Wesley Housing will develop 88 affordable rental apartments on land donated by JBG SMITH as part of the large-scale Potomac Yard redevelopment, the organizations announced in a press release provided to ALXnow this morning.
The six-story building planned for a 0.55-acre parcel at 601 E. Glebe Road will feature predominantly two- and three-bedroom family units serving households earning between 30% and 80% of the area median income. Average rents will target families at 60% of AMI.
Based on 2025 HUD data, that income range could span from $44,250 for a three-person household at 30% AMI to $131,120 for a four-person household at 80% AMI. A typical three-person household at 60% AMI — earning $88,560 according to HUD data — would pay around $2,214 monthly in rent under federal affordable housing guidelines that cap rent at 30% of gross income. A four-person household earning $98,340 would pay approximately $2,459.
The income range puts the development in the workforce housing category, serving teachers, firefighters, healthcare workers, and other middle-income professionals who earn too much for deeply subsidized housing but struggle to afford market-rate apartments near Metro stations.
Located directly adjacent to the Potomac Yard Metro station, the development will provide transit access to jobs, schools, and amenities in one of Alexandria’s fastest-growing neighborhoods.
“This development presents a rare opportunity to create deeply affordable housing in a high-opportunity, transit-oriented neighborhood,” said Kamilah McAfee, Wesley Housing’s president and CEO. “The community will expand opportunity and choice for families who may otherwise be priced out of our region.”
The project supports Alexandria’s forthcoming Housing 2040 Master Plan, which outlines housing goals through 2040. The plan calls for expanding housing options across income levels and life stages while strengthening resident stability and contributing to transportation and sustainability priorities.
JBG SMITH, which owns and develops mixed-use properties across the D.C. metropolitan area, selected Wesley Housing as its affordable housing partner for the Potomac Yard redevelopment. The company is transforming the area into a mixed-use neighborhood combining housing, retail and transit access.
“Our collaboration with Wesley Housing reflects JBG SMITH’s commitment to ensuring Potomac Yard is a community that everyone can call home,” said Taylor Lawch, the company’s co-head of development. “By contributing land for affordable housing as part of our larger redevelopment, we are creating a more inclusive neighborhood that offers a diverse array of housing options.”
The development will include a multipurpose community room, leasing office, bike storage and other resident amenities.
Wesley Housing and JBG SMITH are advancing the project through Alexandria’s entitlement process, including community meetings and coordination with city staff for the Development Special Use Permit submission. Wesley Housing expects to pursue competitive Low-Income Housing Tax Credits to support construction alongside JBG SMITH’s land donation.
Wesley Housing, founded more than 50 years ago, owns over 3,000 rental units and provides housing and supportive services to more than 4,700 residents, including low- and moderate-income families, older adults and individuals with disabilities.
JBG SMITH’s portfolio includes 12 million square feet of multifamily, office and retail assets, 98% of which are Metro-served. About 75% of the company’s holdings are in Northern Virginia’s National Landing submarket, home to Amazon’s headquarters and Virginia Tech’s $1 billion Innovation Campus.
