A joint venture comprising FRP Holdings Inc., Steuart Investment Co. and MidAtlantic Realty Partners is planning to develop as many as 10 mixed-use projects in Washington, D.C.’s Capitol Riverfront and Buzzard Point submarkets.
The projects will be developed on four land parcels owned by SIC, which include phases III and IV of RFP Holdings’ Riverfront on the Anacostia Development; the site currently leased to Vulcan Materials in Buzzard Point; and the existing mixed-use multifamily and retail assets owned by RFP Holdings and MRP in the Capitol Riverfront and Buzzard Point submarkets, which include Dock 79, The Maren and The Verge.
When complete and stabilized, the planned projects will encompass more than 3 million square feet of mixed-use development. That total will include 3,000 residential units and 150,000 square feet of retail.
Taking responsibility
SIC will purchase a share in a tenancy in common of 20 percent of ownership in Dock 79 and The Maren for $65.3 million, of which $44.50 million will be attributable to FRP Holdings. SIC will hold rights to acquire a 10 percent to 20 percent share of The Verge, phases 3 and 4 of the Riverfront projects and Square 664E.
When developing 28 parcels, MRP and FRP Holdings will take responsibility for all predevelopment work. That work will include entitlements, permits, zoning approvals, design, budgets, additional equity and construction financing needed to start projects.
All predevelopment costs will be turned into equity in the project. At that time, the partners will undertake an appraisal process for the land, with purchase price comprised of the appraised value minus estimated environmental remediation expenses. Three months ago, a Yardi Matrix multifamily report found Washington, D.C., savoring a robust property development pipeline.
