Developers Secure $92M to Launch Long-Awaited Apartment Project Near American University

After more than eight years since its initial proposal, the redevelopment of the vacant Superfresh grocery store site in Northwest D.C. has officially secured the necessary financing to move forward. A joint venture between Mill Creek Residential and PGIM Real Estate has successfully obtained a $92.3 million construction loan from U.S. Bank National Association, according to documents filed last month with the D.C. Recorder of Deeds. The total estimated cost of the project is expected to exceed $160 million.

Mill Creek Managing Director Peter Braunohler confirmed that the project is on track to begin construction by early February 2025. “The closing marks a major milestone, ending a challenging eight-year predevelopment phase since Mill Creek first became involved,” Braunohler said. “Our partners’ perseverance has been extraordinary, and we’re thrilled to finally begin building.”

Branded as The Ladybird, the redevelopment will feature 219 multifamily units and 19,000 square feet of retail space at the intersection of Massachusetts Avenue and 48th Street Northwest, located just half a mile from American University. The property, adjacent to the Spring Valley Shopping Center, was home to a Superfresh grocery store until it closed in 2013.

Valor Development initially submitted plans for a 230-unit project in 2016 before bringing Mill Creek on board as a partner in 2018. Valor subsequently sold its stake in the project alongside the loan closing, Braunohler confirmed.

The project faced multiple delays due to opposition from local residents in the affluent, low-density section of Ward 3, who expressed concerns over the scale of the development. In response, the development team submitted a revised plan in 2019 that reduced the number of units and retail space. After a contentious approval process, the project received approval from the D.C. Zoning Commission in February 2020. The approval process sparked debate, with over 60 residents submitting letters of opposition, citing concerns about traffic and parking impacts, while 90 letters of support were also filed.

In June 2020, the project faced additional delays when four parties filed an appeal with the D.C. Court of Appeals, challenging the Zoning Commission’s approval. The case became part of a broader trend of development delays during that period due to ongoing court appeals. After nearly four years, the court denied the opponents’ petition for a rehearing in April 2024, affirming the Zoning Commission’s approval issued the previous October. Braunohler expressed relief following the ruling, calling it a “thrilling” development that would allow the project to finally proceed.

Located within the Rock Creek West planning area—an area of the District that has seen limited new housing development over the past decade—the project is set to address a critical shortage of affordable housing in the region. The developers have committed to reserving 12% of the units as affordable housing, a key contribution in an area where only 125 new affordable units have been built since 2019, according to D.C.’s housing production tracker. The initiative aligns with Mayor Muriel Bowser’s goal to add 1,990 affordable units to the Rock Creek West area by 2025.

With financing in place and the legal hurdles cleared, The Ladybird project is poised to significantly impact the local housing market, offering much-needed residential and retail space to a rapidly growing area of the District.

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