Joint Venture Breaks Ground on $600M Northeast Heights Redevelopment in Washington, D.C.
WASHINGTON, D.C. — A joint venture between Cedar Realty Trust (NYSE: CDR), Asland Capital Partners and the Goldman Sachs Urban Investment Group has broken ground on the first phase of Northeast Heights. The $600 million mixed-use office and retail development is located in the Minnesota and Benning submarket of Washington, D.C.’s Ward 7 neighborhood. The property is located at 3924 Minnesota Ave. Construction has a completion date of late 2022 or early 2023.
The first phase of Northeast Heights includes the construction of a 258,500-square-foot office building, as well as 18,000 square feet of street-level retail space. The office space is 100 percent leased to the Washington, D.C., Department of General Services (DGS) for its headquarters.
Northeast Heights is a multi-phase, mixed-use redevelopment of two existing retail shopping centers at the intersection of Minnesota Avenue and Benning Road. Cedar Realty Trust will lead future phases of the development, which will include the development of multifamily residential with designated affordable apartments, additional office space, community gathering areas and retail space including a new grocery store.
The retail for the DGS building will be made up primarily of full-service and/or fast-casual restaurants, as well as service establishments for the 400 to 500 professionals working above and the larger community.
The project offers access to nearby D.C. Metro and streetcar stops, as well as the Anacostia Freeway (Interstate 295). It is also situated close to other prominent D.C. mixed-use corridors along H Street, as well as attractions such as Fort DuPont Nationals Baseball Training Center, Fort DuPont Ice Rink, Park 7 and Fort Chaplin Park.
The area’s designation as an Opportunity Zone will allow for tax incentives for investments in new business and commercial projects in the market. Trammell Crow Co. is a designated fee developer on the project. Roland Merchant of JLL Capital Markets team arranged the $105 million in construction financing from JPMorgan Chase for the first phase of the project.
“This groundbreaking not only launches the new, innovative headquarters for DGS, but also signifies the revitalization of a historically underserved neighborhood in Ward 7,” says Robin Zeigler, chief operating officer at Cedar Realty Trust. “As the future of Northeast Heights takes shape, we’re excited to create a dynamic, mixed-use destination that will spur economic activity and serve as a long-term asset for the surrounding community.”
Cedar Realty Trust is a Port Washington, New York-based real estate investment trust, which focuses on the ownership, operation and redevelopment of grocery-anchored shopping centers. Asland Capital Partners is an investor in residential and commercial properties. The Goldman Sachs Urban Investment Group is an investing and lending business focused on community and economic development, predominately in underserved minority communities. The company is the strategic capital partner for the project.
— Julia Sanders