Hunt Mortgage Group provided a $36.55 million FHA mortgage to finance the construction of a project expected to be a catalyst for further redevelopment in Wheat Ridge.
The loan was provided for the construction of West End 38 Apartments, a mixed-use project on 2.8 acres at the northwest corner of West 38th Avenue and Upham Street in the Town Center neighborhood.
“West End 38 Apartments will be the first truly integrated mixed-use project in the city of Wheat Ridge that will provide market rate housing for the working professional and families, along with commercial retail space,” explained Stephen Wessler, director-FHA originations in the Affordable Housing Group at Hunt Mortgage Group.
Ground recently was broken on West End 38, which will feature 165 apartment units, 7,269 square feet of retail space and a mix of outdoor public courtyards and gathering spaces.
The four-story building will consist of three-stories of multifamily apartments above a street-oriented retail space along 38th Avenue. Retail tenants are expected to include a mix of local restaurants and retailers. The project will also include the first structured parking facility in the city of Wheat Ridge, serving both apartment residents and retail customers.
“This mixed-use project is expected to be a catalyst for further redevelopment along the 38th Avenue corridor and will serve as the anchor project for Main Street in Wheat Ridge,” added Wessler. The property is supported by the city and included within the Urban Renewal Plan to eliminate and prevent blight by facilitating redevelopment; support and advance actions related to the development of vacant and underutilized parcels and provide public infrastructure; and make more efficient use of existing land to promote sustainability, he added.
Per the city of Wheat Ridge’s Urban Renewal Plan, the loan qualifies under the Section 220 eligibility requirements for new construction of a mixed-use housing project within an urban renewal area. The project is also classified as green/energy efficient housing. Construction is expected to take 19 months.
The borrower is West End 38 LLLP, a Colorado limited liability limited partnership, backed by Chris Downs and Tyler Downs, who own Wazee Partners.
“They are very active in the development and acquisition/ rehabilitation of multifamily, senior housing, retail and land properties throughout the west mountain region,” added Wessler. “They have extensive knowledge and experience and have developed or acquired over 800 units across 11 projects during the past eight years. We were pleased to partner with them on this deal to help revitalize the local area and provide quality housing to local residents.”
The general contractor is Shaw Builders.
The property will feature on-site management and maintenance, secured access entries, a community room, business center, a swimming pool, spa/jacuzzi, cyber café, fitness center, yoga room, barbecue/outdoor kitchen area, bicycle storage and repair area, dog wash and additional storage lockers. The project will have a total of 255 on-site parking spaces, including 25 surface spaces and 230 garage spaces. Each of the 165 apartments will have one parking space included in the rent.
West End 38 Apartments will consist of 22 studio, one-bathroom units; 100 one-bedroom, one-bathroom apartments; and 43 two-bedroom, two-bathroom units.