Affordable senior apartments to be ready by April

Work is underway on an affordable 40-unit senior living facility that is being developed on the site of a former trailer park on South Spring Street in Port Washington.

Development Manager Will Rutherford of Madison-based Horizon Develop Build Manage said the coronavirus pandemic has not delayed the progress of Spring Harbor Senior Apartments that broke ground on April 20 and are expected to be complete by April 1. 

“We’re crossing our fingers that we will exceed our April delivery goal,” Rutherford said. “That’s not something you can say in today’s climate because there are many challenges the entire construction industry faces in terms of timing, material deliveries and finding consistent staffing, but we have been very fortunate so far.”

Work began this week on framing the third floor walls of the apartment complex at 900 S. Spring St. It will have one and two-bedroom apartments with underground parking.

Rutherford said there will also be communal spaces such as a club room, fitness center and a patio overlooking a pond. 

Although the company hasn’t offered leasing applications, Rutherford said more than 50 people from Port Washington and a Saukville resident have expressed interest.

“That’s consistent with our portfolio where we usually see the vast majority of our residents come from within a three-mile radius of the property,” Rutherford said.

Tenants will be required to meet age and income qualifications. Rutherford said preliminary price estimates for one-bedroom units range from $365 to $845 a month, depending if they are rent restricted or market rate, and two-bedroom apartments are from $761 to $1,000.

Rutherford said one of the reasons Horizon chose to develop in Port Washington was because there is a need for affordable housing opportunities for adults 55 and older. He said the cost of construction has outpaced rent growth, which is driving up housing prices.

“There’s a need for affordable housing everywhere in the country. On the senior level, we all understand how the cost of living increases each year and that doesn’t do so well for people living on fixed-income budgets,” he said. 

“The city has done excellent job recognizing a need to meet, and it’s done a great job supporting projects when the right one comes forward.”

In May of 2017, Horizon purchased the 2.26-acre property that the city had owned since 2007 for $280,000. Port had been trying to find a buyer prior to Horizon, but interest was low because electrical high lines cross the land, and railroad tracks are on the east side of the lot with wetlands and a neighboring trailer park to the south.

“This was a blighted property that the city has owned since 2007 and it wasn’t able to sell,” Rutherford said. “There were some challenges, but we were able to figure them out. The city’s Design Review Board and Plan Commission were well educated in the forces influencing us to put the building where we needed to.”

Rutherford said the $8 million project is being financed in part through a pay-as-you-go tax incremental financing district, in which the developer pays the initial infrastructure costs but recoups those through the increase in value of the property.

The apartment complex is Horizon’s first development in Port Washington, but the company has a property in Sheboygan and more than 1,000 units in Milwaukee. Horizon has developed about 80 senior projects.

Rutherford said his company is considering future projects in Port Washington depending on the long-term impact of Covid-19. 

“Right now, we’re taking a hard look at how the pandemic is affecting the different market sectors. We don’t think it’s going to impact the affordable senior-housing market as much as it might other markets. As we’re looking for projects for the upcoming cycle, we would love to speak with city staff about another project, whether it’s this type or another,” he said.

“We are excited to extend into Ozaukee County because it’s a beautiful community that has a lot of potential for development. Our market research shows that there is a strong need for this type of housing in Port Washington.”