June 1, 2021

KENSINGTON, MD. On June 1, 2021, the Housing Opportunities Commission of Montgomery County (HOC), Montgomery County’s public housing agency, closed on the $94 million acquisition of a portfolio of 401 naturally occurring affordable housing units – including The Drake, The Carleton, The Dorset, The Gardens, and The Kentwood. These unrestricted units are located in downtown Bethesda and sit a half mile from the Bethesda Metro Station, leasing at near-MPDU-equivalent rental levels.


Key to the acquisition financing, EagleBank provided $81.2 million in senior loan funding, totaling 81% of the total acquisition costs. “HOC’s trusted reputation and longstanding history in the affordable housing space made it an easy decision to get involved,” said Ryan Riel, EagleBank’s Chief Real Estate Lending Officer. “As a Bethesda-based bank, we’re always looking for ways to better serve our community through CRE lending and are honored to finance a project that aligns with this mission.”

This acquisition presents a unique opportunity for HOC to preserve existing naturally occurring affordable residential units, as well as significantly increase the number of affordable units in an expensive submarket. With the acquisition complete, HOC will introduce property rent and income restrictions that will benefit existing residents, as well as create new affordable opportunities for future residents. For 30% of the units, 80% AMI rent and income restrictions will be paired with existing qualifying households. Upon turnover, an additional 20% of units will be leased to households earning less than 50% of AMI. The entire property will follow the County’s Voluntary Rent Guideline for future rent increases.

HOC was an active participant in the Bethesda Downtown Plan and previously worked with the seller of these units, Aldon Management Corporation, to ensure adequate redevelopment capacity for these properties as well as HOC’s neighboring The Barclay Apartments. While there are no imminent plans for redevelopment, HOC’s control of the properties will ensure future plans protect existing residents and make increased affordable housing opportunities a priority.

“This acquisition is a testament to our commitment to helping people reach their fullest potential. We have been laser-focused on creating access to areas of opportunity for the individuals and families we serve. Our efforts in South Bethesda will create a gateway to opportunity for folks, regardless of their income – excellent schools, quality jobs, public transportation, and the other high-end community amenities,” Stacy Spann, Executive Director of HOC said. “In a tight housing market, amid a burgeoning housing affordability crisis, HOC stands by its goal to preserve and increase affordable opportunities for Montgomery County residents wherever we are able. We are proud to partner with EagleBank, a long-time, trusted community lender, to bring Montgomery County the additional housing it desperately needs.”

Aldon will stay on as property manager for these communities to maximize continuity for existing residents.


About the Housing Opportunities Commission of Montgomery County (HOC)

The mission of the Housing Opportunities Commission is to provide affordable housing and supportive housing services that enhance the lives of low- and moderate-income families and individuals throughout Montgomery County, Maryland so that:

  • No one in Montgomery County lives in substandard housing;
  • We strengthen families and communities as good neighbors;
  • We establish an efficient and productive environment that fosters trust, open communication and mutual respect; and
  • We work with advocates, providers and community members to maintain support for all the work of the Commission.

To accomplish these goals, HOC acts as an owner, operator, and vertically-integrated developer, focusing on three things: getting people housed, keeping people housed, and helping customers reach their fullest potential. HOC provides affordable housing resources to nearly 15,000 Montgomery County residents, owns more than 8,000 rental units, and provides assistance to more than 7,000 low-income households – many of whom are elderly and persons with disabilities – through the Housing Choice Voucher program.

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