MLK Apartments – 2442 Martin Luther King Jr Ave SE, Washington, DC
Total Development Cost – $52,600,000
Construction and Permanent Financing Closed January 2021
Audubon Enterprises was engaged by MidAtlantic Realty Partners LLC (MRP) and Taylor Adams Associates to source $52.6MM in financing for their ground-up 4% LIHTC development located at 2442 Martin Luther King Jr Ave SE in Washington DC. The development will be 500 feet from the Anacostia Metrorail Station in Ward 8 and will create a total of 112 new affordable units; 106 of them will be affordable to residents earning no more than 50% of Area Median Income with the remaining 6 units supporting residents earning no more than 30% of Area Median Income. The project will also include a fitness room, an outdoor courtyard for residents, and roughly 4,000 square feet of ground floor retail space.
Audubon led the financial structuring and procurement efforts to close on $52.6MM of financing through a combination of tax-exempt bonds issued by the DC Housing Finance Agency (DCHFA), 4% LIHTC equity, gap funding from the DC Department of Housing and Community Development (DHCD), and deferred developer fees. Audubon led the competitive bidding and negotiating efforts for LIHTC equity and debt financing, including coordinating with the appropriate government agencies, and supporting the due diligence processes for each financial partner. The construction and permanent debt financing will be funded through both short-term and long-term bonds purchased by JP Morgan Chase and the LIHTC equity will be provided by Raymond James Tax Credit Funds. The project will also have subordinate debt from DHCD via DC’s Housing Production Trust Fund. Despite uncertainties within the financial markets due to COVID-19, the project did not have to sacrifice on design or scope due to the pandemic.
The unit mix includes one, two, and three-bedroom units all constrained at 30% or 50% of the Area Median Income for at least fifty years pursuant to the DHCD loan documents which were recorded at closing. All 6 of the units that are available for residents at 30% of AMI will be supported by the Local Rent Supplement Program, a DC rental assistance program administered by the District of Columbia Housing Authority. These units will be deemed Permanent Supportive Housing units and will be complimented by social services provided by a non-profit metal health agency that is approved to provide these services by DC’s Department of Human Services (DHS).