WASHINGTON, DC-An affordable-housing community here, Portner Place, is being marketed for sale. The property, located at 1449 U St., NW, consists of three buildings for a total of 48 units. Jones Lang LaSalle’s Al Cissel, Scott Melnick and Christine Espenshade are marketing the property, and Shawn McDonald is leading the financing efforts.
Espenshade says that more institutional investors are entering the local affordable-housing market. “While we’re seeing very strong rent growth in the market-rate space, we’re also seeing growth in affordable. This year, we can expect to see an increase in affordable-housing opportunities come to market as investors become more comfortable with the sector as an investment product.”
Affordable-housing investments slowed during the recession, in part for the same reasons that all commercial real estate transactions slowed. Another factor, though, was the crash of the market for tax credits, which often are used to finance such projects.
One factor in Portner Place’s favor is that it is in the Section 8 housing program, which should make it appealing to institutional investors, Cissel says.
The District’s affordable-housing market in general can expect to see more activity following last month’s announcement by Mayor Vincent C. Gray of the re-formation of a task force whose goal is to ensure the creation of more affordable housing in the city. Gray named Harry Sewell, executive director of the DC Housing Finance Agency, and Deborah Ratner Salzberg, president of Forest City Washington, to co-chair the Task Force.
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