Alexandria Funds Acq-Rehab Project

November 2008

ALEXANDRIA, VA. A run-down market-rate property here is getting a new lease on life as affordable housing, thanks to a joint effort from the city, the state, and Wesley Housing Development Corp.

Wesley Housing purchased Beverly Park Apartments in late 2005 with assistance from the city of Alexandria, the Housing Partnership Network, and United Bank. The developer announced in September that construction was beginning on the renovation, which will transform 41 one-bedroom apartments into seven studios, 18 one-bedrooms, six two-bedrooms, and two three-bedrooms.

The city loaned Wesley Housing $2 million at an interest rate of 2 percent, in return for a commitment to maintain the property as affordable housing for 40 years. The Virginia Housing Development Authority provided both construction and permanent financing at an overall blended rate of 3.17 percent. The project also benefited from $2.7 million in equity from the sale of LIHTCs to Apollo Housing Capital, now known as RBC Capital Markets.

© 2008  Hanley Wood