Vacant Alexandria office building to become 377 affordable apartments
Amazon, city partner with developer to convert property empty since 2003
A 600,000-square-foot office building that has sat vacant for more than two decades will be converted into 377 affordable housing units under a partnership between the city, developer Stonebridge, and Amazon’s housing fund, the partners announced Thursday.
The building at 5001 Eisenhower Ave. was constructed in 1973 for the U.S. Army Materiel 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.
Under the agreement, half the units will be restricted to renters earning 50% to 60% of the 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.
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 fund is contributing long-term, low-rate subordinate debt and requiring the 99-year affordability covenant, according to the announcement.
City Council approved the tax abatement in December 2024, but the original plan included some units available to renters earning up to 100% of AMI with a 40-year affordability period. Amazon’s involvement allowed the partnership to deepen affordability across all units and extend the covenant, according to Stonebridge.
“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,” Mayor Alyia Gaskins said in a statement.
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.
Love to see these longer affordable-rate terms!