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SHIRLINGTON, VA-Dirt is set to move this week on a 217-luxury-unit multifamily here that is being developed for $73 million. Trammell Crow Residential is developing the building, called Alexan 24, in a joint venture partnership with Prudential Real Estate Investors. Construction financing–a $70 million loan–was provided by Bank of America.

Located near the intersection of Glebe Road and I-395, delivery of the property–a former Econolodge–is scheduled for the third quarter of 2010. The property will have five stories, as well as a pool, clubhouse, fitness facility, game room, and business center. Twenty of the apartments have been slated to be affordable housing; the remaining197 will be market-rate.

Fundamentals for multifamily properties in the DC area remain strong–albeit not as strong as two years ago, although by now few need to hear such qualifiers. According to the mid-year report on this market by Delta Associates, annual class A absorption has climbed to 5,676 units–second in the US and the highest Delta has ever recorded for the Washington metro. Average monthly absorption at new projects declined slightly to 16 units per month. “However this rate is still remarkable, as the number of projects marketing has nearly doubled since last year,” it said.

The area’s pipeline has also ballooned to 36,951 units from a historically low 18,000 units in 2005. This, of course, has been largely driven by the reversion of condominium projects. In the 1st quarter of 2008, the pipeline appeared to have begun its cyclical decline, and has continued downward to 33,802 units as of mid-year 2008, Delta reported. “We will likely look back at 4th quarter 2007 as the peak of apartment pipeline during this business cycle.” TCR was not available for comment by publication time.

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