COMMERCE CITY, CO - Security Properties closed the recapitalization of Village Crest Apartments, a 120-unit low-income apartment complex located in Commerce City, Colorado. Village Crest is a garden-style affordable housing property consisting of seven buildings that serves low-income families in northeastern Denver.
The property was originally constructed in 1999 utilizing 4% Low Income Housing Tax Credits and rents to families with incomes below 60% of area median income. Just blocks from the planned redevelopment of the former Mile High Greyhound Park, Village Crest presented an opportunity to preserve affordable housing in a submarket expected to experience significant growth in the coming years. "Demand for affordable housing across Denver continues to grow, which makes preserving existing affordable housing all the more critical," said Bryon Gongaware, Managing Director of Affordable Housing at Security Properties.
Security Properties secured an allocation of tax exempt bonds and 4% Low Income Housing Tax Credits from Colorado Housing and Finance Authority to finance the recapitalization, which will allow for a rehabilitation of the property over the next 12 months. That tax exempt financing was provided by Citi Community Capital, while R4 Capital provided the tax credit equity for the transaction.
The transaction also marks Security Properties' first partnership with Commerce City Housing Authority. "Partnering with Commerce City Housing Authority was key for us in this transaction. Being able to engage with local stakeholders to preserve and rejuvenate affordable housing for this community is a win for all involved," states Steve TeSelle, Director with the Affordable Housing Group at Security Properties.
The renovation plan will include expanding the existing clubhouse to add a fitness center, computer lab and laundry room, as well as adding an additional play area. The interior rehab will include new mechanical systems, kitchen appliances, cabinet fronts, countertops, lighting, and new fixtures and flooring in the kitchens and bathrooms.
Village Crest will continue to be professionally managed by Security Properties Residential.