Jair Lynch, Nuveen Commit to Preserving Affordability of Over 300 Apartments in Northeast DC for 99 Years with Amazon Housing Equity Fund
WASHINGTON, Sept. 27, 2022 /PRNewswire/ -- Jair Lynch Real Estate Partners ("Jair Lynch"), a leading owner and developer of mixed-use properties and attainable housing, and Nuveen Real Estate ("Nuveen"), one of the largest real estate managers globally with $152 billion of assets under management, announced this week the preservation of 312 units of affordable housing in Northeast DC through the acquisition of Carver Terrace ("the Property"), located just outside the rapidly gentrifying H Street Corridor. The acquisition presents a rare opportunity for Jair Lynch and Nuveen to preserve the affordability of an important property nearing the end of its long-term Low Income Housing Tax Credit ("LIHTC") compliance period.
The acquisition is supported in part by the Amazon Housing Equity Fund whose acquisition and gap financing commitment ensures the preservation of the Property's affordability with rents restricted to 80% Area Median Income ("AMI") for 99 years. As an additional level of affordability protection, Jair Lynch intends to do a LIHTC re-syndication next year which will extend the LIHTC compliance period and continue to restrict rents at the property to 60%AMI for 100% of the units. Jair Lynch has also partnered with Housing Up, a nonprofit founded in 1990 with the mission to provide homeless and at-risk families with opportunities to transform their lives, to support the substantial renovation plans for the Property and help to provide comprehensive support services for residents long-term.
"We're grateful for the opportunity to partner with Jair Lynch Real Estate Partners on Carver Terrace, and to be a part of this effort to ensure the preservation of more than 300 affordable homes here in D.C." said Catherine Buell, director of Amazon's Housing Equity Fund. Carver Terrace was included in Amazon's recently announced $147 million commitment to help create and preserve 1,260 affordable homes across D.C.
The Property's proximity to the bustling and rapidly gentrifying H Street Corridor – a neighborhood which has experienced a swath of new large-scale residential, office, and retail developments in the last ten years – placed Carver Terrace in a position of great risk to be redeveloped into market-rate housing. The acquisition by Jair Lynch and Nuveen, in partnership with the Amazon Housing Equity Fund and Housing Up, will preserve the Property's affordability for nearly a century and ensure that the families who have long called this neighborhood home can remain in place.
"Many residents of Carver Terrace have lived in this neighborhood for over 20 years. Like us, they've witnessed the transformation of the area in recent years," said Phuc D. Tran, Vice President of Asset Management for Jair Lynch. "We're proud of our ability to ensure they can remain in place despite the area's rapid growth and of the opportunity to provide them with higher quality housing, amenities, and resident services."
Jair Lynch and Nuveen intend to improve both building quality and quality of life for Carver Terrace residents by completing deferred maintenance, conducting capital improvements including the addition and enhancement of units and common amenities, the introduction of Winn Residential as the new property management company, and more robust resident services offerings.
"We are committed to preserving affordable housing and creating a positive impact for our residents and the communities we serve through sustainable improvements and resident services," said Mike Gilmartin, Senior Director of Impact Investing for Nuveen Real Estate. "Carver Terrace represents a significant opportunity to do so in a high-demand area, and we are looking forward to executing the business plan with Jair Lynch."
Berkadia served as the seller's broker in this transaction and Klein Hornig served as transaction counsel for the purchaser.