Enterprise Lands $105M in Financing to Redevelop Obsolete Affordable Community in Columbia
Enterprise Community Development has received approximately $105 million in financing for the redevelopment of Roslyn Rise, a 153-unit multifamily community in Columbia, Md.
Roslyn Rise has provided stable and affordable housing to 58 families since the 1960s. Enterprise plans to convert the community, which is functionally obsolete, into a modern apartment community that will serve the existing residents that inhabit Roslyn Rise, and add significant density at the workforce and market-rate levels, according to Mackenzie Kisiel, senior real estate development manager for Enterprise Community Development.
“It is a community of tremendous opportunity, with top-ranking schools and good access to jobs, services and amenities,” Kisiel told Commercial Observer. “As a result, there is tremendous pressure on the Howard County housing market, and a need for housing at all levels: affordable housing, in particular, but also ‘missing middle’ housing and market-rate housing.”
Financing for the development will be accomplished through a low-income housing tax credit twin structure, owned by separate single-purpose entities: 94 units (classified as 4 percent building) owned by Roslyn Rise Four, and 59 units (9 % building) owned by Roslyn Rise Nine.
For the Roslyn Rise 9% property, Bank of America (BAC) provided a $20.9 million construction loan, Bellwether Enterprise provided a $10 million Fannie Mae loan, Community Homes Housing provided $4.95 million in soft loans, and $14.1 million in low income housing tax credit equity was provided by Bank of America, through syndicator Enterprise Housing Credit Investments.
For the Roslyn Rise 4% property, Bank of America provided a $19 million construction loan; the Maryland Community Development Administration provided $15.95 million in bonds; Bellwether Enterprise provided a $14.9 million Fannie Mae loan; Bank of America through syndicator Enterprise Housing Credit Investments provided $7.67 million in low income housing tax credit equity, the Maryland Community Development Administration provided $5.5 million in soft loans, and Community Homes Housing provided $5.45 million in soft loans.
The gap between these sources and the total cost is being provided by equity, capital contributions, deferred fee and accrued interest, according to the company.
Enterprise acquired Roslyn Rise as part of a portfolio of five properties with 300 units in the heart of Columbia in December 2017 from Community Homes Housing, a nonprofit that ran the portfolio.
“CHH’s vision was a full-scale redevelopment of the property at higher density and with a mix of incomes, and Enterprise was specifically selected to carry out this vision and for our technical expertise in bringing difficult transactions like this to the fruition,” Kisiel said.
The project is slated for completion in 2024.
Keith Loria can be reached at Kloria@commercialobserver.com.