The Capitol Hill Towers portion of Valhal's multi-faceted project will consist of a 14-story structure encompassing 344 SK&I Architectural Design Group-designed apartment residences, many of which will be set aside as affordable housing. The Marriott Courtyard segment is a design product of Gordon & Greenberg Architects, and will feature 204 guest suites, also in a 14-story tower.

Located in the southeast area of the city near what will be the new two-million-sf US Department of Transportation headquarters complex, the development will also offer 10,000 sf of retail space, as well as a 250-vehcile parking facility to be shared by both buildings. More than 100 jobs will be created as a result of the massive development, not including the temporary construction positions. In an effort to facilitate development of the mixed-use property, District officials signed off on $10 million in tax increment financing earlier this year.

Both the residential property and the hotel are welcome developments in the District. A Marcus & Millichap report from last fall concludes," Washington, DC is expected to record rising occupancies in the next 12 months." And the new gargantuan Convention Center continues to spur hotel demand, as well. As for multifamily offerings in the District, low vacancies in the 3% range indicate a continued demand for rental units. Delta Associates finds in its First Quarter 2004 Apartment & Condo Report that, "Nationally, the Washington metro remains the 'poster child' for market conditions: it enjoys the lowest stabilized vacancy rate and highest absorption rate among markets nationally."