Dive Brief:
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Toll Brothers' Apartment Living multifamily business unit, along with the AECOM Capital investment fund, have secured a $130 million construction loan to build a 525-unit luxury apartment in the North of Massachusetts Avenue (NoMa) neighborhood of Washington, DC.
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AECOM subsidiary Tishman will oversee construction of the 14-story building, which will be located just north of the DC’s Union Station transit hub and within walking distance of the city’s historic H Street Corridor.
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Union Place will contain 16,000 square feet of retail space, including a daycare center, and a below-grade parking garage. Amenities will include a club room, fitness center, café, courtyard and a rooftop swimming pool. Leasing is expected to start in the spring of 2018.
Dive Insight:
Washington continues to experience a residential construction boom as demand for housing increases, largely fueled by an influx of young professionals moving to the area, exposing a shortage of inventory.
The city had more than 14,800 units under construction or large-scale renovation as of August 2016, up from 13,294 units a year earlier, according to the 2016-2017 DC Development Report from the Washington, DC Economic Partnership and CBRE. It is expected that 6,524 units will have been delivered by year-end — the most since the group started tracking in 2001 — and 8,250 units are expected for 2017.
Nearly half of the new additions for 2016 are in three neighborhoods: Capitol Riverfront, NoMa/Union Market (the site of the new AECOM/Toll Brothers project) and Southwest. And many are being built close to public transportation, bike paths and other community resources.
In NoMa, Skanska recently broke ground on a 12-story, 326-unit apartment building as part of the first phase of the company's three-building Tyber Place project. It is located just down the street from another new project, the 51,000-square-foot flagship store of outdoor recreation leader REI, led by Douglas Development Corp., which is co-located with 170,000 square feet of commercial office space and 20,000 square feet of retail space.
Skanska is also teaming up with JGB, MRP Realty and AvalonBay on a four-block pedestrian promenade, Meander, that will snake green space through some of NoMa's current and forthcoming developments.
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