Developers Close on $38M in Financing for DC Project
- Aug 07, 2019
A group of developers closed on $38 million in financing for the construction of the Strand Residences, an 86-unit affordable housing project in the Deanwood neighborhood of Washington, D.C. The NHP Foundation, The Warrenton Group and the Washington Metropolitan CDC are working with various financing partners to realize the project located at 5119 Nannie Helen Burroughs Ave.
The groundbreaking is planned for later this month and the construction is expected to wrap up in January 2021. The residential property sits next to the vacant historic Strand Theater, which the developers plan to convert into a new restaurant next year.
The Strand Residences will deliver 71 one-bedroom apartments and 15 two-bedroom units, with 28 of the units set aside for residents who earn less than 30 percent of the area median income (AMI) and reserved for people relocating from the nearby Lincoln Heights and Richardson Dwellings communities. The property will also feature on-site resident services provided by Operation Pathways, an affiliate of the NHP Foundation, as well as an exercise room and large multi-purpose room. The first floor will house retail space for a community-based retailer and a neighborhood nonprofit.
City organizations chip in
The DC Housing Authority (DCHA) contributed operating subsidies for the 28 units through its Local Rent Supplement Program. In addition, the District of Columbia Office of the Deputy Mayor for Planning and Economic Development (DMPD) invested $15.6 million in financing from the District’s New Communities Initiative and the DC Housing Finance Agency (DCHFA) allocated $19.5 million of tax-exempt bonds for the project. Other financing partners include Enterprise Community Partners, Citibank and JLL.
PGN Architects will design the project, WCS Construction serves as the general contractor, and WCS Property Management will be the property manager. An announcement by the development firms notes that the Residences will be built on underutilized land and that no residences were displaced from the project, while a local restaurant will be relocated into a new building.
Housing provider NHP Foundation scored $39.4 million in financing to redevelop and preserve an affordable, 104-unit apartment asset in the Brightwood neighborhood of the city last year.