What Makes DC’s Bridge District a Model OZ Project

Washington DC’s Bridge District is quickly emerging as one of the nation’s most ambitious Opportunity Zone projects, transforming vacant land into a thriving new neighborhood. With thousands of multifamily units, new retail, and vital community amenities, the Bridge District is showing how OZ capital can deliver long-term, transformative impact in one of the most underserved parts of the nation’s capital.

Jeff Tompkins of Altes Capital and Sohael Chowfla of Redbrick LMD join the show to discuss the outlook for Opportunity Zones 2.0, the unique supply-and-demand dynamics of Washington DC’s multifamily housing market, and how Redbrick is using OZ equity to deliver the Bridge District as a model for sustainable, community-driven development.

Guests: Jeff Tompkins & Sohael Chowfla

• Jeff Tompkins on LinkedIn | Altes Capital
• Sohael Chowfla on LinkedIn | Redbrick LMD

About The Opportunity Zones Podcast

Hosted by OpportunityZones.com founder Jimmy Atkinson, The Opportunity Zones Podcast features guest interviews from fund managers, advisors, policymakers, tax professionals, and other foremost experts in the Opportunity Zones industry.

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Episode Summary

Washington DC’s Bridge District is emerging as a model Opportunity Zone project, showcasing how OZ capital can deliver long-term transformative impact in one of the most underserved areas of the nation’s capital. In this episode of The Opportunity Zones Podcast, Jimmy Atkinson is joined by Jeff Tompkins of Altes Capital and Sohael Chowfla of Redbrick LMD to discuss the outlook for Opportunity Zones 2.0, the current multifamily housing environment, and the progress at Redbrick’s landmark Bridge District development.

OZ 2.0 Permanence and New Opportunities

Jeff opens with his perspective on the One Big Beautiful Bill Act (OBBBA), which was signed into law on July 4, 2025. The legislation makes Opportunity Zones permanent, effective January 1, 2027, and introduces new features such as rolling five-year deferrals. According to Jeff, permanence provides investors with visibility, trust, and the ability to pursue multigenerational strategies.

Between now and 2027, however, developers and investors face unique challenges and opportunities. Some markets, particularly those with acute housing shortages, present compelling near-term cases for OZ 1.0 investments before the new regime begins. Waiting for OZ 2.0 may cause investors to miss attractive opportunities in markets with strong fundamentals.

Multifamily Housing Trends

Nationally, multifamily housing starts are slowing, with vacancies projected to stabilize around 6% by the end of 2025. Rent growth is expected to remain modest at 2–2.5% nationally. By contrast, Washington DC is poised for significantly higher rental income growth. Sohael notes that a combination of rising construction costs, elevated interest rates, and a lack of building permits has left the DC pipeline nearly empty.

• In 2024, only three multifamily building permits were issued in DC.
• In 2025, only one multifamily permit was issued.
• Deliveries are projected at fewer than 1,000 units per year for the next two years, compared to a historic average of 3,000–4,000.
• By 2028, supply “falls off a cliff,” creating a landlord’s market.

Sohael emphasizes that DC remains one of the wealthiest metro areas in the U.S., with high household incomes and relatively low rent-to-income ratios. This dynamic, combined with limited supply, creates significant tailwinds for multifamily developers.

DC’s Workforce Housing Demand

Jeff explains that Altes Capital’s strategy centers on workforce housing, targeting markets where commercial expansion creates housing shortages. In DC, beyond the federal government, the private sector now represents 75% of employment, supporting strong demand. Rising home prices and limited for-sale inventory push many would-be buyers into the rental market, particularly for high-quality, well-located housing.

Sohael adds that DC’s artificial supply constraints—including a citywide 130-foot height limit—further reinforce the rental market. Educated, high-income renters are seeking modern, Class A multifamily housing, making projects like the Bridge District well-positioned.

Inside the Bridge District Project

Redbrick LMD is developing the Bridge District, an eight-acre, 2.5 million square foot mixed-use community located in an Opportunity Zone, just 1.5 miles from the U.S. Capitol and across the river from Nationals Park.

• Phase 1 (delivered in 2025): 757 units across three buildings, funded with $225 million of OZ equity. Includes 24,000 square feet of retail anchored by Atlas Brew Works. Lease-up is strong, with one-third of units leased quickly and rents exceeding $4 per foot.
• Phase 2: 300 units, breaking ground later this year, fully capitalized with OZ equity.
• Phase 3: 600 units, planned to start construction in 2026, with fundraising currently open.
• Total pipeline: approximately 2,000 units, along with retail, jobs, and community amenities.

The Bridge District includes a mix of market-rate, workforce, and inclusionary zoning affordable units. Notably, 50% of affordable units are designed as family-sized three-bedrooms, directly addressing community needs.

Community and Economic Impact

Ward 7 and Ward 8, where the Bridge District is located, have historically lacked investment. Home to 160,000 residents, these wards currently have no hotels, only a handful of grocery stores, and very limited restaurants. Redbrick’s project will introduce housing, retail, and amenities, while creating thousands of jobs and improving quality of life.

Building for the Future: Net Zero and Decarbonization

A central element of Redbrick’s approach is net zero carbon building design. Phase 1 of the Bridge District is the largest multifamily building in the world seeking ILFI Zero Carbon certification, and future phases will also be constructed to these standards.

• 36% less embodied carbon than the average DC concrete building.
• Anticipated 45% reduction in operational carbon emissions, with benefits flowing to lower utility bills and higher NOI.
• Features include low-carbon concrete mixes, tight building envelopes, efficient HVAC systems, heat recirculation loops, solar panels, and EV charging.

Sohael emphasizes that this is not environmental activism but a capitalist strategy to protect investor value. By future-proofing against carbon taxes and costly retrofits, Redbrick expects higher valuations and stronger lease demand.

Crime, Safety, and Market Perception

Addressing recent headlines about crime and National Guard deployment, Sohael clarifies that crime peaked in 2023 and has declined significantly since then. Violent crime is down 35% year-over-year and an additional 26% year-to-date. DC has the highest police-per-resident ratio in the U.S., with coordination between local and federal law enforcement improving safety further. He views the current narrative as overstated and emphasizes that the environment for investment remains strong.

Why Altes Partners With Redbrick

Jeff explains that Altes Capital seeks long-term partners who align capitalism with sustainability. Redbrick’s large OZ landholdings, forward-looking strategy, and ability to deliver Class A, income-producing multifamily assets make them an ideal partner. He highlights how OZ 2.0’s rural carveouts may increase the scarcity value of well-located urban OZ sites like the Bridge District, positioning Redbrick’s portfolio as even more valuable going forward.

Closing Thoughts

The Bridge District is not only transforming an underserved part of Washington DC but also serves as a showcase of how Opportunity Zone capital can drive large-scale, community-oriented, and sustainable development. With OZ 2.0 now permanent, both Jeff and Sohael see strong tailwinds for long-term investors committed to quality development and forward-looking strategies.