6804 Central Avenue
Capitol Heights, MD
Central Gardens II is a 106-unit garden apartment complex with one-, two-, and three-bedroom units, a pool, and a community service area. The property serves very low-income families with Section 8 assistance. Prior to redevelopment by CPDC, Central Gardens II was a deteriorated, drug-infested slum with an owner disinterested in operating and maintaining it. In 1990, the property was redeveloped in a joint venture between CPDC, as the managing general partner, and Mid-City Financial. Today it is operated in conjunction with its neighbor, Central Gardens I.
While the price and structure of the purchase note were agreed to prior to CPDC's involvement in the project, the budget clearly indicated that additional funds would be required. CPDC worked with the complicated requirements of the seller's note to redirect funds to the advantage of the property. In this structure, CPDC was able to incorporate Low-Income Housing Tax Credits, utilizing the preferred return on equity as payment of the interest on an equity bridge loan. With a ten-year equity bridge loan and annual contributions from the limited partners, the yield from the tax credits was enormously enhanced.
 The first mortgage loan was funded with tax-exempt bonds. A soft second mortgage for $1 million from the State of Maryland was added ahead of the seller's note, and equity was raised through the sale of the tax credits. This project was the first in Maryland to utilize tax-exempt bonds in conjunction with Low-Income Housing Tax Credits. All of the units have project-based Section 8 subsidies. In addition, in 2004 the property received additional MRPP funds from the state to allow for continued physical updates to the site.
The residents of Central Gardens have a mature and fully operating resident association. Multiple community services are ongoing, including tutoring, mentoring, leadership, entrepreneurship, educational and recreation programs.
Click here to view additional photos of this CPDC project. |
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OWNER/DEVELOPER/SPONSOR
T & C Limited Partnership
CPDC
Mid City Financial
ARCHITECT
Zemaitis & Associates Architects
CONTRACTOR
Mid-City Financial Corporation
FUNDERS: TYPE:
MDDHCD
LIHTC
Tax-Exempt Bonds
Multi-Family Rental
Project-based Section 8
PG County Section 8
State Credit Enhancement
DEVELOPMENT TYPE:
Substantial Rehab, Multifamily
RESIDENTIAL PROFILE:
Very low-income families (Section 8 qualified)
DENSITY: 106 units / 4.8acres
DEVELOPMENT PROFILE
Type #/Units
1 BR / 37
2 BR / 51
3 BR / 18
AMENITIES
Community Laundry, Computer Learning Center, Community Activity Rooms, Children's Activity Programs, Swimming Pool, Recreation Area for Children
CONSTRUCTION TYPE
Garden Apartment Complext
DEVELOPMENT COSTS
$6.7 Million |
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