Southern Ridge Apartments

1212 Southern Avenue, SE
Washington, DC

Southern Ridge Apartments is a garden apartment community consisting of 156 rental-housing units and a 4,800 sq. ft. daycare center, located in six buildings on Southern Avenue in Southeast Washington, DC. It contains a mix of efficiency, one-, two-, and three-bedroom units. The property was originally developed by the Greater Southeast Hospital Foundation, but fell into disrepair. The Foundation brought in CPDC to purchase and redevelop the property after a previous redevelopment effort with another firm failed.

CPDC had substantial risk, specifically during the predevelopment period. CPDC purchased the property before all financing was in place to capture tax credits that were almost returned to the national pool. CPDC then spent approximately $250,000 in predevelopment funds for plans and specifications, and due diligence until all financing was assembled. CPDC also provided operating deficit guarantees to the limited partner.

The multi-layer financing package assembled by CPDC totaled approximately $10.5 million. Private debt and equity financing include a $3.4 million first mortgage loan from Wachovia Bank through the Federal Home Loan Bank Community Investment Program (CIP), and $4.5 million of equity from Fannie Mae raised through the sale of federal Low-Income Housing Tax Credits.

Local participation took the form of a $1.1 million second mortgage loan from the DC Department of Housing and Community Development. In addition, CPDC's energy efficient rehabilitation produced over $100,000 in rebates from PEPCO.

CPDC's Southern Ridge is now a safe, attractive, and vibrant community. It is a mixed income community of low- and moderate-income households composed of seniors and working families.

Partnering with residents, CPDC has provided youth development and career and skill and enhancement programs. Youth programs focus on developing technology skills such as animation and graphics.