Arlington, Virginia

Arlington Village

60-unit Arlington conversion

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Location: Arlington, Virginia
Units: 60
Year converted: 1998

The challenge

Because of the need to physically rehabilitate both the common level elements as well as the individual unit interiors, a special conversion/rehab/permanent hybrid type of financing had to be developed.

Arlington Village Co-op had one major goal in mind when it began this massive conversion project: no involuntary displacement of any members.

The outcome

This one-closing financial package will save large amounts of money as compared to the traditional two-part financing (construction loan followed by end loan). The Hutton Group team members closed these loans in escrow. Total individual mortgage volume was just over $2.6 million, while the commercial loan component of the transaction was about $1.4 million.

The Hutton Group team members designed and implemented an effective pre-conversion education program, resulting in an overwhelmingly positive (93%) vote in favor of conversion. Team members also designed the legal and financial structure of the conversion, developed a scope of work for both the common level and individual unit rehab packages, and acted as construction manager during the rehab process.

The Hutton Group team members had to develop innovative internal subsidy strategies to help insure that this community goal was met. A program of corporate loan guarantees and a plan to use federal vouchers were used with great success at Arlington Village.