Job and Life Skill Services at Launchpad Apartments to Create Opportunity for Homeless Youth
CARMEL, Ind. (Nov. 29, 2023) – Leading financial services provider Merchants Capital today announced it has secured $23 million in total financing for the construction of Launchpad Apartments, a permanent supportive housing (PSH) development in Colorado Springs, Colorado. Launchpad is the first Transition Aged Youth (TAY) development in the primary market area (PMA) and part of a community effort to halt the cycle of homelessness.
Cohen-Esrey Development Group (CEDG) partnered with nonprofit The PLACE to provide housing and services for youth experiencing homelessness, including assistance with job placement, life skills, counseling and healthcare. The 50-unit property will be restricted to TAY households earning 30% or less of the area median income (AMI), in addition to those aged 18 to 24 who are experiencing, or are at risk of, homelessness. Launchpad’s 50 units of supportive housing have the capability of resolving up to 69.4% of youth homelessness in El Paso County, Colorado, according to the 2023 Point in Time count of homelessness.
Merchants Capital provided $10.9 million in federal Low-Income Housing Tax Credit (LIHTC) equity for the project. Merchants Bank provided a $12.1 million construction bridge loan.
Additional project funding includes $113,739 in 45L tax credit equity, $5.25 million in soft debt, $3.1 million in permanent debt and $300,000 in city fees rebates. The property will operate under a 20-year Section 8 housing assistance payment (HAP) contract covering 100% of the units.
“It has been an honor to be part of an effort to protect at-risk youth, and we are proud to work alongside The PLACE and CEDG to bring this project to fruition,” said Linda L. Hill, Executive Vice President, Tax Credit Equity at Merchants Capital. “We launched our tax credit syndication platform back in 2020, and it’s been incredible to work alongside partners who share a passion and mission for making affordable housing a reality for all Americans. Launchpad Apartments serves as an important step towards this communal goal.”
“Elevating people in diverse communities aligns with Merchants’ mission,” said Dwayne George, Executive Vice President, Agency Production at Merchants Capital. “We look forward to seeing the positive influence this project will have on the neighborhood and its residents.”
Launchpad Apartments will sit in the “very walkable” neighborhood of Old Colorado City in western Colorado Springs. The site is adjacent to essential goods, employment opportunities and recreation areas. It is also 400 feet from the metro transit stop.
“We are very proud to have the opportunity to partner with Merchants Capital on Launchpad,” said Lisa Sorensen, Development Director of Cohen-Esrey Development Group. “This collaboration is a testament to the power of community partnerships and their ability to affect positive change. Our shared vision is to provide young adults in need with more than just a roof over their heads – we're offering them a fresh start with Launchpad. We’d like to extend a special thank you to all our partners for helping make this a reality.”
Launchpad Apartments is currently under construction and is set to be completed in October 2024. To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.
Image Courtesy of Cohen-Esrey Development Group