WinnDevelopment – Atlantic Gardens and Atlantic Terrace
WinnDevelopment closed on $69 million of multi-layered financing for Atlantic Gardens and Atlantic Terrace in Washington, D.C.
October 15, 2015
Total Development Cost – $69 million
Acquisition, Construction & Permanent Financing Closed October 2015
Washington, D.C – WinnDevelopment of Boston, MA and affiliates own and operate Atlantic Terrace (195 units) and Atlantic Gardens (108 units), which are neighboring garden style multifamily communities in the Washington Highlands neighborhood of Southeast Washington, DC. Audubon Enterprises engaged to lead the local financing effort, and was successful in its application for a $10.6 million Housing Production Trust Fund award from the DC Department of Housing and Community Development (DHCD). Audubon also led the effort to issue tax-exempt bonds via the DC Housing Finance Agency (DC HFA), and ensured a successful closing which included the purchase/sale of Atlantic Gardens and the refinance of Atlantic Terrace.
Audubon led the DHCD and DC HFA financing processes from pre-application through closing while supporting Winn in negotiations with Citi Community Capital for the purchase of the construction and permanent tax-exempt bonds. Audubon also helped source and close private long-term subordinate debt from Citi, in addition to tax credit equity purchased by Boston Financial Investment Management. The closing also required HUD’s re-subordination of two existing subordinate debt tranches for each property, and the renewal of the project based HAP contracts for each property.
The rehabilitation scope includes modernization of the building systems such as installing new HVAC systems, high efficiency appliances and lighting, and new windows to comply with Enterprise Green Communities’ standards. Other highlights of the rehabilitation included a new community room, a BBQ area adjacent to the playground, high-quality landscaping, and complete interior unit rehabilitations including floor repair/replacement, new kitchens and bathrooms, fresh paint, and new doors.
Using local and federal financing mechanisms, the transaction team will collaborate to dramatically improve the lives of the residents of the 303 apartments in Atlantic Gardens and Atlantic Terrace by offering a modern and affordable community with a thoughtful service offering in partnership with United Planning Organization. Both properties feature one, two, and three bedroom apartments, and affordability levels at 30% and 50% of Area Median Income.