Gilbane JV Lands Financing for DC Redevelopment
Representing the second phase of a larger development, the affordable project will encompass more than 200 units.
A partnership of Gilbane Development Co., MED Developers, Equity Plus Manager LLC and Housing Help Plus has financially closed on the second phase of the Barnaby & 7th’s redevelopment in Washington, D.C.—set to comprise 229 mixed-income units. The project is expected to break ground in February.
Phase two will comprise four buildings. Soto Architecture and Wiencek + Associates Architects + Planners provided design services, while Bozzuto Construction will serve as the general contractor for two of the structures. These two buildings are expected to debut in March 2026, according to Soto.
The entire development will encompass studio and one- to three-bedroom units. This second stage will comprise units catering to residents earning up to 30, 50 and 80 percent of the area median income. Additionally, 70 Permanent Supportive Housing units, as well as their adjacent supportive services, will also be included.
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Located on about 6 acres at 4201 7th St. SE, Barnaby & 7th is in the Washington Highlands, roughly 8 miles southeast of downtown D.C. and some 3 miles east of the Potomac River. Several parks are within walking distance.
A three-phase redevelopment
The entire undertaking aims to replace the 1952-built Belmont Crossing Apartments—which comprised 275 LIHTC units—with 470 new affordable apartments to be developed across a three-stage project.
Construction on the 169-unit first phase began in June 2023 and the team expects completion early this year. The third phase may take shape as either a 72-unit LIHTC development or a 30- to 35-unit homeownership project.
The D.C. Housing Finance Agency financed both the first and second phases of the project, according to prepared remarks by DCHFA Executive Director & CEO Christopher E. Donald. The agency issued a $43.2 million construction loan for the first phase in 2022, Yardi Matrix data shows. DCHFA also issued two bonds for phase one with U.S. Bank as trustee totaling $50.2 million.
D.C. affordable completions ramp up
Greater D.C.’s pipeline encompassed roughly 2,200 units underway inside fully affordable projects as of January, the data provider shows. Developers brought online nearly 1,700 affordable units throughout 2024, a figure significantly above the annual average of about 1,000 units dating back to 2019.
Lincoln Avenue Communities expanded D.C.’s affordable pipeline in October 2024 when it teamed up with Headen Spring Development LLC to build a 290-unit, mixed-income and partially age-restricted community in Riverdale, Md.
