Campbell Heights Apartments Purchased By Resident Association and JAIR LYNCH Development Partners
$25 Million Transaction Ensures Residents Stay in Affordable Housing
Washington, D.C., June 30, 2010 -- In a transaction to enable residents to remain in their property, The Campbell Heights Apartments, a 171-unit rental building of senior citizen housing located at 2001 15th Street, NW, was sold to a partnership comprised of the Campbell Heights Residents Association, Inc. (CHRA) and an affiliate of JAIR LYNCH Development Partners (JAIR LYNCH) on June 30, 2010.
CHRA exercised its rights under the District of Columbia Tenant Opportunity to Purchase Act (TOPA) on August 13, 2009 after the owner notified the tenants of its intent to sell the property. The nearly $25 million transaction ensures that affordable housing and its residents will remain onsite.
“We recognized immediately that for the residents this wasn’t just another real estate deal. It is about controlling their own destiny and preserving the affordability of their community -- which many have called home for decades,” said Jair K. Lynch, company president. “The challenge was to meet their goals while crafting a transaction that was economically viable. This was an extremely complex deal and the tenants worked with us as we put the financing together.”
“Members of our board had prior experience with JAIR LYNCH and thus felt comfortable that they would be a good partner, perform within the needed timelines and truly be an equal in the process,” said Sandra Butler-Truesdale, president of the CHRA board of directors.
The acquisition was completed through a joint venture between JAIR LYNCH and MacFarlane Partners. The venture is dedicated to acquiring and/or developing urban infill projects of $10 to $60 million in the greater Washington D.C. area, including for sale and for lease multifamily housing up to 250 units; mixed use; and commercial space up to 250,000 square feet. Targeted investment types are value add, opportunistic and new development.
Primary debt was provided by Burke & Herbert Bank & Trust.
The Harrison Institute of Georgetown University served as counsel for CHRA. Saul Ewing executed the transaction, and Kettler Management will serve as the new property manager for the community. Cassidy Turley provided brokerage services to secure financing for the acquisition.