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Deals & Dealmakers

Capital One Provides $94 Million in Debt, Equity and Forward Agency Financing for Washington, DC, Affordable Housing Community

Capital One announced that it has supplied a comprehensive funding package to Foulger-Pratt, a Maryland based real estate investment and development firm, for construction of Paxton, a 148-unit affordable housing community being built in the Kingman Park neighborhood of Washington, DC, NE. The deal was led by Ed Delany, senior director and senior capital officer of Community Finance for the Mid Atlantic at Capital One and Rossana Bouchaya, senior vice president of Agency Finance at Capital One.

“There is a nationwide gap in affordable housing, and it is especially acute in the DC region,” said Delany. “Addressing the affordable housing crisis requires both new construction and housing preservation, and innovative financing is essential to help bring these developments to life.”

The funding included a $39.2 million construction loan, a 36-month forward commitment for a $21.1 million Freddie Mac fixed-rate loan, and a $34.2 million investment in Low Income Housing Tax Credits (LIHTC), which will preserve the long-term affordability of the property. Upon successful conversion, the tax-exempt permanent loan will have a 17-year term and a 40-year amortization schedule. 

“Capital One’s expertise in funding affordable housing enabled us to provide a full suite of financing solutions to Foulger-Pratt, including construction and permanent financing as well as an equity investment,” said Bouchaya. “We were able to navigate the many requirements across funding types to both simplify and accelerate the deal’s closing, which was critical in today’s interest rate environment.”

Fifteen of Paxton’s apartments will be reserved for residents with incomes at or below area median income (AMI) and are set aside as permanent supportive housing (PSH) units. The remainder will be rented to residents with incomes at or below 50 percent AMI. The Community of Hope will be providing ongoing support for families residing in the units set aside for PSH.

“Foulger-Pratt is grateful for the shared vision of being part of the solution for affordable housing in the Washington, DC area,” said Brigg Bunker, managing partner and chief operating officer for Foulger-Pratt. “We are pleased to bring our extensive experience in building affordable apartment homes with the same full set of features and amenities found in our market-rate projects.”

Foulger-Pratt is one of the largest real estate investment and development firms headquartered in the Washington, DC area. Paxton, a 160,000 square-foot asset, will be Foulger-Pratt’s third affordable housing community, and is currently under construction near the H Street Corridor. Paxton will feature 5,300 square feet of amenity and programmatic space to support resident needs. Common spaces will include a game room, community room, gym, computer lab and bike storage. 

Capital One offers a comprehensive array of financing solutions for property owners and developers nationwide, including balance sheet and agency lending. As a top-10 agency lender*, Capital One provides financing for multifamily investors nationwide through Fannie Mae, Freddie Mac and FHA programs. Additional information can be found at

*Fannie Mae reported 2021 Multifamily DUS(R) Lender Awards and Freddie Mac reported 2021 Top Optigo(R) Lenders by Volume.

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