WASHINGTON, July 24, 2017 /PRNewswire/ -- On June 30th, 2017 Hedin House
Apartments, a 48-unit affordable housing community located in
Washington, D.C., was acquired by
Security Properties in partnership with Housing Up Development, a
local non-profit, for $3,300,000.
This marks the second affordable housing acquisition by Security
Properties and Housing Up Development in the District of Columbia this year. In February,
the duo purchased Glenn Arms, a
55-unit historic multifamily community located in the Adams Morgan
neighborhood for $8,800,000.
Hedin House, a 5-story mid-rise, was constructed in 1956 and
renovated in 1973. It boasts 8,401 square feet of ground floor
retail currently occupied by Seabury Resources, a local non-profit.
The property houses senior and disabled residents with all units
being income-restricted at 60% of Area Median Income (AMI). A
Section 8 HAP Contract provides another layer of subsidy for 70% of
project units. Affordability covenants have been extended for a
40-year term as part of the preservation transaction.
Hedin House was acquired using 9% Low-Income Housing Tax Credit
(LIHTC) equity, a low-interest loan from the District's Housing
Production Trust Fund, and a Construction-to-Permanent loan from
Citi Community Capital. $8 million of
tax credit equity was provided by R4 Capital, a New York based private capital syndicator.
Over the next 12 months, the property will undergo a $115,000/unit renovation to modernize all major
building systems and to enhance the aesthetic appeal and
functionality of both residential units and common areas. A new
community space and computer room will be added for resident use.
Other improvements include all new kitchens and baths, new
appliances, substantial electrical, plumbing and HVAC improvements,
new flooring throughout, a new green roof, ADA accessibility
enhancements, and new windows throughout. "We anticipate a dramatic
transformation at Hedin House," indicates Jeff Garrison, Director of Affordable Housing at
Security Properties. "We have worked closely with the Hedin House
resident community from the outset of this project and we look
forward to delivering a final product that will exceed expectations
for years to come."
Glenn Arms is located in the
vibrant and rapidly-growing neighborhood of Adams Morgan in
northwest Washington, D.C. The
site has two residential buildings constructed in 1910 and 1916
respectively. It is currently undergoing a 10-month rehabilitation
at $100,000/unit that will modernize
unit interiors and common areas, update all major building systems,
and provide two additional units and a new community room. Upon
completion, Glenn Arms will be
ADA-compliant, and include a host of energy efficiency upgrades.
All of this renovation work will be done while maintaining the
historical integrity of the structure, and, going forward,
Glenn Arms will be included on the
National Historic Registry.
Funding sources for Glenn Arms
include 9% LIHTC equity, Historic Tax Credit equity from the
National Parks Service, a low-interest loan from the District's
Housing Production Trust Fund, and a Citi Community Capital
Construction-to-Perm Loan. The tax credit investor is R4 Capital
who provided over $10.5 million of
equity. "The Glenn Arms project offers us a unique opportunity to
preserve part of D.C.'s historic fabric while extending rental
affordability. There are few locations where the need for quality
affordable housing is as great as it is in the D.C. metro area,"
said Bryon Gongaware, Managing
Director of Affordable Housing at Security Properties.
Security Properties is a national real estate investment,
development, and operating company headquartered in Seattle, Washington. For nearly 50 years,
Security Properties has provided quality housing to its residents
as well as excellent financial performance for its investors. Since
its founding, Security Properties has acquired or developed over
81,600 residential units at a cost of over $5 billion. Security Properties maintains a
focused multi-family strategy supported by integrated teams of
professional acquisition, development, construction, investment,
and property management specialists. For more information,
visit www.securityproperties.com
Housing Up Development is a non-profit affordable and supportive
housing developer and manager with a growing portfolio of
properties located throughout Washington,
D.C. Projects include mixed-income affordable housing and
permanent supportive housing for low-income and formerly homeless
families and seniors. Housing Up specializes in a seamless approach
to developing and managing housing while supporting families with
comprehensive services. For more information on Housing Up, please
visit www.housingup.org.
Media Contact:
Ed McGovern
169102@email4pr.com
206-628-8019
View original content with
multimedia:http://www.prnewswire.com/news-releases/security-properties-and-housing-up-acquire-two-district-of-columbia-affordable-housing-communities-300492523.html
SOURCE Security Properties