Construction Underway at Northern Virginia Affordable Development

A rendering of The Exchange at Spring Hill Station. Image courtesy of Arlington Partnership for Affordable Housing

Nonprofit housing developer Arlington Partnership for Affordable Housing has received $39 million in Freddie Mac permanent financing for part of a property in Tysons, Va. The debt will support the construction of 265 units of a 516-unit affordable housing community.

Greystone provided $39 million in Freddie Mac Tax-Exempt Loan (TEL) Unfunded Forward financing to APAH to construct one of two buildings at The Exchange at Spring Hill Station, which will be the first 100 percent affordable housing property in Tysons. The financing was originated by Pharrah Jackson, vice president at Greystone, on behalf of APAH.

Construction has started and the project is expected to deliver by 2026. The Freddie Mac Forward commitment financing includes a 48-month construction period with a 17-year permanent loan term. Bank of America, the equity investor for this transaction, will be providing capital contributions in excess of $60 million in tax-credit equity during the course of the construction timeline. Other debt sources for that building include Amazon Housing Equity Fund, providing $29 million, the Virginia Housing Trust Fund, $700,000, and the Virginia Department of Housing and Community Development Housing Innovations in Energy Efficiency, $2 million. Fairfax County Redevelopment and Housing Authority Blueprint & Move to Work -HCV Reserve Loan Funds are also lending some $19 million.

The development is financially structured as two 4 percent LIHTC deals. Virginia Housing provided a construction loan for permanent financing for the second building. FCRHA issued bonds and the project also utilized the Virginia Department of Housing and Community Development Governor’s pool bond allocation of $89 million, according to APAH.

Yardi Matrix reported the project received a $10 million self-financed construction loan in January 2022 from FCRHA.

APAH officials noted the Amazon Housing Equity Fund provided a total of $56 million, allowing the process to be expedited so both buildings could be developed at the same time.

Unit mix, amenities detailed

Formerly known as Dominion Square, the project will be located at 1592 Spring Hill Road, within the Washington, D.C. MSA. A groundbreaking ceremony was held in December by APAH to celebrate the commitment to affordable housing in Tysons and the positive impact affordable housing will have on the community. The Exchange at Spring Hill Station will provide housing for families with low- to moderate-income levels and services, including a publicly accessible community center. The residential units are guaranteed to remain affordable for the next 99 years.

The unit mix for the 265-unit building consists of 55 one-bedroom units, 146 two-bedroom units and 64 three-bedroom units with varying affordability restrictions. Forty of the units will be at 30 percent AMI, 77 units at 50 percent AMI, 87 units at 60 percent AMI and 61 percent of units at 70 percent AMI.

In addition, Fairfax County Redevelopment and Housing Authority has approved and awarded APAH 40 project-based vouchers for the building. The units are required to be leased to households at or below 50 percent AMI. APAH elected to lease those 40 units at 30 percent AMI in the following mix: nine one-bedrooms, 22 two-bedrooms and nine three-bedrooms.

Planned amenities for the two-acre project include relocation of the Tysons Community Center, which will be owned and managed by Fairfax County government. Other amenities at the residential development include additional community rooms, a business center, resident lounge, resident support services, laundry facilities and a landscaped courtyard. The property will also have a basketball court and playground. There will be a total of 105 parking spaces, both above and below ground level.

The Exchange at Spring Hill station is a 10-minute walk to grocery and other retail stores and steps from the WMATA Spring Hill Metro station.