Projects

Abrigo Apartments

AURORA, COLORADO

Created using an innovative social impact development model for veterans housing, Abrigo Apartments is located adjacent to the region’s new VA Medical Campus.

The Challenge

  • Metro Denver is growing rapidly, making the housing market more competitive and affordable housing increasingly scarce
  • The region’s homeless population faces more challenges to finding a home, even if they have rental subsidy vouchers
  • Nearly 300 veterans are experiencing homelessness in the Metro Denver region; many of these veterans have VASH vouchers but are unable to access housing because of discrimination, tenant underwriting standards and other financial/logistical barriers

Our Goals

  • Connect veterans experiencing homelessness to quality housing with improved access to support services
  • Create and preserve more affordable housing in the Denver Metro area through a faster and more flexible approach that can meet both immediate and long-term housing needs

Our Approach

  • Community Solutions bought the Abrigo Apartments, using a pioneering form of social impact investment:
    • $7.5 million cost to purchase and rehab the property
    • $2.5 million of social impact equity
    • $5M million mortgage (Citi)
  • Social impact equity was raised from individuals dedicated to creating housing for veterans experiencing homelessness:
    • Equity return is capped at 3%
    • Proceeds in excess of 3% buy down initial investment
    • As interest is bought down, proportionate ownership is transferred to CS
    • By Year 7, investors’ capital is returned (with 3% IRR) and CS owns the building for continued long-term operation as veterans housing
  • Deal closed in just 90 days; the first veterans moved in less than 100 days from signing of purchase contract
  • Two-thirds of the buildings’ 66 units will be set-aside for veterans; placement of veterans is done in direct coordination with the VA and the region’s Coordinated Entry System
  • CS provides on-site property management using a “property management plus” model, which incorporates enhanced support and services for residents
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