NHPF Makes First Montgomery County Purchase Preserving Affordable Housing in Germantown
NHPF closed on the acquisition of Hadley Germantown, a 218-unit apartment community in Germantown, Maryland, marking the foundation’s first purchase in Montgomery County. Originally built in 1990 and last renovated in 2011, the property is naturally occurring affordable housing (NOAH). NHPF will place covenants limiting future rents to 60% of Area Median Income for 50% of units and 80% AMI for an additional 25% of units.
“Hadley Germantown represents a strong opportunity to preserve affordability in a high-demand corridor while executing a thoughtful renovation strategy that improves quality of life for residents,” said Nish Desai, Acquisition Manager, NHPF. “This acquisition is also an excellent example of how creative financing can be used by non-profits for the preservation of affordable and workforce housing — ensuring affordability can be satisfied on Day 1, without any resident displacement.”
The acquisition was financed entirely with tax-exempt 501(c)(3) bonds. KeyBanc Capital Markets served as bond underwriter, the Wisconsin Public Finance Authority acted as issuer, and U.S. Bank serves as trustee. The financing leverages Montgomery County’s by-right Payment in Lieu of Taxes (PILOT) program, which provides a 100% abatement of county property taxes for qualifying nonprofit-owned communities, and the 501(c)(3) bond safe harbor provision to meet federal affordability requirements without additional public subsidy.
“This project was made possible by using NHPF’s AA- S&P rating to leverage debt at below 4.5%,” noted NHPF Senior Vice President of Acquisitions Neal Drobenare.
Urban Atlantic and Rawson Square supported the acquisition and will act as development consultants, overseeing initial improvements in Years 1 and 2. Winn Residential will serve as property manager. NHPF plans an extensive capital improvement program covering both interior and exterior upgrades, renovated units, and enhanced community spaces, with work beginning immediately after closing.
“Urban Atlantic and Rawson Square are excited to work with NHPF to preserve affordable and workforce housing in Montgomery County. The acquisition of Hadley Germantown leverages innovative public and private financing tools, including 501(c)3 bonds and Montgomery County’s by-right PILOT program, allowing mission-driven organizations like NHPF to step in and preserve affordability at scale,” said Brant Snyder, Chief Executive Officer of Urban Atlantic. “The property’s strong fundamentals and proximity to major employers along the I-270 Biotech Corridor such as NIH, FDA, AstraZeneca, and GSK further support its long-term stability and impact.”
“Adding this exceptional property to our portfolio marks a meaningful milestone for the foundation— our first acquisition in Montgomery County. Maryland has long been an important market for us, and Germantown holds a special place in the greater Washington, DC region,” said Joseph Weatherly, Chief Investment Officer, who grew up in Germantown adding, “We look forward to being a trusted part of this community and serving its residents for years to come”
This transaction highlights how mission-driven owners can preserve affordability in high-opportunity markets through capital structures that reduce the need for incremental public subsidy. Multifamily Leadership will continue to follow how these financing and preservation strategies scale across the sector.