Linden Property Group has received $19.5 million in acquisition financing to purchase River Bay Townhomes, a 173-unit, multifamily community in Lexington Park, Md.
HTA Development was the seller.
“This was a deal that fit our criteria of value-add investing in affordable housing in the mid-Atlantic,” Wade Casstevens, Linden Property Group’s managing partner, told Commercial Observer. “We’re planning some common-area improvements and plan on being long-term owners of the asset and getting the property back up to full occupancy.”
The renovations planned include updating the clubhouse and outdoor common areas, as well as taking care of some deferred maintenance, landscaping and balcony renovations.
JLL facilitated a floating-rate bridge loan through Sound Point Capital Management for the borrower. Loan terms were not disclosed.
Located at 48100 Baywoods Drive, the property was developed in 2004 utilizing Low Income Housing Tax Credits, according to JLL. River Bay Townhomes consists of three-bedroom, two-bath units with attached garages, spanning an average 1,291 square feet. Out of the 173 units, 155 are reserved for those who make less than 60 percent of Area Median Income.
“Lenders are hungry for LIHTC deals and ESG opportunities,” Jamie Leachman, JLL’s senior managing director, told CO. “There remains a tremendous amount of liquidity for product with a focus on ESG and affordable housing initiatives.”
The Lexington Park area includes a military base, an extensive defense contractor presence, the St. Mary’s College of Maryland and the University of Southern Maryland.
Joining Leachman on the JLL team were Amit Kakar and Carter Wroblewski.
Adam Stein, managing partner of BridgeWater Real Estate Brokerage represented the seller in the deal. This is the second LIHTC property that BridgeWater has successfully sold for HTA, and has a third LIHTC property of HTA’s under contract in the same submarket, which is the 134-unit community in Great Mills, MD called Foxchase Village and is scheduled to close in the summer of 2022.
Keith Loria can be reached at Kloria@commercialobserver.com.