WHEATON, MARYLAND—March 30, 2022—The nonprofit Washington Housing Conservancy (WHC) and MHP are advancing their shared missions to secure long-term affordability of homes for individuals and families with the acquisition of Earle Manor in Wheaton, Maryland. The $28.8 million transaction preserves affordability for a 140-unit property in a high-opportunity suburban Washington, D.C., community with rapidly escalating rents and a high risk of market rate redevelopment that could displace residents.
“Earle Manor’s proximity to buses, the Metro and I-495, along with neighborhood amenities that include shopping and a movie theater, made it a rich target for redevelopment and loss of affordability. Our model disrupts the gentrification cycles that threaten the diversity of area communities and put too many D.C.-area residents at risk of hardship—even the loss of the roofs over their heads,” said Kimberly Driggins, executive director of WHC.
The acquisition of Earle Manor, made possible by a fusion of private real estate expertise with a social impact mission, moves WHC nearly halfway toward the organization’s initial goal to preserve or create affordability for at least 3,000 units in the national capital area, while also advancing housing equity and sustaining diverse and inclusive multi-family communities.
“We are helping to ensure that middle income earners like healthcare professionals, first responders, and teachers are not overly rent burdened and can stay in their homes and focus on new opportunities and building wealth because they are not worried about rapidly rising rents,” said Driggins.
Built in the 1960s, the two-building Earle Manor property will reserve 50% of the units for residents at 60% of AMI, 25% of the units at 80% AMI, and the remaining 25% of units at market rate rents. An existing rental assistance program with Montgomery County provides subsidies for below market rents for 27 units through February 2025.
Berkadia provided the first mortgage through Freddie Mac. The Washington Housing Initiative Impact Pool provided mezzanine financing for the acquisition and the two nonprofits are splitting an equity commitment.
WHC’s partner in the acquisition, MHP, serves more than 4,000 residents in almost 2,300 units across 33 projects, developing and implementing programs that, like those of WHC, improve quality of life and increase opportunities for residents.
Robert Goldman, MHP President, said: “Earle Manor offers 140 safe, affordable homes in a prime location in growing Wheaton. With all the redevelopment happening in this neighborhood, our acquisition will allow low-income residents to stay affordably housed, preventing displacement, and offering equal access to all the amenities this strong, vibrant community has to offer.”
Residents of Earle Manor will see stabilized rents and benefit from the WHC’s expertise in community building and resident led engagement strategies to foster inclusion. JBG SMITH will manage the property on behalf of WHC and MHP.
The addition of Earle Manor to the WHC portfolio follows last year’s WHC acquisitions of the 214-unit Huntwood Courts in Northeast D.C. and the 245-unit Hamilton Manor in Prince George’s County, Maryland, made in collaboration with the National Housing Trust Communities. WHC’s first acquisition of 825 units at Crystal House in Arlington County, Virginia, was made possible with financial support from Amazon’s Housing Equity Fund.
Preserving housing affordability and promoting economic mobility in the DC-region
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