Foulger-Pratt and its partners broke ground today on Paxton, a 148-unit, 160,000 square-foot market-rate quality all-affordable apartment community located at the intersection of Benning Road NE & 16th Street NE.
The development is a collaboration between real estate developer Foulger-Pratt and Enduring Affordable Housing Corporation.
The $101 million project includes financing by the District of Columbia Housing Finance Agency (DCHFA).
Additional partners include Capital One as the construction lender and the federal LIHTC investor, Hudson Housing Capital as the LIHTC syndicator, Monarch Private Capital as the D.C. LIHTC investor, D.C.’s Department of Human Services (DHS) as the Permanent Supportive Housing operating subsidy provider, Freddie Mac Multifamily as the permanent lender, the D.C. Housing Authority as the project-based voucher provider and the District of Columbia Housing Finance Agency (DCHFA) as the tax exempt bond lender.
DCHFA issued $46.92 million in tax exempt bonds and underwrote $42.02 million in D.C. and federal Low Income Housing Tax Credit (LIHTC) equity in addition to a $29.02 million Housing Production Trust Fund loan from the D.C. Department of Housing and Community Development.
Paxton will contain eight studio, 87 one-bedroom, 16 two-bedroom and 37 three-bedroom rental apartments.
“Paxton will bring 148 market-rate quality units to NE D.C.,” said Brigg Bunker, managing partner and chief operating officer for Foulger-Pratt. “As part of our continued commitment to providing solutions to the area’s affordable housing crisis, Foulger-Pratt has officially launched an affordable housing initiative. We feel we are in a position to leverage our years of expertise in developing quality market-rate product to help address the nationwide housing crisis. We are proud to be part of a solution that makes housing accessible and to better the communities where we do business.”
At Paxton, 15 apartments will be reserved for residents with incomes at or below 30% of area median income (AMI) and are set aside as permanent supportive housing (PSH) units. Families residing in Paxton’s PSH units will receive support services through Community of Hope, a local organization working to end family homelessness and improve health while making D.C. more equitable.
The remaining 133 units will be rented to residents with incomes at or below 50% AMI.
All residents will have access to services through Hope Multiplied, a D.C.-based nonprofit providing community development, health and wellness, and socio-economic programs.
Paxton will contain 5,300 square feet of amenity space including access to a business center, landscaped courtyard, fitness center and clubhouse. Additionally, Paxton will provide garage parking, bike storage, on-site storage, concierge services, and security to future residents.
Paxton’s transit-oriented location provides immediate access to the DC Streetcar and proximity to the H Street Corridor’s retail, restaurants, performing arts venues, and medical facilities.
Capital One provided $94 million in debt, equity and forward agency financing for Paxton, including 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) to preserve the long-term affordability of the property.
“Addressing the nationwide gap in affordable housing requires innovative funding to support new construction and housing preservation,” said Ed Delany, senior director and senior capital officer of Community Finance for the Mid Atlantic at Capital One. “This groundbreaking embodies how that funding can bring new housing to a market in need, as Capital One provided comprehensive financing to Foulger-Pratt for Paxton that spanned construction, equity and permanent financing.”
Hickok Cole is the architect for the project. TM Associates will serve as the property manager. Paxton is set to be delivered by April 2024.