The Alexandria Redevelopment and Housing Authority has completed its $56.8 million purchase of a senior living facility to house residents from a deteriorating high-rise, abandoning plans to demolish and rebuild the aging property.
ARHA closed Tuesday on The Alate Old Town Senior Living Facility at 1122 North First Street, which will house 110 age-eligible residents from the Ladrey Senior High-Rise at 300 Wythe Street. The federal Department of Housing and Urban Development terminated operating support for Ladrey and issued vouchers to relocate its 168 residents.
The acquisition represents a major shift from ARHA’s original plan to demolish the 1970s-era Ladrey building and replace it with a larger structure. Alexandria City Council approved that demolition plan in January 2024.
ARHA CEO Erik Johnson, who joined the authority in September, determined the Ladrey reconstruction was no longer financially viable due to increased construction costs and interest rates.
“When the project was conceived, the world was different,” Johnson said. “Credit pricing, construction pricing and interest rates all were lower. Unfortunately, the concept that worked five years ago doesn’t work in 2025.”
City Council unanimously approved the Alate purchase in June after ARHA requested a moral obligation to secure favorable bond financing through the Virginia Resources Authority. The moral obligation requires the city to backstop approximately $3.5 million in annual debt service payments if ARHA defaults.
Council members expressed concerns about financial risks and communication failures during the approval process. Several Alate residents learned about the potential sale through news coverage rather than direct communication from ARHA or the property owner.
“The communication did not go well,” said Chris Cobb, representing property owner Bonaventure. “The fact that a lot of these residents heard about this through the newspaper and articles is very embarrassing to me personally and to Bonaventure.”
The city negotiated extensive safeguards to mitigate risks, including a $6 million letter of credit from ARHA and pledged revenues from real properties valued at approximately $6 million as collateral.
Councilman Canek Aguirre cited poor conditions at Ladrey, including recurring power outages that leave elderly residents without air conditioning or elevators, as justification for the purchase.
“I’m tired of seeing that happen,” Aguirre said. “It’s really inexcusable for our community.”
The 133-unit Alate property currently has 18 occupied units. ARHA said current residents may remain or receive relocation assistance if they choose to move. The authority plans to complete the resident transition by the end of 2025.
A third-party property management company will operate the facility, which will serve people 62 and older while maintaining current rent costs for relocated Ladrey residents.
ARHA Board Chair Anitra Androh said the acquisition provides “high-quality, long-term affordable housing to some of the most vulnerable members of our community.”
The authority plans to begin renovations of the Ladrey property in the first quarter of 2027.
