We've been talking with our investor clients about keeping their focus on developments coming up along the Purple Line light rail system that will connect from Bethesda to New Carrolton, allowing you to change almost all metro lines without having to go into the city!
From CoStar:
Project Billed As PG County's First LEED Gold-Designed Multifamily Building Breaks Ground in Hyattsville
Residences at the Six to Include 316 Apartments, 2,000-Square-Feet Plus of Retail
By Emily Pross
July 11, 2022 | 3:03 P.M.
A joint venture that includes Perseus TDC and investment partner Griffin Capital Co. are underway on a project that is being touted as the first multifamily development in Prince George's County, Maryland, designed for National Green Building Standard Gold certification.
Perseus, along with co-developer Potomac Investment Properties, broke ground on the Residences at the Six complex that is designed to bring 316 apartments as well as 2,052 square feet of street-level retail space to Hyattsville, a city located just northeast of the Maryland-D.C. border that has grown in popularity among multifamily developers. The project is being developed about 1 mile south of the University of Maryland campus at 6400 America Blvd., with the first units expected to be completed in summer 2024. Potomac Investment Properties has worked with Perseus TDC from the beginning of entitlements and design, which started in 2020, Perseus said in a release announcing the groundbreaking.
The Six meets goals laid out by regional planning body Metropolitan Washington Council of Governments, which includes increasing the development pipeline for new housing, including affordable housing, with an emphasis on sustainability and proximity to transit options and activity centers.
To meet LEED Gold standards, the Six has been designed to use sustainable materials and building processes, with the development to also include all native plants and Energy Star appliances, and a minimum of 5% of parking allocated to electric vehicle charging stations.
Though the city has long relied on its proximity to the University of Maryland and a renter-by-necessity population for tenants, Hyattsville has seen new development emerge as priced-out D.C. renters venture out of the District in search of cheaper options. That in turn has driven rent growth and led to stronger returns for investors. The area has also benefited from spillover job demand from the University of Maryland's Discovery District, the $2 billion, research-focused campus that is helping to carve out a new epicenter of innovation with dozens of federal and private sector laboratories, including from Adobe, Capital One, Raytheon Technologies and the National Quantum Lab.
The result is a vacancy rate that hit a record low last year of 3.6%. Monthly asking rental rates have also increased to $1,661, a price that still represents a relative bargain compared to the $2,082 monthly asking rental rate average for the D.C. market. Hyattsville should also get a boost once the long-delayed Purple Line light rail comes on line in late 2026.
The Six project is the latest for Persues TDC, a Washington, D.C.-based firm and affiliate of Transwestern Development Co. In March, the company bought an office building in Bethesda with plans to convert it into a 300-unit apartment building.
The team working on the Residences at the Six project include BTC Design Group, Studios Architecture, Parker Rodriguez, Bohler and CBG Builders Group as the general contractor. EagleBank serves as the lender.
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