SCG Development Closes on Financing for 2nd Phase of Somos at McLean

SCG Development has announced it has on financing for the second phase of Somos at McLean, a 225-unit apartment building, which will be constructed on top of an existing three-level parking garage at 1750 Old Meadow Road in Tysons. The project's first phase, an 8-story, 231-unit apartment building, broke ground this past summer.

Virginia Housing, Virginia’s state housing finance agency, has committed over $38 million in financing, as well as 4% Low Income Housing Tax Credits (LIHTC), adding to the 28.3 million previously committed to support the first phase of development. These tax credits make it possible for the units to be affordable to residents earning an average of 60% of the area median income (AMI).

“We are excited to be a part of bringing this much needed affordable housing to McLean,” said Tammy Neale, CEO, Virginia Housing. “Innovative partnerships like this will be a driving force to continue to address the affordable housing crisis.”

“It is our mission to create a community everyone can afford to call home. Closing on Phase B of Somos at McLean is another step in bringing affordable homes to all corners of Fairfax County, enabling those who work here to live here as well,” said Lenore Stanton, Chair, Fairfax County Redevelopment and Housing Authority.

Amazon is also supporting this new affordable housing community with a $18.2 million low-rate loan for Phase B through the Amazon Housing Equity Fund, the company’s more than $3.6 billion commitment to create or preserve more than 35,000 affordable homes for low- to moderate-income families in the Arlington, Virginia-Washington D.C. region, Washington state’s Puget Sound region, and the Nashville, Tennessee region. For both Phase A and B, Amazon has committed over $47 million to the homes at Somos at McLean Metro.

SCG Development is also receiving over $15.8 million in financing from Fairfax County, in addition to the over $11.4 million that was previously awarded to Phase A, and over $19 million in County funds used to acquire the property. Fairfax County is providing Project Based Vouchers as well. A contribution of $32 million of tax credit equity from Freddie Mac syndicated through Hudson Housing Capital reflects the significance of this large-scale, transit-oriented development opportunity.

“In addition to creating much-needed affordable housing, Somos at Mclean will connect individuals and families to transit, employment, and other critical resources across the DMV. We’re grateful to be a part of the unique public/private partnership – including Fairfax County, SCG, Virginia Housing, and Amazon – that is bringing this project to life,” said Senthil Sankaran, Managing Principal, Amazon Housing Equity Fund.

“Freddie Mac is proud to be part of projects that deliver on our mission and help create new affordable housing right in our backyard,” said Peter Lillestolen, Vice President, Targeted Affordable Housing at Freddie Mac Multifamily. “This new housing is the result of creativity and commitment from both the public and private sector, and a great example of how Freddie Mac can inject the equity needed to get complex deals over the finish line.”

“Hudson Housing Capital is proud to partner with SCG to finance high-quality, affordable housing for families in McLean. We thank and commend all those involved in making this day possible, including our investor Freddie Mac, and look forward to seeing this impactful housing development thrive for many years to come,” said Sam Ganeshan, Managing Director, Hudson Housing Capital.

Construction of Phase B will begin immediately and will create 225 homes for households earning between 50-70% AMI. Affiliates of SCG Development are leasing the sites from the Fairfax County Redevelopment and Housing Authority (FCRHA), and Fairfax’s ground lease will ensure long-term affordability for 99 years. Construction of Phase A began earlier this year.

“We are dedicated to developing innovative, sustainable solutions to address affordable housing needs in Fairfax County,” said Dalia Palchik, Supervisor, Providence District, Fairfax County Board of Supervisors. “Through creative public-private partnerships, we’ve transformed an unused office site into a model for affordable housing. This project is more than just housing; it’s a major step toward ensuring that more of our residents have access to quality, affordable homes. We look forward to welcoming future residents to the Providence District.”

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