CityInterests' Massive Ward 7 Project Lands Financing To Continue Development
Even in a city with as much development as DC has right now, it is difficult for a 3M SF project to fly under the radar. But CityInterests' 3.1M SF Parkside development in Ward 7 has done just that.
At full build-out, the development will include up to 1,500 housing units for lease and sale, 750k to 1M SF of offices, 270k SF of education uses, 40k SF of medical offices and 50k SF of retail.
The 26-acre site, across from the Minnesota Avenue Metro, was home to a failed townhouse development when CityInterests bought the parcel in 2004.
"We viewed this as a continuation of our commitment to develop up-and-coming neighborhoods in Washington," CityInterests partner Peter Farrell tells Bisnow. "We leapfrogged across the river when we saw an opportunity like this that virtually comes around once in a lifetime."
The developer began work in 2007 and already has 800k SF completed or under construction. A 186-unit multifamily building, The Grove at Parkside, will be completed next month. A 98-unit senior affordable housing complex has already delivered and been fully leased. In addition, 100 for-sale townhouses have been built and sold in the past 15 months. CityInterests also built a 40k SF primary health center that has opened and is being operated by Unity Health Care.
"I believe that Parkside offers people an economic alternative to new housing both for sale and for lease at a time when the traditional bedroom communities of Washington, DC, are outpricing many of today’s renters and would-be homebuyers," Peter says.
Now that Peter says Parkside has achieved a "critical mass" of residential, he plans to soon begin developing retail and later will build offices. He plans to target local and federal government tenants looking for affordable office space.
CityInterests received financing from EagleBank, which Peter says was shocked at the scale of the project given the lack of attention it has gotten.
"Their first reaction was surprise that this large of a development deal was out there in the city of Washington, largely unrealized by most," Peter says. "After spending time understanding the story and the timing for why this project will be successful, they jumped in with both feet and became very interested in facilitating this kind of development."