Washington Housing Conservancy Acquires 212-Unit Luxury DC Apartment Community to Preserve Housing Affordability for Moderate- and Low-Income Families and Individuals
The purchase of the Loree Grand in the high-growth Near Northeast submarket ensures long-term affordability for essential workers and families in an amenity-rich, transit-served community
WASHINGTON, D.C.— The nonprofit Washington Housing Conservancy (WHC) has acquired the 212-unit Loree Grand apartment community to preserve the affordability of homes for moderate- and low-income families and individuals. With its second purchase in Washington, D.C., WHC is rapidly fulfilling its initial goal to acquire, preserve, and manage 3,000 affordable rental homes while opening greater opportunity for individuals and families in inclusive mixed-income communities.
In partnership with Amazon’s Housing Equity Fund and the Impact Pool, an investment vehicle managed by DC-area developer, JBG SMITH, that provides financing for the preservation and creation of affordable workforce housing in the region, the $71.5 million acquisition of the 10-story luxury apartment community at 250 K Street NE enables WHC to stabilize rents for moderate income workers and their families who would be at risk of displacement in a highly competitive housing market. The purchase preserves resident opportunities in an amenity-rich, walkable neighborhood with convenient access to public transportation, retail, childcare, and other essential services.
The acquisition expands the WHC portfolio to five affordable apartment properties encompassing more than 1,600 units, all acquired within the past two years in the nation’s capital and the Maryland and Virginia suburbs.
“The acquisition of the Loree Grand and our promise of affordable rents serves both current and future residents and our mission to promote housing stability. With tremendous support from Amazon and its Housing Equity Fund and the Impact Pool, we are preserving long-term affordability in diverse, high opportunity neighborhoods under tremendous redevelopment pressure. And we ensure that more middle-income earners—like first responders, hospitality workers, and teachers—are relieved of the rent burdens that make it hard to save money and build wealth for their future,” said Kimberly Driggins, executive director of WHC.
WHC will preserve Loree Grand’s existing 30 Inclusionary Zoning units for 99 years, create an additional 129 affordable units for residents earning 80% of AMI or less, and the remaining 53 units are market rate.
Bordered by the NoMa, Union Market, and H Street neighborhoods, the 195,000-square-foot Loree Grand features studio, one- and two-bedroom apartments within walking distance of Union Station, Capitol Hill and the Smithsonian Museums. With well-appointed kitchens, expansive views, and a fitness center, the Loree Grand is noted for its family-friendly environments with average unit sizes of just over 900 square feet, one of the largest in the submarket. An early childcare and preschool center recently opened nearby.
“To help ensure access to housing for low- to moderate-income individuals and families, we must work to preserve affordability for the long-term,” said Catherine Buell, director of the Amazon Housing Equity Fund. “WHC’s purchase of the Loree Grand does just that, and we are grateful for the opportunity to support their work.”
Eagle Bank provided first mortgage financing; Amazon Housing Equity Fund provided subordinate financing, and the Washington Housing Initiative Impact Pool provided mezzanine financing for the acquisition. Arnold & Porter provided pro bono legal counsel to WHC on the transaction.
“JBG SMITH and the Impact Pool are pleased to help WHC preserve housing throughout the greater Washington region. We believe this unique approach will continue to serve as a model for how the private sector can work with our communities to create and preserve more rental homes that are affordable,” said AJ Jackson, EVP of Social Impact Investing at JBG SMITH.
Under WHC ownership and property management from JBG SMITH, residents of the Loree Grand will experience the benefits of WHC core commitments to advance community building and inclusivity. In addition to a commitment to maintaining high-quality buildings and grounds, WHC’s inclusive property management prioritizes intentionality around respect, support, and engagement so residents can become active and engaged neighbors.
WHC promotes opportunity for moderate- and low-income residents and families to live in stable environments, where the focus can be on wellness, community connection, education, wealth building, and other options for their future, rather than the fear and/or reality of being priced out of their rental homes.
WHC completed its first purchase in December 2020 with the acquisition of Crystal House in Arlington County, Virginia, made possible with financial support from Amazon’s Housing Equity Fund. Other properties in the WHC portfolio include Hamilton Manor and Earle Manor in suburban Maryland, and Huntwood Courts in the D.C.’s Deanwood neighborhood.
“We are grateful to our partners Eagle Bank, Amazon Housing Equity Fund and the Impact Pool, without whom this acquisition would not have been possible. And a special thank you to Arnold & Porter for navigating us through this complex real estate transaction,” Driggins said.
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Preserving housing affordability and promoting economic mobility in the DC-region
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