D.C.-based developer Neighborhood Development Co. is shutting down after 25 years of building affordable housing, attributing the move to today's difficult market conditions.
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The company announced the news on its website with a message dated Aug. 23, saying it was “ending its operations and the operations of its affiliates” as of September 30. The announcement doesn't appear to have been widely distributed or previously reported.
“Our project production had been robust throughout most of our 25 years; however, the last three years have unleashed a perfect storm on the local real estate market, particularly for the type of projects we focus on, making today’s operating environment untenable for us,” NDC CEO and Founder Adrian Washington said in the announcement.
“This is obviously a very painful decision, and we are doing all we can to minimize the disruptions this will cause residents, financial partners, our employees, government partners, and our many other stakeholders,” he added.
The announcement didn't provide further details on what would happen with NDC's assets and debts. Washington declined to comment beyond the release.
“We thank Adrian Washington and Neighborhood Development Company for their many contributions to our city, including their work to deliver affordable housing, new schools and childcare centers, and other community-serving spaces,” D.C. Deputy Mayor for Planning and Economic Development Nina Albert said in a statement to Bisnow. “The District will be working with the Neighborhood Development Company and its affiliates to support impacted projects.”
The developer has completed over 1.1M SF of projects totaling over 1,900 housing units and had 860K SF in its pipeline, its website said earlier this month. The website now only features the closing announcement.
NDC received a noticed of foreclosure last month from lender Forbright Bank for its 36-unit Arbor at Takoma project that completed this spring. An auction is scheduled Thursday for the property, one of a series of new D.C. multifamily buildings to face distress as high interest rates have upended the market.
In a statement to Bisnow last month, Washington said NDC was in discussions with Forbright and still believed its vision for the project was achievable “despite the current market challenges.”
Washington said last month the company’s next big project in the works is a 55-unit affordable housing development in the River Terrace neighborhood at 3450 Eads St. NE.
“We've pulled back from other developments, because you're right, the market is soft and construction costs are up, interest rates are up,” he said.
NDC's posts on LinkedIn as recently as three weeks ago highlight progress at its Benning Market development in the River Terrace neighborhood in Ward 7 and 22-unit High Street Development in Anacostia.
In 2020, NDC was selected by the city to develop a 421-unit apartment building with commercial space on the St. Elizabeths East campus. It’s unclear whether that project is complete. It also received financing in 2020 for a 63-unit affordable housing project in Deanwood.
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