Groundbreaking Held For $136M Redevelopment Of Marbella Apartments

ARLINGTON, VA — The Arlington Partnership for Affordable Housing held a groundbreaking ceremony on Wednesday for the redevelopment of the Marbella Apartments in Arlington's Radnor/Fort Myer Heights neighborhood.

The new 234-unit affordable development will replace a 31-unit garden-style apartment complex on N. Queen Street, which is being torn down.

The project will feature 84 one-bedroom units, 100 two-bedroom units, and 50 three-bedroom units. The apartments will be a short walk across Route 50 to either the Courthouse or Rosslyn Metro stations.

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

“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,” Carmen Romero, APAH’s president and CEO, said in a statement.

The new community will include free Wi-Fi connectivity, an onsite tot lot, community spaces, a penthouse amenity space, and an outdoor courtyard.

Marbella Apartments’ redevelopment is a $136 million project, with construction costs close to $80 million. Virginia Housing awarded the project 9 percent and 4 percent tax credits, marking APAH’s seventh project to use this financing model.

The Virginia Housing Development Authority provided a total of $32.5 million in permanent loan financing, and Arlington County’s Affordable Housing Investment Fund provided $21.8 million in financing. The tax credit equity was purchased by Capital One, with whom APAH has worked on three other deals.

“Today’s milestone is a key step in preserving existing affordable units and increasing the available affordable housing stock in a high-cost market. Through our work with organizations like APAH, we are helping to create more equitable housing opportunities by leaning into our financing expertise, community investments, and partnerships,” said Ed Delany, senior capital officer for the Mid-Atlantic at Capital One Community Finance.

Hudson Housing Capital partnered with Capital One as the project's equity investor and tax credit syndicator. Construction partners include general contractor Donohoe, construction management KCM, civil engineer Walter Phillips, and architecture firm KGD.

Founded in 1989, APAH has nearly 714 affordable apartments under construction and an additional 1,500 in its development pipeline.