DC-Area Office-to-Residential Project Lands $96M
The property used to serve as headquarters for the American Physical Therapy Association.
The joint venture of Community Three and Whitaker Investment Corp. has secured a $96 million loan for the development of TideLock, an office-to-residential conversion project in Alexandria, Va. Cushman & Wakefield arranged the financing that was provided by Kennedy Wilson through its debt platform. Construction is slated to begin immediately, with completion expected in 2026.
Originally built in 1980, the property served as headquarters for the American Physical Therapy Association. Its existing three buildings will ultimately comprise 169 rental units, 65 luxury condominiums and roughly 7,000 square feet of retail space, along with a 217-space subterranean parking garage. The project aims for LEED Silver certification and will include 11 affordable units, according to Yardi Matrix data.
TideLock will take shape on 1.4 acres at 1033, 1055 and 1111 N. Fairfax St. in the Old Town North, overlooking the Potomac River. The property is roughly 7 miles from downtown Washington, D.C., near Highway 1 and less than 4 miles from the Ronal Reagan Washington National Airport.
Office conversions on the rise
Cushman & Wakefield Executive Director Michael Zelin and Associate Nicholas Rangel, along with Managing Directors Bindi Shah and Marshall Scanlan, arranged the construction loan.
As the office sector continues to experience significant woes, office-to-residential redevelopment activity keeps growing. In 2023, some 45,200 apartment units were created through such ventures, with 55,300 more in the pipeline for this year, RentCafe data shows. Recently another 200-unit conversion project started in Alexandria, headed by AREP in partnership with Silverpeak Real Estate Partners.
