The Solstice Phase I & II – 3534 & 3500 East Capitol Street, NE
Total Development Cost – $85MM – (Phase I: $45MM, Phase II: $40MM)
Construction and Permanent Financing Closed November 2017 (Phase I) and August 2019 (Phase II)
MidAtlantic Realty Partners LLC (“MRP”) and Taylor Adams Associates selected Audubon Enterprises to source $85MM in financing over two phases for their ground-up 4% LIHTC development known as The Solstice at 3534 & 3500 East Capitol Street NE in Washington, DC. The first phase of the development, which brings 137 affordable, mixed income units and 2,272 square feet of retail space to the intersection of East Capitol Street and Minnesota Avenue was completed and placed into service in October 2019. The second phase of The Solstice closed on $40MM in construction and permanent financing in August 2019 and will create 95 units of affordable housing in an adjacent building sharing some amenities spaces with phase I.
The first phase of this project was selected for an allocation of competitive funding by the DC Department of Housing and Community Development’s (DHCD) in 2016. Audubon led the financing effort for the transaction by negotiating competitive bids for LIHTC equity and debt financing, interfacing with the relevant government agencies and coordinating a smooth closing in November 2017. Despite the financial market turbulence following the presidential election and subsequent tax cuts, Audubon and its partners persevered on the path to the closing the $45MM million transaction. The second phase of this project was selected for an allocation of competitive funding in 2018 and closed its $40MM capital stack in August 2019.
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 a DHCD covenant which was recorded at closing. The 30% AMI units are Permanent Supportive Housing units with services provided by Community Connections. Community Connections will provide services such as assistance with daily living necessities (cooking, cleaning, laundry, personal hygiene), healthcare assistance, budgeting skill training, connection to employment services, and social connectedness.
Other development team members included McCullough Construction, Blue Skye Construction, KTGY Architects (Phase I), SK+I Urban (Phase II) and Kettler Management. The development’s common amenities include a business center, a multipurpose club room, an office for PSH service administration, and a fitness center. In-unit amenities include carpeting, ample storage including walk-in closets, and EnergyStar appliances. There is also a below-grade parking deck with 130 spaces.