Colorado complex showcases possibilities that can come from converting office space into affordable housing
What now looks like a typical one-bedroom Colorado apartment at 7401 Broadway in Adams County looked a lot different over five years ago.
"This was originally a children and family services facility, and we were able to convert it into housing," said Steve Kunshier, Vice President for Real Estate Development at Maiker Housing Partners.
Caraway Apartments opened to residents back in 2021, several years after the county-owned office space was donated to Maiker Housing Partners in order to be converted into affordable housing units.
"There's 44 units in this converted office space, and then we have an additional 72 units that we added in what was formally the parking lot," said Kunshier. "One of the real benefits to utilizing an existing space is you already have a structure to work with. We did have to demolish most of the building and take it down to the concrete structure."
Of those units, 12 were designated for children who have aged out of the foster care system.
"We filled all 12 units and we haven't had a vacancy since we opened in 2021," he said.
Kunshier says its buildings like this that showcase what can be possible with empty office buildings across the Denver metro area.
"At the end of the day, we did see savings on the cost side of approximately 10% on the overall construction costs, and in addition we were able to see savings on our schedule," he said.
In Lakewood, similar units are appearing out of former office spaces.
"We applied for low-income housing tax credits. We received those, and we started building it in 2017 and it opened in 2018," said Jill McGranahan, Associate Director of Public Affairs at Metro West Housing Solutions.
Fifty Eight Hundred in Lakewood is a 152-unit complex that sits a 97% occupancy after Metro West Housing Solutions converted the office building into apartments.
"A lot of metropolitan areas after COVID do not have the building occupancy that they used to," said McGranahan. "So this is a great way to address a crucial problem across the United States."
Kunshier says Adams County does not have a lot of options when it comes to turning office space into affordable housing units, but he believes this is a step in the right direction to bringing online more options for affordable living.
"One of the youths who leased here actually was a child who came to this building and was, unfortunately, put into foster care at this building, and there was a lot of traumas from that experience," he said. "Initially they weren't willing to even come near this community, and after time and with the renovations that happened, they eventually came in and looked at the apartment, and they are currently a resident here."
However, there are plenty of challenges that also come with converting office space, and not all properties can fit the bill.
"In this case we have mostly one bedroom in this building because the structure has more depth than it does width, so we aren't able to provide the windows required for additional bedrooms," said Kunshier. "Once we brought the building down to its concrete structure, we had to drill holes for new plumbing, new electric. We had to bring in all new services to the building."
As the city of Denver and Mayor Mike Johnston look to creating more affordable housing options in a similar way by converting office space, Kunshier says the key is making sure local municipalities work in partnership with developers as projects unfold.
"It can be challenging to meet all of the requirements in an existing space that a new construction ground up project would meet, and cities and counties will need to have some flexibility in working with developers to make sure projects can be completed," said Kunshier.
