Madelon Group, a housing company that streamlines the development process for modern, urban living spaces, in partnership with private investment company Blue Room Investing, today announced an affordable housing partnership and its latest housing project located in the bustling Santa Fe Arts District in Denver, Colorado. Part of their long-term initiative to combat the U.S. housing crisis, this venture is the first ground-up housing project that utilized Madelon Group’s REDtech platform, an innovative real estate development platform designed to facilitate a seamless start-to-finish approach to multifamily prefabricated and modular development.
“By bringing automation and standardization to the development process with REDtech and through our partnership with investment companies like Blue Room, we are making crucial steps forward in our effort to bring more quality living spaces to major metropolitan areas and other high-barrier-to-entry markets across the U.S.,” said Alfonso Medina, Madelon Group’s Co-Founder and Chief Executive Officer. “With REDtech, we sought to create a development platform that is both widely accessible and applicable in a variety of situations, and this project is a testament of that coming to fruition.”
Upon completion, the five-story, 40,000-square-foot building will comprise 64 prefabricated micro studios. Produced by Pueblo, Colorado-based indieDwell, which produces modular solutions for socially-conscious housing projects, Madelon Group’s micro studios feature a more compact yet highly optimized floor plan compared to traditional studios, which in turn reduces monthly rent for tenants.
Designed by Madelon’s team of in-house architects and interior designers, the micro studios are both functional and tasteful. Each micro studio includes a private bathroom, wet bar, storage and closet space, full-size bed, and living area with a sofa, large table, additional storage, and space to display residents’ belongings and make the space their own. The furniture is moveable, allowing each tenant to arrange based on their individual needs— a distinction that sets this project apart from traditional conceptions of prefabricated housing options which typically overlook this consideration. Additionally, large windows bring in ample natural light, and a mix of textures, including wood and various fabrics, create a warm, inviting, and comfortable environment.
The final structure will also feature an array of communal indoor and outdoor amenity spaces for residents, and retail space on the ground floor of the building, bringing an opportunity for economic and cultural stimulation to the neighborhood.
“This partnership with Madelon group provided Blue Room with a disruptive solution for our nation’s persistent housing deficit, which is setting the foundation for rent increases for years to come,” said Minyoung Sohn, Blue Room’s Founder and Director. “We believe that volumetric production of prefabricated standard modules should benefit from economies of scale. We will share these savings through below market rent, converting a meaningful portion of our financial profits into a social return of improving the quality of life of our residents.”
For the last several decades, the United States has faced a widespread housing crisis, as the market struggles to satisfy the demand for new, accessibly priced housing, which has only intensified, with the COVID-19 pandemic’s effects on supply chain and prices. Denver in particular is in the midst of an incredibly competitive housing market, with record-breaking low inventory and rising prices. Production will begin at the end of this year, and will bring 64 below market-rate units to Denver.
“The traditional process to build affordable housing uses government subsidies to offset construction costs and increase profits in exchange for lower rents for a period of time,” added Sharon Schneider, President of Blue Room’s Housing Initiative. “REDtech and our partnership with Madelon Group has opened up a door for Blue Room to lower the time and cost of development without government subsidy, allowing us to charge lower rents that are much more affordable than market rates. With the investment of social impact capital and the REDtech platform, we look forward to scaling from one project into a state-wide hospitality brand for high quality, affordable housing.”
A neighborhood best known for its arts, dining scene, and cultural experiences. Madelon Group and Blue Room were drawn to the Santa Fe Arts District for this project’s flagship location because of its potential to further evolve into one of the city’s creative hotspots, and the young, vibrant population that frequents the area. This space is intended to serve both these individuals and those in transitional periods of life, by offering an accessible yet transformative and culturally rich living experience. In the coming years, Madelon Group and Blue Room will continue to partner on the development of additional locations throughout Colorado.
This first venture is expected to reach completion in Summer 2023. For more information on the project, visit https://madelongroup.com/ and https://www.blueroominvesting.com/home.