Capital One Provides Foulger-Pratt with $94M to Build Affordable Community in DC

Capital One has provided a $94-million debt, equity and forward agency financing package to Foulger-Pratt for construction of Paxton, a 148-unit affordable housing community in the Kingman Park neighborhood of Washington, DC.

The deal was led by Ed Delany and Rossana Bouchaya at Capital One.

“There is a nationwide gap in affordable housing, and it is especially acute in the DC region,” said Delany. “Addressing the affordable housing crisis requires both new construction and housing preservation, and innovative financing is essential to help bring these developments to life.”

The funding included a $39.2 million construction loan, a 36-month forward commitment for a $21.1 million Freddie Mac fixed-rate loan and a $34.2 million investment in LIHTC, which will preserve the long-term affordability of the property. Upon successful conversion, the tax-exempt permanent loan will have a 17-year term and a 40-year amortization schedule.

Fifteen of Paxton’s apartments will be reserved for residents with incomes at or below area median income and are set aside as permanent supportive housing units. The remainder will be rented to residents with incomes at or below 50% AMI.