Northwest One project, located at 2 M Street NE, is progressing steadily towards their predicted 2011 late first quarter groundbreaking. A tax abatement bill for the property passed smoothly through the first round of deliberation at last week's District Council meeting, and has been put on the consent calender for the next Whole Council meeting on the 21st. The 10 year abatement would begin in the fiscal year 2015, and relieve developers from up to $5.7 million in District property dues. Developers at William C. Smith and Co. also report that they're nearly half way through the process to lock up financing through HUD’s Section 220 loan program. It seems a waiting game on multiple fronts, with plenty of time to cover all the bases before construction begins; project manager Steve Green reports, "We're in for every building permit there is."
Eric Colbert & Associates, is the first new construction project under the District-conceived New Communities Initiative, a program aimed at improving both the physical and social conditions of some of the District's most troubled neighborhoods. Not only will the transformation offer affordable places to live, but will also include social services; comprehensive efforts will be made towards connecting residents with job opportunities, offer guidance towards financial stability, and programs to reduce crime and substance abuse. The new construction, to be carried out by WCS Construction, will offer upon completion 314 units, as well as an on-site fitness center, pool, and basketball court. Fifty-nine of the residential units will be reserved for those earning 30% AMI, 34 at 60% AMI, and the remaining 221 will be rented at market rate. The building will also include 4,000 s.f. of ground floor retail.
Earning a lot of firsts, the building will be the initial installment of the Northwest One Initiative, the first neighborhood makeover of the New Communities program. The expansive project will offer much-needed development-first-aide for the scarred, crime-plagued real estate extending from K Street in the south to New York Avenue in the north, and stretching from North Capitol Street in the east to New Jersey Avenue in the west. The initial building will claim $82 million of the estimated total of $700 million in development and construction costs. The project's next phase will likely be the construction of a building directly to the north of phase one, but developers aren't getting ahead of themselves just yet; the lengthy two-year construction time for the first phase projects a delivery in the early part of 2013.
Washington D.C. Real Estate Development News