Waterfront Station II - The Westerly
Update
12/13/21
Hoffman & Associates Breaks Ground on Waterfront Station II
Hoffman & Associates has announced the groundbreaking for Waterfront Station II. The project will include 449 residential units, a black box theater, space for AppleTree Public Charter School, and around 12,000 square feet of retail space. Construction is expected to last through the winter of 2023.
Grosvenor Americas, a privately owned international developer and owner, announces that its Structured Development Finance business has formed a joint venture with Hoffman & Associates to build Waterfront Station II, a mixed-use, mixed-income development. The transaction is the fourth project capitalized by Grosvenor’s True North III Partnership, established in July with $300M to invest in equity and equity-like opportunities.
The latest commitment of $25M is for the development of Waterfront Station II, a 449-unit mixed-use, mixed-income apartment project with approximately 29,000 SF of retail located at 1000 4th Street, SW. The development team is a partnership comprised of four organizations led by Hoffman & Associates. The residential component includes studio, one- and two-bedroom units, 30% of which (136 units) are set aside for income-qualified households earning up to 30% or 50% of area income. Affordable housing is a top priority for the Waterfront Station II project and was made possible through a partnership with AHC Inc., an affordable housing developer that works across DC, Virginia, and Maryland. The 30% proportion of units designated for affordable housing is more than twice as high as the regional average. Of the 136 units, 68 will be available to households earning 30 percent of the area median income and 68 for households earning at 50 percent of the area median family income (FMI).
The 12-story property is located near Hoffman & Associates’ signature project, The Wharf, the $3.6 billion, world-class, mixed-use neighbourhood that will feature more than 3.2 million square feet of development along a mile of the Southwest waterfront, that established Washington, D.C. as a true waterfront city.
“Our partnership with Hoffman & Associates is all the more meaningful because of its contribution to the community. We will realize a performing arts/theatre space for DC Improv; school space for AppleTree Public Charter School, a DC-based early childhood education provider; and a neighborhood restaurant for Good Company Doughnuts, in addition to the 136 affordable housing units,” Alexandra Johns, SVP Co-Investment at Grosvenor Americas said, “The dynamic environment between the Tidal Basin and the Ballpark, the ways the communities intersect and overlap, always inspires me — especially as a DC native.”
“We are proud to be a part of the Southwest community and to announce not only this significant groundbreaking milestone, but the project’s innovative funding model that allows us and our partners — including the city — the ability to offer this amount of affordable housing within a larger mixed-use project of this size,” said Monty Hoffman, Founder and Chairman, Hoffman & Associates. “This project is meaningful to us as a company because it allows us to contribute to and support the communities where we live and work.”
The joint venture with Hoffman & Associates follows Grosvenor’s commitment for Kite House, a 6-story condominium development at the Parks at Walter Reed with Hines, Urban Atlantic and Triden Development Group; Intersect at O, a 10-story condominium project at Eighth and O Streets, NW in Washington, D.C. with Roadside Development; and a 295-unit apartment complex with Intracorp in Seattle earlier this year.
True North III is the third iteration of a Grosvenor partnership to fund residential and mixed-use developments in the U.S. and Canada. Since 2000, the Company’s SDF business has acted as a capital provider to 76 residential development projects representing over 6,300 residential units and $3.5bn in gross development value.
