Luxury Mixed-Use Project Underway on Capitol Hill
- Nov 27, 2018
The site of a former garden center in the Capitol Hill’s Historic District in Washington, D.C., will be transformed into a mixed-use development featuring 117 luxury apartments and street-level retail. Dubbed The Rushmore, the project is developed by SGA Cos. and its joint venture equity partner, Evergreen Private Finance.
Development of the site at 1220 Pennsylvania Ave. S.E., is moving forward with a construction loan from a regional bank arranged by Eastern Union Senior Managing Director Marc Tropp. The partnership of The Rushmore also signed a 100-year ground lease with Capitol Hill investor Larry Quillian to develop the site, which had been used as a garden center by Frager’s Hardware.
The Rushmore project includes the rebuilding of the historic Shotgun House at 1229 E St. S.E., into a luxury duplex, as well as construction of 2,500 square feet of retail on the southeast corner. Designed by SGA President & Principal Architect Sassan Gharai to fit seamlessly into the historic residential character of the surrounding buildings, the project is expected to be completed by the end of 2019.
All the apartments will be one-bedroom units, with rents anticipated to range in the $2,000s. Amenities at The Rushmore will include a concierge service, state-of-the-art fitness center, expansive roof top deck, residents’ lounge, catering kitchen and penthouse-level dining.
Convenient Location in a Growing Market
The Rushmore is located close to Eastern Market, within walking distance to two metro stations, in an area where several new developments are under construction. “There is also a vibrant restaurant and nightlife scene, which makes the neighborhood attractive to many who work on the Hill,” Lawrence Brown, CEO of Evergreen Private Finance, said in a prepared statement.
Referring to Amazon’s recent announcement about locating about 25,000 jobs in the region as one of two East Coast headquarters, Brown told Multi-Housing News that “the decision to move to Crystal City, Virginia, will put even more pressure on the D.C. rental market that is already experiencing high demand.”
“We believe The Rushmore—which is located just five miles away and is expected to be completed in fall of 2019—will provide additional residential options for this expected influx of millennial workers coming in,” he added.
A third-quarter report from Newmark Knight Frank also noted that strong growth in high-paying jobs is expected to increase demand in the D.C. metro area for Class A multifamily housing. The report stated overall occupancy in the Navy Yard/Capitol Hill/Southwest submarket was at 96.2 percent with average effective rents of $2.96 per square foot, or $2,361 per unit.
Rendering courtesy of SGA Cos. and Evergreen Private Finance