Estes Park will soon have a new publicly-owned affordable housing option.
Fall River Village, currently a vacation lodging location in town, was acquired Tuesday by the Estes Park Housing Authority, according to a press release.
“This transaction will enable EPHA to provide much-needed additional housing units for the local workforce in the coming months,” EPHA said.
According to a website maintained by the Larimer County Clerk and Recorder’s office, the purchase price was $35 million.
Technically, the sale of the Fall RIver Village property involved two limited liability companies. One, Fall River Village Estes LLC, was formed Aug. 28 by EPHA.
The parcels involved are located at 189 Filbey Court, 265-267 Sunny Acres Court, and 511 Elkhorn Avenue.
“The property was never listed for sale, outside of the housing authority,” said local realtor and EPHA chair Eric Blackhurst.
Other details about the acquisition are unclear. Scott Moulton, EPHA’s executive director, declined to return two phone calls that requested them. He also said in an Oct. 2 email that EPHA would not make relevant documents immediately available.
“In terms of documents, that’s gonna take time to put together and will not be readily available this week,” Moulton wrote in an Oct. 2 message.
Documents made available by EPHA to its board of directors last month indicate that the agency may receive about $7 million from the Colorado Housing and Finance Authority for its equity contribution to the purchase.
The Denver Gazette reported Tuesday that the Colorado Housing and Finance Agency has made a preliminary commitment of Proposition 123 funds to EPHA. That anticipated infusion is not finalized.
“While still subject to the full underwriting process, this potential investment is critical for the success of Fall River Village,” EPHA said in its press release.
That packet also showed that EPHA planned to borrow about $36 million to facilitate the acquisition. That sum includes about $4.5 million to assure that EPHA meets mandatory financial reserve requirements.
“[W]e are asking the lender for a loan-to-value [ratio] of 103% of the purchase price,” according to an EPHA document provided to the organization’s directors last month. “This helps mitigate the risk for the lender. Some funds can be used to pay off loans, some reserve requirements will be reduced upon the sale of units, and the remaining balance of the funds will be released upon refinance.”
NBH Bank is the principal lender.
Included in the deal is a provision that will allow the upper portion of the Fall River Village property to be occupied by the seller through Thanksgiving. That term is intended to accommodate guests already booked to occupy rental units, explained Blackhurst.
The Fall River Village property was, until yesterday, owned by an entity connected to hotelier John Cullen. Cullen’s principal corporate vehicle, Grand Heritage Hotel Group, owns the Stanley Hotel and other properties in Mexico, the United Kingdom, and the U.S.
“That spot used to be a mobile home park,” Blackhurst said. “A developer came in to redevelop that property. It’s changed hands several times.”
In addition to the vacation lodging structures on the upper and lower portions of the Fall River Village property, there is also a wedding event center currently on site.
Press Release: Estes Park Housing Authority Successfully Acquires Fall River Village
Estes Park, CO – [October 1, 2024] – The Estes Park Housing Authority (EPHA) is proud to announce the successful acquisition of Fall River Village, marking a significant milestone in addressing the growing need for workforce housing in the Estes Valley. This transaction will enable EPHA to provide much-needed additional housing units for the local workforce in the coming months.
The acquisition, a product of months of dedicated effort, would not have been possible without the invaluable partnership with the Town of Estes Park. The Town’s commitment of the Workforce Regulatory Linkage Fee along with its confidence in EPHA, including the approval of a moral obligation for the debt service reserve, were instrumental in making this achievement a reality.
EPHA also extends its deepest gratitude to the local community, visitors, and Visit Estes Park for supporting the passage of the Lodging Tax Extension (6E) ballot initiative in 2022. The funding generated by this initiative was crucial to the success of the acquisition.
Additionally, EPHA would like to thank the transaction team whose efforts ensured the success of this acquisition. Some of our partners include Hilltop Securities, Gilmore and Bell, Belford and Martell, and our lending partners at NBH Bank, all of whom played key roles in making this transaction and the additional housing a reality.
EPHA would also like to extend our appreciation to Grand Hotel Heritage Group, their commitment to seeing this transaction through was steadfast and their vision to partner with EPHA to bring additional housing to the Estes Valley was crucial.
Additionally, EPHA would like to recognize the Colorado Housing and Finance Authority for their preliminary selection of Fall River Village to receive a $7,000,000 investment from Proposition 123. While still subject to the full underwriting process, this potential investment is critical for the success of Fall River Village.
This acquisition represents a significant step forward in providing high-quality workforce housing, and EPHA looks forward to continuing its mission to enhance housing availability for the Estes Valley.
Scott Moulton
Executive Director
Estes Park Housing Authority
970.591.2537
smoulton@estes.org
This is an amazing opportunity and accomplishment. Kudos to the Housing Authority and all those involved in facilitating this great step toward addressing our community’s workforce and affordable housing needs.