NEW YORK, December 16, 2021 / PRNewswire / – Lument recently entered into a two-tranche unfunded term commitment for a Freddie Mac Tax Exempt Loan (TEL) totaling $ 16.9 million to build 1515 North Capitol Apartments, a new affordable housing complex located Washington, DC Circle of Truxton piece. The 15-story apartment building will feature 136 affordable studio apartments, including 75 units subsidized through DC’s Local Rental Supplement (LRSP) program, 61 units reserved for tenants earning 50% of the Area Median Income (AMI) and three units reserved for personnel. General manager Andrew Ellis and associate director Tyler probst led the transaction for Lument.
“Closing this project has been complex but very rewarding,” said Ellis. “We are proud to work with So Others Might Eat (SOME) to help pursue their goal of breaking the cycle of homelessness and poverty. This community will create much-needed affordable housing in a high rent market. “
To cover all the necessary financing, Lument structured two debt tranches for the Freddie Mac TEL – Note A in the amount of $ 11.8 million with net operating income based on market rents and a period of 17 years and 40 years of amortization; and the note B in the amount of $ 5.1 million based on the overrun of DC’s local rent supplement program (LSRP) to be fully amortized over 15 years, which coincides with the term of the LRSP contract.
“This loan was created in a tough environment and required the tracking of a lot of moving parts,” said Probst. “This project was bid on in the post-COVID landscape with increasing construction costs, higher site costs and a tight labor market.”
To facilitate the construction of the tower, SOME received a federal tax credit through the sale of 4% Low Income Housing Tax Credits (LIHTC) organized by Enterprise Housing Credit Investments, a loan for the construction of a national bank, a subordinated loan of Washington DC Ministry of Housing and Community Development, and a sponsor loan from SOME.
“On top of everything else, Lument was able to execute this loan on a tight deadline,” Ellis added. “This was a high profile project with many interested parties, some of our weekly phone calls involving over 70 people. It was a pleasure to be able to help SOME to create a new milestone with a high quality affordable community in the DC region. “
The project is expected to be completed in 27 months. The skyscraper will offer a long list of amenities for residents, including a community hall, conference / meeting rooms, classrooms, library, computer room, fitness center, bicycle storage, two roof terraces and a utility room on each residential level. .
SOME recently celebrated their 50th anniversary of standing up for homelessness and hunger in Washington DC They have developed six multi-family projects over the past five years, including major renovations and new construction. SOME owns and manages nearly 1,000 units for individuals and families in the DC area, including 747 LIHTC units.
ORIX Real Estate Capital Holdings, LLC, d / b / a Lument, is a subsidiary of ORIX Corporation United States. Lument is a national leader in commercial real estate financing. As a combined organization of traditional industry experts Hunt Real Estate Capital, Lancaster Pollard and RED Capital Group, Lument offers a comprehensive set of tailor-made capital solutions for investors in multi-family, affordable, senior housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA and USDA lender. In addition, Lument offers a range of proprietary commercial lending, investment sales, investment banking and investment management solutions. Securities, investment banking and advisory services are provided by OREC Securities, LLC, d / b / a Lument Securities, member of FINRA / SIPC. Investment advisory services are provided by OREC Investment Management, LLC, d / b / a Lument Investment Management. OREC Investment Management is registered as an investment advisor with the United States Securities and Exchange Commission. For more information visit www.lument.com.
Michael ratliff | Marketing director
212-588-2163 | [email protected]
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