Washington, DC — Greysteel has arranged the sale of Belmont Crossing, a multifamily Affordable Housing asset located in Washington, DC. Director Fletcher Hultman, and senior managing director Henry Mathies of Greysteel’s National Affordable Housing practice group, in conjunction with Kyle Tangney and Herb Schwat of Greysteel’s DC multifamily practice, all of whom are based in the company’s Washington, DC, office, negotiated the transaction on behalf of the seller.
Built-in 1952, Belmont Crossing is a 275-unit affordable housing property located at 4201 7Th Street SE, Washington, DC, that will undergo a complete redevelopment which is expected to begin in the very near future. Since acquiring the property in 2018, the seller, a partnership led by TM Associates of Rockville, MD, worked with the local community to re-zone the underlying land and formed a plan to completely replace the existing, obsolete housing that exists today.
The buyer, a partnership led by Gilbane Development, will execute the development plan which includes multiple phases of new construction, resulting in the creation of several hundred luxury Affordable Housing units in South East Washington, DC.
The project will be financed with Federal and State Low-Income Housing Tax Credit (LIHTC) Equity, as well as subordinate loan funding provided through DC’s Housing Production Trust Fund.
Fletcher Hultman, director of the National Affordable Housing Practice, added, “There were several moving pieces to this transaction that included working through complicated timing issues, working with DC’s DHCD to secure funding, and successfully navigating the TOPA process in DC. We formed a market on behalf of the seller, and the folks at Gilbane immediately saw the value in the opportunity. With their integrated development and construction platforms, they [Gilbane] are very well positioned to bring quality affordable housing to SE DC.”
In Baltimore, MD, Greysteel has arranged the sale of a 24-unit multifamily property. Senior associate Inman Aaron, based in the company’s Baltimore office, negotiated the transaction on behalf of the seller.
Located at 3600 Garrison Blvd., the property was built in 1967 and consists of one, two, and three-bed options. The property is situated within 5 miles of several universities including Coppin State University and Johns Hopkins University, and major employers in the area. This property was sold via a loan assumption at 100% of the pricing guidance after a short off-market marketing process totaling 16 days to an out-of-market purchaser from another major MSA in the northeast.
Aaron Inman, senior associate on Greysteel’s Mid-Atlantic multifamily team, said “This transaction proved successful for both buyer and seller. The seller has the opportunity to trade out of this asset and focus on their core investment strategy while the purchaser has the opportunity to assume in-place low leverage debt at yesterday’s interest rate with today’s rent growth. The buyer has the opportunity to take advantage of over 30% rent upside after making well-needed renovations to the building.”