A developer of income-restricted housing is preparing to purchase a half-block property in Lincoln Park from a nonprofit.
Jeff Shanahan, owner of Shanahan Development, told BusinessDen Wednesday that he expects to close next week on the purchase of 1530 W. 13th Ave.
The 1.4-acre site has about 24,000 square feet of building space on it, but was marketed as a redevelopment opportunity, according to a marketing brochure. The site is zoned I-MX-5, which allows development up to five stories.
The property is currently owned by Savio House, which provides in-home therapeutic treatment to children and their families, according to its website. The nonprofit bought the site in 2008 for $1.97 million from the construction company G.H. Phipps.
Savio also owns 325 King St., a full city block in Denver’s Barnum neighborhood, and plans to move the Lincoln Park operations there.
Broker Chris Wiedenmayer Jr. of CW Real Estate Partners represented Savio in both its 2008 purchase and the impending sale. He noted that G.H. Phipps namesake Gerald Phipps owned the Denver Broncos until 1981, and said he was told while brokering the earlier deal that a boardroom in the building was where players would sign contracts.
Shanahan Development is currently building 49 income-restricted condos on a triangular lot in RiNo, and previously built La Tela, another income-restricted condo project at 603 Inca St. in Lincoln Park.
Jeff Shanahan said this will be his first income-restricted rental project, meaning he’s applying for low-income housing tax credits for the first time. The project is expected to include about 190 units.
“It’s too big of a site to go condos,” he said. “Trying to sell upward of 200 condos would be pretty tough.”
Shanahan said things are still early in the planning stages, and it’s possible he could ultimately do a 50-50 mix of for-sale and for-rent units.
Shanahan said he hopes to begin construction within two years, although the timeline for groundbreaking largely depends on the awarding of tax credits — a process that can be competitive and sometimes require multiple rounds of applications.
Wiedenmayer marketed the property with a $6.75 million asking price. Shanahan declined to disclose what he’s paying for the property, but he’s making the deal with the help of federal funds.
Earlier this week, Denver City Council approved an $5.56 million agreement with Shanahan Development to help fund the acquisition. The funds are federal dollars made available through the American Rescue Plan Act.
The property sits in a largely industrial area about one-half mile from RTD’s 10th & Osage rail station, across the street from a five-story office building completed several years ago by printing services provider All Copy Products. To the west is Interstate 25, Meow Wolf and Empower Field at Mile High.
“I just think it’s a good location, with all the stuff going on in Sun Valley, the River Mile,” Shanahan said.