325 P Street SW, Washington, DC 20024
In October 2013, Somerset Channel Square Partners, the National Housing Trust – Enterprise Preservation Corporation (NHT/Enterprise), Jonathan Rose Companies (“JRCo”), and the Rose Green Cities Fund (JRCo’s investment fund with Citi Community Capital) purchased Channel Square Apartments, a 223 unit housing complex located in the Southwest Waterfront neighborhood of Washington, DC. The 3.95 acre property was purchased in collaboration with the 325 P Street S.W. Tenant’s Association through the Tenant Opportunity to Purchase Act (TOPA). Citi provided the $24.6 million first mortgage loan. Rose Green Cities Fund and Channel Square Partners (joint venture between Somerset and NHT-E) provided additional equity and bridge financing. The DC Dept. of Housing and Community Development provided a soft acquisition loan.
Channel Square Apartments provided a unique opportunity for the joint venture to preserve and expand affordable housing within a truly mixed-income community located in a rapidly redeveloping neighborhood. The development team, working in close cooperation with the tenant association, developed a plan that integrated innovative, sustainable design principles, emphasized resident health and wellbeing, and acknowledged the existing and evolving community fabric of the neighborhood. The venture’s vision aligned well with the District’s priorities for expanding housing options in walkable, transit-oriented neighborhoods with excellent access to services and amenities.
The property is located across the street from Fort McNair, two blocks from the Waterfront Metro Station, and less than one mile from the Nationals Stadium at the Navy Yard. The building was designed by Harry Weese, a notable American architect who designed the District’s Metro system and the original Arena Stage. Channel Square offers studios, one, two and three bedroom apartments with beautiful views, as well as four rows of townhomes with two and four bedrooms with patios. There are many families still living at Channel Square who were the first to occupy the building when it was originally built in 1968, utilizing HUD Section 236 financing.
With the assistance of a $7.4 million dollar acquisition loan from DHCD, the building targets affordable rents to one third of its residents at or below 50% AMI; at or below 80% of AMI to another third and the remaining third of the residents are under a rent stabilization program equivalent to rent control. Given the South West Waterfront development and the rapidly changing nature of the neighborhood, the preservation of affordable rents is highly valued to the residents who would have otherwise been displaced. The Development Team completed renovations in 2016 which improved the efficiency of the infrastructure systems, provided for a new lobby and management offices, new community spaces, new playground and community gardens, new site lighting, and new heating and cooling systems. A commercial space was converted to 9 new market rate apartments. A $1.3 million Photovoltaic Solar System was installed which was the largest private Solar project in D.C. at the time. The Solar system includes solar panels for electric, hot water and solar car ports with solar canopies.
A Resident Services Fund was established and funded by the development team to provide a program of services which is jointly programmed and managed by ownership and the Tenant Association. An annual contribution from the property is dedicated to sustain the resident services program over time.
Channel Square Apartments won The 2018 Excellence Housing from ULI Washington. Click here to see the video: https://vimeo.com/265048099