Colorado-Real-Estate-Journal_525593

Page 24 — Multifamily Properties Quarterly — May 2026 www.crej.com AFFORDABLE HOUSING T wo of the modular housing industry’s most experienced leaders are changing the fun- damentals of how modular multifamily housing is deliv- ered. Between them, they have over three decades of combined modular specific experience and have deliv- ered thousands of housing units that contain millions of square feet. That depth of expertise across architecture, engineering, manufac- turing and construction has given them a clear, practical understand- ing of where modular construction saves money, and where it doesn’t. Dean Dalvit, architect, engineer and owner of EVstudio, one of the country’s most experienced modu- lar A/E design firms, together with Nathan Peterson, engineer, contrac- tor and owner of Vederra Modular, Colorado’s largest modular housing factory, are presenting Alt Mod™, a revolutionary new approach to modular multifamily construction. With a significant investment in focused research and development and real-world application, their work has already moved beyond theory. Several projects using the Alt Mod approach are already under contract, demonstrating average total sav- ings of more than 15%, with some approaching 20%. These results are based on actual budgets from projects moving toward construc- tion. Across the United States, the need for scalable and cost effec- tive construction methods has never been more urgent. Rising costs, labor shortages, and inefficiencies in traditional construction methods have made it increasingly difficult to build multifamily housing afford- ably. Modular construction is a part of the solution, offering improved schedule certainty, reduced waste and better quality control through factory production. Yet even with these advantages, modular proj- ects still encounter constraints, like structural redundancy, that can limit their full potential. This pro- prietary multidisciplinary design and fabrication building technology rethinks how modular construction integrates into the broader build- ing process to address those con- straints. By rebalancing the work completed in the factory with site- built construction, the technology allows each to do what it does best, optimizing efficiency, reducing total construction costs and saving time without sacrificing design quality or performance. Alt Mod is a different way of assembling modular buildings. Pre- cision planning with proprietary assemblies and processes enable modules to be stacked in an alter- nating configuration that creates intentional void spaces between modules. These voids are completed in the field to complement the fin- ished square footage. By placing the program spaces with complex systems and fin- ishes inside the modules and mov- ing the open program spaces into void spaces with boundary walls, floors, and ceilings served by the adjacent modules, this technol- ogy substantially reduces the total number of modules required while maintaining the same unit count and mix. Fewer modules mean sub- stantially lower manufacturing and transportation costs. Meanwhile, the additional work to finish the voids on site is delivered at a much lower incremental cost, producing a meaningful net reduction in total project cost. Colorado’s modular leaders redefine MF costs I n the universe of new things, much can be found in the Globeville/Elyria-Swansea neighborhood north of Inter- state 70 and east of I-25. Long home to small, older homes, rail- road tracks and the Denver Stock- yards, today it is seeing over 2.2 million square feet of new construc- tion on the grounds of the National Western Stock Show with buildings that include the CSU Spur campus, the Western Stock Show Associa- tion Legacy Building, and the Stock- yards Event Center. A new $400 million equestrian center and hotel is under construction. In addition to the new buildings, major infra- structure improvements include the 48th Avenue Greenway and Outfall, Globeville Levee improvements, extension of 51st Avenue and Wash- ington Street, enhancement of the Carpio-Sanguinette Park and Heron Pond open space, and sidewalk and pedestrian access improvements. By far the most interesting addi- tion to the neighborhood, however, is a 170-unit, 250,000-square-foot affordable housing project at 4965 N. Washington St. The project has the usual ele- ments: land, materials, develop- ment team, debt and equity. The new nature of each of those compo- nents is what is most interesting. The 2.7-acre site, an assemblage of three parcels purchased by the city and county of Denver using funds collected from development fees, has been leased to the devel- oper for 99 years at $10 per year. The materials include prefabri- cated cross-laminated timber/mass timber for part of the construction – the first such use for an affordable project in Colorado. The CLT system is five times lighter than concrete, has a comparable strength-per- weight ratio, saves time on site, has less environmental impact than concrete to produce – and it costs less. The developer of the project is Globeville Redevelopment Part- ners LLC, a group selected by Den- ver’s Departments of Housing Stabil- ity and Finance to build the project. The members of GRP are the Chicago-based Ever- green Real Estate Group, a national market-rate and affordable hous- ing development, construction and management company; Rocky Mountain Communities, a Denver- based nonprofit affordable housing organization; and the GES Coalition, the Registered Neighborhood Orga- nization for GES. This trio of part- ners – a large national for-profit, local nonprofit and small neighbor- hood organization – is unique in the Colorado affordable housing world. Additional members of the develop- ment team include Milender White, Gilmore Construction, EJ Architec- ture and John Ronan Architects. Other partners are the city and county of Denver, Denver Housing Authority, Colorado Housing and Finance Authority, Denver Public Library and National Equity Fund. The total project cost is projected to be $132 million, with much of that covered by the proceeds from the NEF purchase of the tax credits. As noted above, the land is virtually free because of the lease from the city. The DPL is a partner because for the first time ever in Colorado, a public library will be included as part of an affordable housing devel- opment. The $12 million cost of the library (the very first library in GES!) will be covered by funds from the RISE Bonds approved by Denver voters in 2021. DHA’s presence pro- vides the project with property tax exemption, a state sales tax rebate on materials and $85 million of construction financing. For the first time ever, DHA is providing a direct loan for an affordable housing project being done by a third party. DHA’s credit rating and legal stand- ing allow it to issue tax-exempt bonds at a lower interest rate and transaction cost than a convention- al lender and will lead to significant savings for the project. In addition to the library on the ground floor of the building, there will be a community café owned and operated by a neighborhood- based organization called Tierra Colectivo. The 170 units in the three five story buildings will be a mix of one, two, three and four bedrooms with rents affordable to families with incomes between 30% and 60% of Denver’s area median income. The complex will have a courtyard with grass, trees, and picnic tables, and there will be 111 on-site park- ing spaces. Construction began on the project earlier this year and is expected to be completed in early 2027. By its very nature, a tax credit project is very complicated. Adding the additional and new elements to this project increased the degree of difficulty exponentially. The “4965 Washington reflects the reality of housing development today – it takes creativity, persis- tence, and a high level of coordina- tion to bring together a capital stack of this complexity,” said Javonni Butler, vice president of develop- ment, Western Region lead for Evergreen Real Estate Group. “We’re combining multiple public and private funding sources, each with their own requirements, while also staying grounded in the priorities of the Globeville community. That bal- ance – between financial execution and community responsiveness – is where a lot of the real work hap- pens. “At the same time, this project is a strong example of what can be achieved through true partnerships. From the city and county of Denver to our financing partners and com- munity stakeholders, there’s been a shared commitment to getting this done the right way. Now that we’re in construction, it’s rewarding to see that effort translate into real prog- ress on the ground and know that we’re delivering housing that meets a critical need in the neighborhood.” To learn more about the project and the challenges and opportuni- ties it presented, how they were met and the lessons learned, con- tact Butler at jbutler@evergreenreg. com. s Something new rises in Globeville/Elyria-Swansea Rodger Hara Principal, Community Builder Realty Services Rodger Hara Principal, Community Builder Realty Services Please see Hara, Page 25 4965 Washington St.