Alexandria, VA – JBG Smith Properties (NYSE: JBG) has unveiled plans for an ambitious housing project in Potomac Yard, set to introduce over 600 new housing units. This significant development aims to complete the company’s ownership of three major blocks located south of the well-known Potomac Yard Center, which features popular retailers such as Target, Barnes & Noble, and Amazon Fresh.
The company submitted the necessary applications to the city government for approval, marking an important step in the planning process. The Alexandria City Council is scheduled to hold a public meeting by the end of this year.
North Potomac Yard is home to a new Inova Hospital, a new Virginia Tech campus, and a Metro station, all strategically located near strong commercial anchors for employment such as the American Physical Therapy Association, the National Industries for the Blind, the Institute for Defense Analyses, and Alexandria Kaiser Permanente.
Alexandria Economic Development Partnership (AEDP) is a major player in Alexandria’s development and economic growth. Stephanie Landrum, AEDP’s president and CEO, explains that the primary focus of AEDP is to encourage commercial development and business activity throughout Alexandria. Landrum adds, “We continue to promote North Potomac Yard as an emerging innovation and entertainment district—it is the mixture of uses that is essential for the continued development of the neighborhood. The proposed new, metro-adjacent housing, including affordable units, will also support AEDP’s efforts to attract more employers and jobs to the city.”
Alexandria City and AEDP have shown through their fiscal impact modeling that all new development of this kind brings money to the city’s general fund. They state that more revenue is essential for the city’s financial health, which impacts the quality of life for residents. They also note that the costs of providing essential city services keep rising. Revenue from new development helps the city keep a balanced budget without having to raise taxes.
To bring this project to fruition, JBG Smith partnered with the homebuilder Toll Brothers Inc. (NYSE: TOL) and the nonprofit organization Wesley Housing Development Corporation. The latter are well known for not only assisting the community with affordable housing but also providing “a wide range of services for vulnerable families.”
The project plans include 431 multifamily housing units in a seven-story building, covering 570,000 square feet near the metro. Additionally, there will be 88 affordable housing units in a six-story building, spanning 119,000 square feet on a half-acre across from the Giant supermarket on E. Glebe. About 80% of these affordable units will be for families, offering two- or three-bedroom options. Rental prices will be set for households earning between 30% and 80% of the area median income (AMI), with an average target of 60% of AMI. Wesley explains that AMI helps determine income levels for housing assistance programs. They are applying for Low-Income Housing Tax Credits, which are federal subsidies for investors, managed competitively by the states. JBG Smith will provide the land needed for this affordable housing development.
The third development is set to transform the area bounded by Main Line Boulevard, Potomac Avenue, Maskell Street, and Swann Avenue. The plans include 120 for-sale townhouses that will cover approximately 239,000 square feet on a 4.3-acre site. This project is being led by Toll Brothers’ subsidiary, Toll Mid-Atlantic LP Co. Inc. It aims to provide new housing options and contribute to the overall growth of the area.
Silverstone Senior Living, based in Dallas, is currently constructing the second of two buildings for its Riviera Alexandria assisted living and memory care facility. The construction project is adjacent to the retirement community known as The Landing. This addition will enhance the community’s diversity and amenities by providing more senior living options in the neighborhood. The ongoing development of new market value housing, affordable housing, along with retail and senior facilities, reflects a significant and continued investment in Alexandria’s vibrant Potomac Yard area.
