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A new multifamily project is underway on the Rosslyn-Ballston corridor, as the developer aims to deliver when the market has recovered and there is little competition.
Mill Creek Residential announced Wednesday it broke ground on the 270-unit Modera Kirkwood Apartments at 3415 Washington Blvd.
The Florida-based developer received a roughly $70M loan from PNC Bank for the project, and it brought on Vancouver-based QuadReal as an equity partner, Mill Creek Director of Development Joe Muffler told Bisnow. He said the coronavirus pandemic made it more difficult to finance new construction, even for the sixth-most-active apartment builder in the country.
"The terms are understandably different than when we underwrote the deal a year ago," Muffler said. "I think it's changing by the week, but there was a general fear when we went to the market this summer for debt about ground-up development. Most banks were very hesitant to issue any kind of paper."
The project sits at the intersection of Washington Boulevard and North Kirkwood Road, less than a half-mile from the Clarendon and Virginia Square Metro stations. It is across the street from George Mason University's Arlington campus, which the university is expanding with a $250M project.
While the pandemic has decreased demand and rents for D.C.-area apartments, Muffler said he expects the market will be fully recovered by the time the project delivers in 2023.
"That's one of the reasons we wanted to close when we did. I think that's going to be a great time for D.C.," Muffler said of 2023. "On a micro basis for this deal, there have been very few deals to break ground in the R-B Corridor this year, so when this delivers it'll be one of the only, if not the only, project delivering in Clarendon."
The Modera Kirkwood building's amenities will include a clubhouse with coworking spaces, an outdoor courtyard with cooking areas, a fitness center with a yoga and cycling room, a pet spa, a bike storage facility and a 24-hour self-service marketplace. The developer said it is building it to LEED Silver standards and is focusing on wellness.
The development is Mill Creek's 10th project completed or under construction in the D.C. area. It broke ground last year on a 394-unit project in Falls Church. Also over the last few years it has built a 134-unit project in Adams Morgan, a 276-unit project in Southwest D.C. and a 222-unit project in Fairfax County.
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