Main 16 is a proposed 260-unit market rate multifamily development to be located on a 4.84 acre tract at 1629 Main Street, Longmont, CO, where the Colorado Stone Company currently exists. It is along the major north south arterial of Hwy. 287 (Main St.) that connects Longmont with the Loveland/Fort Collins area. It is in Boulder County and only 25 miles from the booming, highly valued City of Boulder. It is within 10 blocks of downtown Longmont with its dining, shopping, entertainment and living options.
The site is zoned Mixed Use Corridor so the use is approved. After multiple pre-application submittals, staff has been supportive of the design. The property just needs to have its plan/plat approved and the formal application is under review. It is purely a staff administrative matter.
The nature and timing of the entitlements required are as follows: 1 month (11-14-21) to get the site plan approval and 45 days for the PIP approval. The tax abatement approval process and the amount of abatement is to be determined, but will roughly take 4.5 months. The tax abatement is just an added potential benefit.
The developer has built in Northern Colorado so has been familiar with the area. With the strong job growth and increasing lack of affordability of home ownership in the area, he has kept his eyes open for new opportunities. The average home price in the City of Boulder is over $1,000,000 now. Tech, energy and education jobs keep moving into the area. The 2% current rental rate growth is sure to increase as the population, job growth and lack of affordability pressures increase in the County. This site was chosen due to the City’s desire for its redevelopment and the public financing that comes with it and its proximity to so many goods and services. The BRT coming along Main in the next few years was also a reason for picking this location. Infill four acre sites are very hard to find in Longmont.
The small, existing buildings on the development site will be razed for the subject’s new construction. Upon completion of the development, the project will offer a single slab on grade wood frame building slab or wood on top of a podium with a total of approximately 260 multifamily living units and 6798 sf of commercial space. There will be both surface and tuck-under parking. A dog park area, benches, rooftop courtyard, on-site leasing office and a community/fitness room, volleyball court and two roof-top patio/kitchen/pools will exist.
The City allows the proposed use, which is Mixed Use. The developer has met and will continue to meet with the City to obtain tax increment financing. Preliminary indications are that such a necessary tool is available for the project as part of the area’s redevelopment. The area is in dire need of redevelopment. The City will be working with the developer to design a site plan and elevations that fits the needs of all parties.
Amenities include the above amenities, high-end appliances, 9-10 foot ceilings, in-unit washer/dryers, ceiling fans, and central heat/air conditioning. The design will complement the surrounding neighborhood. Air-filtering systems, large outdoor area(s), stringent sanitation practices, including testing, if necessary, and touchless technology will be in place to address any pathogen crisis.
The City has an Affordable Housing Policy. The developer can elect to pay a payment-in -lieu or set aside the affordable units. We have elected to set the units aside since a) the City looks more favorably on TIF financing for such projects, b) the City looks more favorably on variances to the development code, and, c) there is very little difference between market and 60% AMI on the rents, especially on the studio rents. This project will reserve 12 units (the minimum) for tenants at 60% or less of area median income to meet the policy. Thus, the rental rates are shown below:
Studio: $1150 $1380
1BR: $1210 $1550
2BR: $1440 $2000
The rents are consistent with other luxury rents in the market. The latest reports have the overall vacancy in the area at 5% and rent growth in the submarket has been 3-4%.
Longmont has benefited from a diverse composition of employers with many centered around education, energy and technology, both which continue to grow and expand. Boulder is home to the University of Colorado. The Boulder/Longmont MSA has a population of approximately 320,000 and has been growing at a clip of 1.6% annually. It is only 20 miles from Denver. Average housing prices have climbed over $550,000 in Longmont making rental property in high demand between the job and population growth in the area. The average household income is approximately $75,000. In nearby Boulder the average home price is $1,000,000, strengthening Longmont’s position as the local affordable living option.
Project costs will total approximately $63 million dollars, to be made possible by owner’s equity and a permanent/construction loan. The project developer is Garrison L. Hassenflu. Mr. Hassenflu is Managing Member of MW Development Enterprises, LLC, the development entity. He is also President of Garrison Management Company, the property’s property manager. These companies along with other affiliated companies make up the umbrella entity, Garrison and MW Companies (www.garrisoncompanies.com). He has over twenty five years of experience in development, having developed over $140,000,000 in affordable and mixed income living units totaling over 1300 units in six states. Currently, he has a portfolio of seven projects totaling approximately 400 apartment units since he has sold a number of projects over time.
The project will be designed by Architecture Belgique, Salt Lake City, UT, and construction managed by an area general contractor.
We expect a March, 15, 2022 construction start with a September 15, 2023 completion. We expect absorption of 25 units per month on average.
Garrison “Gary” Hassenflu
MW and Garrison Companies
2020 Broadway Blvd.
Kansas City, MO 64108