Lument Provides $16.9M in Freddie Mac Financing for Affordable Housing Project in D.C.
WASHINGTON, D.C. — Lument has provided two Freddie Mac tax-exempt loans (TEL) totaling $16.9 million for the development of 1515 North Capitol Apartments, a 15-story affordable housing development in Washington, D.C. Construction for the project is slated to be complete in 27 months. The borrower is So Others Might Eat (SOME), a Washington, D.C.-based local nonprofit organization that provides services to those facing poverty and homelessness.
1515 North Capitol will feature 136 affordable studio units, with 75 units subsidized through D.C.’s Local Rental Supplement Program (LSRP), 61 units restricted to tenants earning 50 percent of area median income (AMI) and three units reserved for staff. The units features will include vinyl plank flooring, ranges with vented hoods, microwave ovens and garbage disposals. Community amenities will include a community room, conference and meeting rooms, classrooms, library, computer room, fitness center, bike storage, two roof terraces and a laundry room on every residential level.
Lument structured two portions of debt for the Freddie Mac TEL. The first part of financing was in the amount of $11.8 million and featured a 17-year term and 40-year amortization schedule. The other loan was in the amount of $5.1 million based on the LSRP overhang to fully amortize over a 15-year term. Andrew Ellis and Tyler Probst led the transaction internally for Lument.
To facilitate construction of the high-rise, SOME received federal tax credit equity through the sale of 4 percent Low Income Housing Tax Credits (LIHTCs) organized by Enterprise Housing Credit Investments, as well as a construction loan from a national bank and a subordinate loan from Washington, D.C.’s Department of Housing and Community Development.
SOME has developed six multifamily projects over the past five years, including preserving existing housing and new construction. The company owns and manages nearly 1,000 units in the D.C. area, 747 of which are LIHTC units.