West Glebe

Glebe Park Apartments, purchased in 1987 by ARHA, was a community of 40 affordable units and 112 market rate units located on three parcels of land fronting West Glebe Road and Old Dominion Boulevard. The 40 affordable units in Glebe Park Apartments were protected under a resolution executed between ARHA and the City Council of Alexandria, requiring one-for-one replacement of all publicly assisted housing units. Over the years the value of the market rate units declined significantly due to deferred maintenance, to the point that all 152 units became affordable by virtue of their condition. The property was then placed in default by HUD due to high vacancy rates. ARHA could either divest its portfolio of this non-performing asset, or somehow transform it into a performing property. 

 

The redevelopment of Glebe Park Apartments and restoration of this housing project to financial health required a decade of research, multiple planning studies, flexibility, inventiveness, and a levelheaded assessment of the options available to the owner, investors, and lender. Several design and financing constraints had a significant impact on redevelopment alternatives that could be considered for the community, the most significant of which was a $15 million mortgage that was in excess of the appraised value of the asset. The resulting decision was that VHDLLC would redevelop the West Glebe community in conjunction with another of ARHA’s assets that had tremendous land value and no debt, generating enough capital to finance redevelopment of the three Glebe Park Apartments related land parcels. The endeavor was successfully completed in 2010.