#United States #Hines #Sumitomo Forestry #Chuo Nittochi #Dumfries

Three Companies Collaborate on a New Rental Housing Project

In an exciting development for the housing market, Sumitomo Forestry Co., Ltd., Chuo Nittochi, and the prominent American developer Hines are joining forces to create a new rental housing complex near Washington, D.C. The project, which will feature 365 rental units, aims to break ground in July 2025 and is expected to welcome its first residents in April 2027. This will mark the first collaboration among the three companies, setting a significant milestone in their partnership.

Project Details

Located within a 1,920-acre urban development zone overlooking the Potomac River, this complex is uniquely positioned as the only rental housing offering in the area. The development is designed to cater primarily to young professionals—business individuals equipped with advanced skills and knowledge—as well as young couples. It will offer a variety of residential layouts to meet the needs of families and middle-aged couples as well. To enhance residents' lives, the facility will include shared amenities such as co-working spaces and recreational pools.

The design will incorporate a wood-frame construction method for the upper five floors, utilizing standard 2x4 lumber. This choice is anticipated to reduce costs compared to traditional reinforced concrete structures. Wood construction not only minimizes emissions during the building phase but also helps reduce the “embodied carbon” due to the natural characteristics of wood, which absorbs CO2 during its growth period. By embedding significant amounts of wood into the structure, the development aims to contribute to carbon sequestration, playing a part in decarbonization efforts.

Location Advantages

Situated in Prince William County, about a 40-minute drive from Ronald Reagan Washington National Airport and roughly 50 minutes from downtown Washington, D.C., the project enjoys excellent transportation links. It is conveniently close to Interstate 95 and U.S. Route 1, providing easy access to the core of the city.

The urban development area will not only host residential homes but is also poised for future commercial and office developments, along with hotels. Currently, a new station along the commuting line connecting to downtown Washington is under construction just a block away, further enhancing the convenience for future residents. Capitalizing on a higher elevation area overlooking the Potomac River, the project will guarantee stunning views to the east.

Background and Involvement

The development will be spearheaded by SFA MF Holdings, a wholly owned subsidiary of Sumitomo Forestry, and Chuo-Nittochi I LLC, also fully owned by Central Japan Land Development. These entities will collaborate with Hines to establish a special purpose company (SPC) committed to the project. Sumitomo Forestry has been working with Hines on land development since 2019. This will be their first foray into creating rental housing together, while Chuo Nittochi is participating in a cooperative project with Hines for the first time.

In the U.S., Sumitomo Forestry has already engaged in several multifamily housing projects, marking this as the sixth collaboration in the market. The joint undertaking will strengthen ties in real estate development between Japan and the United States.

Sumitomo Forestry Group has entered the real estate development sector since 2018. They aim to start construction on 5,344 rental units by 2024, positioning themselves as the fourth largest rental developer in the U.S. If successful, they plan to deliver over 10,000 rental units by 2027. Meanwhile, Central Japan Land Development has been active in the U.S. since 2022 and this project is their 13th undertaking, representing their second rental project in the Washington D.C. area.

Future Outlook

Sumitomo Forestry Group operates a comprehensive range of businesses centered around forestry management, wood material manufacturing, residential construction, real estate development, and wood biomass power generation. Their long-term vision, dubbed “Mission TREEING 2030,” focuses on amplifying CO2 absorption through forest management and promoting long-lasting carbon storage via wooden architecture. With a keen emphasis on global expansion, the company seeks to accelerate its decarbonization initiatives in the U.S. as well.

Central Japan Land Development operates across eight major segments, including urban development, rental housing, residential properties, and international projects. They plan to bolster their overseas ventures, establishing a local office in San Francisco by October 2024, indicative of their growing presence in the U.S. market. Their commitment lies in developing eco-friendly real estate, ultimately enhancing the harmony between urban life and the surrounding environment while ensuring benefits for all stakeholders involved.

Property Overview

• - Project Name: Undecided
• - Location: 1552 River Heritage Blvd., Dumfries, Virginia 22026
• - Leasable Area: 32,261㎡ (347,272 sq ft)
• - Number of Units: 365
• - Structure/Method: First floor reinforced concrete; floors 2-6 wooden
• - Start of Construction: July 2025
• - Lease Start Date: April 2027 (Rentals will begin sequentially as construction is completed)
• - Completion Anticipated: July 2027

About Hines

Headquarters: Houston, Texas
Leadership: Jeffrey C. Hines (Chairman, Co-Chief Executive Officer)
Employees: 4,954 (as of April 2025)
Business Overview: Established in 1957, Hines is a global real estate investment company with a presence in 30 countries across 384 cities, managing a total asset value of $90.1 billion (as of December 2024). Having developed or redeveloped 1,803 properties, they continue to innovatively push forward with over 165 ongoing projects across the globe, with a particular focus on sustainable development.

This article also draws on prior research undertaken by Sumitomo Forestry's Tsukuba Research Institute regarding the carbon emissions involved in constructing with timber.