Plan Capital Improvements and “Greening” in 2017 to Enhance Quality of Life

A new joint venture partnership announced today will help preserve a 340-unit affordable housing complex that will undergo a $6 million repair and renovation effort in 2017 without raising tenants’ rents.

Jonathan Rose Companies (JRC), a leading green real estate development, investment, asset management and project management firm, purchased Lafayette Apartments, an affordable, garden-style family community in northern Virginia’s Fairfax County, where civic leaders say decent housing for low- and moderate-income wage earners is severely lacking.

The $39 million transaction by Rose Affordable Housing Preservation Fund, a managed fund sponsored by JRC, in partnership with The Community Development Trust and AHC Inc., a local nonprofit affordable housing developer and owner, represents the acquisition of 100 percent of the General Partner interest and Limited Partner interest in the property. The announcement was made by Nathan D. Taft, director of acquisitions for JRC.

“The preservation of green affordable housing for families in locations with terrific transportation access to schools, jobs and employment is directly in line with our mission and with a sound business plan,” Taft said. “We were able to secure this acquisition at a competitive price, and we will be collaborating with our partners to improve the property physically and enhance the connection to social services in the community.”

The challenge of retaining and trying to increase the availability of affordable housing opportunities in Fairfax County and specifically within the greater Alexandria-area is one of the region’s top priorities, local government and civic leaders say. More than 45 percent of Fairfax County’s renter households are considered “cost burdened,” meaning they pay 30 percent or more of their income in rent and find it hard to afford other necessities like food. Census data also shows at least 42,000 renter households in Fairfax County pay more than 35 percent of their annual income in rent.

In addition, city records show Alexandria has lost more than 12,000 affordable apartments since 2000. A 2015 Needs Assessment of the Alexandria Human Services System cites a total of 10,316 affordable housing units exist in the city, which has a population of 14,353 living below 60 percent of area median income.

By combining efforts to acquire and recapitalize Lafayette Garden Apartments, the unique collaboration between JRC, CDT and AHC represents an investment strategy model that could help Alexandria leaders address its need for affordable housing moving forward.

“Our investment in Alexandria is a great example of multiple partners working together to recapitalize an important community asset, which will have significant long-term benefits for the residents,” said Brian Dowling, CDT’s Senior Vice President for Community Investments. “We are thrilled to be a part of an effort that demonstrates our shared commitment to the creation and preservation of long-term, affordable housing.”

“The Lafayette transaction reflects AHC’s mission to produce and preserve high-quality affordable housing to help low- and moderate-income families build stronger futures,” noted AHC President and CEO Walter D. Webdale.

“In today’s increasingly competitive housing market, preserving or developing affordable homes in the DC Metro area is increasingly difficult. That’s why we are delighted to team up with JRC and CDT in an innovative partnership that provides stable living opportunities for a wide diversity of residents in our area who need affordable housing, from working families to senior citizens to young people just starting out on their own.”

The Lafayette Apartments, located along a major thoroughfare in the Groveton neighborhood of Fairfax County with direct bus and metro connections, is home to working families who seek safe, quiet, affordable housing with access to centers of employment, schools and retail.

Originally constructed in 1966, the property, which features 32 garden-style buildings on a 17-acre site, last underwent a renovation program funded by Low Income Housing Tax Credits in 2003. Rose plans to refinance the project in 2017 and reinvest in a greening and capital improvement program with an estimated cost of $6 million.

The property will pursue Enterprise Green Communities certification under the moderate rehab pathway that entails energy efficiency upgrades, water conservation measures, and other social and environmental initiatives such as onsite gardening with scheduled community events, and education centered on healthy living initiatives.

Eagle Point Companies, which sold its GP interest in the Lafayette Apartments, will remain as property manager for the complex.

Taft noted that there will be some important improvements made to the property in the next year that will help maintain its attraction for families in the area. By working in tandem with CDT, AHC and Eagle Point, the full potential for this complex can be realized.

The Lafayette Apartments transaction represents the sixth acquisition by the Rose Affordable Housing Preservation Fund, the latest in Rose’s family of preservation funds that will green and preserve over 1,800 units of affordable housing across the U.S. while creating strong risk-adjusted returns.