Apartment Property Wins $28M Refi

ARLINGTON, VA-The owner of Woodbury Park Apartments, nonprofit affordable housing developer AHC Inc., has just closed on a $28.3 million refinancing package for the 364-unit multifamily community. Deutsche Bank Berkshire Mortgage came up with the funds in the form of a Freddie Mac Multifamily Bond Credit Enhancement, which is a program providing credit enhancement to borrowers for mortgages backing tax-exempt multifamily housing bonds bearing interest at a fixed-rate or a floating-rate.

In AHC’s case, the program provided for a five-year interest rate swap with Freddie Mac that allows the variable-rate tax-exempt bonds to “simulate” a fixed-rate, and to be priced with a AAA rating. Located at 2335 11th St., Woodbury Park will soon expand to encompass a total of 571 residences, as AHC announced a $50 million renovation of the property in 2003 that will add 207 more units, 108 of which will be reserved for households with incomes bellow 60% of the area median income. As per the Freddie Mac arrangement, 40% of the existing residences must be maintained for those earning below the 60% mark, and the majority of the remaining units are to have rent and income restrictions for the next 60 years.