New York, NY — Lument recently underwrote a two-tranche unfunded forward commitment for a Freddie Mac tax-exempt loan (TEL) totaling $16.9 million to construct 1515 North Capitol Apartments, a new affordable housing high-rise development located in Washington, D.C.’s Truxton Circle neighborhood. The 15-story apartment building will feature 136 affordable studio units, with 75 units subsidized through D.C.’s Local Rental Supplement Program (LRSP), 61 units restricted to tenants earning 50% area median income (AMI), and three units reserved for staff. Managing Director Andrew Ellis and Associate Director Tyler Probst led the transaction for Lument.

“Closing this project was complex but very rewarding,” said Ellis. “We were proud to work with So Others Might Eat (SOME) to help further their goal of breaking the cycle of homelessness and poverty. This community will create much-needed affordable housing in a high-rent market.”

To cover all necessary funding, Lument structured two tranches of debt for the Freddie Mac TEL – Note A in the amount of $11.8 million with a net operating income based on market rents and a 17-year term and 40-year amortization; and Note B in the amount of $5.1 million based on the D.C.’s Local Rent Supplement Program (LSRP) overhang to fully amortize in a 15-year term, which is coterminous with the LRSP contract term.

“This loan was originated in a challenging environment and required keeping track of a lot of moving parts,” said Probst. “This project was bid in the post-COVID landscape with escalating construction costs, higher site costs, and a constrained labor market.”

To facilitate construction of the high-rise, SOME received federal tax credit equity through the sale of 4% Low Income Housing Tax Credits (LIHTCs) organized by Enterprise Housing Credit Investments, a construction loan from a national bank, a subordinate loan from Washington D.C.’s Department of Housing and Community Development, and a sponsor loan from SOME. 

“On top of everything else, Lument was able to execute this loan on a tight deadline,” added Ellis. “This was a high profile project with many interested parties, with some of our weekly phone calls having more than 70 people attending. It was a pleasure to be able to help SOME create a new milestone with a high-quality affordable community in the D.C. area.”

The project is estimated to be completed in 27 months. The high-rise will offer an extensive list of amenities for residents, including a community room, conference/meeting rooms, classrooms, a library, computer room, fitness center, bike storage, two roof terraces, and a laundry room on every residential level.

SOME recently celebrated their fiftieth anniversary of advocating for the homeless and hungry in Washington, D.C. They have developed six multifamily projects over the past five years, including substantial renovation work and new construction. SOME owns and manages nearly 1,000 units for individuals and families in the D.C. area, 747 of which are LIHTC units.

About Lument
ORIX Real Estate Capital Holdings, LLC, d/b/a Lument, is a subsidiary of ORIX Corporation USA. Lument is a national leader in commercial real estate finance. As the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, Lument delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, investment sales, investment banking, and investment management solutions. Securities, investment banking, and advisory services are provided through OREC Securities, LLC, d/b/a Lument Securities, Member FINRA/SIPC. Investment advisory services are provided by OREC Investment Management, LLC, d/b/a Lument Investment Management. OREC Investment Management is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit