Financing Arranged for New Affordable Housing in Alexandria

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Wesley Housing has closed on the $59 million financing it needed for The Arden, an affordable housing community that will bring 126 units to Alexandria, Va., according to the nonprofit affordable housing developer.

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The seven-story project will be located at 2317 Huntington Avenue at the intersection of Biscayne Drive, steps from the Huntington Metro transportation hub and near I-495.

“We are excited to put the shovel in the ground on what will provide diverse opportunities of rent affordability, bedroom size, accessibility and services for 126 families to thrive,” Kamilah McAfee, Wesley Housing’s vice president of real estate development, told Commercial Observer. “Without the support of the valued partners involved, affordable housing in this transit proximate neighborhood of opportunity would not be possible.”

Families who earn between 40 and 80 percent of the area median income will be eligible to live in The Arden. The unit mix will include 10 efficiencies, 26 one-bedrooms, 76 two-bedrooms, and 14 three-bedrooms, with eight fully accessible ADA compliant apartments. 

The Arden will be financed by a dozen different sources including $47.5 million in debt and equity proceeds from Truist; $8.4 million in loans from Fairfax County Redevelopment and Housing Authority; and $2.3 million from the Virginia Department of Housing and Community Development.

According to McAfee, leveraging these financing sources required the allocation of 9 percent and 4 percent low income housing tax credits by the Virginia Housing Development Authority (VHDA).

The twin 9 and 4 percent credits have separate owner entities, financing structures and affordability requirements. The Arden Building A will consist of 79 units financed as the 9 percent transaction, while The Arden Building B will consist of 47 units financed as the 4 percent transaction.

Additionally, The Arden is one of the initial recipients of the VHDA’s Amazon-related REACH Virginia funds, earmarked for the production and preservation of affordable housing to support the economic development opportunity Amazon HQ2 is bringing to Northern Virginia. 

The property’s ground floor will also offer 7,500-square-feet of office space, which will be utilized by Wesley Housing. 

Construction will start this month with scheduled completion in June 2022.