Enterprise Community Development, Inc. closed on the purchase last month of Parkside Terrace Apartments, a community of 87 garden-style apartment units in the Washington, D.C. suburbs of Silver Spring, Maryland. Enterprise Community Development plans to preserve the community as affordable housing for residents earning up to 60 percent of the area median income (AMI).
Built in 1962, Parkside Terrace Apartments is comprised of one- and two-bedroom units spread across three- and four-story garden style apartment buildings. The modernization program includes upgrades for both energy efficiency and improvements to enhance residents’ living experience.
“The acquisition of Parkside Terrace Apartments provided Enterprise Community Development with a well located, long-term preservation opportunity in a high-cost rental market,” said Enterprise Community Development Senior Manager of Multifamily Acquisitions Matthew Carson Crossley. “We are looking forward to executing on our strategic business plan for the property that will allow for the long-term preservation of affordability, while also enhancing the property’s amenities through our planned upgrades upon our eventual tax credit recapitalization.”
New air conditioning units, kitchen appliances, balcony and patio doors, and plumbing fixtures will improve the energy efficiency of the apartments while new kitchen cabinets and countertops, bathroom vanities and sinks and hard surface flooring will enhance the residents’ living experience. Upgrades to support ADA accessibility and to enhance common areas will be made as well.
“DHCA was happy to partner with Enterprise to preserve 87 units, at or below 60% AMI, of naturally occurring affordable housing. DHCA was able to provide $5 million from the Affordable Housing Opportunity Fund, an acquisition financing tool, to help facilitate the acquisition. The County will continue to work with its partners and look for ways to preserve naturally occurring affordable housing.,” said Aseem Nigam, Director of the Montgomery County Department of Housing and Community Affairs (DCHA).
Located just over a mile from downtown Silver Spring, Parkside Terrace provides residents access to public transportation – including the future Purple Line — and nearby job centers as well as ample options for shopping, healthcare and public amenities including Nolte Park that abuts the property and is directly accessible from residents’ doorsteps.
The total acquisition cost for Parkside Terrace was $20 million. Acquisition financing was provided through a bridge loan provided by the Montgomery County Affordable Housing Opportunity Fund (AHOF). AHOF is a syndication of lenders focused on the preservation of affordable housing in the County and is comprised of funding from Montgomery County National Housing Trust (NHT), Housing Partnership Fund (HPF) and Woodforest National Bank.
“Housing Partnership Fund (HPF) is delighted to partner with National Housing Trust and Woodforest National Bank to provide Enterprise a FlexCap Acquisition Loan that harnesses the synergy between the public and private sectors,” said Ben Greenberg, HPF’s Director of Lending. “This innovative participation arrangement resulted in a fast execution at a below market blended interest rate with flexible loan terms.”