Monday Properties Breaks Ground on Virginia Development
- May 28, 2020
Monday Properties has broken ground on a 300-unit, Class A multifamily building at 2000 N. Beauregard St. in Alexandria, Va., after securing $66.8 million in construction financing from EagleBank. The new property, which is being developed on the site of an old office building, is expected to deliver in early 2022.
The site is within a designated Opportunity Zone created as part of the Tax Cuts and Jobs Act of 2017. The construction financing was arranged by Bryan Leigh, senior vice president of commercial real estate at EagleBank.
Frank Craighhill, vice president of development for Monday Properties, said in a prepared statement the company is optimistic the project will catalyze further development in the area. Monday Properties acquired the site as part of a five-building, 300,000-square-foot office portfolio it purchased in June 2017. The other properties in the Beauregard Office Park were 1500, 1600, 1800 and 1900 N. Beauregard St. The developer received approval from Alexandria city officials in May 2019 to convert the property to multifamily use.
Located at the intersection of Seminary Road and North Beauregard Street, the property is in a prime walkable area close to The Shops at Mark Center, which features a Starbucks, CVS, bank, grocery store, dry cleaners, salons and restaurants. It is near I-395 and a short distance from the Pentagon, Amazon’s future headquarters in National Landing in Arlington, Va., Reagan National Airport and Capitol Hill in Washington, D.C.
The development will consist of a six- to seven-story, wood-frame building over one and two levels of concrete podium wrapped around an internally located six-level, 420-space parking garage. It will have an open first floor with resort-style amenities adjacent to the main lobby entrance and feature a club and game room, bar that opens up to an outdoor terrace and grill area, lounge pool and gym. The building will also have co-working space and conference facilities with high-speed Internet along with bike repair and storage and a dog washing station.
Northern Virginia Market
The Northern Virginia and metro Washington, D.C., multifamily market is expected to see few impacts from the ongoing COVID-19 crisis, due to government and tech sector jobs that are expected to weather the economic downturn better than other sectors, according to CBRE’s Mid-Atlantic Marketview report issued in early April. The report notes Northern Virginia is the fastest growing region in the DC metro due in large part to the anticipated arrival of the Amazon HQ2 development at National Landing.
Alexandria is among the transit-friendly neighborhoods that investors and developers are attracted to. Investment activity reached its highest recorded levels with $4.3 billion transacted in Northern Virginia and Alexandria had the most transactions in the region for the past three years with $1.4 billion in deals in 2019, according to CBRE. Class A rents grew 3.8 percent in 2019 to an average of $2,018 per unit and Class B rents increased 4.2 percent to an average of $1,770 per unit.
Earlier this year, JBG Smith, a developer of premier mixed-use properties in the DC metro, made the first investment from its Impact Pool fund with $15.1 million in mezzanine financing to support the Alexandria Housing Development Corp’s $106 million acquisition of the newly renamed Parkstone Alexandria. The property is a 326-unit, recently renovated apartment tower in Alexandria that features a fitness center, business center and swimming pool.