Ares Management Corporation and MRP Realty, as part of a joint venture between Ares Management Real Estate funds, MRP Realty, CSG Urban Partners and Taylor Adams Associates, say they have confirmed the land closing and Phase 1 construction financing of a new mixed-income residential development on the site of the current home of the District of Columbia Housing Authority (DCHA).
Construction at 1133 North Capitol Street NE in the NoMa neighborhood will begin immediately, with Phase 1 delivery anticipated in 2024, the developers say. Phase 1 will comprise 430 multifamily units, including 86 affordable units.
Acquisition and construction financing is being provided by Arkansas-based Bank OZK.
The underutilized site, located two blocks west of the NoMa Metro station, currently houses the DCHA in a building at the end of its useful life. The 0.8-acre plot has been a highly anticipated building opportunity as a place to create new affordable housing, the developers said in a May 27 statement.
The closing will give DCHA funding to not only address their portfolio-wide capital needs, but will also fund a much needed new headquarters building that will better serve DCHA staff and residents.
“We’ve supported the goal to provide much needed housing at this location for many years,” said MRP Realty principal Matt Robinson. “The NoMa neighborhood is one of the strongest and most diverse corridors in the district. This development is not just about building another apartment building, but about supporting DCHA’s affordable housing mission and contributing to the fabric of the neighborhood.”
“The development team is committed to fulfilling the goals of DCHA and creating opportunities for DCHA residents at the site through the hiring of Section 3 and locally owned Certified Business Enterprise (CBE) businesses, building new affordable housing, and providing a new home for current DCHA residents who need new affordable housing options,” the statement says.
The multi-phased development will include an estimated 1,200 apartments including a minimum of 244 affordable units, at least half of which would be deeply affordable for residents making 30 percent of the median family income and below.
“This investment represents an innovative opportunity to support the construction of a Class A residential building in a thriving neighborhood, while creating much needed affordable housing,” said Andrew Holm, partner in Ares Real Estate. “This project underscores Ares’ commitment to driving positive social impact by investing in a public-private partnership with DCHA that supports more inclusive and equitable access to quality housing. We are excited to be part of this great project as we work to realize the important benefits for all stakeholders involved.”
“We are extremely thankful to the dedication and commitment of the DCHA staff, under the leadership of Executive Director Brenda Donald, in completing this transaction. We now look forward to starting construction,” said Simone Goring Devaney of CSG Urban Partners. “Providing 244 new affordable housing units is critical to this community – and it will only be enhanced by the job and business opportunities this project will create for local residents and CBE’s.”
DCHA’s headquarters will now move into the new WMATA headquarters building at 300 Seventh St. SW, where it will occupy 52,000 sq. ft. on a 12-year lease. The DCHA’s Office of Public Safety will move to Douglas Development’s office building at 515 New York Ave.