River Bay Townhomes located near the Gate 3 of Patuxent River Naval Station consist of 173 rental townhomes each with 3 bedrooms, 2 bathrooms and an attached garage, with most end units offering an additional garage or storage space. The property was developed using Low Income Housing Tax Credits (LIHTC) in 2004. In addition to the initial 15 year compliance period, there is an additional 25 years of Extended Use Agreement. 155 of the 173 units are restricted to tenants making 60% of Area Median Income (AMI).
River Bay Townhomes was encumbered by a HUD 221(d)(4) loan recorded in 2003 at 5.38% amortized for 31 years until 2044 with an original balance of $17,660,000. In 2012 it was modified to 2.95% and had a balance of $13,220,468 as of December 31, 2020. There will be a 1% prepayment penalty if closing is between December 1, 2021 and November 30, 2022.
There is an opportunity to reconfigure units to add one and two-bedroom units. Since the initial compliance period is over, the property can be re-syndicated and redeveloped using LIHTC. Through better management and advertising, there is an opportunity as well to increase occupancy and net income.
