Senior Housing Acquisition Proposed As Ladrey Redevopment Deemed Unfeasible

ALEXANDRIA, VA — As planned redevelopment of the Ladrey Senior Hi-Rise was deemed unfeasible, Alexandria City Council is being asked to provide a guarantee for funding to acquire another senior housing community.

Alexandria Redevelopment and Housing Authority, which runs the Ladrey Senior Hi-Rise and other public and affordable housing, had entered a purchase agreement in April to acquire new senior housing building The Alate at 1122 N. First Street. The authority is asking for the city to provide a guarantee through backstop support for $56 million in bond funding from the Virginia Resource Authority to purchase The Alate. Alexandria Redevelopment and Housing Authority is branding The Alate building as "Silver Fox."

Vice Mayor Sarah Bagley noted at the meeting that City Council wasn't taking a vote Tuesday. The backstop request will go back to City Council for consideration on June 24.

One factor contributing to the proposal is the stalled redevelopment of the Ladrey Senior Hi-Rise for seniors and people with disabilities at 300 Wythe Street. The Alexandria Redevelopment and Housing Authority and partner Winn Companies had proposed redeveloping the 11-story, 170-unit Ladrey non-ADA compliant building to bring it up to code, modernize the building systems and renovate units and amenities.

Alexandria City Council had approved the redevelopment in January 2024. However, Alexandria Redevelopment and Housing Authority now says the project is no longer feasible "because of changed conditions in the debt and equity (tax credit investment) markets," according to City Council meeting documents. The U.S. Department of Housing and Urban Development, noting delays in redeveloping an obsolete building, has suspended operating support for building management and maintenance and is requiring the authority to relocate Ladrey residents.

HUD has authorized 168 vouchers to relocate Ladrey residents. The Alexandria Redevelopment and Housing Authority intends to relocate Ladrey residents to Silver Fox and other housing of their choice. Relocations of all residents are expected to be completed by the end of 2025.

As for Ladrey, Alexandria Redevelopment and Housing Authority is working with developer Winn to renovate the existing building to supplement future senior housing. HUD approval would be required for a renovation of Ladrey, which is a scaled-back approach from the former redevelopment proposal.

The bond funding, which the city is being asked to guarantee, would come from the Virginia Resources Authority. The Alexandria Redevelopment and Housing Authority also plans to use $6 million of its own savings as equity. According to City Council meeting documents, the main risks for the city are uncertainty about federal voucher funding and the Alexandria Redevelopment and Housing Authority's ability to complete and maintain the project.

According to Alexandria Redevelopment and Housing Authority President Erik Johnson, the average age of Ladrey residents is 75, and the average income is nearly $20,000, with a majority coming from Social Security and pension. Residents pay an average monthly rent of $369, while funding covers 88 to 90 percent of their rent.

The current Alate community for seniors 62 and older includes amenities like concierge-style local transportation, assistance in scheduling medical and other appointments, community spaces and rooms, social and wellness programming, underground parking, a dining room with a commercial kitchen and more. According to City Council documents, The Alate's developer is seeking to exit the project and agreed to a $56.8 million sale. The 133-unit building has an estimated 18 occupancy.

Johnson estimated construction on Ladrey renovations could start in early 2027 and be finished in 18 to 24 months in 2029. Ladrey residents would have the ability to return or stay at Silver Fox or other housing. Alexandria Redevelopment and Housing Authority plans to allocate 110 vouchers to Silver Fox, significantly increasing affordable units from 7 percent to 83 percent.

Alexandria City Council members had a lengthy discussion with Johnson and city staff about the risks of guaranteeing the project funding while considering the needs of limited-income seniors. Bagley said residents can send comments to council or speak at the Saturday, June 14 public hearing about the topic. City Council is also holding a town hall Thursday, June 12 from 6 to 8 p.m. at the Charles Houston Rec Center Gymnasium (901 Wythe St.).

"I think we appreciate that Ladrey needs a solution and needs a solution quickly," said Bagley. "But I think what this council is weighing very seriously is the most responsible way to solve it on behalf of the entire taxpaying base in the city, is how do we sign off on this deal, having kicked every tire and poked at every element of it, I think is what we're effectively trying to do here."

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