Purchase Will Provide Immediate Rehabilitation Capital and Secure the Long-Term Preservation of the 159-Unit Affordable Housing Property in a Suburb of Washington, D.C.
NEW YORK, NY--(Marketwired - Dec 14, 2015) - The Community Development Trust (CDT), a real estate investment trust which provides capital for the preservation and creation of affordable housing, and Peak Capital Partners, a company that owns and manages conventional, affordable, and student apartment assets across the country, today announced their acquisition of Parkland Village Apartments in Forestville, Maryland, a suburb of Washington D.C. The property consists of 159 units of affordable housing, available to lower-income families.
CDT and Peak Capital Partners' investment of $3.2 million will provide funding for immediate repairs and capital reserves to maintain the property as quality affordable housing for the long-term. CDT and Peak Capital Partners plan approximately $1.7mm in phased-in capital improvements. Parkland Village Apartments consists of 159-units across 12 two- and three-story buildings with a mix of one- and two-bedroom garden-type apartments. Amenities include a children's playground, sprawling grassy areas with mature trees, and a 148-space parking lot for residents. Originally constructed in 1948, the property was previously renovated in 2004 with Low Income Housing Tax Credits (LIHTC) and an FHA loan.
"Our investment in Parkland Village is a commitment to lower-income families in the greater Washington D.C. area and ensuring they have access to quality, safe, and affordable housing for the long-term," said Joseph F. Reilly, president and CEO of CDT. "We are pleased to work on a project like this as a result of our continued partnership with Peak Capital Partners. We look forward to future opportunities to demonstrate our shared commitment to the creation and preservation of long-term, affordable housing."
"Parkland Village is a nice, quiet community in a desirable suburban area, just outside of Washington D.C. The property provides a high-quality, affordable living opportunity for residents, with the convenience of being close to major employers and retail centers. Peak Capital Partners and CDT are committed to maintaining and improving the property for years to come," said Chris Manning, a managing director at Peak Capital Partners.
All 159 of the units of Parkland Village Apartments will be reserved for families with household income at or below 60% of the area median income (AMI).
CDT and Peak Capital Partners previously partnered to acquire two properties, Pebble Creek Apartments in Southfield, Michigan and Traditions of Holland in Holland, Michigan. Their investment at those properties ensured the preservation of over 375 units of affordable housing available to lower-income families.
As a CDFI and private REIT with a social impact mission, CDT operates as a double bottom line organization by utilizing creative financial solutions to provide debt and equity capital to underserved real estate markets, all while seeking attractive returns for shareholders.
The Community Development Trust (CDT) is a national investor in affordable housing. Working with local, regional, and national partners, CDT makes long-term equity investments and originates and acquires long-term mortgages. In its fifteen years, CDT has invested over $1 billion in debt and equity capital to properties in 42 states and regions -- helping to preserve and create over 35,000 units of affordable housing. CDT is a private real estate investment trust (REIT), a certified Community Development Financial Institution (CDFI), an approved Fannie Mae affordable housing lender, and a member of the Federal Home Loan Bank of New York (FHLBNY).
About Peak Capital Partners
Peak Capital Partners and its affiliates own and manage conventional, affordable, and student apartment communities in growth markets in the United States. With an asset portfolio valued at nearly $1 billion, the firm owns 75 apartment communities housing nearly 13,000 families. Visit www.peakcapitalpartners.com.