Opportunity Zone Site in Prince William County Fetches $17M
The joint venture buyers will build a 318-unit multifamily development on the site
A joint venture between IDI Group Companies and PTM Partners has acquired a development site within a Prince William County opportunity zone for $16.6 million, with plans to develop a 318-unit apartment complex.
The site, at 1000 Annapolis Way in Woodbridge, Va., is adjacent to IDI’s 402-unit Rivergate North apartment complex and will serve as the second phase of the riverfront development.
The buyers also secured a $63.8 million loan from United Bank. The seller was not disclosed.
PTM, which focuses on qualified opportunity zones, invested in the deal via its Opportunity Zone Fund II, marking the fund’s second investment.
The project will provide housing options for the 50,000-plus military, civilian, contractor and Department of Defense personnel working at nearby Fort Belvoir, a rapidly growing Army base less than eight miles from the planned community, said Scott Meyer, PTM’s chief investment officer.
“Like with a lot of things, COVID-19 has accelerated trends — and this area in particular was already growing — and there’s been even more of a push over the last 12 months towards suburban living, and not everyone can afford a house,” Meyer told Commercial Observer. “So, we’re looking to build this apartment community at an attainable price point for a lot of people living in the area, whether they’re commuting into Washington, D.C., once a week or five days a week. This is a very, very nice place to live that’s proximate to D.C. at a much more affordable price point.”
The property will offer a mix of one-, two- and three-bedroom apartments. Amenities will include a health and fitness center, club lounges, a roof terrace and an outdoor pool with sundeck. Leasing is scheduled to begin in the fourth quarter of 2022.
“What we see here in Woodbridge is the widening of Route 1 over the past five years, and that has opened more commercial activity along that corridor,” Meyer said, adding that the recently announced expansion of the Virginia Railway Express (VRE) was a game changer. “It’s a big commitment to that corridor between Washington, D.C., and Richmond, and so we plan to build this apartment community and own it for the next 10-plus years.”
Phillips Realty Capital led the financing effort which brought PTM Partners and IDI Group together as well as an $18.9 million preferred equity investment by EB5 Capital.
“We are excited to see this partnership move forward with a project that will continue the transformation of Woodbridge and Prince William County,” Dan Shiff, managing director at EB5 Capital and principal of Phillips Realty Capital, told CO. “Phillips Realty Capital was able to successfully bring together PTM Partners’ Opportunity Zone investment and development expertise, a premier development partner in IDI and EB5 Capital’s platform to complete the capital stack on this transaction.”
IDI is also pursuing the development of a $380 million, 19-acre, mixed-use project in North Woodbridge across from the VRE station. The project will be built in phases, and include approximately 850 units and offer 160,000 square feet of retail space.