Arctaris Impact Investors Opens $152M Northeast Heights Opportunity Zone Office Project in Washington, D.C.

by Jeff Shaw

WASHINGTON, D.C. — Arctaris Impact Investors LLC has completed Phase I of Northeast Heights, a six-story, 281,000-square-foot office building in Ward 7 of Washington, D.C. The office building is located in a Qualified Opportunity Zone, which is an economically distressed area where new investments may be eligible for preferential tax treatment.

The office building is the first phase of a three-phase, $600 million effort to revitalize Ward 7, according to Arctaris’ website. Future phases of Northeast Heights are expected to include a grocery store redevelopment, approximately 1,300 residential units and community spaces.

According to Arctaris, the project was catalyzed by D.C. Mayor Muriel Bowser’s mandate for city agencies to use the leasing power of the D.C. government to encourage economic development in historically underserved communities. Northeast Heights was pre-leased to the city’s Department of General Services and will serve as the new headquarters for the agency, which employs approximately 700 people. The Department of General Services was the first city agency to sign a contract for office space east of the Anacostia River under this initiative.

“Arctaris is proud to be part of the coalition led by Mayor Bowser, combining forces with like-minded, community-oriented investors to help bring new vitality and economic activity into Ward 7,” says Ben Bornstein, managing director of Arctaris. “We hope to participate in further investment in Wards 7 and 8 to benefit residents and strive toward a more equitably served city with greater opportunity for all community members.”

Arctaris developed the building in partnership with Asland Capital Partners, a minority-owned private real estate investment firm based in New York City, as well as the Urban Investment Group within Goldman Sachs Asset Management. 

Erie Insurance invested in the project as part of a $20.5 million commitment to Arctaris to fund companies and development projects in opportunity zones. Erie and Arctaris have previously partnered on projects in Baltimore, Pittsburgh, D.C. and the insurance company’s hometown of Erie, Pennsylvania.

— Channing Hamilton

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