Nest56 at Denargo Market is an innovative housing project in Denver that provides permanent, supportive housing for transition-aged youth (TAY) between 18 and 24 years old who are experiencing or are at risk of homelessness. The project was developed to create a stable, service-rich living environment with affordable housing and comprehensive support to help young people achieve independence. The building has 56 fully furnished one and two-bedroom units.
The financing for Nest56 utilized a complex combination of tools, including Private Activity Bonds, Low-Income Housing Tax Credits from both federal and state programs, a deferred developer fee, and gap funding from the city and county of Denver and the Colorado Division of Housing (CDOH). Additionally, CDOH provided 56 project-based Housing Choice Vouchers to ensure the housing remains affordable for youth with extremely low incomes.
Despite challenges with coordinating funding timelines and navigating a high-cost construction market, the project was completed on time and within budget. The development team also had to overcome supply chain disruptions and labor shortages by adapting their schedules and sourcing strategies.
Ensuring community acceptance for a TAY-focused supportive housing project required early and transparent engagement. The development team conducted outreach to neighboring businesses and civic groups, emphasizing the need for youth housing and the supportive services embedded within the project. The inclusion of an art studio operated by RedLine Contemporary Art Center and the public-facing mural by Thomas “Detour” Evans helped build community goodwill and contributed to neighborhood integration.
The building’s design was created with the input of youth advocates to ensure a supportive environment. Key features include private case management rooms, a medical consultation area and a food pantry to serve residents on-site. Communal spaces like a multipurpose community room, indoor bike storage and repair station, and an open-concept lobby with a shared kitchenette promote connection and community. The outdoor courtyard features a basketball half-court and seating areas.
Located in the rapidly developing Denargo Market area, Nest56 ensures that at-risk youth can live near job centers, public transit, and cultural resources.
Nest56 provides a full range of on-site supportive services through a partnership with the local nonprofit TGTHR, including life skills programming, employment support, creative programming, and health & wellness.
Property management is handled by Pennrose Management Company (PMC). Both PMC and TGTHR use a trauma-informed, youth-friendly approach and work closely together to ensure residents receive the support they need. Regular case conferences and staff training on working with vulnerable populations help address the complex needs of residents and provide stability.
Sustainability was a key principle in Nest56’s design and construction. The project is certified as National Green Building Standard Silver. It includes features like high-performance insulation and energy-efficient windows, energy-efficient HVAC systems, LED lighting, low-flow fixtures, and sustainable building materials. These sustainable features also help keep utility costs low, which directly benefits residents.
The project has been recognized for its design and impact, receiving a 2025 Denver Mayor’s Design Award and a nomination for the 2025 Housing Colorado’s Eagle Award.