D.C.’s Neighborhood Development Company Closing Up Shop After 25 Years
Developer cited ‘untenable’ operating environment as reason for the closure
By Nick Trombola August 29, 2024 8:16 pm
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The commercial real estate environment in Washington, D.C., has taken its toll on both development activity, and developers themselves — enough for Neighborhood Development Company (NDC) to call it quits.
The company, which recently celebrated its 25th year of operation, will officially close its doors at the end of September, according to a post made to its website late last week. NDC’s CEO Adrian Washington said the post-pandemic years have “unleashed a perfect storm” that makes the District’s “operating environment untenable for us.”
“This is obviously a very painful decision, and we are doing all we can to minimize the disruptions this will cause residents, financial partners, our employees, government partners, and our many other stakeholders,” Washington said in a statement. Bisnow first reported the news.
NDC had developed a diverse portfolio of housing, schools and commercial space since its founding in 1999. Though it’s unclear what will happen to its portfolio of existing properties or its development pipeline, such as the roughly 100-unit, mixed-use building at 3200 Rhode Island Avenue NE, in Mount Rainier, Md., on the edge of the District.
Yet, the District pledged to “support impacted projects” reeling from NDC’s closure, according to a statement issued by D.C. Deputy Mayor for Planning and Economic Development Nina Albert.
“We thank Adrian Washington and Neighborhood Development Company for their many contributions to our city, including their work to deliver affordable housing, new schools and childcare centers, and other community-serving spaces,” Albert said.
In retrospect, there were signs that NDC was feeling the market pressure before its announcement last week. In early August, lender Forbright Bank issued a foreclosure notice on The Arbor at Takoma, a 36-unit condo building at 218 Cedar Street NW that NDC had just delivered earlier this year.
Washington sat down with Commercial Observer in late 2020 to discuss NDC’s effort to expand D.C.’s affordable housing supply in the wake of the COVID-19 pandemic.
Nick Trombola can be reached at NTrombola@commercialobserver.com.
