MidCity today announced that it has fully subscribed its first Opportunity Fund, which will finance the development of a 108-unit multifamily property at 1400 Montana Avenue NE, in Washington, DC. The project at 1400 Montana received special exception approval from the District’s Board of Zoning Adjustment last week. Project construction is anticipated to begin in the spring of 2020 with completion in the summer of 2021, making this one of the first projects likely to deliver under the new federal Opportunity Zone Program.
“The unique tax advantages of the Opportunity Fund combined with the current popularity of the program allowed us to quickly capitalize our first fund with $14 million in equity,” stated Madi Ford, MidCity General Counsel who structured the fund.
Located in the Langdon neighborhood of Washington, DC, the $33 million project will deliver 108 total residential units, including 11 affordable units at 60% of area median income. The project will include 34 surface parking spaces, a roof terrace, a fitness center, and den and workspaces. Jamie Weinbaum, MidCity’s Executive Vice President of Development noted: “Our unique positioning and experience in this submarket of the District provided MidCity with an ideal platform to advance the development process and be an early beneficiary of the OZ program.”
Rendering of 1400 Montana project
“The Opportunity Zone designation allows MidCity to drive substantial capital into an economically-distressed area, spurring economic development and job creation, and creating new housing and affordable units where there are none presently,” stated Stephanie Liotta-Atkinson, MidCity’s Executive Vice President. “We commend our local and federal officials for their leadership in ensuring that the Brentwood census tract was a beneficiary of the Opportunity Zone program.” Mayor Bowser designated Brentwood as one of 25 locations in the District of Columbia nominated for Opportunity Zone status.
The project at 1400 Montana Avenue NE is adjacent to MidCity’s 20-acre Brookland Manor property, a site that also benefits from the same Opportunity Zone designation. Brookland Manor is being redeveloped in phases into RIA, a mixed-income, mixed-use project with 1,800 residential units and up to 181,000 square feet of commercial space. RIA will also feature an Opportunity Fund as a component of the project’s capital stack, as well as charitable and public financing components to support community development and infrastructure needs at the site.