Category: Creative Financing Project: Progression Place - " An Anchor for the Community" Project Location: th St, NW Washington DC, 20001

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Fay Franklin
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1 Category: Creative Financing Project: Progression Place - " An Anchor for the Community" Project Location: th St, NW Washington DC, Status: Operational Cost: $157,654,244 Description: The Four Points, LLC developed Progression Place a new Headquarter for the United Negro College Fund (UNCF) on six (6) vacant lots containing approximately 1.17 acres, at the Northeast corner of 7th and S Streets, NW. The project site is located directly above the Shaw- Howard University Metrorail Stop and located minutes away from Howard University. The project comprises of: a mixed-use, transit-oriented development with approximately 103,083 GSF of office space; 24,343 GSF storefront retail; 205 apartments; and a 194-space, below-grade parking structure. UNCF will own and occupy a 50,000 square foot space in the project s office component, which space would serve as their headquarters, and a retail space in which UNCF would operate the UNCF College of Knowledge Center, a resource center for local residents and visitors of the District. Among the project s proposed community benefits, the storefront retail includes leased space to local tenants, and 51 apartment units that would be reserved for families with incomes equal to 30%-120% AMI. In addition, the 194-space, below-grade garage which satisfies the parking requirements for this project, as well as the redeveloped Howard Theatre which occupies the same square block. Progresson Place plays a key role in linking this section of the city to the newly developed and revitalized 14th Street and U street corridor. This project capitalizes on the unique qualities of the Shaw/Ledroit Park Historic District, which includes the Howard Theatre and many other historic sites. The financing structure includes, NMTCs, HUD FHA Mortgage Insurance, Housing Production Trust Fund, Commercial loan and grant funding from the Office of the Deputy Mayor for Planning. Community Needs Addressed: Employment Opportunities: 69 retail jobs projected and 627 construction jobs projected (17 jobs filled by public housing residents and 7 permanent). Certified Business Enterprises Participation: Four Points exceeded the Certified Business Enterprise ( CBE ) participation for the combined construction hard cost and soft costs. Job Training Opportunities: Four Points Commitment: Contribution in support of a new or established job training and support program for DCHA candidates ( Youth Build partnership)

17 acres, at the Northeast corner of 7th and S Streets, NW. The project site is located directly above the Shaw- Howard University Metrorail Stop and located minutes away from Howard University.

2 Davis/Gilford Joint Venture to train and apprentice DCHA residents that qualified for open positions for post construction placements. $250,000 scholarship for Shaw high School Students specifically for Shaw high school students to attend the Howard University School of Business. Establishment of $350,000 Community Development Initiative Fund (CDI Fund ) Funds are to support Shaw and LeDroit Park community initiatives. Benefits and Outcome: Affordable Housing: 205 Units ( 51 Affordable) 20% affordable between 30% - 80% AMI 31%-50% 20 Units 51% - 80% 16 Units % 15 Units Affordability Mix for Units between 31-50% AMI: United Negro College Fund leased 50% of the office space and will establish the UNCF College of Knowledge Center UNCF projects establishing 100 permanent new jobs. Expansion of educational opportunities for low income students. Job Training Fund: o Contribution to DCHA s non-profit entity Vision in support of job training and support programs. Business Opportunities: New Retail: Eat the Rich Restaurant, Mockingbird Hill Wine and Cherry Bar, Gourmet Coffee Shop and other businesses. Four Points Commitment o 10% of retail space be leased by small, minority or woman owned businesses in addition to providing subsidies to assist in leasing the space. Establishing leasing guidelines for community business and to assistance in qualifying community businesses for leasing opportunities. 10% Rental Subsidy: o Four points agrees to extend term for rental subsidy from 5 to 7 years. o Years % of Market Rent o Years % of Market Rent Project Collaborators: Four Points LLC/ CRM, LLC is the Developer and DC Housing Enterprises is the CDE, US Bancorpwas the Equity Investor and a grant agreement from the Deputy Mayor for Planning and Economic Development was key in securing the financing needed to complete the project. Moreover Four Points secured commitment from Eagle Bank for a commercial laon to complete the balance of the office building and FHA mortgage financing from HUD was provided for the residential/retail components. What Makes Your Project Unique? : The Multifamily Component proposes 205 residential units which consist of studios, 1 and 2 bedroom apartments, including 51 workforce and affordable units, 20% were set aside for families earning 30% - 80% Area Median Income (AMI). This mix of affordable, create a greater mix of income levels in this community. The Retail Component includes 24,343 sq ft of prime ground floor level retail allocated throughout the site. The Four Points team set aside 10% of the retail spaces for leasing by local, small and minority-owned businesses. They a also provide a 10% rental subsidy for

Establishment of $350,000 Community Development Initiative Fund (CDI Fund ) Funds are to support Shaw and LeDroit Park community initiatives.

3 community retail businesses. In addition to incorporating newly constructed retail space, the ground floor of the office building will be exclusively dedicated to the UNCF College of Knowledge Center, a one stop resource for students, offering assistance with standardized test preparation, College application assistance and other educational resources.. The Parking Component would feature a 194-space below grade, 2-story parking facility. The parking facility serves office employees, retail employees, apartment residents and the general public who would pay prevailing hourly, daily and monthly rates. In addition, the parking accommodates the Howard Theatre by providing 100 parking spaces for evening and weekend parking.. The Commercial Component The eight story, 103,083 gross square feet office component contains 98,683 net rentable square feel of office area and owner of 50% of office space is United Negro College Fund. This project is the first Class A office space in the immediate market and UNCF owner of 50% of the office helped to mitigate the risks by purchasing a portion of the offices space. This helped Four Points secure the financing needed to complete the project and introduced an anchor organization such as UNCF to this Shaw/LeDroit community. Organization s Name: DC Housing Enterprises Website: Main Contact: Shirley Boubert sboubert@dchousing.org Phone Number:

students, offering assistance with standardized test preparation, College application assistance and other educational resources.

4 PROJECT SOURCES & USES OF FUNDS Uses of Funds Sources of Funds Use Amount Source Amount NMTC Component: NMTC Component Hard Costs $ 12,001,382 NMTC Equity $ 4,871,000 Soft Costs $ 5,910,929 Eagle Bank Loan $ 13,230,000 Acquisiton Payments $ 8,800,000 Guaranty/Financing $ 7,311,311 Loan Paydown ( Equity) $ 7,500,000 Developer Equity $ 8,800,000 Office and Retail $ 123,441,933 HUD FHA Insurance/ DHCD HPTF/ Eagle Bank $ 123,441,933 Total Uses of Funds $ 157,654,244 Total Sources of Funds $ 157,654,244 Project Name: ProgressionPlace Total Uses = Total Sources Project Contact: Shirley Boubert Submission Category: Creative Financing Version: October 2014

Developer Equity $ 8,800,000 Office and Retail $ 123,441,933 HUD FHA Insurance/ DHCD HPTF/ Eagle Bank $ 123,441,933 Total Uses of Funds $ 157,654,244 Total Sources

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