JBG Smith
Update
04/16/24
JBG Smith Achieves Goal to Preserve 3,000 Housing Units With Washington Housing Initiative Impact Pool
JBG SMITH has announced that the Impact Pool, the affordable housing investment platform it manages, has helped create and preserve more than 3,000 units of quality workforce housing across the Washington region since 2020, outpacing its goal to deliver 3,000 units by 2025 and with capital remaining to invest in additional units.
“The Impact Pool has surpassed what we set out to achieve – the creation and preservation of affordable homes for thousands of workers in communities throughout the Washington region, and we are proud to have reached our goal ahead of schedule and with additional funds to continue our efforts,” said AJ Jackson, EVP of Social Impact Investing at JBG SMITH. “This is a moment of celebration and provides impetus to keep going. Investing at scale allows us to have a meaningful impact, and this milestone reinforces our commitment to preventing displacement and preserving affordability in rapidly changing neighborhoods vulnerable to rising housing costs. Consequently, we plan to continue to finance workforce housing through other vehicles even after the Impact Pool’s funds have been fully deployed.”
The 3,000+ units include: Parkstone Alexandria (Alexandria, VA) 326 units; Crystal House (Arlington, VA) 825 units; Hamilton Manor (Hyattsville, MD) 245 units; Huntwood Courts (Washington, DC) 214 units; Earle Manor (Wheaton, MD) 140 units; The Gale Eckington (Washington, DC) 603 Units; Loree Grand (Washington, DC) 212 units; Falkland Chase (Silver Spring, MD) 268 units; Franklin Apartments (Takoma Park, MD) 185 units.
Launched by JBG SMITH in 2019, the Impact Pool is a key component of the Washington Housing Initiative (WHI) created by JBG SMITH and the Federal City Council. The Impact Pool, managed by a subsidiary of JBG SMITH, leverages private capital to help combat the loss of housing for middle-income families. The Impact Pool works with non-profit and for-profit mission driven sponsors to acquire privately owned and unsubsidized housing that’s affordable to everyday working households, lock in affordability, invest in the buildings, and operate them using strategies designed to stabilize residents rather than push rents.
The Impact Pool surpassed its goal with the deployment of $6 million in mezzanine financing to Montgomery Housing Partnership (MHP) for the refinancing of Franklin Apartments, a 185-unit age-restricted housing community in Takoma Park, MD. Concurrent with the closing of the Impact Pool’s loan, the property obtained a new $26.2 million Freddie Mac loan, provided by Key Bank, along with an extension of an existing $3.75 million soft loan from Montgomery County.
“The Franklin Apartments investment is a perfect example of what we sought to accomplish when we created the Impact Pool. Montgomery County is projected to lose up to 11,000 naturally occurring affordable housing units by 2030. Our collaboration with a non-profit owner, dedicated to the property’s preservation, will provide residents with the ability to age in-place in a resource rich neighborhood of Montgomery County,” commented Jackson.
Located at 7620 Maple Avenue in Takoma Park, MD, the Class B mid-rise Franklin Apartments was built in 1952 and renovated in 2011. The building was acquired by MHP in 2022 and is currently managed by Humphrey Management. The property includes 135 parking spots, green community features, a grilling area, and multi-purpose entertainment room and is pet friendly. MHP provides onsite resources to residents including the operation of a food pantry, health and safety seminars, and programming.
MHP is a 501(c)(3) non-profit organization serving more than 4,000 residents of Montgomery County and neighboring communities by providing more than 2,880 quality affordable homes. The organization is committed to housing people, empowering families, and strengthening neighborhoods. Since 1989, MHP’s mission has been to preserve and expand access to quality, affordable housing.
The Impact Pool previously partnered with MHP to provide financing for the 140-unit Earle Manor apartments, located in Wheaton, MD.
