The ChallengeA foreclosed 647-unit, 35-year old, physically and financially troubled apartment complex that was the locus of criminal activity and the blight of the community. |
The Plan
Using smart-growth principles to reposition the property in the Washington, D.C., metropolitan market, Landex and The Richman Group reduced density by 25% to make the scale of the housing community more compatible with its surrounding neighborhood. All apartment interiors and building exteriors were substantially renovated and landscaping was dramatically improved.
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Results
Using “smart growth” principles to reposition the property in the Washington DC metropolitan market, Landex and its partner, The Richman Group, worked with the County and the state to redesign and finance a major renovation of the complex. To insure that the housing community was more compatible with its surrounding neighborhood, the density of the site was reduced by 25% from 647 apartments to 478 apartments.
All apartment interiors and building exteriors were substantially renovated and landscaping was dramatically improved. A community pool, a clubhouse with a fitness center, a great room for entertaining and a management office was erected on the site. In addition, there are three laundry centers, a Resident Service Center and a computer lab established by the Magic Johnson/Hewlett Packard Inventor Center aimed at bridging the digital divide for low and moderate income families.
As part of the renovation plan, Landex carried out a Relocation Plan in accordance with the Uniform Relocation Act.
In 2000, Landex was named “Developer of the Year” by the Maryland Department of Housing and Community Development for its work in this community.
Financing
Project Cost
- Phase I
- $34 Million
- Phase II
- $10.2 Million
Phase I Funding
- Tax Exempt Bond Financing (w/FHA 221.d.4 mortgage insurance)
- $20.0 Million
- Lehman Brothers
- $6.0 Million
- Equity
- $8.0 Million
- Low-Income Housing Tax Credits
- $11.1 Million (4%)
Phase II Funding
- Fannie Mae
- $5.1 Million
- Equity
- $5.1 Million
- Low-Income Housing Tax Credits(9%)
- $5.9 Million