NHPF Acquires Hadley Germantown Preserving Two Hundred Eighteen Units of Affordable Housing in Montgomery County

NHPF has closed on the acquisition of Hadley Germantown, a 218-unit apartment community in Germantown, Maryland formerly known as Elme Germantown. Built in 1990 and last renovated in 2011, the property provides naturally occurring affordable housing (NOAH) in a high-opportunity corridor of Montgomery County.

As part of the acquisition, 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. NHPF plans an immediate capital improvement program covering interior and exterior upgrades, renovated units and upgraded community spaces, with Urban Atlantic and Rawson Square overseeing initial work in years one and two. Winn Residential will serve as property manager.

"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 transaction 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 is trustee. The financing leverages Montgomery County’s by-right Payment in Lieu of Taxes (PILOT) program, providing a 100% county property tax abatement for qualifying nonprofit-owned communities, and uses the 501(c)(3) bond safe harbor 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.

"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"

"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."

This acquisition illustrates a preservation pathway that combines nonprofit finance, local tax policy, and targeted capital investment to maintain affordability in markets experiencing demand pressure. Hadley Germantown expands NHPF’s national portfolio of sustainable housing communities and reflects the organization’s focus on housing as a foundation for opportunity and stability.