Vitus Starts $184M Rehab of WWII-Era Affordable Virginia Property
Renovation work is slated to reach completion in late 2027.
Vitus Group has kicked off the rehabilitation of Stuart Gardens, a 491-unit fully affordable housing property in Newport News, Va. FTK Construction Services acts as general contractor for the True Craft Architecture-designed renovation effort. Completion is expected in November 2027, according to Virginia 2026 LIHTC applications.
Development costs total $183.5 million, the same source shows. The filings also reveal a request for $6.6 million in combined yearly tax credits. Merchants Bank and HUD provided financing.
Located on 40 acres at 1326 Garden Drive, Stuart Gardens debuted in two phases in 1941 for military personnel and civilian wartime workers during World War II. It comprises 109 one- and two-story buildings that include one- to three-bedroom layouts ranging between 625 and 1,100 square feet.
The community caters to residents earning up to 40, 50 and 60 percent of the area median income. Renters may also access Section 8 vouchers.
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Vitus acquired the asset from Frye Properties for $42.6 million in 2022, Yardi Matrix data shows. The rehabilitation project has been in the planning stages ever since, according to prepared remarks by FTK CEO Jim Goodman.
Renovations will include interior upgrades such as the addition of new plumbing fixtures to the kitchens and bathrooms, a fresh coat of paint, cabinetry, countertops, appliances, flooring, lighting and tub/shower surrounds, as well as energy-efficient water heaters.
Building exteriors will receive an overhaul with new roofing, insulation, weather barriers, railings, windows, doors and paint, among other additions. Amenity upgrades are set to feature community room enhancements and new equipment for postal facilities and playgrounds. Additional sitework is slated to consist of landscaping, sidewalk and paving improvements.
Vitus’ preservation and rehabilitation efforts
Seattle-based Vitus Group acquires, improves and preserves affordable housing across the nation. Since its inception in 1993, the company has built a portfolio of more than 130 properties across 30 states.
Earlier this year, Vitus acquired a seven-asset, 1,027-unit affordable housing portfolio from the Indianapolis Housing Agency, as the entity underwent organizational recovery efforts. IHA marketed the collection with a $33 million price tag, according to Mirrorindy reporting.
