Neighborhood Development Company – The Heights on Georgia Ave
Neighborhood Development Company and Mi Casa, Inc. closed $24 Million for mixed use building located at 3232 Georgia Ave, NW.
Total Development Cost: $24 Million
April 15, 2014
Washington, D.C. – The principals of Audubon Enterprises served as financial advisors to a joint venture between Neighborhood Development Company and Mi Casa, Inc. Audubon principals worked to identify and structure financing options to successfully close on this complex financing using an air-rights structure in a compressed timeframe. Audubon principals identified and closed on the funds necessary for pre-development, acquisition, construction and permanent financing of the project, while maintaining a structure that maximized the value and flexibility of the project to the owners.
Deal Structure: The $24,600,000 development utilizes Low Income Housing Tax Credits, two Neighborhood Investment Fund Grants, Privately Placed Tax Exempt Bond financing, Deputy Mayor of Planning and Economic Development grant funds, Federal HOME Funds (via the Department of Housing Community Development), McKinney Act pre-development funds provided by the DC Housing Finance Agency, DC Sustainable Energy Utility funding, private commercial debt financing and a residential property tax abatement.
This six story 69 unit building received a certificate of occupancy in May 2013. Audubon principals led the team through the financing process and worked with all members of the project team to secure all necessary funding in a short timeframe. The 100% affordable, mixed income building will provide a mix of one, two and three bedroom units while 10,500 SF of retail space will occupy the ground floor. Parking for both the residential and retail portions of the building will be provided underground thus maximizing the site for active uses. Audubon principals facilitated close collaboration among numerous District agencies (DMPED, DHCD, DCHFA), financing sources (Wells Fargo, Citibank, Enterprise, Private Investors), and the project team to finance this complexly structured deal and close on the financing for what has led the revitalization of the Middle Georgia Avenue corridor.
Conversion: In February 2014, Audubon was hired to assist the development team in converting the transaction from construction to permanent debt, which it achieved with full debt sizing and an increased developer fee at permanent loan closing in May 2014.