The wooded site sits across Leigh Street from the former Washington Commanders practice facility. (BizSense file photo)
A development giant has splashed some cash near Scott’s Addition.
Last week Greystar, a South Carolina-based firm that touts itself as one of the biggest apartment developers and owners in the country, bought the 6-acre wooded lot at 2700 W. Leigh St. for $18.4 million, city records show.
The property sits just east of the Movieland At Boulevard Square complex, and has long been planned for a sizable multifamily development.
In 2022, a different development group bought the plot from Movieland owner Bow Tie Cinemas and filed plans to build a 374-unit apartment building on the site. That group included Maryland private equity firm FCP, and Level 2 Development and SJG Properties, the D.C. developers currently building the eight-story Ace building around the corner on Arthur Ashe Boulevard.
Despite having the land secured and their plan of development approved, the FCP group’s development was one of many in the region to be delayed due to high interest rates and increased construction costs. Earlier this fall, Greystar stepped in and took the lead on the project, which is now set to total 388 units and reach seven stories.
The Nov. 13 sale marked a nearly $3 million windfall for FCP’s group, as they’d bought the land for $15.5 million in spring 2022. The city most recently assessed the parcel, which is zoned TOD-1 Transit-Oriented Nodal district, at $7.3 million.
The per-acre sales price comes in at $3.1 million, which is $2 million less than the current per-acre high bar in the Scott’s Addition area. That mark was set by Henrico-based Capital Square’s $5.2 million per-acre purchase of the 2-acre former Dairy Bar complex on Roseneath Road.
Greystar has previously co-developed in Richmond, namely at The Otis in Scott’s Addition, which it took on with Capital Square.
Level 2 is still on the development team for 2700 W. Leigh St., but it’s unclear whether SJG still is. SJG did not respond to requests for comment, and Greystar spokespeople weren’t available for comment by press time. FCP declined to comment.
Greystar’s project will rise just south of the city’s new baseball stadium, which as of a few weeks ago broke ground across the train tracks as part of the overall Diamond District development.
The wooded site sits across Leigh Street from the former Washington Commanders practice facility. (BizSense file photo)
A development giant has splashed some cash near Scott’s Addition.
Last week Greystar, a South Carolina-based firm that touts itself as one of the biggest apartment developers and owners in the country, bought the 6-acre wooded lot at 2700 W. Leigh St. for $18.4 million, city records show.
The property sits just east of the Movieland At Boulevard Square complex, and has long been planned for a sizable multifamily development.
In 2022, a different development group bought the plot from Movieland owner Bow Tie Cinemas and filed plans to build a 374-unit apartment building on the site. That group included Maryland private equity firm FCP, and Level 2 Development and SJG Properties, the D.C. developers currently building the eight-story Ace building around the corner on Arthur Ashe Boulevard.
Despite having the land secured and their plan of development approved, the FCP group’s development was one of many in the region to be delayed due to high interest rates and increased construction costs. Earlier this fall, Greystar stepped in and took the lead on the project, which is now set to total 388 units and reach seven stories.
The Nov. 13 sale marked a nearly $3 million windfall for FCP’s group, as they’d bought the land for $15.5 million in spring 2022. The city most recently assessed the parcel, which is zoned TOD-1 Transit-Oriented Nodal district, at $7.3 million.
The per-acre sales price comes in at $3.1 million, which is $2 million less than the current per-acre high bar in the Scott’s Addition area. That mark was set by Henrico-based Capital Square’s $5.2 million per-acre purchase of the 2-acre former Dairy Bar complex on Roseneath Road.
Greystar has previously co-developed in Richmond, namely at The Otis in Scott’s Addition, which it took on with Capital Square.
Level 2 is still on the development team for 2700 W. Leigh St., but it’s unclear whether SJG still is. SJG did not respond to requests for comment, and Greystar spokespeople weren’t available for comment by press time. FCP declined to comment.
Greystar’s project will rise just south of the city’s new baseball stadium, which as of a few weeks ago broke ground across the train tracks as part of the overall Diamond District development.
It’s such a pleasure to see apartment development resume. This one is a whopper! Great housing for railroad enthusiasts too although I assume that the parking garage will back up to the tracks.
Just because they purchased the property does not mean they will immediately develop it. They have other projects underway so It may be quite some time before anything happens here and they may still wait for more favorable development atmosphere.
I hope the multitude of multifamily projects popping up along Hermitage and Boulevard leads to pedestrian and cyclist improvements. I’ve attempted to walk over there and it’s not pleasant. Same goes for cycling – you’d have to be an incredibly brave cyclist to ride on Boulevard, I’ve done it on Hermitage to get to the Diamond but that’s also pretty iffy.
Some roads should still be roads and not necessarily multi-modal for cyclists. I would be more interested in them building a separate pedestrian and bicycle path over the railroads tracks. Perhaps from Movieland or this parcel over to the ball park. It would increase connectivity while preserving a major arterial from being disrupted. Not every road needs a road diet.
Yes literally! There is already a rail trail started on the other side of leigh st behind the green, just continue it over the tracks into the new diamond development, it’s perfectly set up for one right there
I agree; I never understood with all the City funds being thrown around with Diamond District, all the talk from the City administration about connectivity and alternative transportation routes that somehow at least an easement or a couple of million was set aside to allow a ped/bike path with a bridge over the tracks could have been constructed (or at least right-of-way obtained)to connect the training center over to new Diamond District/stadium. .
Amazing cost. The expense would require $775 per month per unit just to recover the land investment in 5 years. Adding building, amenities, taxes & profit means a 1 bedroom will possibly come in at 3 grand per month. Crazy!
The Otis rents are the highest in the region. Additionally, I would not expect that number of units from the previously approved project to stay the same. I expect this company will add quite a few additional units.
Based off this comment they would at least have to triple the amount of units to bring it down to $200 a unit. If it’s based off of $1,900 dollars in rent. But that kind of density does belong here in this part of the city.