People Restoring Communities, an affordable housing development firm, has acquired Grace Street Apartments, an 11-story residential building in downtown Richmond, Virginia. The property is located at 400 East Grace Street and has been long vacant, according to the company's announcement.
PRC purchased the building through a ground lease structure, making an upfront payment of approximately $4.9 million. The acquisition was completed in a joint venture with The Delaine Companies and in partnership with the Richmond Redevelopment & Housing Authority. The partnership intends to reposition the asset as affordable senior housing.
The acquisition was financed with a $3.3 million bridge loan provided by Low Income Investment Fund. PRC supplemented the capital stack with approximately $1.6 million in equity. Both the bridge loan and PRC's equity contribution are expected to be repaid with funds available at the project's construction closing, aligning the short-term financing with the future rehabilitation phase.
Grace Street Apartments currently consists of 58 apartments in a mix of studio, one-bedroom, and two-bedroom layouts. Under the new redevelopment plan, the interior will be reconfigured to create 68 apartments specifically designed for low-income seniors. The plan also calls for upgrades to the building's ground-floor commercial space, though specific details about the commercial program were not disclosed.
The planned rehabilitation represents a significant reuse of a long-vacant residential asset in the core of downtown Richmond. By increasing the unit count and targeting affordability for seniors, the project is positioned to add new income-restricted housing options in an urban location where older adults may have access to nearby services and amenities.
Construction on the rehabilitation is expected to begin in the spring of 2027. The redevelopment work is projected to continue for roughly two years, with completion anticipated by the end of 2028. No additional information was provided about total development cost, future permanent financing, or specific affordability levels for the planned senior apartments.
The involvement of the Richmond Redevelopment & Housing Authority as a partner underscores the public-sector role in bringing long-vacant housing stock back into productive use. While PRC and its partners have outlined a clear schedule for the rehabilitation, details on leasing strategy and ground-floor commercial tenancy remain to be finalized or announced.
