to do it … They (CHFA) have a very thoughtful criteria for selection, it’s not one thing … We tried to check as many of the boxes for them as possible,” he said.

With tax credits in hand, Culshaw said Shea hopes to close on the purchase of the property by March, assuming he gets a building permit next month. From there he hopes to spend about a year redeveloping the building.

The four-story structure will be hollowed out and transformed into 143 income-restricted apartments. The units range from studios to four-bedrooms, and will serve those making between 30 and 70 percent of the area median income.

It’s poised to be the first office-to-residential conversion to begin in the Denver area since the pandemic.

The 10 projects awarded tax credits by CHFA combine for 1,169 units, and were chosen from  32 applications. All developments selected will receive a 4 percent federal tax credit, along with additional state tax credits.

Developers sell the tax credits to investors to raise equity for their projects. The equity reduces the amount of debt financing or other funding sources needed to make the development financially feasible with the rent limits required under the programs.

Here’s a breakdown of the other projects that were awarded credits:

1. Compass Pointe, Pueblo

Developer: Kittle Property Group

Address: Southwest corner of Oakshire Lane and Beaumont Street

Units: 192 units (48 one-bedrooms, 72 two-bedrooms, 64 three-bedrooms, 8 four-bedrooms)

Income restrictions: 10 at 30 percent area median income, 6 at 40 AMI, 9 at 50 AMI, 133 @ 60 AMI, 18 at 70 AMI, 16 at 80 AMI

9 percent credit awarded: $3.62 million

State credit awarded: $1.8 million

2. Creekside Flats, Denver

Developer: Archway Investment Corporation

Address: 5375 W. 10th Ave.

Units: 150 units (65 one-bedrooms, 61 two-bedrooms, 24 three-bedrooms)

Income restrictions: 22 at 30 AMI, 15 at 50 AMI, 76 at 60 AMI, 11 at 70 AMI, 26 at 80 AMI

4 percent credit awarded: $2.99 million

State credit awarded: $1.8 million

3. Glenwood Gardens, Glenwood Springs

Developer: Cohen-Esrey Development Group

Address: 51993 Highway 6

Units: 80 units (4 studios, 21 one-bedrooms, 52 two-bedrooms, 3 three-bedrooms)

Income restrictions: 3 at 20 AMI, 7 at 30 AMI, 7 at 40 AMI, 23 at 50 AMI, 10 at 70 AMI, 30 at 80 AMI

4 percent credit awarded: $2.13 million

State credit awarded: $1.8 million

4. Grove in Bloom, Fort Collins

Developer: Pedcor Investments, LLC

Address: North and west of E. Mulberry St. and Greenfield Court

Units: 264 units (84 one-bedrooms, 132 two-bedrooms, 48 three-bedrooms)

Income restrictions: 14 at 30 AMI, 15 at 40 AMI, 42 at 50 AMI, 136 at 60 AMI, 48 at 70 AMI, 9 at 80% AMI

Federal 4 percent credit awarded: $4.73 million

State credit awarded: $1.7 million

Other notes: Health District of Northern Larimer County will provide free, onsite health screenings. Free primary care health services will be provided to residents living in 30 percent AMI units through an arrangement with Starlight Health.

5. Jet Wing Flats, Colorado Springs

Developer: Commonwealth Development Corporation and Solid Rock Community Development Corporation

Address: 2040 Jet Wing Drive

Units: 68 units (24 one-bedrooms, 28 two-bedrooms, 16 three-bedrooms)

Income restrictions: 7 at 30 AMI, 7 at 40 AMI, 19 at 50% AMI, 20 at 60% AMI, 15 at 80% AMI

4 percent credit awarded: $1.36 million

State credit awarded: $1.8 million

6. Maiker Uplands, Westminster

Developer: Maiker Housing Partners

Address:  2880 W. 88th Ave.

Units: 70 units (48 one-bedrooms, 22 two-bedrooms)

Income restrictions: 18 at 30 AMI, 11 at 40 AMI, 19 at 50 AMI, 22 at 70 AMI

4 percent credit awarded: $1.65 million

State credit awarded: $1.79 million

Other notes: Maiker and North Metro Services will provide services to neurodiverse residents including transportation assistance, community events and local support services coordination.

7. Stables, Aurora

Developer: Grovewood Community Development, Inc.

Address: 10850 E. Exposition Ave.

Units: 85 units (11 one-bedrooms, 56 two-bedrooms, 18 three-bedrooms)

Income restrictions: 8 at 30 AMI, 8 at 40 AMI, 27 at 50 AMI, 27 at 60 AMI, 15 at 80 AMI

4 percent credit awarded: $2.04 million

State credit awarded: $1.8 million

8. Summit at Granby Apartments, Granby

Developer: Summit Housing Group, Inc.

Address: 23 Pioneer Drive

Units: 67 (6 studio, 16 one-bedrooms, 37 two-bedrooms, 7 three-bedrooms)

Income restrictions:  7 at 30 AMI, 10 at 40% AMI, 11 at 50% AMI, 5 at 60% AMI, 14 at 70% AMI, 19 at 80% AMI, one employee unit

4 percent credit awarded: $1.51 million

State credit awarded: $764,007

Other notes: This will be the first income restricted tax credit development in Granby.

9. Tiara Apartments, Aurora

Developer: KCG Development, LLC

Address: 12000 E. 16th Ave.

Units: 50 Units (9 studios, 23 one-bedrooms, 18 two-bedrooms)

Income restrictions: 10 at 30 AMI, 15 at 50 AMI, 25 at 60 AMI

4 percent credit awarded: $877,787

State credit awarded: $1.33 million

Other details: The redevelopment preserves existing affordable housing for seniors aged 62 and older. The building was constructed in 1962, and the funds will be used to add new building systems and make other health and safety repairs.

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