JV Lands $23M for Colorado Supportive Housing
CEDG and The PLACE have secured financing for a community that will serve youth at risk of homelessness.
Launchpad Apartments in Colorado Springs, Colo. Image courtesy of Merchants Capital
A joint venture of Cohen-Esrey Development Group and nonprofit The PLACE has obtained $23 million in total financing for the construction of a 50-unit permanent supportive housing development in Colorado Springs, Colo. Launchpad Apartments is the first Transition Aged Youth, or YAT, development in the primary market area. Financing was furnished by financial services provider Merchants Capital. The partners will provide housing and services for youth dealing with homelessness. Services will include job placement assistance, life skills, health care and counseling.
The property will be restricted to TAY households at 30 percent or less of the area median income, as well as 18- to 24-year-old individuals who are either dealing with homelessness or at risk of becoming homeless. Merchants Capital provided $10.9 million in federal Low-Income Housing Tax Credit equity for the project. Merchants Bank provided a $12.1 million construction bridge loan.
Step forward
“This project is a transformational step forward in providing safe and adequate housing for vulnerable young people in the Colorado Springs community,” Julie Sharp, executive vice president, tax credit equity, at Merchants Capital, told Multi-Housing News.
“Given the powerhouse team of Cohen-Esrey and The PLACE, as well as the comprehensive services and mission of Launchpad Apartments, bank investors were eager to be involved and support a critical need in this community. Launchpad Apartments was one of the highlights of our spring 2023 multi-investor fund, and the balance of the equity in the transaction is expected to close into Merchants Capital’s fall 2023 multi-investor fund.”
“One of the challenges faced on this deal was the perception of affordable housing in the neighborhood,” said Linda L. Hill, executive vice president, tax credit equity, at Merchants Capital. “The project faced what we believed to be unwarranted NIMBYism that delayed the project from closing and breaking ground. But we had a great developer partner and as well significant support from the city, county, state and investors that were committed to the project and remained patient as we worked through the process.”
In other recent news in Colorado Springs, Andover Properties has added a self-storage facility to its portfolio in the municipality.
