8C — July 22 - August 18, 2022 — Owners, Developers & Managers — M id A tlantic Real Estate Journal
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O wners , D evelopers & M anagers
Partnership led by Gilbane Development purchases Belmont Crossing Greysteel arranges the sale of a 275-unit affordable housing property in Washington, DC
ASHINGTON, DC — Greysteel has arranged the sale of Belmont Crossing, a multifam- ily Affordable Housing asset located in Washington, DC. Director Fletcher Hultman , and senior managing director Henry Mathies of Greysteel’s National Affordable Housing practice group, in conjunction with Kyle Tangney and Herb Schwat of Greysteel’s DC mul- tifamily practice, all of whom are based in the company’s Washington, DC, office, negoti - ated the transaction on behalf of the seller. W
Built-in 1952, Belmont Crossing is a 275-unit afford- able housing property located at 4201 7Th Street SE, Wash- ington, DC, that will undergo a complete redevelopment which is expected to begin in the very near future. Since acquiring the property in 2018, the seller, a partnership led by TM Associ- ates of Rockville, MD, worked with the local community to re-zone the underlying land and formed a plan to completely replace the existing, obsolete housing that exists today. The buyer, a partnership led by Gilbane Development ,
will execute the development plan which includes multiple phases of new construction, resulting in the creation of sev- eral hundred luxury Affordable Housing units in South East Washington, DC. The project will be financed with Federal and State Low- Income Housing Tax Credit (LIHTC) Equity, as well as subordinate loan funding pro- vided through DC’s Housing Production Trust Fund. Fletcher Hultman, director of the National Affordable Hous- ing Practice, added, “There were several moving pieces to this transaction that included working through complicated timing issues, working with DC’s DHCD to secure funding, and successfully navigating the TOPA process in DC. We formed a market on behalf of the seller, and the folks at Gilbane immediately saw the value in the opportunity. With their integrated development and construction platforms, they [Gilbane] are very well positioned to bring quality af- fordable housing to SE DC.” In Baltimore, MD, Greysteel has arranged the sale of a 24- unit multifamily property. Se- nior associate Inman Aaron , based in the company’s Balti- more office, negotiated the trans - action on behalf of the seller. Located at 3600 Garrison Blvd., the property was built in 1967 and consists of one, two, and three-bed options. The property is situated with- in 5 miles of several universi- ties including Coppin State University and Johns Hopkins University, and major employ- ers in the area. This property was sold via a loan assumption at 100% of the pricing guid- ance after a short off-market marketing process totaling 16 days to an out-of-market purchaser from another major MSA in the northeast. Aaron Inman, senior associ- ate on Greysteel’s Mid-Atlantic multifamily team, said “This transaction proved successful for both buyer and seller. The seller has the opportunity to trade out of this asset and focus on their core investment strat- egy while the purchaser has the opportunity to assume in-place low leverage debt at yesterday’s interest rate with today’s rent growth. The buyer has the op- portunity to take advantage of over 30% rent upside after making well-needed renova- tions to the building.” MAREJ
Belmont Crossing
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