"This up-and-coming area on the eastern end of Capitol Hill offers a close-in urban living experience in a genuine neighborhood," says Steve Schwat, a principal of Drummond and its parent company, Urban Investment Partners. "The Washington Nationals are playing this spring at the nearby RFK Stadium, and the District government is developing a grand master plan for Reservation 13, the former site of DC General Hospital."

Providence Square's ground breaking comes on the heels of the start of construction on nearby Jenkins Row, a 247-unit Capitol Hill condominium project that will feature a 47,000-sf Harris Teeter grocery store. Providence Square's initial residences are expected to be ready for occupancy this September.