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LEO Impact Capital, JBG SMITH's workforce housing platform, has secured a $13 million tax-exempt bond from Montgomery County Revenue Authority for Franklin Apartments and Earle Manor. The bond replaces existing taxable mezzanine loans provided by the Washington Housing Initiative Impact Pool. Franklin Apartments, located in Takoma Park, is a 185-unit senior living community, while Earle Manor in Wheaton comprises 140 units across two buildings. The bond aims to secure long-term affordability and prevent resident displacement in Montgomery County, Maryland.
LEO Impact Capital, la piattaforma per l'abitazione della forza lavoro di JBG SMITH, ha ottenuto un dalla Montgomery County Revenue Authority per i Franklin Apartments e Earle Manor. L'obbligazione sostituisce i prestiti mezzanini tassabili esistenti forniti dal Washington Housing Initiative Impact Pool. Franklin Apartments, situato a Takoma Park, è una comunità per anziani con 185 unità, mentre Earle Manor a Wheaton è composto da 140 unità distribuite su due edifici. L'obbligazione è destinata a garantire l'accessibilità a lungo termine e prevenire lo sfratto dei residenti nella contea di Montgomery, Maryland.
LEO Impact Capital, la plataforma de vivienda para la fuerza laboral de JBG SMITH, ha asegurado un de la Autoridad de Ingresos del Condado de Montgomery para los Franklin Apartments y Earle Manor. La obligación reemplaza préstamos mezzaninos imponibles existentes proporcionados por el Washington Housing Initiative Impact Pool. Franklin Apartments, ubicado en Takoma Park, es una comunidad de vivienda para personas mayores con 185 unidades, mientras que Earle Manor en Wheaton consta de 140 unidades distribuidas en dos edificios. La obligación tiene como objetivo asegurar la asequibilidad a largo plazo y prevenir el desplazamiento de residentes en el condado de Montgomery, Maryland.
LEO Impact Capital는 JBG SMITH의 근로자 주택 플랫폼으로, Franklin Apartments와 Earle Manor를 위해 Montgomery County Revenue Authority로부터 1300만 달러의 면세 채권을 확보했습니다. 이 채권은 Washington Housing Initiative Impact Pool에서 제공한 기존의 과세 메자닌 대출을 대체합니다. Franklin Apartments는 Takoma Park에 위치한 185세대의 노인 주택 커뮤니티이며, Earle Manor는 Wheaton에 있는 두 개의 건물에 걸쳐 140세대가 있습니다. 이 채권은 장기적인 적정 가격 유지를 목표로 하여 Maryland주 Montgomery County의 주민 이탈을 방지하고자 합니다.
LEO Impact Capital, la plateforme de logement pour les travailleurs de JBG SMITH, a obtenu une de l'Autorité des revenus du comté de Montgomery pour les Franklin Apartments et Earle Manor. L'obligation remplace les prêts mezzanines imposables existants fournis par le Washington Housing Initiative Impact Pool. Franklin Apartments, situé à Takoma Park, est une communauté de vie pour seniors comprenant 185 unités, tandis que Earle Manor à Wheaton se compose de 140 unités réparties sur deux bâtiments. L'obligation vise à garantir l'accessibilité à long terme et à prévenir le déplacement des résidents dans le comté de Montgomery, Maryland.
LEO Impact Capital, die Wohnplattform von JBG SMITH für Arbeitskräfte, hat eine steuerfreie Anleihe in Höhe von 13 Millionen Dollar von der Montgomery County Revenue Authority für die Franklin Apartments und Earle Manor gesichert. Die Anleihe ersetzt bestehende steuerpflichtige Mezzanine-Darlehen, die vom Washington Housing Initiative Impact Pool bereitgestellt wurden. Franklin Apartments, das sich in Takoma Park befindet, ist eine Senioreneinrichtung mit 185 Wohneinheiten, während Earle Manor in Wheaton 140 Einheiten in zwei Gebäuden umfasst. Das Ziel der Anleihe ist es, langfristige Erschwinglichkeit zu sichern und die Verdrängung von Bewohnern im Montgomery County, Maryland, zu verhindern.
Positive
Secured $13 million in tax-exempt bond financing, potentially reducing financing costs
Strategic replacement of taxable mezzanine loans with tax-exempt bonds
Portfolio expansion in workforce housing sector with 325 total units under management
Negative
None.
Insights
The $13 million tax-exempt bond issuance represents a strategic refinancing move that improves the capital structure of these affordable housing properties. By replacing taxable mezzanine loans with tax-exempt bonds, LEO Impact Capital should achieve lower borrowing costs, enhancing the financial sustainability of these workforce housing projects. The transaction demonstrates JBGS's ability to optimize financing through public-private partnerships.
While positive for the company's housing initiative, this refinancing represents a relatively small transaction given JBGS's $1.4 billion market cap. The immediate financial impact on JBGS shareholders is minimal, though it does showcase the company's expanding capabilities in the workforce housing sector and ability to execute complex financial structures.
This deal highlights JBGS's growing presence in the workforce housing segment through its LEO Impact Capital platform. The preservation of 325 affordable units (185 at Franklin and 140 at Earle Manor) in desirable Montgomery County locations demonstrates the platform's ability to execute on its mission while securing favorable financing terms. The bond issuance helps ensure long-term affordability in a high-cost market.
The transaction's structure, combining tax-exempt bonds with county support through PILOT programs, showcases JBGS's expertise in navigating complex public-private partnerships. This capability could prove valuable for future workforce housing opportunities, though the immediate impact on JBGS's overall portfolio and earnings is modest.
BETHESDA, Md.--(BUSINESS WIRE)-- LEO Impact Capital, JBG SMITH’s workforce housing investment management platform, announced today the placement of a $13 million bond on Franklin Apartments and Earle Manor from the Montgomery County Revenue Authority. The tax-exempt bond replaces the taxable mezzanine loans provided by the Washington Housing Initiative Impact Pool in a single issuance with the same terms. LEO Impact Capital manages the Washington Housing Initiative Impact Pool.
Located in Takoma Park, Md., Franklin Apartments is a mid-rise apartment community with 185 senior-living units reserved for residents 62 or older. The property has been owned by the Montgomery Housing Partnership (MHP) since 2022 and in 2024, the Impact Pool provided a $6 million mezzanine loan to MHP for its refinancing of the property.
Earle Manor, located in Wheaton, Md., consists of 140 units across two low-rise apartment buildings. Owned by a joint venture between the Washington Housing Conservancy (WHC) and MHP, the property was acquired in 2022 through the Montgomery County Right of First Refusal (ROFR) process and was supported by a $5.6 million mezzanine loan from the Impact Pool, a soft loan from Montgomery County and a Payment in Lieu of Taxes (PILOT) to reduce property taxes.
“This bond will not only secure long-term affordability and prevent displacement for residents in Montgomery County, Maryland but also allows LEO Impact Capital to organize competitively priced capital at scale to expand housing affordability and economic mobility in great communities,” said AJ Jackson, President of LEO Impact Capital. “This is an excellent example of our ability to leverage our platform to broaden access to and supply of workforce housing. We thank the Montgomery County Revenue Authority for its partnership.”
About LEO Impact Capital
LEO Impact Capital unlocks access to opportunity by acquiring, operating, and investing in multifamily housing in high impact neighborhoods to preserve affordability for middle-income residents – such as teachers, healthcare workers, first-responders, administrative professionals and other workers whose services are vital to thriving communities. Leveraging our double-bottom line approach and the resources of JBG SMITH, our NYSE-listed parent company, we deliver long-term value for investors and measurable impact for residents.
For more information on LEO Impact Capital please visit www.LEOIC.com.
Samantha Schmieder
JBG SMITH
Corporate Communications Manager
(240) 333-7706
sschmieder@jbgsmith.com
Source: JBG SMITH
FAQ
What is the value and purpose of LEO Impact Capital's new bond issuance for JBGS?
LEO Impact Capital secured a $13 million tax-exempt bond from Montgomery County Revenue Authority to replace existing taxable mezzanine loans for Franklin Apartments and Earle Manor, aiming to secure long-term affordability and prevent resident displacement.
How many units are included in the LEO Impact Capital bond-financed properties?
The properties include 325 total units: Franklin Apartments with 185 senior-living units in Takoma Park, and Earle Manor with 140 units in Wheaton, Maryland.
What are the specific properties involved in LEO Impact Capital's bond issuance?
The bond issuance involves Franklin Apartments, a senior living community in Takoma Park, and Earle Manor, located in Wheaton, Maryland.
How does the new bond financing structure differ from the previous financing?
The new structure replaces taxable mezzanine loans provided by the Washington Housing Initiative Impact Pool with a tax-exempt bond issued by Montgomery County Revenue Authority, maintaining the same terms.
