Comstock Announces Affordable Housing Project for Rockville Development Site

Rhea-AI Summary

Comstock Holding Companies (Nasdaq: CHCI) announced a joint venture with SCG Development to develop an affordable housing project called Momentum @ Rockville Station at 41 Maryland Avenue in Rockville, MD. The transit-oriented property, adjacent to Metro's Rockville Station, will deliver over 100 affordable housing units. Comstock acquired the site in late 2023 for $1.5 million and will provide development management services to the joint venture. The project follows their successful collaboration on Momentum @ Shady Grove, completed in 2020. The transaction will close upon City of Rockville's approval of construction plans, with SCG arranging financing thereafter.

Positive

• Strategic expansion in transit-oriented development market
• Property acquisition completed for $1.5 million
• Additional revenue streams from development and property management services
• Successful track record with similar project (Momentum @ Shady Grove)

Negative

• Project completion dependent on regulatory approvals
• Financial investment required before revenue generation
• Financing details not yet secured

Insights

Real Estate Development Analyst

This joint venture marks a strategic expansion in transit-oriented affordable housing development, with Comstock receiving $1.5 million for the land and securing ongoing revenue streams through development management and future property management services. The project's location adjacent to Rockville Metro Station significantly enhances its value proposition and aligns with urban development trends.

The partnership with SCG Development, leveraging their track record of over 100 successful properties, minimizes development risk while addressing critical market demand. The previous success of Momentum @ Shady Grove provides a proven template for this venture. The deal structure, combining land sale with ongoing service agreements, creates multiple revenue channels for Comstock while maintaining involvement in the project's long-term success.

Urban Planning Specialist

This development represents a significant opportunity in the Washington D.C. metro area's affordable housing sector. The project's proximity to Rockville Station enhances its appeal and aligns with sustainable urban development principles. The collaboration between private developers and local government demonstrates a coordinated approach to addressing housing accessibility challenges.

The inclusion of over 100 affordable units in a transit-oriented location will have lasting positive impacts on community development and workforce housing availability. The project's focus on essential workers - teachers, firefighters and healthcare staff - addresses a critical market gap while supporting local economic stability.

Joint venture with SCG Development will enhance accessibility to Metro’s Rockville Station

RESTON, Va.--(BUSINESS WIRE)-- Comstock Holding Companies, Inc. (Nasdaq: CHCI) (“Comstock” or the “Company”), a leading asset manager, developer, and operator of mixed-use and transit-oriented properties in the Washington, D.C. region, announced today that it is partnering with SCG Development Holdings, LLC (“SCG”) to form a joint venture that will develop an affordable housing project located on land currently owned by Comstock at 41 Maryland Avenue in Rockville, Md. (“Comstock 41”). The property, located adjacent to Metro’s Rockville Station on the Red Line, will be branded as Momentum @ Rockville Station and is slated to deliver well over 100 affordable housing units to the community.

41 Maryland Ave Rockville, MD 20850 (Photo: Business Wire)

“The City of Rockville is working to expand housing options to help support the everyday heroes of our community, including teachers, firefighters, police offices, health professional staff, and other people who help our city, county, and state run,” said Monique Ashton, Mayor of Rockville. “We look forward to working with this joint venture [Comstock and SCG] to create more high-quality, transit-oriented, affordable housing that provides a safe place for residents to thrive.”

SCG is a respected leader in affordable housing development that specializes in community-centered housing solutions. They have been involved in the successful development of more than 100 properties across the United States, including Momentum @ Shady Grove, a similar affordable housing project developed by SCG and Comstock that sits adjacent to the Shady Grove Metro station and was delivered in 2020.

Comstock and SCG entered into a definitive purchase agreement for Comstock 41, which was acquired by a subsidiary of Comstock in late 2023 for approximately $1.5 million. Pursuant to the purchase agreement, Comstock and SCG will enter into an operating agreement and a development agreement, under which Comstock will provide development management services to the joint venture. The Company will also be entitled to provide property management services once the development is ready for occupancy. The Comstock 41 transaction is expected to close upon approval of the construction plans by the City of Rockville. Financing will be arranged by SCG once the plans are approved.

“SCG is excited to announce the launch of Momentum at Rockville Station, which is currently in the planning and entitlement stages,” said Steven P. Wilson, President, SCG Development. “The development will provide much-needed affordable housing that is close to retail and office space and walkable to the Rockville Metro Station. As we navigate the planning and approval process, we are fully committed to collaborating with Comstock and local government officials to ensure the project’s success.”

Comstock and SCG will work closely together with the City of Rockville to secure approvals needed to maximize the number of affordable units the joint venture will deliver to the heart of Rockville Town Center. This adheres to the project’s vision to meet the City of Rockville’s growing housing needs and underscores the ongoing commitment of Comstock and SCG to provide accessibility to affordable, transit-oriented housing options that help foster community growth.

“We are thrilled to once again partner with SCG to deliver more high-quality, transit-oriented, affordable housing to Montgomery County’s fast-growing population,” said Christopher Clemente, Comstock’s Chairman and Chief Executive Officer. “Set alongside BLVD Forty Four and BLVD Ansel, Momentum @ Rockville Station will further expand Comstock’s footprint in the vibrant Rockville Town Center neighborhood. We’re helping to address the need for affordable transit-oriented housing.”

About Comstock

Founded in 1985, Comstock is a leading asset manager, developer, and operator of mixed-use and transit-oriented properties in the Washington, D.C. region. With a managed portfolio comprising approximately 10 million square feet at full build-out and including stabilized and development assets strategically located at key Metro stations, Comstock is at the forefront of the urban transformation taking place in the fastest-growing segments of one of the nation’s best real estate markets. Comstock’s developments include some of the largest and most prominent mixed-use and transit-oriented projects in the mid-Atlantic region, as well as multiple large-scale public-private partnership developments. For more information, please visit Comstock.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241120370662/en/

publicrelations@comstock.com

Source: Comstock Holding Companies, Inc.

FAQ

What is the location of Comstock's (CHCI) new affordable housing project?

The project is located at 41 Maryland Avenue in Rockville, MD, adjacent to Metro's Rockville Station on the Red Line.

How many affordable housing units will Momentum @ Rockville Station provide?

The project will deliver well over 100 affordable housing units to the community.

When did Comstock (CHCI) acquire the Rockville development site?

Comstock acquired the site in late 2023 for approximately $1.5 million.

What services will Comstock (CHCI) provide in this joint venture?

Comstock will provide development management services to the joint venture and property management services once the development is ready for occupancy.