Urban to Build Senior Center for Church

"It has federal financing, so a lot of people think that will mean it is for low-income people, but it is a market-rate project," Shraiberg adds.

Still, it is a labor of love. The church considers it an extension of its ministry, and will own the project when completed next year. The center will provide assisted living services.

"There are three level of seniors who will take advantage of it," Shraiberg tells GlobeSt.com. "There are the go-gos, who are still active. There are the slow-gos, who need some level of care. And there are the no-gos, who need a lot of care."

Geoff Babbitt, who is in charge of the development for Urban, says that the U.S. Department of Housing insured the loan of about $8.5 million, for the $8.9 million project. The church's congregation raised about 10% of the equity needed to get the loan, supplied by GMAC Commercial. The loan subsequently has been sold to Fannie Mae, he says. Denver-based Guaranty Bank, in which Shraiberg is an investor, provided a letter of credit so the church could obtain the loan.

"Any level of care follows the unit," Babbitt tells GlobeSt.com. "In other words, if their health starts to fail, they don't have to move. In a lot of senior centers, you have to move if you develop a bad case of Alzheimer's, for example. And seniors don't like change. They like to stay put."

Monthly rents will start at about $1,500 and will go to about $4,000, depending on the level of care needed. The buyers of the 10 cottages, which will start at about $300,000, also can have access to the care.

One of the reasons the church can afford the project is because Peter Culshaw, president of the Tech Center, sold it the land at a below-market cost. "I can't remember holding the land price steady for anyone longer than this," Culshaw tells GlobeSt.com.

Thirteen months ago, Urban completed a 36,000-sf addition for the church, which included a new gym, 13 classrooms, and office space. That $4.2 million project will partly be paid for by proceeds from the senior center, Babbitt says.

Based on thousands of other senior center units Urban has built in Colorado during the past three decades, Shraiberg estimates that 60% of the units will be rented by people from the church and 40% from without. Although owned by the church, the center will be non-denominational. .