4A — May 2024 — M id A tlantic Real Estate Journal
www.marej.com
M id A tlantic R eal E state J ournal Surpasses goal with the deployment of $6M in mezzanine financing to MHP JBG Smith preserves 3,000 housing units with Washington Housing Initiative Impact Pool B ETHESDA, MD — JBG SMITH an- nounced that the Im-
communities throughout the Washington region, and we are proud to have reached our goal ahead of schedule and with additional funds to continue our efforts,” said AJ Jackson , EVP of Social Impact Invest- ing at JBG SMITH. “This is a moment of celebration and provides impetus to keep going. Investing at scale allows us to have a meaningful impact, and this milestone reinforces our commitment to preventing displacement and preserving affordability in rapidly changing neighborhoods vulnerable to ris- ing housing costs. Consequently,
we plan to continue to finance workforce housing through other vehicles even after the Impact Pool’s funds have been fully deployed.” The 3,000+ units include: Parkstone Alexandria (Alex- andria, VA) 326 units; Crystal House (Arlington, VA) 825 units; Hamilton Manor (Hy- attsville, MD) 245 units; Hunt- wood Courts (Washington, DC) 214 units; Earle Manor (Whea- ton, MD) 140 units; The Gale Eckington (Washington, DC) 603 Units; Loree Grand (Wash- ington, DC) 212 units; Falkland Chase (Silver Spring, MD) 268 units; Franklin Apartments (Takoma Park, MD) 185 units. Launched by JBG SMITH in 2019, the Impact Pool is a key component of the Washing- ton Housing Initiative (WHI) created by JBG SMITH and the Federal City Council. The Impact Pool, managed by a subsidiary of JBG SMITH, le- verages private capital to help combat the loss of housing for middle-income families. The Impact Pool works with non- profit and for-profit mission driven sponsors to acquire pri- vately owned and unsubsidized housing that’s affordable to everyday working households, lock in affordability, invest in the buildings, and operate them using strategies designed to stabilize residents rather than push rents. The Impact Pool surpassed its goal with the deployment of $6 million in mezzanine financing to Montgomery Housing Part- nership (MHP) for the refinanc - ing of Franklin Apartments, a 185-unit age-restricted housing community in Takoma Park, MD. Concurrent with the clos- ing of the Impact Pool’s loan, the property obtained a new $26.2 million Freddie Mac loan, provided by Key Bank, along with an extension of an exist- ing $3.75 million soft loan from Montgomery County. “The Franklin Apartments investment is a perfect ex- ample of what we sought to accomplish when we created the Impact Pool. Montgomery County is projected to lose up to 11,000 naturally occurring affordable housing units by 2030. Our collaboration with a non-profit owner, dedicated to the property’s preservation, will provide residents with the ability to age in-place in a resource rich neighborhood of Montgomery County,” said Jackson. MAREJ
pact Pool, the affordable hous- ing investment platform it manages, has helped create and preserve more than 3,000 units of quality workforce housing across the Washington region since 2020, outpacing its goal to deliver 3,000 units by 2025 and with capital remaining to invest in additional units. “The Impact Pool has sur- passed what we set out to achieve – the creation and pres- ervation of affordable homes for thousands of workers in
Franklin Apartments
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