Washington, D.C.–The apartment market in Greater Washington, DC, did not escape the consequences of the recession, but Bainbridge Cos. is preparing for the impending return of demand. The Wellington, Fla.-based residential and commercial real estate concern has just revealed that it will erect a 200-unit high-rise apartment property in downtown Bethesda, Md., less than 10 miles outside of the nation’s capital.
In addition to upscale apartment residences, the as-yet-unnamed, 17-story apartment building will feature approximately 7,700 square feet of ground-level retail space. Bainbridge is still in the process of finalizing project costs, but the estimated development price of approximately $400,000 per-unit signifies that the project will cost a minimum $80 million to realize.
Bainbridge is not going at it alone on this endeavor. The company has secured Restis Group as an equity partner on the project, and has also obtained equity from National Real Estate Advisors. Bainbridge closed the acquisition of land for the development without any hindrances from the credit market, Jared Miller, Vice President of Marketing for Bainbridge, tells MHN, and is on track to break ground this fall.
Apartment market demand took a beating during the recession, but despite the pummeling, which did not spare the suburbs of Washington, D.C., Bainbridge is keen on Bethesda. “We like the Bethesda market due to the high barriers to entry and the lengthy entitlement process,” Miller said. “We started the entitlement process some time ago, but if we started it today it would probably take 4 to 5 years to complete.” The new apartment community is scheduled to welcome its first residents in 2012.
If all goes as Bainbridge plans, there will soon be more apartment projects on its plate. “The Bainbridge Companies is actively seeking low-, mid- and high-rise multifamily development and acquisition opportunities in the metro D.C. area, as well as the corridor between DC and Boston” Richard Schechter, company Chairman and CEO, told MHN.