Remember Marlboro Pike? Through the crowd, Small Change raised $200,000 back in 2017 for this affordable housing rehab in D.C.
This past February, the project paid out its final payment. Investors received their initial investment back + 17% return on their investment, at a rate of 10% interest paid annually.
Progress continues at Marlboro Pike with the Solar: Pepco interconnection is now approved. The solar array is complete and producing energy.
The Solar: Pepco interconnection is in place and the solar array is complete and producing energy.
Leasing of vacant units is proceeding, although more slowly than anticipated, with 80% occupied or reserved. 90% occupancy is now anticipated by October 2018 with refinancing to follow three months later in January of 2019.
The partnership is considering a sale of the building. Offers have been received and a decision is likely within the next 4 weeks. With the current projected rent levels valuation at refinancing or sale should approach $6.4 – 6.5 million.
All of the vacant units, along with the roof, common areas and exterior improvements are now complete. The solar array is complete as well and ready to turn on pending Pepco interconnection approval. It is expected that approval will be given in the next 30 days. Leasing of the vacant units is proceeding steadily. Of 44 total units, 32 are now occupied or reserved with pending applications. 90% occupancy, at 40 units, is anticipated by July. Refinancing is now projected to occur in October or November, once 3 months of stabilized rents, at 90% occupancy, have been achieved. The developer believes that the slower than expected lease up is a result of several factors, including a general slowdown in multi-family leasing regionally, and above-market asking rents for HCVP voucher holders. While some 2-bedroom units have rented at $1750 per month, in order to expedite leasing, the developer has now lowered asking rents on the 2-bedroom units to $1300 per month, which is the current market rate. There are only four 3-bedroom units remaining and those are expected to lease at the full $2350 asking price.
The 260 kW solar array is installed. Once the Pepco interconnection approval is given, the meters will begin turning backwards. The developer expects that the array will provide nearly 100% of the electric load for the entire building. Lease up is also proceeding steadily at the rate of 2 to 3 units per month.
Construction on the vacant units, roof, common areas, and exterior elements is on schedule. Approximately 60% of the units are leased.
What’s sunny, affordable and green all over? It’s Marlboro Pike now known as the Sun Crest Heights Apartments. The project had its grand debut on October 9th, with a Solarthon, a block party, a ribbon cutting and the installation of what will be the largest collection of solar arrays on a residential building in D.C.
Construction is progressing as planned. As of July 2017 vacant unit interiors have been fully renovated and leasing has begun, attic insulation is complete, solar permits are in place and solar installation has begun, roof resurfacing is underway and electrical work is underway
Construction on Marlboro Pike is progressing as planned. Of the 22 units scheduled for renovation, 9 are complete and 13 are scheduled for completion within 3-4 weeks.
Images courtesy of Marlboro Ventures team.