Crystal House
Update
01/06/21
WHC Partners with Amazon to Acquire Crystal House for $377M
In partnership with Amazon, The Washington Housing Conservancy has completed a transaction that will lead to the preservation and creation of 1,300 affordable homes at the 16-acre “Crystal House” site in Arlington, Virginia—a groundbreaking purchase announced today as part of Amazon’s establishment of a $2 billion Housing Equity Fund. WHC’s acquisition of Crystal House will preserve affordable housing for individuals and families in Arlington for 99 years.
This acquisition is possible through Amazon’s $378 million investment in a below-market-rate loan, to create an inclusive, mixed-income community at 1900S. Eads Street. Amazon’s capital also supports the development of a vacant property on the Crystal House site to create more affordable housing for low-and middle-income earners.
Having access to such affordable and ready capital allows WHC to do more with their existing resources and complete a transaction in less than two months, far less time than is typical in commercial real estate. To support the important social impact work, Amazon is also providing a $2 million grant to WHC for inclusive property management training, placemaking and community-building efforts, and the development of a technology platform to support communication with and services for residents.
Amazon is providing a $335.5 million below-market loan to the WHC and grants totaling $42 million to preserve Crystal House and create affordable rents for over 619 apartment homes (or 75% of the units), with the opportunity to develop an additional 717 apartments and 21 townhomes on a vacant parcel on the site. Rents will be lowered through natural occurring vacancies to reach rental rates that are affordable to households earning less than 80% of the area’s median income. JBG Smith will manage the property on behalf of WHC. In addition to Amazon’s $378 million investment, WHC is investing $5 million in equity in the acquisition and the Washington Housing Initiative, through its Impact Pool, is providing $6.7 million in loans.
