555 E Street Apartments – 555 E Street SW, Washington, DC
E Street Development Group
Total Development Cost – $95,000,000
Construction, Bridge and Permanent Financing Closed December 2018
Audubon Enterprises was engaged by E Street Development Group to serve as the financial advisor to this mixed-use, mixed-income intergenerational development located at 555 E Street SW. E Street Development Group was selected by the Deputy Mayor for Planning and Economic Development (DMPED) to redevelop two sites located on E Street SW. This building, which is divided into two separate air-rights A&T lots to accommodate separate financing structures, represents the residential component of the second phase of this redevelopment project which is part of a public disposition of land by DMPED dating back to 2009. When complete, the development will consist of 195 residential units, 136 of which will be market-rate and 58 will be set -aside for low-income seniors aged 62+, a robust amenity package that will benefit all tenants, and approximately 10,000 square feet of ground floor retail space, just four blocks south of the National Mall.
Audubon led the financial structuring and financing procurement efforts for both the market rate, retail and affordable components of this $95MM transaction which used an innovative structure that substantially reduced transaction costs while maximizing financing leverage from capital sources. After working closely with capital markets and local government agencies to create an efficient financing structure which includes two balance sheet construction loans from Citi Community Capital, two Freddie Mac unfunded forward commitments for permanent debt, tax credit equity capital from Raymond James Tax Credit Funds, and subordinate debt from the District of Columbia Department of Housing and Community Development (DHCD), this transaction was brought to a successful close in December 2018. The 58 units of senior affordable housing were awarded funding in the Spring of 2017 through a competitive application process administered by DHCD.
Thirty percent of the 195-unit community will be age restricted to households aged 62 years and older that earn less than 50% of the Area Median Income. Seven units will be reserved as Permanent Supportive Housing units with services provided by Community Connections DC. Other development team members include Donohoe Construction Company, FXFOWLE Architects, and Bozzuto Management Company.