Enterprise Community Development has closed on financing for two affordable communities in Silver Spring, Md. This included funds for the renovation of Park Montgomery, a 141-unit property, and for the construction of a new, 76-unit asset called Park Montgomery West.
Soto Architecture & Urban Design provided the designs, while Harkins Builders serves as general contractor. Enterprise Residential will serve as property manager.
The $74 million project will be financed through 4 percent LIHTC credits for the existing building and 9 percent LIHTC credits for the new apartments. The development also benefits from 28 housing assistance vouchers from the Montgomery County Housing Opportunity Commission. Other financing sources include senior mortgage from Bellwether Enterprise, as well as funds from the State of Maryland Community Development Administration and Montgomery County Department of Housing.
All 217 units will be reserved for individuals earning up to 60 percent of the area median income. The upcoming Park Montgomery West will encompass one-, two- and three-bedroom apartments ranging from 559 to 1,081 square feet, according to Yardi Matrix data.
In 2019, the existing building became subject to a $10 million loan from Deutsche Bank, the same source shows. Park Montgomery was originally built in 1971 and rises 15 stories, while Park Montgomery West will have five stories and replace the existing parking garage.
Good Rent Gains for RBN Assets
Located at 8860 Piney Branch Road, the property is roughly 8 miles from Washington, D.C., and less than 2 miles from downtown Silver Spring. It is also within walking distance of the Piney Branch Station, providing public transit access to destinations on the Purple Line.
Average rents for Renter-by-Necessity properties saw a 0.5 percent increase on a trailing three-month basis through May, reaching $1,815, while occupancy for the segment dropped 80 basis points year-over-year through April, to 95.1 percent, a recent Yardi Matrix metro report shows.
A total of 3,841 units were completed in the first five months of the year, 14 percent of which were in fully affordable communities, while the rest belonged to the Lifestyle segment, the same source shows.
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