WASHINGTON, DC – The NHP Foundation (“NHPF”), a national not-for-profit dedicated to preserving and making sustainable, service-enriched multifamily housing, announced that it has bought Takoma Place Apartments.  The $16 million transaction cost was made possible through a $13.7 million commitment from DHCD (Dept. of Housing and Community Development). Bridge financing was provided by Citibank, LISC (Local Initiatives Support Corporation) and the seller.

Located in Brightwood, in NW DC, which is a gentrifying neighborhood with small affordable housing, Takoma Place is across the street from the former Walter Reed Hospital and consists of 105 units in seven buildings. The residence is a Year 15 Low Income Housing Tax Credit (LIHTC) property with 95% of units priced for residents earning 60% of AMI (Area Media Income) or less.

“Acquiring multi-family properties via TOPA (the Tenant Opportunity to Buy Act) continues to be a long-term goal for NHPF,” said Neal Drobenare, NHPF SVP of Acquisitions. “And to do so with Takoma Place, a property that has such tremendous potential, helps our residents take part in a successful public-private partnership with proven, tangible benefits.”

The NHP Foundation has partnered on three previous TOPA projects in the DC area, Parkchester, Benning Hts., and Anacostia Gardens, which are all thriving.  Of the current Takoma Place buy, Elliot Hampton, President of Takoma Place Tenant Association, Inc. said, “It’s been a long time coming, and we had endured a lot of hardship before we place together our TOPA partnership with NHPF for renovation of this property.  We appreciate DC DHCD for helping to make this happen and know that these developments will make Takoma Place Apartments an affordable, comfortable place for all residents into the future.”

Currently the property, constructed in 1953, is in poor condition with systemic problems such as outdated plumbing and electrical system and has not seen a major rehabilitation for 15 years. The units are slated for upgrades which will include new kitchens, bathrooms, flooring, HVAC, roofs, a new community center, landscaping upgrades, storm water management system, six fully accessible units for those with disabilities, remediation of hazardous materials, upgraded site lighting, and new windows.

“DHCD is pleased to have partnered on the Takoma Place acquisition which will provide local residents with access to increased high-quality affordable housing options,” said Polly Donaldson, Director of DHCD. “We take pride in being able to use the District’s Housing Production Trust Fund to place together the financing needed to realize the vision for this project.”

“Takoma Place is a fantastic example of the kinds of partnerships that are needed to preserve affordable housing,” said Ramon Jacobson, LISC. “NHPF is part of a bright future in this neighborhood through its preservation of housing for seniors and families, and homeless veterans.”

NHPF plans on investing $90-100,000 per unit in rehabilitation which will start in the first quarter of 2018.

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NEW YORK, NY – S&P Dow Jones Indices released the latest results for the S&P CoreLogic Case-Shiller Indices, the leading measure of U.S. home prices. Data released for January 2017 shows that home prices continued their rise across the country over the last 12 months.

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 5.9% annual gain in January, up from 5.7% last month and setting a 31-month high. The 10-City Composite posted a 5.1% annual increase, up from 4.8% the previous month. The 20-City Composite reported a year-over-year gain of 5.7%, up from 5.5% in December.

Seattle, Portland, and Denver reported the highest year-over-year gains among the 20 cities over each of the last 12 months. In January, Seattle led the way with an 11.3% year-over-year price increase, followed by Portland with 9.7%, and Denver with a 9.2% increase. Twelve cities reported greater price increases in the year ending January 2017 versus the year ending December 2016.

Before seasonal adjustment, the National Index posted a month-over-month gain of 0.2% in January. The 10-City Composite posted a 0.3% increase and the 20-City Composite reported a 0.2% increase in January. After seasonal adjustment, the National Index recorded a 0.6% month-over-month increase, while both the 10-City and 20-City Composites each reported a 0.9% month-over-month increase. Thirteen of 20 cities reported increases in January before seasonal adjustment; after seasonal adjustment, 19 cities saw prices rise.

“Housing and home prices continue on a generally positive upward trend,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “The recent action by the Federal Reserve raising the target for the Fed funds rate by a quarter percentage point is expected to add less than a quarter percentage point to mortgage rates in the near future. Given the market’s current strength and the economy, the small increase in interest rates isn’t expected to dampen home buying. If we see three or four additional increases this year, rising mortgage rates could become concern.

“While prices vary month-to-month and across the country, the national price trend has been positive since the first quarter of 2012. In February, the inventory of homes in the market represented 3.7 months of sales, lower than the long-term average of six months. Tight supplies and rising prices may be deterring some people from trading up to a larger house, further aggravating supplies because fewer people are selling their homes. The prices also hurt affordability as higher prices and mortgage rates shrink the number of households that can afford to buy at current price levels. At some point, this process will force prices to level off and decline – but we don’t appear to be there yet.”

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CHAPEL HILL, NC – Berkshire Group announced the buy of Alexan Chapel Hill in Chapel Hill, North Carolina, from a joint venture between Trammell Crow Residential and East West Properties. The 265-unit property, which features 13,560 square feet of retail space, will be renamed Berkshire Chapel Hill.

Berkshire Chapel Hill is located just 3.5 miles from the UNC campus and UNC hospital and is within walking distance of local restaurants, shopping and entertainment. The apartment community is also serviced by several local bus routes.

“Chapel Hill is an ideal location for those that work in the Raleigh/Durham area and prefer to live somewhere with simple access to the city, major employers fantastic dining and a variety of shopping options,” noted Michael Krupp, Vice President, Portfolio Manager, Berkshire Group. “The acquisition of Berkshire Chapel Hill is an brilliant example of our strategy of choosing boutique-style communities with high-end finishes and amenities in prime locations.”

Berkshire Chapel Hill features an outdoor lounge with a fire pit, a saltwater swimming pool with an entertainment area, bike repair and storage lockers, and a pet salon and grooming station. Apartment homes feature chef-inspired kitchens with designer cabinetry and tile backsplashes, stainless steel appliances, electronic keyless entry and oversized windows.

Berkshire Group is a real estate investment management company primarily known for its multifamily investment and operational experience. In addition to deploying capital through equity, debt and development in the multifamily arena, Berkshire invests in opportunistic ventures in other real estate sectors through its Venture Investments group.

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