Enterprise Community Development Acquires Falls Church Apartments for $22M
The acquisition is the first under Fairfax County’s Right of First Refusal
Enterprise Community Development, a national nonprofit, has acquired Coralain Gardens, a garden-style apartment complex in Falls Church, Va., for $21.7 million.
The acquisition marks the first deal facilitated through Fairfax County’s right of first refusal (ROFR) assignment process, which went into effect in the summer of 2022. It gives the county first dibs on certain properties in an effort to help preserve existing affordable housing.
Through the program, qualified affordable housing developers earn entry into the county’s preservation partner pool, which helps them to seize preservation opportunities when they arise, such as the sale of Coralain Gardens.
In 2023, Fairfax County sent out a notice to developers in the pool. and Enterprise’s proposal was selected based on the sales price and its plans for renovating the property.
Acquisition financing was provided through a senior mortgage from nonprofit financial institution Low Income Investment Fund and Capital Impact Partners partnership, as well as the assumption of an existing loan on the property by the Fairfax County Redevelopment and Housing Authority. Additionally, Enterprise Community Loan Fund provided supplemental acquisition debt.
Located at 7435 Arlington Boulevard, Coralain Gardens’ 106 units will be preserved as affordable, with Enterprise rehabilitating the community starting in 2025, according to the company. Enterprise will utilize 4 percent Low Income Housing Tax Credits for the work.
Originally built in 1964, Coralain Gardens consists of 17 studio, 43 one-bedrooms, and 46 two-bedrooms serving residents earning at or below 60 percent of the area median income, which is currently $155,071 for a household of four.
“The acquisition was a wonderful chance to make a positive impact on the Fairfax community,” Christine Madigan, interim president of Enterprise Community Development, told Commercial Observer. “We are grateful for the county’s partnership and leadership in affordable housing preservation. We are looking forward to renovating the property and ensuring it remains a great place to live for both current and future residents.”
The property has an outdoor swimming pool and a playground exclusively for families with children in the apartment community.
Keith Loria can be reached at Kloria@commercialobserver.com.