Lument Provides $ 16.9 Million In Funding To Freddie Mac For Affordable DC Housing Project
WASHINGTON, DC – Lument has provided two Freddie Mac Tax Exempt Loans (TELs) totaling $ 16.9 million for the development of 1515 North Capitol Apartments, a 15-story affordable housing development in Washington, DC Construction of the project is expected to be completed in 27 months. The borrower is So Others Might Eat (SOME), a local nonprofit organization based in Washington, DC that provides services to people experiencing poverty and homelessness.
The 1515 North Capitol will feature 136 affordable studio units, including 75 units subsidized through DC’s Local Rental Supplement Program (LSRP), 61 units reserved for tenants earning 50% of the area’s Median Income (AMI) and three units reserved for staff. Unit features will include vinyl plank floors, range hoods, microwaves, and garbage disposals. Community amenities will include a community hall, conference and meeting rooms, classrooms, library, computer room, fitness center, bicycle storage, two rooftop terraces and a laundry room each. residential level.
Lument structured two portions of debt for Freddie Mac TEL. The first tranche of funding was $ 11.8 million and had a term of 17 years and a 40-year amortization schedule. The other loan amounted to $ 5.1 million based on the LSRP surplus to be fully amortized over 15 years. Andrew Ellis and Tyler Probst led the transaction internally for Lument.
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, as well as ‘a construction loan from a national bank and a subordinated loan. from the Department of Housing and Community Development in Washington, DC.
SOME has developed six multi-family projects over the past five years, notably by preserving existing homes and new constructions. The company owns and operates nearly 1,000 units in the DC area, including 747 LIHTC units.