EagleBank Provides $48MM in Acquisition Financing to Montgomery County Housing Opportunities Commission
09 Juni 2022 - 12:00PM
EagleBank, one of the largest community banks in the Washington,
D.C. area, today announced it provided $48,450,000 in acquisition
financing to Montgomery County Housing Opportunities Commission
(“HOC”) for three multifamily properties located in the Woodmont
Triangle area of downtown Bethesda. The project is sponsored by
Montgomery County HOC.
The three properties combined have 212 apartment
units situated across a site area of 4.28 acres. All 212 units
are naturally occurring affordable housing with no legal or
regulatory restrictions on rents or household incomes. As naturally
occurring affordable housing located in the Bethesda CBD, the
Properties were at very high risk for significant future rent
increases and potential displacement upon
redevelopment. Control of the Properties is essential to
preserving the existing housing stock and managing redevelopment in
the future to avoid any permanent low- and moderate-income tenant
displacement. This acquisition presents a unique opportunity
for HOC to preserve currently naturally affordable residential
units as well as significantly increase the number of affordable
units in the area with a very high redevelopment future rent
increase potential.
Currently all unit rents are at or below 70% of
the Washington, DC-MD-VA Metropolitan Statistical Area Median
Income (“AMI”) levels. HOC intends to implement two levels of
affordability across the Properties: 10% of the units (21
units) will be formally restricted to households earning 70% or
less of the area AMI. Additionally, 20% of the units (44 units)
will be restricted to households earning 50% or less of the area
AMI. Implementation of the restrictions will be phased in over
the period of 2-3 years and will not displace any existing
residents.
Established in 1974, HOC’s goal is to promote
housing affordability in Montgomery County and has a long,
successful, history with similar multifamily projects. Currently,
the Montgomery County HOC owns and operates 22 other nearby
properties with 7,000 units.
“EagleBank’s lending team is committed to
expanding access to affordable housing in our community,” said Ryan
Riel, Chief Real Estate Lending Officer at EagleBank. “We are
pleased to expand our relationship with HOC and partner with them
to achieve a community-focused approach to housing.”
The transaction was facilitated by members of
EagleBank’s experienced commercial real estate team, senior
relationship manager Andrea Berkeley and portfolio manager Sean
Krysick.
The three properties are all located along
Battery Lane in the downtown Bethesda, Woodmont Triangle
neighborhood. The surrounding area consists of a mixture of
medium-to-high density commercial and residential development. In
addition, the Bethesda Metro Station is nearby.
About Montgomery County Housing
Opportunities Commission (“HOC”)The mission of the Housing
Opportunities Commission is to provide affordable housing and
supportive housing services that enhance the lives of low- and
moderate-income families and individuals throughout Montgomery
County, Maryland so that:
- No one in Montgomery County lives
in substandard housing;
- We strengthen families and
communities as good neighbors;
- We establish an efficient and
productive environment that fosters trust, open communication and
mutual respect; and
- We work with advocates, providers
and community members to maintain support for all the work of the
Commission.
To accomplish these goals, HOC acts as an owner,
operator, and vertically-integrated developer, focusing on three
things: getting people housed, keeping people housed, and helping
customers reach their fullest potential. HOC provides affordable
housing resources to nearly 15,000 Montgomery County residents,
owns more than 8,000 rental units, and provides assistance to more
than 7,000 low-income households – many of whom are elderly and
persons with disabilities – through the Housing Choice Voucher
program.
Eagle Bancorp, Inc. and
EagleBankEagle Bancorp, Inc. is the holding company for
EagleBank, which commenced operations in 1998. EagleBank is
headquartered in Bethesda, Maryland, and conducts full service
commercial banking through 20 offices, located in Suburban,
Maryland, Washington, D.C. and Northern Virginia. EagleBank focuses
on building relationships with businesses, professionals and
individuals in its marketplace.
EagleBank ContactVikki Kayne, Chief Marketing
Officer 301.986.1800
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