Colorado Real Estate Journal - April 20, 2016
An apartment community near the University of Colorado campus in Boulder will get considerably bigger without changing its footprint. Brickstone Partners, which has redeveloped seven properties near campus, will add 96 beds and modernize the Cavalier Apartments at 2898 and 2900 E. Aurora Ave. The community currently has 220 units, or 260 beds. “With the development climate in Boulder being what it is, becoming more and more challenging to find sites for development, we have tried to find a way to add density within a single complex,” said Dan Otis, Brickstone Partners principal. “We’ve figured out how to add almost 100 beds within the existing community.” There are 84 large one-bedroom apartments that will be converted to two-bedroom units and a dozen two-bedroom units that will be transformed into three-bedroom apartments. Brickstone Partners bought the Cavalier Apartments for $43.1 million late last year in what was one of the largest multifamily property sales near CU in several years. It will spend between $10 million and $12 million on the conversion and upgrades, including turning the existing clubhouse into a “Colorado chalet”-type amenity. On a per-bed basis, apartments currently rent for around $900 per month. After renovation, rents are projected to increase to $1,100 to $1,200 per bed, Otis said. While the apartments will continue to draw students because of their location directly east of the university, “We tend to try to develop and redevelop these assets so they appeal not only to students but the market as a whole,” said Otis, who is part of the team that is developing Google’s $100 million, 330,000-sf campus at 30th and Pearl. Proximity to Google was part of the impetus for the project, which is likely to draw some of those employees, he said. Built in 1969, the community includes many of the original interior finishes. Brickstone will spend $20,000 to $60,000 per unit on upgrades, depending on each unit’s needs. The property will be renamed and rebranded. The apartments were essentially full at the time of the sale. Some occupancy will be maintained during construction. A large number of “new” units will be available in August. Littleton-based Bristlecone Construction Corp. is the general contractor. Jeff Dawson of Boulder-based Studio Architecture is the architect. Noting that Boulder’s comprehensive plan calls for increased density in the area east of CU, Otis said the addition of beds at Cavalier will be a win-win for the city, the university – which badly needs additional rentals near campus – and the developer. “We’re able to do it in a building that’s existing without expanding the footprint or making the buildings taller. It really is a good way to create sustainable development and provide quality housing,” he said. With this latest redevelopment, Brickstone Partners has completed multihousing projects in Boulder with a market valuation in excess of $200 million. Other News Boulder’s first Housing First community for formerly chronically homeless residents is achieving the program’s goal of helping provide secure housing and supportive services, according to a new report from Boulder Housing Partners and the Boulder Shelter for the Homeless. The property at 1175 Lee Hill, at the corner of Lee Hill Drive and North Broadway Street in north Boulder, opened in November 2014 and provides housing for 31 formerly homeless men and women. “The first year has been very successful,” said Betsey Martens, executive director of BHP. “We wanted to demonstrate the Housing First model locally. We wanted to show how it yields real benefits to individual residents as well as the greater community. We wanted to demonstrate that Housing First can be a good neighbor. And we wanted to build something beautiful. We’re achieving all four goals and will continue to do so.” The Housing First model is being implemented around the country as a way to reduce chronic homelessness by providing people with housing and supportive services to help them achieve long-term stability and self-reliance. The chronically homeless often suffer from disabilities and poor health, which prompt heavy utilization of public health and emergency services. Research has shown that the Housing First model significantly reduces demand on hospital emergency rooms, jails and court systems as well as human service agencies. The report on 1175 Lee Hill found: • There were no calls to police from the neighborhood related to Lee Hill or its residents and BHP received no complaints from the neighborhood. • Lee Hill residents called for emergency services 49 times, with 82 percent of those calls for medical assistance. • Residents now have easy access to Medicaid/Medicare (25 residents), Supplemental Security Income (11 residents), Aid to the Needy and Disabled (seven residents) and Social Security Disability Insurance (seven residents). • A total of 13 partner agencies provide a wide variety of programs, such as art classes, cooking classes, mental health support and food. Additional research on program performance will be completed this year. “We know that the Housing First model works, and it’s great to expand these programs to better serve the homeless and the community,” said Greg Harms, executive director of Boulder Shelter for the Homeless, which administers support services at Lee Hill. “Giving homeless people a place to live saves lives and saves the community money.” A Denver study found each chronically homeless person living on the streets costs an average community about $43,300 per year. By contrast, it costs about $11,700 per year to provide housing and case management in a Housing First setting.