St. Stephens – 4000 Benning Road, NE, Washington, DC
The Warrenton Group, Washington Metropolitian CDC, and Pennrose Properties
Total Development Cost – $22,500,000
Construction and Permanent Financing Closed January 2016
Audubon Enterprises was engaged by a partnership between The Warrenton Group, Washington Metropolitan Community Development Corporation (WMCDC) and Pennrose Properties (4000 Benning Road LLC) to serve as the exclusive financial advisor to its ground-up 4% Low Income Housing Tax Credit (LIHTC) development at 4000 Benning Road NE. This development will bring 71 affordable units to a previously unused parcel of land bordering Fort Mahan Park in the Deanwood neighborhood of Northeast Washington, DC, less than a quarter mile from the Minnesota Avenue Metro station. Audubon managed the successful application to the DC Department of Housing and Community Development (DHCD) for Housing Production Trust Fund (HPTF) dollars which filled the financing gap for the development. Audubon led the financing effort for the transaction by securing the HPTF commitment for $7.2MM, procuring competitive bids for LIHTC equity ($8.5MM) and fixed rate, non-recourse debt financing ($5.5MM), and by interfacing directly with DHCD and the DC Housing Finance Agency (DCHFA).
In addition to sourcing advantageous terms from the transaction’s equity investor (Boston Financial Investment Management) and bond purchaser (Citi Community Capital), Audubon also improved the transaction by the following metrics during the engagement:
- Closed on $900,000 in grant funding from the DC Department of Behavioral Health to assist in building eighteen (18) permanent supportive housing (PSH) units for extremely low-income clients with behavioral health concerns
- Secured a 15 year project based rental subsidy contract for 18 Housing Choice Vouchers
The unit mix includes one and two bedroom units all constrained at or below 30% or 50% of the Area Median Income (AMI) for at least forty years pursuant to a DHCD Declaration of Covenants which was recorded at closing.
Other development team members included Hamel Builders Inc., Wiencek + Associates, and WinnResidential. The development will meet Enterprise Green Communities standards for sustainable building practices, healthy indoor air quality and energy efficiency. Exterior project amenities include a green roof, 26 covered parking spaces, four outdoor community gathering spaces and a landscaped courtyard. Inside, the building will have an exercise room, a toddlers’ play room, two media lounges, two multi-purpose rooms and secure bike storage.