A narrow, triangular block in RiNo is slated to be the site of a new 49-unit, income-restricted condominium complex.
The Chestnut Place Condos are planned to have 14 one-bedroom units, 27 two-bedroom units and eight three-bedroom units, as well as one commercial space.
All units will be sold to buyers making at or below 80 percent of the area median income, which is about $55,000 for a single-person household and $64,000 for a two-person household.
According to city documents, Elevation Community Land Trust has promised to buy the land and building when the project is completed. The trust will then sell the units. The 80 percent area median income requirement will last for 99 years.
The land includes two parcels that total 7,010 square feet, or 0.16 acres, that makes up a block formed by Chestnut Place, Arkins Court and 36th Avenue. There is currently one house on the site, which is kitty-corner from Ironton Distillery and across Chestnut Place from Number 38 beer hall.
Lauren DeBell, the chief strategy officer with Elevation Community Land Trust, told BusinessDen that planned amenities at the Chestnut Place Condos include a rooftop deck, bike shop and bike storage, as well as close access to the riverfront promenade Denver is constructing.
DeBell said the immediate area has an “extremely low” 18 percent homeownership rate.
“It is our hope that residents who have been displaced from the Five Points neighborhood will be able to return as homeowners,” she said, “and that current residents who desire to stay long-term but never dreamed they could own a home will have a new opportunity to purchase a beautiful condo where they can gain stability, wealth and a place to call home.”
As BusinessDen previously reported, the land was sold in November to Chestnut Lofts LLC, which has ties to the Urban Land Conservancy, and 3501 Chestnut Land LLC, which has ties to Shanahan Development, the contractor for the project.
The entities paid $1.13 million across two deals for 3501 and 3563 Chestnut Place, according to public records, with the Urban Land Conservancy retaining about a 70 percent interest and the Shanahan Development entity retaining about 30 percent.
“The biggest challenge this development has faced is the site itself,” according to a briefing on the project from the city. “The very narrow, triangular site, currently comprised of two parcels, required an increasingly challenging building form.”
Developers sought a zoning variance to raise the building height for more units, but the Board of Adjustment for Zoning offered only a “partial variance,” the briefing stated. The land is currently zoned for a five-story building, but it’s within a zoning overlay district that lets developers build higher if certain conditions are met.
“Additionally, the existing structure on the site requires asbestos and lead-based paint mitigation during demolition, increasing overall site preparation expenses,” the briefing stated.
The Chestnut Place project is expected to cost more than $17.7 million, according to the city’s briefing, and the developer is seeking a no-interest loan from the city of about $2.5 million to cover outstanding costs and federal funding of about $1 million.
Construction is expected to start in February and be completed by March 2023.
Shanahan Development and has partnered with the two land trust entities on other developments. In 2018, they purchased an 18,000-square-foot site at 801 W. 6th Ave. in the Santa Fe Arts District for the development of 92 income-restricted, for-sale units.
Elevation Community Land Trust currently has home listings on its website that range from as low as $149,000 for a studio with one bathroom in the Lincoln Park neighborhood and $280,000 for a three-bedroom, one-bathroom home in Aurora.