Maryland Apartment Community Secures $26M in New Freddie Mac Financing
By Nick Trombola April 17, 2024 12:37 pm
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Montgomery Housing Partnership (MHP) has secured a $26.2 million Freddie Mac loan for its age-restricted housing community, dubbed Franklin Apartments, just north of Washington, D.C., according to JBG Smith (JBGS).
Keybank (KEY) provided the Freddie Mac loan, concurrently with an extension of a $3.75 million soft loan from Montgomery County toward the property. At the same time, the property also secured $6 million in mezzanine financing from the Washington Housing Initiative Impact Pool, an affordable housing investment platform managed by JBG Smith.
Representatives for KeyBank did not immediately respond to a request for comment.
Located at 7620 Maple Avenue in Takoma Park, Md., Franklin Apartments is a Class B mid-rise building that features 185 units.
The Impact Pool financing is part of JBG Smith’s effort to create and preserve 3,000 affordable housing units in the D.C. area by 2025. The mezzanine loan for Franklin Park pushes the Impact Pool across the finish line a year early, with still more funds available to invest in additional units, according to JBG Smith.
Other communities that comprise the more than 3,000-unit total are in Alexandria, Va.; Arlington, Va.; Hyattsville, Md.; Wheaton, Md.; Silver Spring, Md., and in the District itself.
“The Franklin Apartments investment is a perfect example of what we sought to accomplish when we created the Impact Pool,” AJ Jackson, executive vice president of social impact investing at JBG SMITH, said in a statement. “Montgomery County is projected to lose up to 11,000 naturally occurring affordable housing units by 2030. Our collaboration with a nonprofit owner, dedicated to the property’s preservation, will provide residents with the ability to age in place in a resource-rich neighborhood of Montgomery County.”
MHP, a 501(c)(3) nonprofit affordable housing provider, acquired Franklin Apartments in 2022 for $37.2 million, according to property records. The community was built in 1952 and renovated in 2011.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
