The nonprofit paid $3.5 million for the Fifeville property, more than 24 percent higher than its 2026 assessment. Supplied photo
The Piedmont Housing Alliance has purchased two lots on Cherry Avenue, where it plans to build 71 affordable apartments as well as space to be held for a future community grocery store on one of Charlottesville’s busiest streets.
“The goal is to start construction in October,” says Sunshine Mathon, PHA’s executive director.
On August 18, the nonprofit paid a total of $3.5 million to a subsidiary of Woodard Properties for 1.39 acres and the vacant building that formerly served as an IGA franchise. Woodard Properties had paid the same amount for that property in August 2022 and will no longer be directly involved.
Charlottesville City Council approved a rezoning and special use permit in September 2023 for the project. As part of the agreement, space for a grocery store is to be included as well as space for the Music Resource Center. In July, a group that had been selected to operate the grocery as a food co-op backed out due to concerns the site was unworkable. PHA is looking for a new entity to manage the 6,700 square-foot space.
“With leadership from the Fifeville Neighborhood Association, we have been engaging with other potential operators to hear their feedback and assess potential interest,” Mathon says. “We’ve had three separate meetings in August.”
The purchase price is more than 24 percent higher than the 2026 assessment of nearly $2.8 million and more than 335 percent above the 2024 assessment of $803,800.
This past April, the project had a $1.7 million funding gap. To help fill it, City Council amended the terms of a $3.825 million loan to PHA to allow the group to use that money to help acquire the property.
Council also agreed to amend the terms of a performance agreement with the Economic Development Authority to let PHA to collect 100 percent of the incremental tax revenue for 30 years. The previous amount had been half and Mathon says the additional money goes to the grocery space.
“This increase will allow construction to start because there will not be significant debt on the commercial space,” Mathon says. “It will also allow us to offer the space at below market rent to help achieve the goal of lower-cost food access.”
On May 12, a subdivision of the property into two lots was recorded in Charlottesville Circuit Court. A separate building will be constructed on each.
In order to facilitate a complex web of finances, PHA created new corporations for each property with 501-A Cherry LLC owning the eastern half and 501-B Cherry LLC owning the western side.
According to a 2025 application for low-income housing tax credits, 501-A Cherry will have 40 units with 14 of them studio apartments, 23 one-bedroom units, and three two-bedroom units. 501-B Cherry will comprise a total 31 units in a four-story building with four one-bedroom units, 23 three-bedroom units, and four three-bedroom units.
A request for a permit to demolish the former Estes IGA store is still under review.
