Loan Type: Affordable Housing
Total Development Cost: $2,560,000
Times Leveraged: 3.28x
Loan at a Glance:
This loan was PCG Capital’s seventh with National Housing Trust (NHT). PCG Capital participated $780,000 towards a $1,560,000 loan to acquire land to predevelop a 28 unit mixed-income condominium building in the Anacostia neighborhood of Washington, D.C. Of the six previous loans, one has paid off, the remaining five outstanding loans total approximately $2.7MM.
Project Summary:
The loan funded the predevelopment activities for a 34,934 SF site that was awarded to the Neighborhood Development Company (NDC) in 2017. NDC has worked with the D.C. Department of Housing and Community Development (DHCD) to finalize the Property Disposition Agreement to arrange gap financing from the Housing Production Trust Fund. This project is community supported and will result in 28 mixed-income family oriented 1,200 SF condos. 75% of the units are designated for homeowners earning less than 80% AMI.
Borrower Summary:
NDC is an experienced Washington, D.C.-based minority-led Certified Business Enterprise real estate development company that focuses on the revitalization of urban neighborhoods. NDC has led the development of over 50 projects totaling over one million SF of real estate while partnering on projects representing over two million SF. They currently manage nearly $75 MM in assets.
Loan Result:
This project improves housing stability and supports economic diversity by expanding affordable homeownership for low and moderate-income families. It also supports upward mobility by expanding affordable homeownership opportunities so that low- and moderate-income BIPOC families can build wealth.