Boston Capital Announces Investment in Affordable Housing
- Sep 16, 2011
The Plains, Va.—Quality of life for a number of low- to moderate-income families in The Plains, Va., stands to be boosted as a result of new investment by the largest owner/investor of apartment properties in the United States, Boston Capital. That investment is in construction of affordable housing at the 16-unit Piedmont Lane Apartments in The Plains.
The multifamily development will be comprised of seven two-bedroom and nine three-bedroom apartments in five buildings on two sites located about a quarter mile from one another. Most of the units will be available to families earning no more than 50 percent of the area median income (AMI), while two will be available to those earning at or below 40 percent of AMI. Development of the apartment community involves a partnership between T.M. Associates, Inc., and The Windy Hill Foundation. The general partner is WHF-II, Inc., an affiliate of The Windy Hill Foundation.
A number of factors attracted Boston Capital to the investment opportunity at Piedmont Lane Apartments. One was that The Plains is situated about 40 miles west of Washington, D.C., in an area that has witnessed excellent population growth over the past 10 years. Specifically, the primary market for this type of property grew 99 percent over the past decade.
“The area was attractive,” company vice-president, acquisitions Josh Gould tells MHN. “But primarily it’s the relationship we share with T.M. Associates. “We have a long, 15-plus-year history with them, and we’ve syndicated 68 prior products.”
Earthcraft certification of the units as green denotes the fact they are projected to utilize 75 percent less energy than other newly-constructed properties. Each unit will boast geothermal heating and cooling, EnergyStar range/oven, refrigerator, dishwasher, disposal, central air conditioning, washer and dryer, ceiling fan, storage, front porch and walk-in closet.
Extreme energy efficiency is not a prerequisite for investment by Boston Capital, Gould says. “But it’s a nice element to have in a project,” he adds. “While it’s not a requirement of ours, we think it will be a strong marketing tool for the project.”
The Low Income Housing Tax Credit program’s tax credit equity is responsible for helping make Piedmont Lane Apartments a reality. Boston Capital, a Boston, Mass.-based real estate investment and advisory firm specializing in tax-advantaged investments in affordable multifamily housing, has invested in almost 12,000 units of affordable housing in Virginia.
As for this particular project, it’s likely to be a pleasing plus for The Plains.
“There’s very little affordable housing in The Plains,” Gould says. “This will give [the town’s] workforce opportunity for housing in the town rather than moving farther out. And the units being built in The Plains will create jobs . . . We’re filling a need by creating these new multifamily homes.”