WASHINGTON, D.C. — Walker & Dunlop has structured $10.1 million in construction and permanent financing for Spring Flats.
The project calls for the redevelopment of a historic property known as The Hebrew Home, located in the Petworth neighborhood of Northwest Washington, D.C. The development caters primarily to seniors and low-income residents. Development costs are estimated at $59 million.
Originally constructed in 1925, The Hebrew Home served as a nursing home until 1968, when the city purchased the property and converted it into a community health center. The asset has been vacant since 2009.
The adaptive re-use project will convert the property into 91 new-construction apartments, townhomes and walkups; 88 adaptive re-use units in an apartment building for seniors; and eight for-sale homes. The restoration will include energy-efficient upgrades and is designed to achieve a LEED certification upon completion, which is scheduled for the summer of 2020.
Rob Rotach of Walker & Dunlop structured the financing with a combination of funding sources. The team worked to coordinate capital from nine percent and four percent Low Income Housing Tax Credit (LIHTC) equity; loan proceeds from HUD; and cash-collateralized, tax-exempt bond proceeds and subordinate debt from the D.C. Department of Housing and Community Development. The financing terms include a 40-year, fully amortizing, fixed-rate loan for the property co-developers, Victory Housing, Brinshore Development and Banc of America CDC.
“This transformative redevelopment is a unique opportunity for Victory to build on our mission while putting a great community asset back to use for affordable housing,” says Leila Finucane, president of Victory Housing.
“Twinning nine percent and four percent LIHTCs has been an increasingly popular deal structure that maximizes the limited resources available to make these types of projects a reality,” adds Rotach.