1. Mixed-Income Development
Hine School Redevelopment

2. (Brief) History
Hine Junior High School closed after consolidation in 2009
District Disposition
Prime metro-adjacent real estate across from Eastern Market
Challenging PUD / Community Process / Appeal
Broke ground in 2015, opened in 2017 and 2018

3. Program 162 Residential Units
53,000 sf of Retail (Including a14,000 sf Trader Joes and 5,000 sf of “affordable” retail)
156,000 of Office
328 Underground Parking Spaces

7. Economics – Market Rate
Sources $63M Equity $147M Construction Loan $210M Total
Uses
$136M Constr. & FF&E
$74M Soft Costs
(Inc. $8M Sponsor Loan)
$210M Total

8. Economics – Market Rate

9. Affordable Housing Component

10. Program
34 Residential Units (17 Family and 17 Senior Housing Units….yes, in one building)
10,000 Ground Floor and Lower Level Retail

12. Unit Mix

13. What’s so special about the structure????
Typical affordable housing in DC
First Mortgage (Debt)
4%/9% LIHTC (Equity)
DHCD Gap Financing
Deferred Developer Fee
Hine School (North Building)
First Mortgage (Debt)
4% LIHTC (Equity)
Sponsor Loan (South Building)
No Deferred Developer Fee

14. Proforma
True Cross-Subsidy!!

15. Why This Structure? Maximize affordable housing
Preserve land value in market rate component
Efficient Financing Execution(s)

16. Problems & Solutions

17. Primary Challenge: How can the developer meet the zoning requirement that half of the building would be for seniors?
Solution…2 “twin” owners

18. Other Challenges:
How do we reconcile competing demands of the District, the neighborhood, and lenders/investors concerning the commercial space? Solution…
How do we structure the sponsor loan to satisfy interests of all parties? Solution…
How do we structure the sponsor loan to avoid related party debt issues? Solution…
How to allocate costs in a way that is acceptable to lenders/investors? Solution…

19. Is this model replicable…???