Nuveen JV Preserves Affordability in DC – Multifamily Real Estate News
Owner and Developer Jair Lynch Real Estate Partners has partnered with Nuveen Real Estate to acquire Carver Terrace in northeast Washington, DC, preserving 312 affordable housing units. Located just outside the rapidly gentrifying H Street corridor, Carver Terrace was nearing the end of its long-term compliance period for the low-income housing tax credit. The acquisition means that 100% of the units will be reserved for tenants earning no more than 60% of the region’s median income.
Located at 2026 Maryland Ave. NE, Carver Terrace is a three-story property built in 1946. It offers one- to three-bedroom apartments averaging 597 to 896 square feet. Apartment features include dishwashers, grinders, microwaves, air conditioning, and high-speed internet access. A fitness center is part of the amenities.
“The current financing and construction climate is a challenge for the industry in general,” said Phuc D. Tran, vice president of asset management for Jair Lynch. Multi-Accommodation News. “However, in this case, we were able to tap Amazon to help finance the acquisition and serve as gap financing when we finalize LIHTC’s re-syndication plans. We have a long history of working with tenant associations on TOPA offers – Opportunity to help tenants with the purchase.
“So while navigating TOPA was a challenge, it was not a challenge unique to us. We were able to draw on our past experiences with tenant associations as well as our vision for the property which includes improvements fixed assets and no tenant displacement.
The H Street Corridor has seen the construction of new large-scale residential, office and retail developments over the past decade. Nearby Carver Terrace is likely to be redeveloped into market priced accommodation. By acquiring Carver Terrace, Jair Lynch and Nuveen, in partnership with Amazon Housing Equity Fund and Housing Up, are preserving the affordability of property for nearly another century. In short, families who have lived in the enclave for more than 20 years will be able to stay there. Berkadia served as the seller’s broker and Klein Hornig as transaction advisor for the buyers. Four months ago, Nuveen Real Estate made headlines for the launch of a global impact investing initiative.