The Rose Affordable Housing Preservation Fund IV purchased Faircliff Plaza East in June 2017. This 80-unit HUD project-based Section 8 property is located in Washington, D.C. Faircliff East was an interest purchase transaction with a total investment of approximately $4.6M in equity. The interest in Faircliff East was acquired off-market in a complex, multi-party transaction through separate purchase and sale agreements with the LIHTC limited partner and the selling member of the general partner.
Faircliff East features a playground, community building with a computer room, a laundry room, courtyard, and 32 parking spaces. Faircliff Plaza East was recently refinanced with a new Freddie Mac loan, which reduced annual debt service payments. The investment is a steady cash-flowing asset and the Fund has projected a long-term hold. However, the property currently benefits from additional buildable potential, and the Fund may consider an early exit disposition if the potential for redevelopment can be achieved.
The Fund will implement green and healthy operational policies and identify strategies to reduce utility use. Faircliff East shares a resident service coordinator with Faircliff West, who plans various programming such as employment application assistance, holiday parties and local farm harvesting.
Improving operations of this senior Section 8 property in Washington, D.C.