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.
SOURCE Security Properties