Arlington County, via a complicated real estate transaction, is seeking to acquire the sprawling Ballston Park apartments on the 300 block of N. Glebe Road.
The 20-acre, 52-building complex has 513 apartments, 233 of which are committed affordable to those making 60 percent or less of the area median income. If the county’s purchase were to go through, the county would increase the number of units committed as affordable and keep them affordable for another 75 years.
The complex is expected to sell for around $100 million, but the net cost to the Arlington — from the county’s Affordable Housing Investment Fund — is not expected to exceed $16 million. That’s because the county already has a partial stake in the apartments, and because the county is only providing 25 percent of the sale price. The rest is being supplied by affordable housing nonprofit AHC Inc., through loans.
The terms of the proposed sale specify that the county will own the title to the apartment complex, but will grant AHC a 75-year ground lease and will help provide AHC with partial financing. Barring the sale, the existing affordable units would expire in 2027 and become market rate units.
“The County is taking this action in order to preserve the Ballston Park community – an important affordable housing asset,” said Arlington County Housing Director David Cristeal. “We believe that through this transaction, the County can preserve long term affordability and acquire a historically valuable asset for less than an estimated $70,000 per unit.”
“This transaction offers the opportunity to not only to extend the duration of current affordable units but to increase the number of affordable units within the property, obtain greater control over the long-term future use and development of the property and receive residual income in the form of lease payments for 75 years,” Cristeal continued.
The sale was quietly approved by the County Board at the end of its Tuesday, Jan. 28 meeting. The item was not originally on the Board’s public agenda. The sale agreement provided by the Board caps the total sale price at no more than $105 million.
Photo via Google Maps
