$31.8 Million in Financing Closes for DHIC’s Village at Washington Terrace
September 8, 2017
Raleigh, NC – DHIC, Inc., Wake County’s largest not-for-profit affordable housing developer, is pleased to announce that financing has been assembled and closed for the Village at Washington Terrace, a $31.8 million, 162-unit affordable apartment complex and child care center that marks the first in a multi-phase redevelopment of the Washington Terrace community in east Raleigh.
When completed in March 2019, the new community will feature nine building types across 16 buildings; one-, two- and three-bedroom garden apartments; two-bedroom townhouses; and a community building with a management office, gathering room, kitchen, fitness center, and laundry facilities. All apartments will be occupied by lower income families and individuals at affordable rents.
The 5,400 square foot child care facility will be operated by the Methodist Home for Children and will accommodate 75 children each year.
Located between St. Augustine’s University and Raleigh Boulevard, Washington Terrace is a 23-acre community that features 245 apartment units built in 1950. With assistance from the City of Raleigh, DHIC purchased the property from foreclosure in January 2014, in order to preserve affordable housing opportunities while revitalizing the property and the neighborhood.
“The redevelopment of Washington Terrace is by far the most ambitious community development project DHIC has undertaken in its 42 year history,” says Gregg Warren, DHIC’s President. “Everyone knows that housing prices near downtown neighborhoods are escalating rapidly. With an average rent of $785 at Washington Terrace, we are putting a permanent stake in the ground for affordable housing in this neighborhood.”
In addition to the City, funders and investors participating the construction phase include Wells Fargo, which provided a $17,000,000 construction loan; National Affordable Housing Trust, which is providing a $10,494,541 equity investment in exchange for Low Income Housing Tax Credits; and the NC Housing Finance Agency, which is providing a loan of $1,700,000. Freddie Mac will be the $10,721,000 permanent mortgage lender, arranged through Wells Fargo Bank.
NeighborWorks® America, a national community development intermediary, has provided a variety of support for the project, including planning grants and funding to assist with demolition of vacant units. Philanthropic support for the project has come from the Wells Fargo Foundation and the Kresge Foundation.
A year-long community-engaged master planning process resulted in the master planning and design of the Village of Washington Terrace and a second phase, Booker Park North, a $10.6 million, 72-unit affordable apartment community for seniors for which financing is also assembled and expected to close later this year. Later phases of the development will include upwards of 200 homes for sale and additional apartments for rent.
Demolition and site preparation for the Village at Washington Terrace will begin later this month, and a groundbreaking hosted by DHIC will be held in late October. The community will be invited to attend.