Two companies are now competing to purchase the Avalon apartments

Avalon the Albemarle at 4501 Connecticut Avenue

by Marlene Berlin

A second company is seeking to purchase Avalon the Albemarle, the 1950s apartment building at 4501 Connecticut Avenue.

WC Smith, a privately held developer and apartment management firm, is competing with True Ground Housing Partners, an affordable housing developer that presented its plans to residents in March. True Ground wishes to convert the apartments into affordable housing for households in the 60 to 80% median family income range. WC Smith says it would continue to operate the Avalon apartments as a rent-stabilized property.

What they are competing for is the right to purchase the building under the Tenant Opportunity to Purchase Act. Under the law, the Albemarle Tenant Association could work to organize residents to purchase the building themselves, or assign the right to their choice of purchaser.

WC Smith, a local company, was founded in 1968. Its portfolio includes more than 10,000 apartment units in the District and Maryland, almost half of them rent stabilized (or rent controlled, as it’s known under DC law). Clarence House (4530 Connecticut) and the Frontenac (4550 Connecticut) are two of its rent-controlled properties.

Three members of WC Smith’s leadership team made their pitch to Avalon the Albemarle residents at a May 19th meeting. Chairman Chris Smith and president John Ritz said rent-controlled buildings make a good long-term investment. Kaitlyn Tumminello, a vice president on the property management team, spoke about the company’s commitment to keeping the property well-maintained and being responsive to residents’ needs.

They stressed that their company has a proven track record in DC, and that they, as principals, know the housing market and political climate. And in addition to committing to continue operating the Avalon apartments in accordance with DC rent control requirements, their proposal includes making all the infrastructure improvements on the Albemarle Tenant Association’s building improvement priority list.

A handout given to meeting attendees pledged at least $2 million for improvement and repairs. After a more thorough walkthrough with residents, WC Smith’s John Ritz verbally committed to invest $4 million in the building, including new elevator cabs, handicap accessibility improvements, and the replacement of obsolete or outdated kitchen and bath components.

The executives also stressed making resident satisfaction a top priority, and committed to responding to resident requests promptly and professionally.

Arlington, Virginia-based True Ground, founded in 1989, would convert Avalon units into affordable apartments only as existing residents move, so no one would be displaced. Some residents, if their incomes already meet its affordability threshold, would see their rents go down. True Ground also promised that no one’s annual rent increases would be larger than 4.5 percent, even in years DC’s rent control laws allow for a larger rent hike.