Investment Spurs Economic Development in Underserved Communities East of the Anacostia River
Arctaris Impact Investors, LLC (“Arctaris”) is pleased to announce its recent Opportunity Zone investment in a $600 million multi-phased development project spanning the Ward 7 and 8 neighborhoods of Washington, D.C. The project is expected to attract additional capital to the region for inclusive development.
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The $600 million multi-phased Opportunity Zone development project is expected to bring new jobs and economic vitality to Washington, DC Wards 7 and 8. (Graphic: Business Wire)
The investment was catalyzed by D.C. Mayor Muriel Bowser’s mandate for city agencies to use the leasing power of the D.C. government to spur economic development in historically underserved communities. The construction of the new headquarters for D.C.’s Department of General Services (“DGS”) will involve the relocation of the 700-person agency to the Benning Road neighborhood bringing new jobs and economic vitality to the area. DGS was the first city agency to sign a contract for office space east of the Anacostia River under this initiative, and the District anticipates that it will encourage other government agencies to follow suit.
Additional investors include minority-owned developer Asland Capital Partners and the Goldman Sachs Urban Investment Group. The first phase of the project involves construction of a $150 million office building that will serve as DGS headquarters. Project construction began in May 2021 with a target completion date of December 2022. The second phase of the project is projected to break ground in 2022. The full project is expected to deliver 241,000 square feet of office space, 130,000 square feet of retail and restaurants, a 70,000 square-foot community grocery store, and 1,355 residential units across 13.3 acres.
“This development project is an exciting step in the effort to expand development and drive additional resources into Wards 7 and 8 in Washington, D.C.,” said Benjamin Bornstein, a Managing Director at Arctaris. “We are thrilled to partner with a prominent minority-owned development firm, Asland Capital Partners, to join the larger investor group including Goldman Sachs on the first phase of this project. The Department of General Services relocation to Ward 7 will bring approximately 700 city employees into the neighborhood daily, resulting in demand for food and other daily needs, which we believe will be of significant benefit to the community and pave the way for later phases of the project.”
“Asland is pleased to welcome Arctaris into the family of Asland investors and we look forward to expanding our relationship in future transactions. Arctaris is a great addition to the unique investment group that is driving transformational change in historically underserved regions of Washington, D.C.,” said James H. Simmons, III, CEO & Founding Partner of Asland Capital Partners. “We believe there is tremendous opportunity in D.C.’s Wards 7 and 8 and we are proud of the work being done here to bring greater opportunity to residents of the Benning Road neighborhood and surrounding areas.”
About Arctaris Impact Investors
Arctaris Impact Investors, LLC is a Boston-based impact investment firm with experience spanning more than 12 years and six funds, with both debt and Opportunity Zone equity investments. The firm manages funds that invest in growth-oriented operating businesses and community infrastructure projects located in underserved communities. Founded in 2009, Arctaris has partnered with the Kresge Foundation, Harvard Business School Professor Michael Porter’s Initiative for a Competitive Inner City, and multiple other foundation, federal and state government agencies to invest in Opportunity Zones, inner cities, and targeted rural communities throughout the U.S., with the aim of delivering above-market investment returns alongside positive social impact. For more information visit www.arctaris.com or for press inquiries contact jane@arctaris.com.
About Asland Capital Partners
Asland Capital Partners, a minority-owned private real estate investment firm, was founded in 2019 in New York City by James H. Simmons III. At the intersection of real estate, public policy, urbanism and technology, Asland’s mission is to acquire, reposition, and operate best-in-class multifamily, mixed-use and retail assets in revitalizing sub-markets throughout the U.S that improve communities and enhance the lives of their residents. Asland creates value for both financial shareholders and community stakeholders by focusing on underinvested and/or undermanaged assets. For additional financial and descriptive information on the Company, its operations and its portfolio, please refer to the Company's website at www.aslandcap.com.
About Goldman Sachs Asset Management’s Urban Investment Group (UIG)
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of September 30, 2021. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Established in 2001, the Urban Investment Group within Goldman Sachs Asset Management has committed over $12 billion through real estate projects, social enterprises and lending facilities for small businesses and students, creating economic value and opportunities for underserved communities and families. Follow us on LinkedIn.
Legal Disclaimer
Certain information contained in this press release constitutes forward-looking statements. These statements reflect prevailing conditions and our best business judgment as of the date of issuance. As a result, actual results may vary from the projections and it should not be relied upon as investment advice.
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Contacts
Jane Moncrief
jane@arctaris.com
