Funding will finance three multifamily properties located in Bethesda, MD
EagleBank, one of the largest community banks in the Washington, D.C. area, announced it provided $48,450,000 in acquisition financing to Montgomery County Housing Opportunities Commission (“HOC”) for three multifamily properties located in the Woodmont Triangle area of downtown Bethesda. The project is sponsored by Montgomery County HOC.
Latest Fintech News: BentoBox Launches BentoBox Payments, Giving Restaurants Nationwide an End-to-End Solution for Diner Engagement
The three properties combined have 212 apartment units situated across a site area of 4.28 acres. All 212 units are naturally occurring affordable housing with no legal or regulatory restrictions on rents or household incomes. As naturally occurring affordable housing located in the Bethesda CBD, the Properties were at very high risk for significant future rent increases and potential displacement upon redevelopment. Control of the Properties is essential to preserving the existing housing stock and managing redevelopment in the future to avoid any permanent low- and moderate-income tenant displacement. This acquisition presents a unique opportunity for HOC to preserve currently naturally affordable residential units as well as significantly increase the number of affordable units in the area with a very high redevelopment future rent increase potential.
Currently all unit rents are at or below 70% of the Washington, DC-MD-VA Metropolitan Statistical Area Median Income (“AMI”) levels. HOC intends to implement two levels of affordability across the Properties: 10% of the units (21 units) will be formally restricted to households earning 70% or less of the area AMI. Additionally, 20% of the units (44 units) will be restricted to households earning 50% or less of the area AMI. Implementation of the restrictions will be phased in over the period of 2-3 years and will not displace any existing residents.
Established in 1974, HOC’s goal is to promote housing affordability in Montgomery County and has a long, successful, history with similar multifamily projects. Currently, the Montgomery County HOC owns and operates 22 other nearby properties with 7,000 units.
Latest Fintech News: Kyriba Named One of the World’s Most Innovative Financial Technology Companies of 2022
“EagleBank’s lending team is committed to expanding access to affordable housing in our community,” said Ryan Riel, Chief Real Estate Lending Officer at EagleBank. “We are pleased to expand our relationship with HOC and partner with them to achieve a community-focused approach to housing.”
The transaction was facilitated by members of EagleBank’s experienced commercial real estate team, senior relationship manager Andrea Berkeley and portfolio manager Sean Krysick.
The three properties are all located along Battery Lane in the downtown Bethesda, Woodmont Triangle neighborhood. The surrounding area consists of a mixture of medium-to-high density commercial and residential development. In addition, the Bethesda Metro Station is nearby.
Latest Fintech News: Skolem Technologies Raises $20 Million to Enable Institutional-Grade Access to DeFi
[To share your insights with us, please write to sghosh@martechseries.com]
