Downtown Denver has experienced a number of drastic changes over the last thirty years. Once a bustling business district that served as a top tourist destination and home to numerous corporate entities, the effects of Covid-era restrictions have resulted in increased vacancy rates which threaten to disrupt the city’s ecosystem.
For business owners, less people living, visiting and working downtown means less revenue. For city leaders, who are working to combat Denver’s shortage of affordable housing, the economic impact of an empty downtown adds to mounting concerns about workplace retention and commercial viability.
Recognizing the importance of a strong and vibrant downtown, integrated healthcare management service provider, DaVita, has partnered with Goshen Development (Goshen) and Continuum Partners (Continuum) to deliver an innovative solution for Denver’s downtown woes.
In a display of commitment to the city that houses its world headquarters, the Fortune 500 company has teamed up with the reputable developers to provide a fresh, new approach to affordable workforce housing.
A Partnership With Purpose
Earlier this year, DaVita purchased a half-acre lot at 2000 Welton St., where Goshen and Continuum will develop a multi-unit housing structure filled with affordable rental units. Upon completion, the project could be among the first built under the Colorado Middle Income Housing Authority (MIHA) which promotes affordable housing for middle-income workers.
For Goshen Founder, Haroun Cowans, efforts to establish affordable, middle-income housing stem from his Northeast Denver upbringing and proximity to the Five Points community throughout his career in finance and real estate development.
In 2021, Cowans entered into a strategic partnership with Continuum CEO, Mark Falcone, to find middle-income housing opportunities that would positively impact the city. As a chasm between low-income and market-rate housing became increasingly apparent in several neighborhoods, the supply of affordable housing dwindled. The developers looked for cost-effective solutions to fill the gap and keep people earning middle-income wages from experiencing housing instability.
“This was really a 15-year process for me,” says Cowans, who witnessed the effects of community displacement within the heavily gentrified Five Points neighborhood. “In 2021, we decided to create a business model and champion legislation that would impact neighborhoods like Five Points and all of Colorado.”
By 2022, he and Falcone’s efforts to create legislation promoting affordable rental housing paid off with the passing of SB 22-232, which established MIHA and guaranteed financial support for the development of units between 80% and 120% AMI.
In the process of moving the legislation forward, the developers met with companies and foundations in support of middle-income housing models that would cater to the needs of their employees. DaVita was one of the companies that expressed interest in the new housing model.
A Citywide Effort
In May 2024, Denver Mayor Mike Johnston announced plans to invest $500 million into Denver’s downtown district to restore vibrancy and stabilize economic opportunities, proposing an expansion to the Downtown Development Authority.
If approved, the city will make capital investments to transform the district from a commerce district into a “neighborhood district,” with more housing options, child care, public spaces and adaptive reuse of vacant office spaces.
An infographic from the city reveals that Downtown Denver lost 145 businesses from 2018 to 2022, a 26% decline resulting in vacancy rates over 30%. Since pandemic-era restrictions prompted increases in remote and hybrid work, vacancy rates have increased drastically, with restaurants and neighborhood-serving businesses taking the hardest hits.
While LoDo living increased exponentially following the redevelopment of the Denver Union Station District, no new housing has been made available in the upper downtown area since 2020. Visitation to the upper portion of the downtown district has declined 30%, and the economic impact has ramifications that affect citywide tax revenue.
Workforce housing projects such as the 2000 Welton St. development are aligned with the mayor’s efforts to revitalize downtown, and could be a framework for cities across the country. Centrally-located housing options that move people closer to major corporate employers could revive the in-person workforce while stimulating the economy and driving business back to retail storefronts, downtown restaurants and shopping centers.
“We’ve been in touch with the city, the mayor’s office and the governor’s office, and we’re thankful for all the support,” says Cowans. “There’s been so much investment into downtown. I’m grateful that the mayor’s office is being innovative and turning the corner.”
New Housing Trends
The workforce housing development partnership between DaVita, Goshen and Continuum will be the first of its kind in Denver’s urban setting. However, the concept of workforce housing is not new to the state of Colorado as a whole.
Colorado mountain towns have generated a great deal of interest, with individuals and real estate investors purchasing large quantities of housing inventory in and around popular ski resorts and driving up the cost of homes by over 300% in recent decades.
A 2023 article by High Country News referenced a 2023 Workforce Housing Report by the Northwest Colorado Council of Governments (NWCCOG) attributing the burgeoning market to an influx of homebuyers from other states. According to the report, 70% arrived with annual incomes over $150,000, far more than local employees, and were eager to buy homes at accelerated rates – many with the intention of creating short-term rentals.
As a result of skyrocketing home prices, small mountain towns have struggled to find and retain employees due to limited housing options.
Some local governments have partnered with the federal government to build employee housing on federal land, while others are turning to a range of creative workforce housing solutions that allow employees to live on-site. In 2021, Copper Mountain Ski Resort completed a 44-unit workforce housing solution, and in 2022, Winter Park Resort completed construction on one of Colorado’s largest workforce housing complexes.
While workforce housing solutions in mountain towns provide hope for affordable housing solutions, they do not provide a proof of concept for urban developments, which cater to year-round, urbanized needs.
The partnership between Davita, Goshen and Continuum provides a framework that, if espoused by the city, could aid in workforce retention, attract new residents, support small businesses and create a new wave of affordable housing that draws people back to downtown.
“For us, this is going to be the first of many,” Cowans says. “We have a pipeline of other projects, but we’re very happy that this one is at the forefront.”
“Our business model is: how do we impact neighborhoods? How do we impact our city, as well as the state, in delivering this middle-income housing? Also from a cultural standpoint, how do we use this as a tool to bring people back to neighborhoods that they may have been transitioned out of?”
Laying the Groundwork
DaVita’s workforce housing development is still in the early design process, but Goshen and Continuum are busy mapping out what the project will look like, with plans to break ground in late 2025 or 2026.
The developers’ reputations precede them, with immaculate redevelopment projects including the Denver Union Station District, Market Station, Belmar Shopping District, 9+CO, The Hooper and other successful transformations throughout the city. Now, Cowans and Falcone are poised to manage the construction of a Grade-A class building with units for individuals and families.
For Cowans, the project’s location at the southern border of Five Points is especially meaningful. As chairman of the Five Points Business Improvement District (BID), he envisions a development that will tap into the rich cultural significance of Denver’s historically Black district, while inviting families to enjoy city living.
He hopes to have an immense impact on Denver residents in need of affordable housing, along with DaVita employees who will benefit greatly from a shortened commute and easy access to downtown amenities within a 2-mile radius.
For DaVita, the investment into Denver’s inventory of affordable housing reflects its dedication to the city and its residents. It marks a significant step forward into the future of workforce housing, middle-income housing and solutions that directly cater to the needs of hard-working individuals.
“We’re taking this step-by-step,” Cowans assures. “We’re moving quickly and aiming for efficiency but also solid completion and delivery. We want to build a great project that will be an example of collaboration for many more to follow. We’re excited! And every week we’re moving the ball forward.”
