Enterprise Acquires Aspen Hill Affordable Housing Complex for $76M
The nonprofit was assisted in the acquisition by a rarely used Montgomery County rule
By Keith Loria June 26, 2023 5:14 pm
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Enterprise Community Development acquired the Westchester West Apartments, a 345-unit affordable multifamily complex in Aspen Hill, Md., for $75.8 million, and will preserve affordability for most units at the property.
The nonprofit acquired the property from Montgomery County through a little-known affordable housing program. The county’s Department of Housing and Community Affairs (DHCA) acquired the apartment complex from its previous owner Westchester Gardens LLC using a provision in the county code that allows local government right of first refusal to buy any residential rental property with four or more units, and DHCA then sold the apartment complex to the nonprofit.
Located at 3214 Hewitt Avenue, Westchester West Apartments has rents that are currently affordable to households with incomes between 55 and 60 percent of area median income, which is $96,773 for a household of four.
Enterprise Community’s long-term plan for the property includes preserving affordability, addressing deferred maintenance, and improving operations and services for residents. Enterprise Community Development will also make $5 million in capital expenditures over 10 years to preserve the long-term viability of the property.
Enterprise will cap rents for 10 years on 35 units for households earning up to 50 percent of the AMI and 275 units for households earning between 50 and 60 percent of the AMI, leaving 35 units without rent restrictions.
Residents of the building worked with local community organization Action in Montgomery and Montgomery County Councilmember Natali Fani-Gonzalez to help facilitate the sale and find a new owner that would preserve the affordable housing.
“Preserving the affordability and enhancing the living experience at Westchester West Apartments is not only a crucial step toward ensuring long-term preservation of affordable housing, but also a testament to our commitment to providing residents with a great place to call home,” Christine Madigan, interim president of Enterprise Community Development, said in a prepared statement. “Through necessary upgrades and improvements, we aim to create a thriving community that fosters a high-quality living experience for all.”
Enterprise plans to refinance the apartment complex after 10 years using federal low-income housing tax credits.
Keith Loria can be reached at Kloria@commercialobserver.com.
