Arlington Adds Affordable Housing to Columbia Pike

An 83-unit mixed-use affordable housing complex built on the site of a Shell gas station in Arlington is set to break ground early next year, according to developer AHC, Inc.

"We're scheduled to start construction on February 1" said John Welsh, Vice President of the Multifamily Division at AHC, Inc.  "And we plan to have the building done in eighteen months."

The $13 million, six-story building is designed by Cunningham + Quill Architects and will include ground floor retail space and two levels of below-grade parking.  The building is designed around a central courtyard, and the retail space faces Columbia Pike.  Plans call for the building to be built on two adjacent parcels - one at 870 South Greenbrier, largely a surface parking lot and undeveloped scrubland, and one at 5511 Columbia Pike, the former site of the Shell station.  Though that parcel did require environmental remediation - mostly the excavation and removal of contaminated soil - Welsh says that the previous owner handled it before selling to AHC.

The project will be funded, in part, by a $6 million loan from the Arlington County Affordable Housing Investment Fund (AHIF), and AHC's Multifamily Revolving Loan Fund, which consists of federally-funded Community Development Block Grants.  According to reports, 19 dwellings will be affordable to families making 50% of the AMI ($53,750 for a family of four), with the remaining 64 dwellings affordable to families earning 60% of the AMI ($64,500 for a family of four).

No word yet on who might occupy the retail space.  "Tiffany's turned us down," said Welsh, when asked about potential tenants.  "Just kidding."

Arlington, Virginia real estate development news

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Alexandria Affordable Housing Complex Back on Track

An AHC Inc.-developed affordable housing complex at the corner of East Reed Avenue and Route 1/Jefferson Davis Highway, in Alexandria, is now slated for an early 2014 groundbreaking, after hitting delays earlier this year.

The latest iteration of the project, which has increased to 77 units, from an original 59, should head to the Alexandria City Council in December for final approval, according to John Welsh, Vice President at AHC.

"We're really happy with the design," says Welsh.  "The city planning office gave their opinion on it, and asked for a few minor changes.  Mostly design stuff - switching a metal accent to the other side of the building so it would be a stronger element on Route 1, that kind of thing."

The Bonstra-Haresign-designed building will offer 15 one-bedroom units, 51 two-bedroom units, and eleven three-bedroom units, at 60% of AMI (approximately $56,000/year).  The facade is "primarily brick, with a few other materials, and some metal accents to give it a nice polish," said Welsh.  The building will be five stories tall on the east side, and taper down to three stories on the west, and there will also be 77 below-grade parking spaces, a one-to-one ratio that marks a significant increase from the earlier design's 0.77 ratio, a number that caused some consternation among city planners as potentially insufficient.  Construction is projected to take 18 months, with leasing estimated to take until the end of 2015.

The project will sit on a joined plot consisting of a city-owned parcel at 3600 Jefferson Davis Highway and three privately-owned parcels controlled by AHC.  Funding is being provided by a package of AHC funds, a $1.1 million-plus affordable housing loan from the city, and tax credits, the application deadline for the latter contributing, at least in part, to past delays.

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Affordable Housing Complex Delayed

A proposed 59-unit affordable housing project in Alexandria, at the corner of East Reed Avenue and Route 1/Jefferson Davis Highway, has been delayed a year after developers at AHC, Inc. missed a mid-March deadline for their affordable housing tax credit application.  Developers are now aiming for a March 2013 application.

Though the project has been in the works for almost two years, a number of issues prevented the application from coming together in time. While city planners supported the project, calling it "an excellent opportunity to secure affordable housing, with minimal City financial support, in an area that will soon redevelop in a way that would likely make such a project unfeasible in the future due to escalating land values," they also raised concerns over the streetscaping. Planners also cited the possibly inadequate amount of parking contained in the proposed design (0.7 spaces per unit rather than their preferred ratio of 1.1 spaces per unit), and redesigns couldn't be produced in time to accommodate required public hearings and the tax credit deadline.

The proposed project, designed by Bonstra | Haresign, would assemble the city-owned parcel at 3600 Jefferson Davis Highway with three privately-owned adjacent parcels at 120 and 118 E. Reed Avenue (which AHC currently has under site control), as the site of a five-story multi-family apartment building, owned and operated by AHC.  Preliminary concept plans call for one- and two-bedroom units at 60% of AMI (about $56,000/yr), though the exact orientation of the building is still under discussion.

"We're still talking about the exact placement of the building," said John Welsh, Vice President at AHC, of the present timeline.  "Ideally, we'd like to conclude zoning and planning by the summer, apply for the financing in March of next year, close sometime in July, and then start construction in the fall.  The city is still interested, they've just asked for some followups.  We're going to keep this thing going."

Complications relating to funding may also have contributed to the delays.  The project is being funded by a complicated package of tax credits, AHC investment, and an approximately $1.1 million affordable housing loan from the city.  AHC would pay market value to the city for the vacant lot at 3600 Jefferson Davis Highway, but would seek to defer this payment (with interest) until after the 15-year tax credit period.  The addition of a parking garage caused the amount of the required city loan to balloon, necessitating another analysis by the City Office of Housing, and a redetermination in the amount of the loan.

AHC, Inc., a nonprofit developer of affordable housing, has developed 38 housing projects since 1975 containing over 3,200 units; this is their first project in Alexandria.

Alexandria, Virginia real estate development news

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Rosslyn Mixed Income Apartments Redeveloped "Using Density Not Dollars"

In their quest to redevelop Key Boulevard apartments, AHC Inc. has adopted a slightly augmented proposal and a brand new motto: "Using density, not dollars." That is the team's credo for tackling the challenge of nearly doubling the number of affordable housing units on the 1.24 acre site while staying within limited density allowed by the County's Zoning guidelines. But with available space near public transit in Arlington quickly drying up, AHC is relishing the chance to secure affordable, transit-oriented apartments near one of the busiest Metro stations in the D.C. region.

Although traditionally the goal of AHC Inc is to pack as much affordable housing into a development as possible, with this project half of the proposed 160-170 units reserved as affordable housing. But developing a mixed income community makes the project more financially sustainable, and most-importantly, negates the need for County subsidies, a selling-point in the approval process. Indeed, compromise is the name of the game, and in cooperation with the surrounding neighborhoods, developers have reduced the bulky mass and originally proposed height of eight-stories, to a slimmer, more manageable, and community-requested six floors. But support for the building's size and density is far from overwhelming, so developers will continue to appeal for more widespread community input and support, as they feel theirs is a worthy cause.

Built in the 1940s, the aging affordable apartment community is a reminder of inequality and inefficiency amidst the ever-expanding hustle and bustle of the business-centric Rosslyn. Not far from where two of the regions soon-to-be-tallest buildings recently broke ground, aging heating systems, inefficient windows and appliances, no central air conditioning, and handicap accessibility issues make the 41-unit building at 1545 Key Boulevard a candidate ripe for a radical makeover.

To put their new motto to the test, AHC is proposing to transfer development rights from an affordable apartment community they finished renovating in 2007. Because the project adhered closely to the historic character of the Gates of Ballston aesthetic, with its low-rise garden-style design, the project remained under developed, leaving excess development rights available for transfer and reuse. This technique is rather common, reports AHC, but transferring rights from one neighborhood to another (Ballston to Rosslyn) is "an innovative approach to maximizing affordable opportunities in the transit corridor." Although it's uncommon to transfer development rights from projects separated by some two miles, developers believe the opportunity to create transit-oriented, energy-efficient, affordable housing justifies the unique strategy.

Preliminary architectural schematics for the 70 ft. tall building are being offered by WDG Architecture. Developers have purposefully offered limited detail in their renderings; in order to remain adaptable and responsive to the always evolving back and forth of the community involvement process; Joseph P. Weatherly, Senior Project Manager at AHC explained his team had refrained from "engaging WDG to put too many specific ideas on paper until we feel like we have more comprehensive support from the entire community." However, designers have included planning for a rooftop terrace and green roof. The proposal also includes underground parking, a community center, neighboring park, and a landscaped courtyard. The community center would serve as a base for various resident programming, including after-school programs for children. AHC continues to work diligently alongside Bush Construction Corp., their general contractor and development partner. But with community dialog still ongoing, and the County Site Plan approval process still to come, developers don't expect construction to commence until at least January of 2012, and the expected delivery date arriving some twenty four months later.

Arlington, VA Real Estate Development News

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