Amid Uncertainty, $129M D.C. Apartment Project Tops Out
- May 07, 2009
In the midst of a somewhat gloomy outlook for the Washington, D.C.-area multi-family market, developer Kittler has topped off a $129 million luxury apartment property. Dubbed The Millenium at Metropolitan Park, the project will open later this year to a market that has been affected by the economic slowdown, but will be somewhat bolsetered by job creation stemming from the federal government’s expansion efforts.While apartment construction will slow in Washington, D.C., more than 4,800 apartments came online in the first quarter and another 3,600 should be completed by year’s end, according to Marcus & Millichap Real Estate Investment Serices. Approximately 17,400 rental units are planned, an amount equal to 4.5 percent of existing supply, but a dearth of construction capital will keep many of these projects from breaking ground, which could aid Kettler in limiting competition.The Millennium is located on 2.57 acres in Pentagon City, Va., and will offer 300 apartments in an 18-story building. It also will feature a landscaped 1.3-acre park, which will serve as a green roof over the underground garage. The controlled-access underground parking garage will have about 350 parking spaces. HOK, a Washington, D.C.-based architectural firm, designed the property exterior. The Millennium is the second community in Metropolitan Park, an eight-phase master planned development that will offer more than 3,200 multi-family units when completed in 10 to15 years. The Gramercy, Metropolitan Park’s first community, opened in 2007 and is immediately adjacent to The Millennium. Marcus & Millichap’s report stated that economic headwinds are accelerating in Washington, D.C., with total employment in 2009 falling for the first time since 2001. While slower household creation and waning residential demand will challenge the local apartment market this year, the metro’s still-resilient job base will mitigate losses in property revenue, with leasing activity remaining healthiest near large, established clusters of employers, according to the report.