Abrigo Apartments

Aurora, Colorado
Abrigo Apartments

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