Table of Contents
City officials broke ground Wednesday on a project to convert a 600,000-square-foot office building that has sat vacant for more than two decades into 377 affordable housing units.
The building at 5001 Eisenhower Ave., known as Victory Center, was constructed in 1973 for the U.S. Army Material Command, according to the city. The Army relocated to Fort Belvoir in 2003, and the building has remained empty since, contributing roughly 3% to Alexandria's overall office vacancy rate.
The project is a partnership between the city, developer Stonebridge and Amazon's Housing Equity Fund.
"These homes will be affordable in perpetuity, include family-sized units, and serve households at 50% AMI," Mayor Alyia Gaskins wrote on social media after the groundbreaking.
We broke ground on a new future for Victory Center! Vacant for 20 years, it will become homes for 377 families. Through a partnership with the Amazon Housing Equity Fund, these homes will be affordable in perpetuity, include family-sized units, and serve households at 50% AMI. pic.twitter.com/h3q3A1crk7
— Alyia Gaskins (@Alyia4ALX) February 26, 2026
Under the agreement, half the units will be restricted to renters earning 50% to 60% of area median income, with the remaining half available to those earning up to 80% of AMI, according to Stonebridge. The affordability restrictions will remain in place for 99 years.
The project includes 235 two- and three-bedroom units designed for families, the developer said. The first residents are expected to move in by summer 2027.
Ryan Belmore
The city is providing a 25-year tax abatement worth an estimated $13.6 million to $16.4 million, according to city documents. Amazon's Housing Equity Fund is contributing long-term, low-rate subordinate debt and requiring the 99-year affordability covenant.
City Council member Canek Aguirre said on social media that the project would help revitalize the area.
"When this conversion project is complete, 377 families will help liven up a portion of the Eisenhower Avenue Corridor that has been underutilized and quiet for far too long," Aguirre wrote.
"To have accomplished a conversion into an all-affordable project of this scale, with larger units and metro proximity is a major accomplishment for the entire City," Gaskins said in a statement when the project was announced in January.
The conversion is the first phase of a larger redevelopment of the 9.73-acre site. Future phases call for approximately 450 market-rate apartments, 50 townhomes, 10,000 square feet of daycare space and 5,000 square feet of retail, according to city documents.
The converted building will also include a 2,000-square-foot community space operated by the city.
Kennedy Wilson provided financing for the project, with equity capital from Criterion Real Estate Capital, according to Stonebridge. Cushman & Wakefield arranged the deal.
