A $270 million Denver development gives teachers a rent-free year

Developers of a new $270 million apartment building and hotel in Denver’s Jefferson Park neighborhood west of downtown are giving back to local teachers.

Denver-based Grand Peaks, a multibillion-dollar real estate investment firm that specializes in apartment properties, and global investment company Access Industries officially opened the 533-unit apartment building June 26. The organizations also donated 10 apartment units to Denver Public School teachers rent-free for one year.

“This is something that we were able to do without having to take any kind of grants, without having to take any kind of government assistance, without having to take any kind of fundraising,” said Elli Lobach, senior vice president of development for Grand Peaks. “We were able to do it on our own, and quickly, and find a way to actually help real people.”

The project, known as Skyline at Highlands, spans a city block at the northwest corner of 26th Avenue and Alcott Street on a plot that used to house La Loma restaurant.

The developers donated five studio units and five one-bedroom units to the Denver Public Schools Foundation.

The foundation conducted a drawing to determine who would live in the rent-free units from August 2024 to July 2025. The drawing drew more than 215 first-year to third-year teachers who earn an average salary of $63,500 to $72,400, said Sara Hazel, president and CEO of the DPS Foundation.

DPS Foundation wants to help address housing affordability in Denver for its teachers, and right now is not planning to be a residential landlord, Hazel said.

“Denver is a better city when our teachers can live and work in the communities that they serve. And we know that Denver is, for many people, unaffordable,” she said. “And so this opportunity was just such a cool way to not only provide this incredible lifetime opportunity to these 10 educators, but I also think it highlights this really important need in the community for our teachers.”

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Grand Peaks

Grand Peaks decided to focus on workforce housing for teachers because the economic gap of affordability seems more significant for them than it does for other professions, said Kevin Jewett, chief operating officer at Grand Peaks.

“We spent quite a bit of time researching, and there’s really never been anything like this done before where it’s truly a free rent opportunity at this scale,” he said.

Grand Peaks also has ties to DPS. The company’s chairman Don Simpson went to East High School, according to Lobach.

Rent for studio units at the building, called Skyline at Highlands, average $1,825 per month and one-bedroom units average about $2,400 a month, according to Jewett.

The partnership with the DPS Foundation is a starting point, one Jewett said he hopes will lead to similar partnerships with other school districts and states.

“This collaboration is an important example of what I believe we achieve when we collaborate and unite toward a common goal together,” said Hazel with DPS Foundation. “I think local businesses really can play a crucial role in addressing some of these significant challenges that are that are not only faced by teachers. … Our hope is that this spurs other conversations for creative philanthropy in Denver for public schools and how we how we support our educators.”

This is the second workforce housing partnership to be announced within the last week.

Last week, DaVita Inc. (Nasdaq: DAV), a Denver-based kidney care service provider, partnered with real estate developers Goshen Development and Continuum Partners to build workforce housing in northern downtown at 2000 Welton St. This proposed development will house health care workers, teachers, first responders and frontline caregivers, according to DaVita and Goshen.

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Grand Peaks

More about Skyline at Highlands

An LLC associated with Grand Peaks purchased the roughly 2.7-acre Skyline at Highlands site, 2501 W. 26th Ave., for $32.1 million in 2021, according to previous Denver Business Journal reporting.

In addition to apartments, the building includes a 93-room hotel operated by Canada-based hospitality company Sonder. The hotel opened in March.

Building amenities range from a pool deck, fitness center and dog park to a music room, a fourth-floor park and a rooftop deck with mountain views. Some amenities are shared between apartment residents and hotel guests while others are reserved for residents only, Lobach said.

There is also a concierge service that grants apartment residents discounts at several local businesses, such as Denver Sports Recovery, Pilates by Riley, Nurture, Sexy Pizza and Creative Culinary Group restaurants.

Skyline at Highland is the latest addition to Grand Peaks’ portfolio. It has roughly 3,000 apartment units in Colorado and 11,000 nationwide, according to Jewett.