SILVER SPRING, MD—The Housing Partnership Equity Trust and AHC have acquired a 228-unit garden multifamily building, Woodleaf Apartments, here for $33.5 million. It is the affordable housing REIT's first acquisition in the Washington, DC area.
The seller is Home Properties. The last time the property traded was in 2004, for $20 million.
The apartment building, comprised of one- and two-bedroom units, is adjacent to the US Food and Drug Administration headquarters in the White Oak Federal Campus. HPET's joint purchase of Woodleaf was done with the goal of preserving the affordability of the rental property, which, of course, is its overall mission.
Based in Washington, DC, HPET is a social purpose REIT created by the Housing Partnership Network, a collaborative of affordable housing and community development nonprofits, and 12 nonprofit housing developers.
The REIT launched in 2013 seeded with capital provided by Prudential Financial, Citi, Morgan Stanley, the John D. and Catherine T. MacArthur Foundation, the Ford Foundation, HPN, and the nonprofit members.
With the Woodleaf acquisition, HPET has closed out its initial capital raise and expand its portfolio of affordable rental homes to more than 1,100 units.
AHC, also based in the DC area, is a nonprofit developer of affordable housing that owns and operates more than 1,200 affordable and workforce units in Montgomery County. AHC will manage Woodleaf and upgrade the building.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
