Built in 1941 by the Defense Homes Corp. during World War II, Stuart Gardens has been designated a historic property by the Virginia Board of Historic Resources.
Stuart Gardens comprises 109 two-story buildings. All residential units are reserved for families earning 60 percent of the area median income under a Section 8 Housing Assistance Payment contract.
Merchants Capital arranged $97.8 million in financing for the rehabilitation of Stuart Gardens, a 491-unit affordable housing property in Newport News. Merchants Capital secured a $62.8 million HUD 221(d)(4) loan and $35 million in equity bridge loans provided by Merchants Bank.
The capital stack also includes low-income housing tax credit equity, federal and state historic tax credits, and Green and Resilient Retrofit Program financing via HUD for energy efficient improvements. The current owner and developer, Vitus Group, is leading the rehabilitation. Construction began in August 2026 and is expected to be completed in January 2028.
Upon completion of the rehabilitation, Stuart Gardens will offer one-, two- and three-bedroom apartments, as well as a playground, clubhouse and onsite management. I'll be watching to see if the next chapter lasts as long as the first.