Foulger-Pratt opens Paxton and launches affordable housing division
Foulger-Pratt and its partners inaugurated today paxtona 148 unit, 160,000 square foot quality market priced affordable apartment community located at the intersection of Benning Road NE and 16th Street NE.
The development is a collaboration between real estate developer Foulger-Pratt and Enduring Affordable Housing Corporation.
The $101 million project includes funding from the District of Columbia Housing Finance Agency (DCHFA).
Other partners include Capital One as construction lender and federal investor LIHTC, Hudson Housing Capital as syndicator LIHTC, Monarch Private Capital as DC investor LIHTC, DC’s Department of Human Services (DHS) as as the provider of permanent supportive housing operating grants, Freddie Mac Multifamily as the permanent lender, the DC Housing Authority as the provider of project-based vouchers, and the District of Columbia Housing Finance Agency (DCHFA ) as a tax-exempt bond lender.
DCHFA issued $46.92 million in tax-exempt bonds and underwrote $42.02 million in equity from DC and the Federal Low-Income Housing Tax Credit (LIHTC), in addition to a $29.02 million loan from the DC Department of Housing and Community Development’s Housing Production Trust Fund.
Paxton will include eight studios, 87 one-bedroom apartments, 16 two-bedroom apartments and 37 three-bedroom apartments.
“Paxton will bring 148 quality, market-priced units to NE DC,” said Brigg Bunker, managing partner and chief operating officer of Foulger-Pratt. “As part of our ongoing commitment to providing solutions to the area’s affordable housing crisis, Foulger-Pratt has officially launched an Affordable Housing Initiative. We believe we are in a position to leverage our years of expertise in developing quality products at market rates to help solve the nationwide housing crisis. We are proud to be part of a solution that makes housing accessible and improves the communities where we operate.
In Paxton, 15 apartments will be set aside for residents with incomes at or below 30% of the Area Median Income (AMI) and are set aside as Permanent Supportive Housing (PSH) units. Families residing in PSH units in Paxton will receive support services through Community of Hope, a local organization working to end family homelessness and improve health while making DC more equitable.
The remaining 133 units will be rented to residents whose income is equal to or less than 50% of the AMI.
All residents will have access to services through Hope Multiplied, a DC-based nonprofit that provides community development, health and wellness, and socioeconomic programs.
Paxton will contain 5,300 square feet of amenity space including access to a business center, landscaped courtyard, fitness center and clubhouse. Additionally, Paxton will provide garage, bicycle storage, on-site storage, concierge services and security for future residents.
Paxton’s transit-focused location offers immediate access to the DC Light Rail and close proximity to H Street Corridor retail, restaurants, entertainment venues and medical facilities.
Capital One provided $94 million in debt, equity and term agency financing for Paxton, including a $39.2 million construction loan, a 36-month term commitment for a fixed rate loan Freddie Mac of $21.1 million and a $34.2 million investment in the low-income housing tax. Credits (LIHTC) to preserve the long-term affordability of the property.
“Closing the national affordable housing gap requires innovative financing to support new construction and housing preservation,” said Ed Delany, senior director and senior community finance manager for the Mid Atlantic at Capital One. “This innovation epitomizes how this financing can bring new housing to a market in need, as Capital One provided Foulger-Pratt with comprehensive financing for Paxton that covered construction, equity and permanent financing.”
Hickok Cole is the architect of the project. TM Associates will act as property manager. Paxton is expected to be delivered by April 2024.