Developers Secure Funding for $103M Affordable Housing Project on Vacant DC Site
Developers of an affordable housing project in Washington, D.C.’s Ward 6 have secured funding to complete the $103 million project.
Berkadia Affordable Housing facilitated $37.8 million in financing for the second phase of the development, called Northwest One, which will have over 400 units across two buildings once complete.
The property is being developed by a joint venture of MRP Realty, CSG Urban Partners and Taylor Adams Associates, which acquired the site through a public RFP process. The vacant site was formerly Temple Courts, an affordable housing project.
The Temple Courts complex originally included 211 units and was acquired for redevelopment in 2007 but torn down in 2009. At the time, residents were given vouchers to help pay for affordable housing elsewhere in the city as part of D.C.’s New Communities Initiative, and told they would be welcomed back into new, mixed-income units when complete.
Launched in 2005, of D.C.’s New Communities Initiative was designed to preserve public housing while adding new affordable and mixed-family housing options. This project was the first completed under the initiative.
“As a Washington, D.C. developer, we are keenly aware of the history of this development site and the need for more affordable housing options in the District,” Matthew Robinson, principal of MRP Realty, told Commercial Observer.
Berekdia’s financing for the project will include proceeds from 4 percent Low-Income Housing Tax Credits. The total cost of the development is $103 million, with additional funds coming from tax-exempt bonds and a second trust loan from the District of Columbia.
The first phase of the development, the 220-unit Northwest I at 2 L Street NW, opened last winter. The second phase of Northwest One will consist of 212 units, with a mix units ranging from studios to four bedrooms, reserved for those earning 30 to 60 percent of the area median income, which is currently $93,547 for a household of four.
Additionally, 11 of the units will be set aside for tenants who were once homeless and continue to be at imminent risk of becoming homeless, including tenants with disabilities.
Amenities in the units will include a business center, clubhouse, fitness center, laundry room and game room.
Keith Loria can be reached at Kloria@commercialobserver.com.