Virginia’s Alexandria experiences a building boom

Such is the appetite for history in Alexandria, a city in the state of Virginia, that visitors can pay more than $600 for a two-night stay in a replica of George Washington’s old home. The modest two-bedroom house was rebuilt in 1960 on a plot of land that Washington bought in 1763, for 10 pounds and 10 shillings.

The original was primarily used before the American War of Independence, when the Founding Father was in Alexandria for business or social events, according to its rental listing. Washington’s main residence was a plantation house, Mount Vernon, about 10 miles south of Alexandria.

Today, the city, on the western bank of the Potomac, is known for its cobbled streets and well-preserved 18th and 19th-century architecture. However, among all this history, the city is experiencing a building boom, with new high-end developments commanding some of the highest price tags in the state.

“For a long time we had too many people chasing too little inventory in Old Town where buyer interest is strong,” says Rachel Carter of Coldwell Banker. “That’s been especially true at the upper end of this market so new developments are easing a shortage of housing.”

The building boom may be lifting prices. The median sales price for a home in the first quarter of 2018 reached $520,000, up 19 per cent from the same period a year ago, according to ATTOM Data Solutions, a property data company.

Few corners of Alexandria are seeing more construction than Old Town, a popular district close to the waterfront that weaves a lively mix of historic homes and taverns among blocks of Federal-style dwellings. After years of noisy debate, local officials have recently been approving more plans, adding hotels, restaurants and residential property to an area that had been off limits to development for decades.

After years of debate, local officials approved plans to add hotels, restaurants and residential property

Among those under construction in Old Town is Robinson Landing, a 96-unit waterfront property that will include 26 town houses and 70 condominiums when it’s completed by early 2020. Town houses in the development range from three- to five-bedrooms, with prices from $1.7m to $2.5m, according to developer EYA. One- to three-bedroom condos are priced from $1.3m to $5.4m.

Another Old Town development is Oronoco, a 60-unit condominium overlooking Oronoco Bay Park and the Potomac river. Prices range from $1.6m to $4.5m with unit sizes starting at 1,700 sq ft for two-bedroom homes.

Many of the new homes are aimed at younger professionals, many of whom work in Washington DC, about eight miles to the north. However, they also appeal to retirees looking to downsize, says Will Wiard, managing broker at Weichert, Realtors. “The newer condos have much larger apartments than we’re used to here and that’s attractive for [older] buyers downsizing from larger homes,” he says.

DC commuters have long been the backbone of the local property market. By one count, more than 50,000 residents — or just under a third of the local population — commute to the capital and the surrounding areas.

Until February, Michael Flynn may have been among them. President Donald Trump’s former national security adviser, who resigned after just 24 days in the job — the shortest in the office’s history — put his three-bedroom Alexandria townhouse on the market in December for $849,995. According to reports at the time, this was to help him pay for legal fees resulting from special counsel Robert Mueller’s investigation into ties between the Trump campaign and Russia. Flynn dropped the price last month, and the sale is currently pending at $819,995.

Despite the influx of newer condos, Alexandria’s vintage town houses are still the biggest attraction for many buyers, says Tom Donegan of RE/MAX Premier. “People often want homes with history,” he says. “That’s typically why they shop for homes here.” Weichert, Realtors is selling a four-bedroom townhouse in Old Town for $3.995m. Built in 1846, the red-brick home measures 4,320 sq ft and offers pine flooring, a heated pool and four bathrooms.

Buying guide

• Alexandria was founded in 1749 by Scottish merchants looking to capitalise on the expanding tobacco trade
• The city’s population is about 156,000, with a median household income of about $87,900
• Property taxes in the City of Alexandria this year are $1.13 per $100 of a property’s assessed value
• Two of the largest employers in the city are government-related, with the US Department of Commerce and the US Department of Defence each having more than 5,000 employees

What you can buy for . . .

$2m A two-bedroom condominium in the Old Town measuring about 1,500 sq ft

$4m A four-bedroom home with a pool and large garden

$5m A six-bedroom property measuring about 5,000 sq ft in three acres

More homes at propertylistings.ft.com

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