Purchase Ensures Affordability for Residents for Decades to Come
Washington, DC – January 12, 2023: Today, leading nonprofit affordable housing developer Wesley Housing announced the acquisition of Holmead Apartments (3435 Holmead Pl. NW), a 100-unit property in the Columbia Heights (Ward 1) neighborhood of Washington, DC. The approximately 71,000 sq. ft. six-story apartment building has an additional two levels of underground parking on 0.44 acres. The building contains 100 units—52 studios, 43 1BRs, and 5 2BRs—and 25 underground parking spaces.
The community is in a prime location with the Columbia Heights Metro Station only 0.4 miles away, along with several bus lines, a Giant grocery store, and many retail establishments nearby. This community is one of the last naturally occurring market affordable properties located in a neighborhood facing pressures of gentrification and rent increases. To maintain affordability, the current residents of the property leveraged their rights under the Tenant Opportunity to Purchase Act (TOPA) and selected Wesley Housing as their development partner.
Wesley Housing is planning to hold the property for a short-term period (anticipated to be approximately 36 months) before undertaking substantial rehabilitation activities to preserve the units and ensure long-term affordability. During the short-term hold, Wesley Housing and its affiliate, Wesley Property Management, will take immediate steps to address any life safety issues and improve habitability for existing residents; the rehabilitation scope of work will be developed; and construction and permanent financing will be secured.
“This acquisition will provide existing and future residents with long-term access to quality affordable housing in an area of great opportunity with proximate transportation, amenities, and good educational options,” said Wesley Housing President/CEO Kamilah McAfee. “In a community such as this one in Ward 1, which has witnessed an increased influx of market rate conversions, this is an essential way to ensure equitable housing opportunities remain for our most vulnerable residents in the District,” McAfee added.
The property acquisition and stabilization were financed by a $2.5M grant from the Amazon Housing Equity Fund, as well as an $8.8M loan from JP Morgan Chase, a $5M loan from LISC DC, a $5M loan from Capital Impact Partners, and Wesley Housing sponsor equity. Wesley Housing will pursue additional funding this spring with plans to apply for an allocation of 4% Low-Income Housing Tax Credits (LIHTCs) and D.C. Housing Production Trust Fund money in response to the next Notice of Funding Availability (NOFA).
For project updates or to learn more about the project, please visit wesleyhousing.org/property/holmead-apartments.
About Wesley Housing: Wesley Housing, a leading nonprofit developer in Northern Virginia and the District of Columbia, has worked to provide affordable rental housing for individuals and families for nearly 50 years. Since its founding, Wesley Housing has emerged as a premier developer of affordable housing. Wesley Housing has acquired or developed over 2,800 rental units, providing quality housing for thousands of at-risk individuals and families each year. Wesley Housing supplements housing with supportive services to build up the lives of its residents, including low- and moderate-income families, older adults, and individuals with disabilities and/or chronic disease. For more information, please visit www.wesleyhousing.org and follow @WesleyHousing on social media.