Grosvenor Americas and Hoffman & Associates have closed a joint venture to develop a mixed-use, mixed-income property in Washington, D.C. In this, Grosvenor’s second partnership with Hoffman & Associates, the joint venture will develop Washington Station II. The development is a 449-unit apartment project at 1000 Fourth St. SW, featuring 29,000 square feet of retail space and an affordable housing component. The development team is made up of four organizations led by Hoffman & Associates.
The transaction represents the fourth deal within Grosvenor’s True North III Partnership, founded in July with $300 million to invest in equity and equity-like opportunities.
“The Southwest submarket is one of DC’s fastest growing neighborhoods, with a complementary pairing of long-standing and relatively new elements,” Alexandra Johns, Grosvenor senior vice president, co-investment, told Multi-Housing News. “Washington Station II builds beautifully on that growth.”
Washington Station II will incorporate a residential component of studio, one- and two-bedroom units. Thirty percent of the units will be set aside for income-qualified households that earn up to 30 or 50 percent of area median income (AMI). The 30 percent set aside for affordable housing is twice the regional average.
The high-priority affordable housing component was made possible through a partnership with AHC Inc., an affordable housing developer working across Virginia, Maryland and the District of Columbia. Of the affordable housing units, 68 will be earmarked for households earning 30 percent of AMI, and an equal number for households earning at 50 percent of area median family income (FMI).
Washington Station II will rise near The Wharf, Hoffman & Associates’ signature mixed-use project encompassing more than 3.2 million square feet of development along a mile of the city’s Southwest riverfront.
In a prepared statement, a Grosvenor official noted the development will yield a performing arts space for DC Improv; school space for AppleTree Public Charter School, a DC-based early childhood education provider; and a local outlet for Good Company Doughnuts, in addition to affordable housing.
“The neighborhood has proven to be quite resilient through the pandemic,” Johns added. “The dynamic experience of living and working in this community continues to attract new residents and new employers. We are grateful for a smooth groundbreaking and looking forward to delivery in 2023.”