By Joshua Ayers, Senior Editor
Washington—Social-purpose REIT Housing Partnership Equity Trust (HPET) announced that it has acquired its first Washington D.C.-area property multifamily community in partnership with nonprofit developer AHC Inc.
The community, Woodleaf Apartments, is located in Silver Spring, Md. and was purchased for $33.5 million, according to a press release issued by the Housing Partnership Network business collaborative, which created HPET in 2013 with 12 other non-profits.
“The Woodleaf acquisition establishes HPET’s presence in the Washington area, one of the highest-cost markets in the country,” says Drew Ades, president of Housing Partnership Equity Trust. “It also further demonstrates the effectiveness of our collaborative business model in preserving affordable units in areas that continue to experience tremendous economic growth.”
The 228-unit community offers a mix of one- and two-bedroom apartments that, according to rent.com, include air conditioning, ceiling fans, garbage disposals, oversized closets, patios and balconies and in-unit washer and dryers. The amenities package includes additional storage, a fitness center and swimming pool.
AHC, which has developed and preserved about 50 affordable rental communities since 1975, expands its Montgomery County, Md. portfolio to more than 1,200 units with the purchase of Woodleaf. The developer will take on management responsibilities at the community and intends to perform upgrades including property-wide window replacement and individual apartment renovations for select units.
“AHC is committed to preserving and developing affordable and workforce housing in the mid-Atlantic region,” says Walter D. Webdale, president and CEO of AHC. “Partnering with HPET is an exciting example of nonprofits working together to create innovative finance tools that don’t require public subsidy to acquire and preserve affordable housing. This is a great step forward, and we are delighted to collaborate with HPET to expand the number of affordable homes for Montgomery County residents.”
The Woodleaf Apartments purchase is HPET’s sixth acquisition since its inception in 2013. According to its website, the REIT, which received $100 million in initial funding from five investors, aims to invest primarily in “medium- to large-sized Class B and Class C multifamily properties” that include “non-core, secondary real estate markets that are currently at or below-market rents and are typically unsubsidized, unrestricted rental properties.”