This Week's D.C. Deal Sheet
A project started construction Thursday in Arlington to transform 31 garden-style apartments into a 234-unit development.
The Arlington Partnership for Affordable Housing broke ground on its $136M redevelopment of the Marbella Apartments, the nonprofit announced in a press release.
The 1-acre site will feature 84 one-bedroom units, 100 two-bedroom units and 50 three-bedroom units for residents earning between 30% and 60% of the area median income. It will also feature an on-site "tot lot," community spaces, a penthouse and a courtyard. The property will incorporate solar panels, APAH’s second project to do so.
The development was awarded 9% and 4% tax credits from Virginia Housing. It also secured $32.5M in permanent loan financing from the Virginia Housing Development Authority, and Arlington County’s Affordable Housing Investment Fund provided $21.8M. Capital One, which has worked with APAH on three other deals, according to the release, purchased the tax credit equity.
"APAH is committed to adding more quality affordable homes in Arlington and throughout the region," APAH President and CEO Carmen Romero said in the release.
"This neighborhood is facing rapidly rising costs which disproportionally burdens lower-income households," she added. "Marbella Apartments’ redevelopment is an opportunity to serve even more residents and offer some relief."
FINANCING
Urban Atlantic secured $69M to finance 93 new affordable homes for seniors in Friendship Heights. The homes will add to the existing senior housing at the historic Lisner-Louise-Dickson-Hurt Home, which has been in operation since 1941. The expansion will reserve 41 units for residents making 50% of the median family income and 52 units for those making up to 30% of the MFI. Funding came from D.C.'s Housing Production Trust Fund, federal and state Low-Income Housing Tax Credits and District of Columbia Housing Finance Agency bonds.
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Jubilee Housing is planning a new 52-unit affordable development in Adams Morgan after it purchased four vacant commercial parcels for $8M, the Washington Business Journal reported Thursday. The project will reserve housing for residents making 30%, 40% and 50% of the area median income. It is set to include a penthouse with amenity space, a courtyard, a fitness center and a working rooftop farm with produce for use by residents.
Whiting-Turner Construction, Troutman Pepper, Rosewood Strategies and Montage Development Group are partners on the project, which is expected to deliver in 2024.
PERSONNEL
Cushman & Wakefield has hired Marc Magazine, formerly with Savills, as an executive director on its new multimarket-based hospitality group, the brokerage announced in a press release. Magazine will be the ninth member of the group that launched at the beginning of the year. He will spearhead the mid-Atlantic business as the hospitality group, which started doing deals in the Southeast, plans to expand nationwide. Magazine previously led Savills’ U.S. hotel group.
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Savills North America is bringing Michael Royce onto its North American industrial services team, the brokerage announced in a press release. Royce comes from KLNB, where he served as an executive senior vice president, working on the firm’s industrial business in the mid-Atlantic. He is one of multiple hires to Savills’ industrial services team this past year, according to the release.
MILESTONES
Software provider Qualtrics opened a new 52K SF office at Reston Station Thursday, the company announced in a press release. Qualtrics had originally announced in 2021 that it would lease 85K SF in the building, but it has since decided to downsize, a press representative told Bisnow in an email. The new facility includes 223 desks, 21 huddle rooms, an outdoor terrace, a game room, a library, a cafeteria, a wellness center and a 40-seat work area called Blues Café, inspired by D.C.’s historic jazz scene.
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Mayor Muriel Bowser cut the ribbon this week for a new 118K SF healthcare and research facility at St. Elizabeths East. The Max Robinson Center on the relocated Whitman-Walker campus will provide services including primary, behavioral and dental care, in addition to treatment and services for substance misuse, a pharmacy and a new home for the hospital’s youth services. The facility was developed by Redbrick LMD on Parcel 17, one of its four parcels at St. Elizabeths East.
