First of Three-Phase NoMa mixed-use residential project will bring 430 apartments, with 86 affordable units, including 43 deeply affordable units for DCHA residents
NEW YORK and WASHINGTON, D.C. – Ares Management Corporation (NYSE: ARES) (“Ares”) and MRP Realty, as part of a joint venture between Ares Management Real Estate funds, MRP Realty, CSG Urban Partners and Taylor Adams Associates, announced today the land closing and Phase 1 construction financing of a new mixed-income residential development on the site of the current home of the District of Columbia Housing Authority (DCHA). The project is located at 1133 North Capitol Street NE in the NoMa neighborhood of Washington, DC. Construction is slated to begin immediately, with Phase 1 delivery anticipated in 2024. Phase 1 will comprise 430 multifamily units, including 86 affordable units.
Acquisition and construction financing is being provided by Arkansas-based Bank OZK.
The underutilized site, located two blocks west of the NoMa Metro station, currently houses the DCHA in a building at the end of its useful life. The 0.8-acre plot has been a highly anticipated building opportunity as a place to create new affordable housing. The closing will give DCHA funding to not only address their portfolio-wide capital needs, but will also fund a much needed new headquarters building that will better serve DCHA staff and residents.
“We’ve supported the goal to provide much needed housing at this location for many years,” said Matt Robinson, Principal at MRP Realty. “The NoMa neighborhood is one of the strongest and most diverse corridors in the district. This development is not just about building another apartment building, but about supporting DCHA’s affordable housing mission and contributing to the fabric of the neighborhood.”
The development team is committed to fulfilling the goals of DCHA and creating opportunities for DCHA residents at the site through the hiring of Section 3 and locally owned Certified Business Enterprise (“CBE”) businesses, building new affordable housing, and providing a new home for current DCHA residents who need new affordable housing options.
The multi-phased development will include an estimated 1,200 apartments and is slated to include a minimum of 244 affordable units, at least half of which would be deeply affordable for residents making 30 percent of the median family income and below.
“This investment represents an innovative opportunity to support the construction of a Class A residential building in a thriving neighborhood, while creating much needed affordable housing,” said Andrew Holm, Partner in Ares Real Estate. “This project underscores Ares’ commitment to driving positive social impact by investing in a public-private partnership with DCHA that supports more inclusive and equitable access to quality housing. We are excited to be part of this great project as we work to realize the important benefits for all stakeholders involved.”
“Tuesday, May 17, marks a huge success for the DC Housing Authority! Nine years after we began the procurement process, we executed a closing with MRP Realty and the development team to sell our headquarters at 1133 North Capitol Street, N.E.,” said DCHA Executive Director Brenda Donald. “Not only will this create 1,200 new units of housing – nearly 250 of those affordable – that has never existed before on this transit and business oriented piece of property, but the construction work is a huge opportunity and commitment to our Section 3 businesses and their clients. DCHA staff are very excited to relocate the building in short order to help quickly generate housing and benefits for our customers and programs in the future.”
“We are extremely thankful to the dedication and commitment of the DCHA staff, under the leadership of Executive Director Brenda Donald, in completing this transaction. We now look forward to starting construction,” said Simone Goring Devaney of CSG Urban Partners. “Providing 244 new affordable housing units is critical to this community – and it will only be enhanced by the job and business opportunities this project will create for local residents and CBE’s.”
DCHA’s headquarters will now move into the new WMATA headquarters building at 300 Seventh St. SW, where it will occupy 52,000 square feet on a 12-year lease. The DCHA’s Office of Public Safety will move to Douglas Development’s office building at 515 New York Ave.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of March 31, 2022, Ares Management’s global platform had approximately $325 billion of assets under management with approximately 2,195 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com. Follow Ares on Twitter @Ares_Management.
About Ares Real Estate
Ares Real Estate manages comprehensive public and private, equity and debt strategies, with approximately $46 billion of assets under management and more than 200 investment professionals, as of March 31, 2022. Backed by a vertically integrated platform, the team maintains a time-tested and consistent approach across its equity and debt strategies focusing on major property types and adjacent sectors that have value creation opportunities, located in liquid markets with diversified economies.
About MRP Realty
Founded in 2005, MRP Realty is a real estate operating company focused on opportunistic and value-add investment in the northeastern United States, with offices in Washington, D.C., Maryland, Virginia, Pennsylvania, and New York City. MRP provides to its institutional capital partners a full array of real estate services including acquisition/disposition, development/construction management, property management, asset management and financial reporting services. Since the company’s inception, MRP has deployed $4.1 billion in total capitalization, an average of over $300 million per year. MRP’s combined development assets total more than 20 million square feet, with an additional 9+ million square feet under management. For more information, please visit www.mrprealty.com
About The District of Columbia Housing Authority
The District of Columbia Housing Authority is an independent government agency whose mission is to provide quality affordable housing to extremely low to moderate income households, foster sustainable communities, and cultivate opportunities for residents to improve their lives. For more information, visit www.dchousing.org
About CSG Urban Partners
CSG Urban Partners (CSG) is a full-service real estate development and advisory firm founded in 2003. Headquartered in the District of Columbia, CSG develops transformational real estate projects in strategic partnership with non-profit housing and other for-profit developers. CSG understands the importance of real estate developments benefiting community residents. CSG monitors local community and political concerns to ensure strong stakeholder support of its projects and is strongly committed to creating economic opportunities for other minority and women-owned businesses. CSG also provides strategic real estate planning, project management and advisory services to non-profit and religious organizations, churches, and public entities. For more information, visit www.csgurban.com
About Taylor Adams Associates
Founded in 2013, Taylor Adams Associates is a Washington, D.C.-based real estate development and advisory firm specializing in structuring and executing Affordable Housing and Public-Private Partnership projects on behalf of its partners and clients. To date Taylor Adams has helped create over 1,500 units of housing in Washington DC. The Taylor Adams team has a diverse skill set, including leadership experience in real estate development, affordable housing, politics, and government, that creates a unique platform to solve problems specific to Public-Private Partnerships. Expertise in working with diverse communities, institutions and governments allows Taylor Adams to creatively structure transactions that are approvable and maximize value. For more information, visit www.tayloradamsassociates.com
About Bank OZK
Bank OZK (Nasdaq: OZK), through its Real Estate Specialties Group (RESG), provides financing on commercial real estate projects throughout the nation. RESG is considered a preeminent, market-leading construction lenderfocused on senior secured financing for a variety of property types including mixed use, multifamily housing, condominiums, office, hospitality, life sciences, industrial and retail. During the five years ended December 31, 2021, RESG originated approximately $35 billion in new commercial real estate construction loans. For more information, visit www.ozk.com.