CDT Partner: Rocky Mountain Communities
CDT Investment: $6,000,000
Garden Court is a 300-unit property in a rapidly growing Denver submarket. With existing affordability restrictions set to expire in December 2023, CDT partnered with RMC to fund capital improvements and to extend the restrictions for another 15 years to ensure long term affordability. 33% of units serve residents at or below 50% of AMI, 7% serve residents at or below 60% AMI, 35% serve residents at or below 80% AMI, and the remaining 25% are market-rate units. The restricted rents are substantially advantaged to market rate rents. Garden Court features on-site laundry facilities, a playground and field, business center, and most units include a balcony.
CDT invested approximately $6,000,000 as a joint venture partner to recapitalize this property, which RMC had owned since 1996. The total acquisition/recapitalization cost was $25mm, and our capitalization facilitated approximately $12,000/unit in upfront capital improvements and reserves, including in-unit upgrades. The recapitalization provided liquidity to RMC while facilitating RMC’s long-term control and ownership. CDT and RMC’s joint venture uniquely aligned CDT and RMC’s missions while allowing the partnership to revitalize the property without substantially or rapidly raising rents on current tenants. CDT and RMC placed new debt at acquisition from the Colorado Housing Finance Agency, which extended affordability restrictions for a minimum of 15 years.