The Town of Erie and its development partner, Vertikal, a Louisville-based design/build developer, announced that they have broken ground on Cheesman Street Residences, a new affordable housing community offering 35 residences in the heart of Historic Old Town Erie. The result of a unique collaboration between a Town and a private developer, Cheesman Street Residences will offer something not often seen in the market today: the opportunity to own a deed-restricted and design-forward home that is walkable to schools, restaurants, and parks in one of the Front Range’s most charming towns.
In the first six months of 2022, the median sale price of a single-unit detached house in Erie reached $800,000, an increase of 17% over the same period in 2021. With 88% of Erie’s housing inventory being single unit detached homes, it wasn’t hard to see that it was imperative for the Town of Erie to find ways to create more affordable housing. The Town of Erie committed to the goal of achieving 12% of the housing in Erie to be affordable by 2035. As a first step in the effort to create affordable housing options, the Town of Erie purchased the land on Cheesman Street, a two-acre lot just five blocks from Erie’s bustling Briggs Street.
“When young adults who have grown up in Erie, as well as library workers, teachers, firefighters, restaurant staff and others essential for a thriving local economy cannot afford to live in Erie, it is important to take action,” said Malcolm Fleming, Erie town manager. “This property in the heart of Town is a perfect location for more affordable housing.”
As it happened, Vertikal was looking at the same site and at ways to get creative with deed restricted housing. When Vertikal understood the Town’s objective of creating design-forward, affordable housing that was walkable within Historic Old Town, it wanted to help bring that vision to life. The Town of Erie and Vertikal worked together to create a partnership and framework that would allow the concept to become a reality. The Town of Erie is providing the land and a financial contribution – including a $1M grant from the Colorado Department of Local Affairs to help cover the cost of various infrastructure and permitting fees – while Vertikal is covering the development cost. Alpine Bank is providing the loan for the project.
“We are incredibly proud to be selected by the Town of Erie for this project. We see ourselves as the creative conduit through which Erie can achieve its vision of a more sustainable mix of home ownership,” said Walker Thrash, managing partner at Vertikal. “Vertikal is uniquely qualified to deliver this design-forward product type, but the Town’s vision is really the impetus here. They want to raise the bar in deed-restricted housing with inspired design and quality construction. Solving for those ideals, and honoring the eclectic vibe of Old Town, is a fun challenge for our group.”
The 35 new homes will provide a diversity of housing options to meet varying needs. Five different unit types will range in size from 900 to 1,500 square feet and 2- to 3-bedrooms with options for either single or two-story as well as detached or attached. Each home will have access to open space through private side yards, a garden court and amenity space. Pricing starts at $385K – almost half the average price of a home in Erie currently – with 50% of units achieving 90% Average Median Income target price and 50% achieving 110% Average Median Income target price. Eligible buyers must meet income guidelines. Currently, a family of four earning a household income of roughly $160,000 is eligible to buy. The opportunity to own is first come, first serve so interested buyers should join the interest list for more information including workshop dates, owner qualifications and more. Reservations will begin December 1, 2024, move-ins beginning in mid-2025.
“This project is incredibly exciting because it will help preserve the small-town sensibility that makes Erie special while also solving a problem that cities and towns across Colorado – and the country – are facing, which is the absence of affordable home ownership options,” said Justin Brooks, Erie mayor. “With Vertikal as our partner, we are investing to secure a future where more residents have the option to live where they work, which is a goal we all share.”
Photos and renderings courtesy of Vertikal
