Nuveen JV Preserves Affordability in D.C.
In a gentrifying neighborhood, this 75-year-old community offers longtime residents the chance to plant roots.
Owner and developer Jair Lynch Real Estate Partners has partnered with Nuveen Real Estate to acquire Carver Terrace in northeast Washington, D.C., thereby preserving 312 units of affordable housing. Situated just outside the swiftly gentrifying H Street Corridor, Carver Terrace was nearing the end of its long-term low-income housing tax credit compliance period. The acquisition means 100 percent of the units will be restricted to renters earning no more than 60 percent of area median income.
Located at 2026 Maryland Ave. NE, Carver Terrace is a three-story property built in 1946. It provides one- to three-bedroom apartments averaging from 597 to 896 square feet in size. Features of apartments include dishwashers, disposals, microwaves, air conditioning and high-speed internet access. A fitness center is among amenities.
“The current financing and construction climate is a challenge for the industry in general,” Phuc D. Tran, vice president of asset management for Jair Lynch, told Multi-Housing News. “However, in this case, we were able to bring Amazon to help finance the acquisition and serve as the gap financing when we finalize the plans for the LIHTC re-syndication. We have a strong history working with tenant associations on TOPA – Tenant Opportunity to Purchase Assistance – deals.
“So while navigating TOPA was a challenge, it was not one that was unique to us. We were able to rely on our past experiences with tenant associations as well as our vision for the property that includes capital improvements and no tenant displacement.”
The H Street Corridor has seen extensive new large-scale residential, office and retail developments built within the past decade. Nearby Carver Terrace is vulnerable to being redeveloped into market-rate housing. By acquiring Carver Terrace, Jair Lynch and Nuveen, in partnership with the Amazon Housing Equity Fund and Housing Up, are preserving the property’s affordability for almost another century. In short, families who have lived in the enclave for more than 20 years will be able to stay. Berkadia served as the seller’s broker and Klein Hornig as transaction counsel for the purchasers. Four months ago, Nuveen Real Estate made news for its launch of a global impact investing initiative.