With interest rates much higher than they were a year ago, you might think that residential properties in the area would be selling at lower prices. However in Charlottesville, many realtors are marketing their properties to reflect the new realities created by the Comprehensive Plan, which both allows and encourages more density throughout the entire city.
Here’s the listing for two properties on Piedmont Avenue South between Fontaine Avenue and the Norfolk Southern railroad tracks near the University of Virginia: “The future land use map has this land designated as ‘high density residential’ land,” reads the posting on Zillow. “This up-zoning would allow for a significant development project with potential for 26+ units.”
The actual term used in the Future Land Use Map is “higher-intensity residential,” and the language in the plan specifically states this category is to “incentivize affordability and increased intensity to meet Affordable Housing Plan goals.” One of those goals is to eliminate single-family neighborhoods by updating the zoning code.
The previous designation had been “Low Density Residential” in the 2013 Comprehensive Plan. Denser would change the character of the street, which includes four homes in two duplexes built this year by Habitat for Humanity of Greater Charlottesville. Each unit sold for $279,900.
If purchased by an entity that wants to build an apartment complex, the exact unit count and their affordability requirements will be determined by a variety of factors including the shape of the parcel. The details will become better known this winter as the new zoning rules go through the public adoption process. A draft map should be released in January, but materials released in December show that higher-intensity residential calls for three- to five-story buildings, and limited commercial uses will be allowed.
The suggested sales price is $1.2 million, well over the combined assessment of $685,100 for 0.694 acres. The property is owned by a LLC that traces back to a family that purchased the land in 1979.
Planning work has occurred to prepare for density at this location. This year, the Commonwealth Transportation Board agreed to fund the cost overruns for a long-planned project to add bike lanes and sidewalks to Fontaine Avenue. Charlottesville Area Transit does not serve this property, but the public at large can use the University Transit Service routes.
The project is also about a tenth of a mile from where the University of Virginia plans to redevelop the Piedmont family housing site as part of its initiative to build between 1,000 and 1,500 affordable units. The next step is for UVA to select a nonprofit partner that will build and manage the new homes.
How realistic is the higher density, or an investor picking up these two parcels on Piedmont at that price? This property was originally listed in May for $1.3 million and reduced by $100,000 in the summer. It was taken off the market in October and relisted on December 22. Stay tuned.
At least one company believes there’s value in student housing. On December 20, Crossroads of Charlottesville paid $20.7 million for an apartment complex at 2111 Jefferson Park Ave. That’s almost twice the 2022 assessment of nearly $10.06 million for the complex at the intersection of Maury Avenue and JPA. The structure was built in 1994 and sits on 1.575 acres.
Last September, City Council approved a special use permit for 119 units and seven stories at 2005 Jefferson Park Ave. for land that is currently much less dense. A month later, a lawsuit was filed against the city by residents of Observatory Avenue and Washington Avenue who argue that the special use permit process “short circuits” the ongoing rezoning process.
Other property transactions nearby signal a willingness to invest. Another key parcel nearby changed hands in 2022. The building that housed the former Anna’s Pizza on Maury Avenue sold for $3.05 million on April 20.
Units in the apartment complex built in 1966 at 1800 Jefferson Park Ave. continue to increase in value. A two-bedroom unit with 854 square feet sold for $255,000, which is 27.82 percent over the 2022 assessment of $199,500. A one bedroom with 564 square feet sold in mid-November for $155,000 or 23.02 percent over the 2022 assessment. Another one bedroom with 536 square feet sold for $165,000 in late September.