KeyBank Lending Helps Transform Abandoned Tower into Affordable Housing in Colorado
The eight-floor office tower at 5800 West Alameda Avenue in Lakewood, Colorado, just outside Denver, has been an eyesore for years. Since it was built in 1981, the building has remained nearly vacant. Now this abandoned real estate will be renovated and transformed into affordable homes for 152 families.
KeyBank Funding Made It Happen
KeyBank's Community Development Lending and Investment (CDLI) team provided a $57.2 million lending package to Metro West Housing Solutions to renovate the tower and turn it into affordable apartments. The lending package included a $26.3 million construction loan and a $10.8 million Freddie Tax-Exempt Loan, as well as a $20.1 million investment in low-income housing tax credit (LIHTC).
Extensive Renovations Bring Tenant Benefits
With KeyBank funding in hand, Metro West is gutting the tower down to its concrete bones and removing the existing eighth floor. The building boasts incredible, unobstructed 360-degree views of the area – including Denver’s cityscape and the Rocky Mountains.
"It blew us away when we walked in," Ryan Lunsford, principal of WJL Affordable Housing Consulting (who is consulting on the project), told The Denver Post. The 152 apartments will give residents beautiful, clear sightlines of the mountains and downtown from their brand-new, modern units. The apartment residents will also enjoy a rooftop deck, community kitchen, education spaces, community gardens and community kitchen.
Affordable Apartments in High Demand
The building will include studio, one-, two- and three-bedroom units. The emphasis is on affordability. All of the units will be available to households with up to 60% of the area median income (AMI), and several apartments will be reserved for those with 30, 40 and 50% AMI. Applications indicate the community is embracing the building, with more than 4,000 applications received in the days after the wait list opened.
Metro West Executive Director and CEO Tami J. Fischer is encouraged by how well the building’s development has progressed – and how it will benefit those in need of affordable housing in the area.
“We develop beautiful, sustainable housing that meets the needs of our community members,” explained Fischer. “We found in KeyBank a partner that is equally committed to this mission, and we are thrilled to work on Fifty Eight Hundred together.”
Bolstering the Community
Fifty Eight Hundred will also support a range of community needs by offering safe, decent and affordable units; critical supportive services; and easy access to local resources such as schools, sports facilities, parks, playgrounds and retail centers.
Additionally, Metro West Housing Solutions will coordinate supportive services, including emergency needs, computer skills classes, job search assistance, career planning, support with first-time homebuying, financial fitness classes, and cooking and nutrition classes for residents. Partnerships with local groups like ArtReach, the New America School (located nearby), Red Rocks Church and Food Bank of the Rockies will encourage residents to get creative, pursue adult education courses and take advantage of healthy food options made available at least twice a month.