Gilbane JV Moves Forward on Affordable DC Development
The team brought online phase one and started work on phase two.
A joint venture of Gilbane Development Co., MED Developers and Equity Plus Managers, as well as Housing Help Development, has officially wrapped up the first phase of Barnaby & 7th and has broken ground on phase two. The 518-unit affordable housing redevelopment is in Washington, D.C.
Dubbed The Upland, the first phase delivered one building comprising 169 income-restricted units, catering to residents earning up to 30 and 50 percent of the area median income. Of these, 34 are supportive units funded through the Local Rent Supplement Program.
Floorplans comprise one- to four-bedroom layouts ranging from 725 to 1,360 square feet. Common-area amenities for phase one comprise an amphitheater, computer lab, library, playground and gym, among other features.
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Phase two adds 229 affordable units—scattered throughout four structures—to D.C.’s pipeline and its completion is slated for next year. Soto Architecture and Wiencek + Associates Architects + Planners designed the second phase, while Bozzuto Construction provides construction services for two of the buildings.
About 20 percent of the apartments will be reserved for supportive housing and administered by D.C.’s Department of Homeless Services. The remaining units will cater to residents earning 30, 50 and 80 percent of the AMI.
Additionally, phase two will add a pedestrian walkway along Barnaby Street, designed to improve connectivity between all the structures. The third and final phase will consist of a sixth building comprising 120 permanently affordable units, set to reach completion in 2027.
Barnaby & 7th redevelops Belmont Crossing, a 1952-built community that consisted of 275 LIHTC units. Notably, former residents of that property are eligible for relocation to The Upland.
Located at 4201 7th St. SE, the redevelopment is about 8 miles southeast of downtown D.C., in the Washington Highlands neighborhood. Several transit stops and parks are within walking distance.
Financing affordable D.C. projects
The capital stack for The Upland comprised a $43.2 million construction loan issued by the District of Columbia Department of Housing and Community Development, as well as a four-year bond and 20-year bond issued by the District of Columbia Housing Finance Agency with U.S. Bank as trustee that amount to a total of $50.2 million, according to Yardi Matrix data.
For the second phase, the joint venture closed financing earlier this year. The funds included two construction notes originated by JPMorgan Chase and DCDHCD totaling $104.8 million, in addition to a four-year bond issued by DCHFA with U.S. Bank as trustee in the amount of $41.1 million, the data provider shows.
Fewer units set to deliver in D.C.
Metro D.C.’s pipeline consisted of more than 1,800 units underway, spread throughout 14 fully affordable properties as of June, according to Yardi Matrix data. The income-restricted apartments made up 13.3 percent of the entire under-construction unit count.
While affordable housing completions reached upward of 2,100 apartments last year—marking a 102 percent increase year-over-year—the figure is expected to drop sharply to just 509 units in 2025, the data provider reveals.
The number of affordable apartments underway is slated to rise this month as another redevelopment takes shape in Alexandria, Va. Led by Fairstead, the project aims to replace a 1945-built community of 66 units with a new, six-story property encompassing 207 apartments.
