APAH Begins Redevelopment of $150M Marbella Apartments in Arlington

General contractor Donohoe, construction management KCM, engineer Walter Phillips and architecture firm KGD have partnered with APAH on the project.

Capital One (COF) provided a $36.2 million construction loan and a $59.7 million low-income housing tax credit equity investment. The project has also tapped hudson housing capital to partner with Capital One as equity investor and tax credit syndicator.

Additionally, Virginia Housing Development Authority provided $32.5 million in permanent loan financing and awarded the project 9 percent and 4 percent tax credits, marking APAH’s seventh project to employ this financing model. Arlington County’s Affordable Housing Investment Fund also kicked in $21.8 million in financing.

The new Marbella Apartments will consist of 84 one-bedroom, 100 two-bedroom and 50 three-bedroom units. 

Scheduled to be completed in early 2025, the apartments will be reserved for residents earning household incomes between 30 and 60 percent of area median income, which currently is $124,474 for a household of four. 

The community will include solar panels, and offer free resident Wi-Fi, a resident services suite and a courtyard. APAH is also pursuing EarthCraft Gold and Energy Star certifications for reduced greenhouse gas emissions and lower energy consumption, according to a company statement.

“APAH is committed to adding more quality affordable homes in Arlington and throughout the region,” Carmen Romero, APAH’s president and CEO, said in a prepared statement. “This neighborhood is facing rapidly rising costs which disproportionately burdens lower-income households. Marbella Apartments’ redevelopment is an opportunity to serve even more residents and offer some relief.”

The property is a short walk to Courthouse Metrorail station.

Update: This story originally misattributed source material. This has been corrected. We apologize for the error.

Keith Loria can be reached at Kloria@commercialobserver.com.