News | The Michaels Organization, CityInterests Break Ground on South Capitol Apartments

The Michaels Organization, CityInterests Break Ground on South Capitol Apartments

Washington, DC
Published on May 19, 2017

Mayor Bowser and Congresswoman Norton Join Celebration for New Development Bringing Almost 200 Affordable Homes to D.C.’s Ward 8

Donning hardhats and outfitted with shovels, D.C. Mayor Muriel Bowser and Congresswoman Eleanor Homes Norton joined officials from The Michaels Organization, CityInterests, the D.C. Housing Finance Agency, the D.C. Department of Housing and Community Development, and the D.C. Housing Authority and to break ground on South Capitol Apartments. The new 195-unit affordable housing rental community is located on the former site of the South Capitol Street Shopping Center in Ward 8. 

“We are so proud to be a part of this exciting development, which not only brings beautiful, sustainable affordable homes to the residents of Ward 8, but also good construction jobs, ongoing economic benefits, and important supportive services to this community,” said Gary Buechler, president of Michaels Development, an independent operating company of The Michaels Organization and the nation’s leading affordable housing owner and developer. 

“All of this is possible because of the tremendous support we have received from the city and all the community’s stakeholders,” Buechler said.

The planned $59 million development will offer studios, one- two, and three-bedroom apartments affordable to households earning between 30 percent and 60 percent of the Area’s Median Income (AMI). Forty units will be affordable to extremely low income households through the support of D.C. Housing Authority’s Local Rent Supplement program; 20 units of which are being set aside as permanent supportive housing for the formerly homeless. Community amenities will include a fitness room, business center, a community room, a media center, and office space for ANC8D. 

“As we continue to make unprecedented investments in the production and preservation of affordable housing throughout all eight wards, I am thrilled to break ground on South Capitol Street Apartments,” said Mayor Bowser. “This one project will give almost 200 individuals and families access to affordable housing, putting them on pathways to the middle class and setting more families up for success.”  

Financing for the development includes $23 million in private equity raised through the sale of federal Low Income Housing Tax Credits and $30 million in bond financing issued by the D.C. Housing Finance Agency, which were privately placed with JPMorgan Chase Bank, with participation from the Bank of America. The DC Department of Housing and Community Development provided $25 million in gap funding from its Housing Production Trust Fund. Riverside Capital syndicated the federal tax credits, which were sold to the Bank of America. 

Other members of the development team include Hickok Cole Architects and Prestige Building Company, as the General Contractor. Interstate Realty Management Co. is the property manager and will ensure that South Capitol Apartments remains an asset to the community for years to come. Congress Heights CDC is serving as a workforce participation consultant. Pathways to Housing will provide supportive services to the residents.

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