Pennrose Breaks Ground on Maryland Affordable Redevelopment
- Mar 12, 2021
Pennrose has broken ground on the Newtowne 20 redevelopment in Annapolis, Md. The company partnered with the Housing Authority of the City of Annapolis for the $24 million project intending to replace a demolished public housing property with 78 affordable apartments. With Southway part of the development team, delivery is expected in the spring of 2022.
The new Newtowne 20 will take shape at 810 Brooke Court, replacing the decaying property built in 1971. Upon completion, the community will house one-, two- and three-bedroom floorplans in stacked and garden-style buildings surrounding a central green space. Common-area amenities will include a 3,500-square-foot community clubhouse, as well as a basketball court and tot lot.
The site is 2 miles southwest of downtown Annapolis, in a dense residential area just north of Crab Creek. The property is adjacent to a 144-unit affordable community that benefited from a $30 million refinancing in September.
A long-awaited revitalization
The Newtowne 20 redevelopment has been years in the making. After a first failed attempt at beginning the revitalization process in 2015, plans derailed and stalled for various reasons. Last March, the U.S. Department of Housing and Urban Development approved the application for demolition and reconstruction of the public housing community. Demolition works began in September and residents were temporarily re-housed, with the possibility to return to the new community once complete.
Looking to maintain the property’s affordability status, the project was enrolled in a U.S. Department of Housing and Urban Development program enabling housing authorities to convert public housing assets to a Section 8, voucher-based model.
The new Newtowne 20 benefits from multiple financing sources. The Maryland Department of Housing and Community Development provided a mix of multifamily bonds, Rental Housing Works, Rental Housing Funds and Housing Trust Funds. Other types of financing came from HACA, the Arundel Community Development Services, the State of Maryland Department of General Services, City of Annapolis CDBG program and the Maryland DHCD Strategic Demolition Fund program.
Additional funds came from Bank of America, in the form of 4 percent low-income housing tax credit equity proceeds and a construction loan, and from Lument, which provided a permanent tax-exempt loan through Freddie Mac.
Over the last two years, Pennrose has been involved in several redevelopment projects across the U.S. In June, the company partnered with Omni America LLC and BRP Development Group for the revitalization of a 100-acre property in Jersey City, N.J., through an 8,000-unit mixed-income project.