November 9th 2024.
Delwest, a local developer, has recently acquired a 1.5-acre property in the 2200 block of South Albion Street for the development of a 170-unit income-restricted multifamily project. According to Joel DelZotto, the CEO and president of Delwest, this location is truly impressive as it sits at the core of Denver, with Cherry Hills to the south and Belcaro to the north. DelZotto believes that the demand for affordable housing in this area is high, making it a great opportunity for their company.
The project will not only include apartments but also a 5,000-square-foot preschool and a few townhomes at the front of the development. Currently, the site consists of a few old office buildings which Delwest plans to demolish. The construction is expected to begin early next year.
Delwest purchased the land for $7.5 million after receiving nearly $4 million in tax credits from the Colorado Housing and Finance Authority (CHFA) last year. These tax credits are awarded based on various factors, including the site's location and demographics. DelZotto explained that the project was able to receive these credits because it falls within a "qualified census tract" (QCT) designated by the federal government for income-restricted development. However, this designation was set to expire, making it a time-sensitive opportunity for Delwest.
The QCT for Delwest's project is a triangular area bordered by Interstate 25, Colorado Boulevard, and Yale Avenue. It has a population of about 1,800 people, with a median household income of $71,000, which is 75% of the citywide median household income of $94,000. Other QCTs can be found in areas such as Globeville, Elyria-Swansea, Five Points, and Cap Hill.
CHFA considers various factors when awarding low-income housing tax credits, including proximity to transit and catering to specific demographics like senior citizens. DelZotto stated that winning these awards requires meeting multiple criteria, making it a challenging task. He also mentioned the difficulty of closing real estate deals without having these awards in hand.
Despite the challenges, Delwest's project stood out for many reasons. It offers a mix of three and four-bedroom units, making it suitable for families. Additionally, it is located near public transportation, grocery stores, and high-performing schools. Delwest is also in the process of completing a $90 million development in Commerce City called the Greyhound Park. This 60-acre site will include a mix of single-family homes, apartments, duplexes, and rowhomes, totaling around 1,000 units. The company also has rental properties in Park Hill and southeast Denver and recently started its property management business.
DelZotto, who has been in the real estate business for over 30 years, shared that his first project was building townhomes worth $79,000 on South Quebec Way when he was just in his mid-20s. He initially came to Colorado to develop some family properties and then return home. However, he and his wife fell in love with the state and ended up staying. DelZotto feels fortunate to have ended up in Colorado and to have built a successful business here.
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