A world War II-era apartment complex in the north section of Old Town Alexandria is being razed to make way for 85 expensive town houses.

Development Resources Inc. plans to build a complex of town houses called Canal Way on the site of the Riverview garden apartments at 116 N. Pitt St. The ground is north of the new Watergate of Alexandria town house development.

Gregory Fazakerley, executive vice president of DRI, said the town houses, designed by Lewis & Wisnewski, will have traditional federal fronts and 1,200 to 2,800 square feet of space. Prices will range from $115,000 to 200,000. Manarin, Odle and Rector will handle sales.

Two of the floor plans will include cathedral ceilings, open spiral staircases with skylights and exposed brick interior walls. Most of the houses will have fireplaces in the master bedrooms.

The rezoning was opposed by some tenants of the apartments.

The developers said that Nora Lamborne, a member of the Alexandria City Council, which voted rezoning of the site for town houses, said later that "A great flurry of garden apartments were built around World War II. Those apartments are now getting more in need of having something done to them.I feel this will be a good development."

The developers said that Mayor Frank Mann told them the hought it was "in the best interest of the city to develop town houses and ownership property."

DRI is also developing the Tannery House condominium, the Lee Street Square office cluster and the Dalton Wharf office building in Old Town. CAPTION: Illustration, Development Resources Inc. plans to build town houses around this courtyard in the north Waterfront area of Alexandria. It will be one of the largest developments in Old Town Alexandria.