Ah, inflation: It’s rearing its head everywhere.
The Arlington Partnership for Affordable Housing now expects to spend 14 percent more in hard construction costs; 19 percent more for soft construction costs; and a whopping 100 percent more in financing costs than previously estimated in its plan to create a new 12-story apartment property at 1300 North Pierce St.
The total project cost is now estimated at $55.7 million for the 234-unit project, up from a projected $47.8 million in February 2022.
Using a variety of funding sources, APAH purchased the 134-unit Marbella Apartments property in 2011. The current redevelopment plan is for a portion of the parcel.
Arlington County Board members on May 13 approved a financing-commitment letter confirming its intent to provide $21.8 million in loans for the project through the government’s Affordable Housing Investment Fund.
That allows the development process to roll on, with an expected start of work sometime this summer.
