$21.7MM acquisition for the preservation of 106-unit affordable apartment units in Fairfax County, Virginia
Enterprise Community Development, Inc. has closed on the acquisition of Coralain Gardens, a family apartment community in Fairfax County located at 7435 Arlington Boulevard in Falls Church, Virginia. Enterprise Community Development plans to rehabilitate the community starting in 2025.
Built in 1964, Coralain Gardens is comprised of 10 three-story garden-style apartment buildings with a total of 106 units. The apartments at Coralain Gardens consist of various layouts including 17 studio, 43 one-bedroom, and 46 two-bedroom apartments serving residents earning at or below 60% of the Area Median Income (AMI). 22 units will serve residents earning 50% AMI and below, and the remaining 84 units will serve residents earning 60% AMI and below. The property features amenities including an outdoor swimming pool and a playground for families with children in the apartment community.
“The acquisition of Coralain Gardens was a wonderful chance for Enterprise Community Development to make a positive impact on the Fairfax community,” stated Christine Madigan, the Interim President of Enterprise Community Development. “We are grateful for the County’s partnership and leadership in affordable housing preservation. We are looking forward to renovating the property and ensuring it remains a great place to live for both current and future residents.”
Previously, Enterprise Community Development worked to preserve affordable housing in one of the wealthiest counties in the state by building Lake Anne House, a senior community in Reston, which celebrated its grand opening in 2022 and won several awards. Coralain Gardens Apartments represents a continuation of Enterprise Community Development’s commitment to maintaining affordable housing options in the area.
The acquisition of Coralain Gardens is the first facilitated through Fairfax County’s Right of First Refusal (ROFR) assignment process. Enterprise Community Development was designated as a qualified affordable developer in the County’s Preservation Partner Pool following a request for qualifications that was issued in 2022. In 2023, Fairfax County sent out a Notice of Opportunity for Housing Preservation (NOHP) to the pool of qualified affordable housing developers to select a developer to assign the ROFR for the acquisition of Coralain Gardens. Enterprise Community Development submitted a proposal and in response to the NOHP, was selected as the preferred housing provider and was assigned the ROFR rights from Fairfax County. As part of its proposal, Enterprise committed to preserve affordability at the property which is in line with the company’s mission.
“The Preservation Partner Pool enables Fairfax County to quickly act on preservation opportunities that arise, such as this opportunity to purchase Coralain Gardens. Enterprise was selected to assume the Fairfax County Redevelopment and Housing Authority’s (FCRHA) ROFR because of their commitment to extend the existing affordability and invest in physical improvements to the property,” said Anna Shapiro, FCRHA Deputy Director of Real Estate Development and Finance. “The benefits of this acquisition will be realized for years to come for current and future residents.”
Located in Falls Church, Virginia, Coralain Gardens is conveniently located near well-regarded schools, shopping, healthcare providers, employers and dining options.
The total transaction cost for Coralain Gardens was $21.7 million. Acquisition financing was provided through a senior mortgage from a Low Income Investment Fund (LIIF) and Capital Impact Partners (CIP) partnership, as well as the assumption of an existing FCRHA loan on the property. LIIF serves as the primary lender for the bridge loan used to acquire Coralain Gardens. Additionally, Enterprise Community Loan Fund (ECLF) provided a supplemental acquisition loan. Enterprise Community Development plans to use 4% Low-Income Housing Tax Credits (LIHTC) for a full-scale rehabilitation of the property that is scheduled to start by the first quarter of 2025.
“Our CDFI lending is helping preserve affordable housing for historically excluded communities in Virginia,” said Geoffrey Shepard, Low Income Investment Fund (LIIF) Officer. “LIIF and Capital Impact Partners have closed a $15.2 million secured acquisition loan which will help Enterprise Community Development preserve 106 units of affordable housing at Coralain Gardens Apartments. Without Enterprise Community Development rising to the occasion, it is likely the property would have lost its affordability restrictions. The good news is that Coralain Gardens will now remain income restricted through 2087.”
Enterprise Community Development is the top nonprofit owner and developer of affordable homes in the Mid-Atlantic and is an affiliate of Enterprise Community Partners. We specialize in high-impact residential development, preservation, property management and resident services for more than 23,000 people who call our communities home. Our $1.3 billion portfolio includes 114 communities and 13,000 homes, positioning us as one of the top six nonprofit owners of affordable housing in the United States. Our mission is to uplift residents and communities. More than 20 percent of our revenues are reinvested in programs and services to advance our residents’ social, educational, financial and physical well-being. For more information, visit www.enterprisecommunitydevelopment.org.
