District Growth Launches 2 New Condo Projects In Northeast D.C.
The sizable multifamily pipeline in Northeast D.C. is continuing to grow, with two new condo projects coming from local developer Sanjay Bajaj.
The first project, at 1358 Florida Ave. NE, has recently begun construction. It is planned to feature 40 condo units, designed by ADG+G Architecture.
The developer acquired the site in February 2021 for $2.2M, according to deed records, though Bajaj said the deal came out to $4M when including additional fees. He said the project is expected to cost $8.2M. He plans to market the condos at a price point of around $700 per SF, or roughly $490K for a 700 SF apartment.
The Florida Avenue property sits two blocks from the H Street Corridor and less than a half-mile from the Hechinger Mall, a car-oriented retail center owned by beleaguered retail landlord Ashkenazy Acquisition Corp. where neighborhood groups want to see a major redevelopment, but nothing has yet moved forward.
The second project District Growth is launching is planned for 38 condos at 2201 and 2207 Fourth St. NE. The developer bought that site last week for $3.375M, according to deed records, and Bajaj said additional fees brought the acquisition cost up to $4M. He said he plans to break ground in April, and he expects construction to cost $8.5M.
The property sits near Rhode Island Avenue NE, less than a half-mile from the Red Line Metro station. It is also across the street from MRP Realty's massive Bryant Street project, which delivered last year and has begun to draw visitors to its Metrobar and Alamo Drafthouse venues.
Bajaj has a larger project in the pipeline on Rhode Island Avenue corridor at the intersection with 13th Street NE, where he has planned for over two years to bring 300 units. Bajaj said the first phase of that project, planned for 60 units, is expected to break ground in March.
While his two newest projects are planned as condos, Bajaj said he has the flexibility to switch to rental apartments depending on the market. Bajaj, who founded District Growth in 2017, has built projects in Petworth, Columbia Heights, Ivy City, Capitol Hill and Buzzard Point.
"I wait until it’s all finished then sell it, and if I can’t sell it, I rent it," Bajaj said. "I don’t have a lot of partners; I'm the decision-maker. Depending on the day and my mood, I could change it to rentals. I don’t have to ask a board or any of that."
As of Dec. 31, the Northeast D.C./NoMa/H Street submarkets had 4,965 multifamily units under construction, according to Newmark's Q4 multifamily report, the most out of any submarket in the District. That submarket also delivered the most units last year with 3,511, according to the report.
"There's a lot of development happening," Bajaj said.