300 K St. SW
Update
05/06/24
Tough Financing Market Leads to Extension Request for Southwest/Waterfront Multifamily
The Bernstein Companies has filed a two-year extension request to begin construction on the approved multifamily project at 300 K Street SW. The planned, 187-unit building is part of a two-phase project, with the first building in the development, 301 M Street SW completed in 2018. Over the past 2 years, TBC has diligently sought an equity partner and a construction loan but has had no success due to market forces. Per the filing "Multifamily vacancy rates continued climbing through Q4 of 2023, reaching 5.4% with a 20-basis point increase, and rates are expected to keep rising for the next few quarters. Although supply and demand are eventually expected to return to average rates, 2023 saw a record supply of new construction that exceeded demand. Construction costs are continuing to rise, and the recent slight downward trajectory of construction cost inflation has still not brought inflation down to pre-pandemic levels."
