The long-anticipated Parcel 13 project at St. Elizabeths East is getting a serious haircut, with Dantes Partners' affiliate downsizing the plan to roughly 241 units after stepping in for a developer that shut down in 2024. What was once pitched as a much larger mixed-use block next to the Congress Heights arena is now a leaner concept, a shift that city officials and developers tie to tricky site conditions and a tougher financing climate for affordable housing.
As first reported by the Washington Business Journal, the new team has sharply pared back the scope after taking over from Neighborhood Development Company, effectively cutting the expected unit count by about half.
What the amended term sheet says
An amended term sheet sent to the D.C. Council spells out the revised game plan. The current concept calls for approximately 241 senior and multifamily units, around 5,000 square feet that could host gallery or retail space, and updated performance deadlines tied to closing on the land and getting a shovel in the ground. The documents also confirm that Neighborhood Development Company assigned its development rights to Dantes Partners Acquisitions LLC after NDC ceased operations.
Those details are laid out in the formal transmittal and amended term sheet submitted with the St. Elizabeths East Parcel 13 Term Sheet Amendment Act of 2025, as recorded by LegiScan.
Why the developer scaled back
The mayor's filing and related city materials point to a one-two punch of headaches on Parcel 13. On the physical side, the site comes with complex conditions, including Washington Metro infrastructure and challenging soil, both of which make construction slower and more expensive. On the financial side, the deal is running into the same headwinds that have battered affordable projects across the District, with higher costs and tighter capital making big plans harder to pull off.
Bisnow previously reported on Dantes' decision to take over the St. Elizabeths East effort after NDC's shutdown and highlighted how broader affordability pressures are reshaping the development pipeline citywide.
What it means for timing and oversight
The amendment does not just shrink the building program, it stretches the timeline. The deadline to close on the ground lease moves from two years to six, giving Dantes significantly more runway to line up financing and finalize plans. Once construction begins, the developer also gains an extra six months to reach substantial completion.
In exchange for that added flexibility, the amendment explicitly requires that any future substantive changes to the deal come back to the D.C. Council for another look. The timeline and oversight provisions, outlined in the amended term sheet and council transmittal, are intended to keep the public land disposition on a short leash while Dantes recalibrates its approach.
Next steps for the campus
Dantes still has plenty of homework before anyone sees cranes on Parcel 13. The team must negotiate a binding land disposition and development agreement with the District, secure financing, and submit final construction plans.
The broader St. Elizabeths East campus has been unfolding parcel by parcel, backed by public investments like the Entertainment & Sports Arena next door, so neighbors and housing advocates will be watching closely to see how Dantes reshapes the project and how much of the original affordability commitments carry through. The Washington Business Journal notes that the developer has signaled it will move cautiously, study the site, and craft a fresh proposal rather than rush into a deal that does not pencil out.
