Fairstead has secured $120 million in financing for its first ground-up construction project.
The national real estate company is redeveloping the Samuel Madden Homes public housing complex in Alexandria, Virginia, by building a 207-unit community for families earning between 30% and 80% of the area median income (AMI).
“This project represents a major milestone for Fairstead as our first ground-up construction effort. Made possible through an incredible public-private partnership, we look forward to making a positive impact on the local Alexandria community while deepening our commitment to providing affordable housing nationwide,” said Jeffrey Goldberg, CEO at Fairstead.
The project is being done in partnership with the Alexandria Redevelopment and Housing Authority and The Communities Group.
Serving as a gateway to Alexandria, the Samuel Madden site will be redeveloped into a new six-story, 295,000-square-foot community, replacing the existing 66 units. Families occupying the original units will be welcomed back to the revitalized community upon its completion, according to Fairstead, which has a national footprint with more than 25,000 units across 28 states.
The latest development will include 77 units for households earning 30% of the AMI, 27 units for those earning 50% of the AMI, 52 units for households at 60% of the AMI, and 51 units for those earning up to 80% of the AMI.
In addition, the building will feature approximately 7,500 square feet of open space and nearly 500 square feet of ground-floor community space to be used as a food hub run by local nonprofit ALIVE!
The Department of Housing and Urban Development (HUD) Section 18 transaction is being combined with 4% and 9% low-income housing tax credits as well as Section 45L energy-efficiency tax credits.
Financial partners of the redevelopment project include Boston Financial, Freddie Mac, and permanent lender and construction lender Virginia Housing. Sterling Bank and the city of Alexandria provided bridge financing and a soft loan for the project, respectively.
“Boston Financial and Fairstead are aligned in our belief that everyone deserves a safe, quality, affordable place to live, which is why we’re excited to support Fairstead’s investment in the redevelopment of Samuel Madden,” said Steve Napolitano, senior managing director of equity production at Boston Financial. “By contributing to the development of affordable and sustainable housing, we stand to make a long-lasting impact on the community.”
