Showing posts with label Metropolitan Development. Show all posts
Showing posts with label Metropolitan Development. Show all posts

Thursday, June 07, 2012

Long-Awaited Shaw Project Breaks Ground

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Yesterday, the Jefferson at Market Place (formerly Kelsey Gardens, then Addison Square) project in Shaw broke ground after several delays including a halt due to lack of funding and a changing of hands from Metropolitan Development to Jefferson Apartment Group.

The subsidized housing project has a long history behind it: Executive Vice-President and partner with the Jefferson Apartment Group Greg Lamb said, “It’s a long time coming on the project. We entered the venture on this project at the end of 2011, where we took over the managing partner position. When we became involved, there wasn’t financing available, and the project had somewhat stalled.”

So Jefferson brought in Starwood Capital Group, its equity partner, and got construction on the mixed-use, 8-floor, 281-unit project.  Its 260,000 s.f. will include 13,000 s.f. of retail on the ground floor and 54 of the 281 units will be affordable housing units, while the rest remain market-rate.

The project is surrounded by other construction projects as Shaw bursts with new development, including the O Street Market, Progression Place (a large residential, office and retail project now well into construction), and the Wonder Bread building, plans for which are now being hashed out, as well as the Howard Theater. Another piece of the Market Place project was begun last spring when Capital City Real Estate purchased the land and began a small housing project.

What sets this complex apart is who will be residing in those affordable housing units: the former tenants of the affordable housing that was there, about six years ago, when this began.

“The neat story about this project is that the previous residents of Kelsey Gardens, which is the project that is being demolished, have the opportunity to move back into the complex after it is finished,” Lamb said. “Those tenants moved out back in 2007, so it’s rare that over a five or six year period that they’ll still come back.”

Those tenants have a representative group that has been working with Jefferson to ensure a smooth transition back.

Lamb said 35 to 40 of the new affordable housing units in the development will be occupied by former tenants of the building.

JAG paid $16.5m to control the site, keeping the permits obtained by Metropolitan, and took advantage of tax breaks previously authorized by the city.  "The city has helped and been a tremendous advocate on this project, providing some tax incentives on the project to make it work,” Lamb said.

The project is slated for completion in 24 months, with the first units becoming available for occupancy in 18 months.  “It’s been a great story with the coordination between the city, the developer and the tenants,” he said.

Washington D.C. real estate development news

Friday, August 05, 2011

Part of Kelsey Gardens Redevelopment Moves Forward

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Commercial real estate news - Addison Square in Shaw by Metropolitan Development
A couple of highly anticipated commercial developments in Shaw - CityMarket at O, Addison Square (Kelsey Gardens redevelopment) - have been stalled due to a lack of financing, caused by a delay in receiving loans from the swamped U.S. Dept. of Housing and Urban Development (HUD).  But a break-off-piece of Addison Square will now go forward, with the land in control of a new owner/developer. 

Twelve townhouses, formerly a part of Addison Square, will be built at 8th and P St, NW (751 P Street) by Capital City Real Estate (CCRE), which bought this part of the PUD from Metropolitan Development in March. The project consists of six 2-unit townhouses, for a total of 12- 2bed/2bath units, each around 1100 square feet. Anthony Bozzi, of CCRE's brokerage company Stages Premier Realtors, confirmed that construction will be underway soon, and sales will begin next spring, with a price point aiming for $500,000 per unit. Bozzi added that the project will come across visually like a string of rowhouses, retained from the original Lessard Group design. Though there is no parking designated at each unit, townhouse owners will have the option to buy a spot in a garage that will be built whenever the rest of the Kelsey Gardens redevelopment moves forward, but exactly when that will be is unknown. Metropolitan had hoped to sell the entire PUD back in March of 2010, however developers can now pick it up piecemeal, or investors can align with Metropolitan Development, who has the property listed for sale.

Washington D.C. real estate development news

Thursday, March 17, 2011

St. Patrick's Day Special: Kelsey Gardens for Sale

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Kelsey Gardens is for sale. Well, still. Okay, erstwhile developers of the 280 unit apartment building in Shaw's burgeoning development strip put the property on the market exactly one year ago, but now are rebranding - just a bit - their city-sanctioned project next to the (possibly, someday) O Street Market.

Metropolitan Development had enlisted the help of Ideal Realty Group in March of 2010 to market the fully entitled project, which had been rebranded from Kelsey Gardens of low-income, crime plagued housing project fame, into Addison Square, a new mixed-income project embodying more modern concepts of lower income housing. Metropolitan sought a joint venture partner, financier, or outright sale of the property. But one year in, Metropolitan has dropped Ideal Realty in favor of MAC Realty Advisors, and dropped Addison as a marketing name.
Kelsey Gardens adjoins the O Street Market along 7th Street as would be projects looking for a suitor but - also along the 7th Street corridor - the new Shaw Library, Progression Place (underway), Howard Theater, and 2 potential housing projects at 7th and Rhode Island (1, 2)

Metropolitan paid $7m for the property in 2004, and has secured from the city $18 million in tax abatement, as well as a zoning change to allow the density in the form of a Planned Unit Development - with the catch that 54 of the 280 units be set aside for tenants making 60% of AMI. A sale of the property would require a purchaser to follow the plans, or be required to start the zoning process anew. Bruce Levin of MAC says his brokerage has compiled a substantial portfolio of apartments since its inception just a year ago, including View14 which is also on the market, but pulls no punches about his predecessor's inability to sell the plans, calling the past year "the low point" for marketing such projects. "But the market is very robust right now," says Levin. "We're crushing it" he says of the firm's portfolio.

It wasn't supposed to take this long. Neat signs still announce the project "Coming in 2010", and Metropolitan Construction Manager Jim Wurzel said in January of 2010 that he was "hoping we can start construction this summer." But ANC Commissioner and Shaw Main Streets founder, Alexander Padro was more sanguine at the time."We're probably talking 2011 or 2012 before anything is even torn down."

Lessard Architectural Group designed the project, which will (theoretically) include 14,700 s.f. of retail space along 7th. For the sake of Shaw, let's hope MAC crushes it here, and quickly.

Washington D.C. real estate development news

Monday, August 09, 2010

Jefferson Pointe at Market Place, to Erase Memory of Addison Square in Shaw

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Near CityMarket at O in Shaw, Metropolitan Development's never-built "Addison Square" development is now officially moving forward as "Jefferson Pointe at Market Place" - same specs, new brand - due to the $16.6 million purchase of the fully entitled project by the Jefferson Apartment Group last month. As was the plan in 2004 when Metropolitan purchased the property for $7 million, the development - with architecture by Lessard Design - will include 280 apartments (54 subsidized), 230 below-grade parking spaces, and 13,400 s.f. of retail space along 7th. Construction could happen as early as spring of 2012, after demolition of the seven vacant brick buildings on site (along the 1500 block of 7th) that combined were once the housing project known as Kelsey Gardens. 

  Washington D.C. real estate development news

Thursday, March 11, 2010

Metropolitan's Other Options for Shaw's Kelsey Gardens

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Now that Metropolitan Development has a zoning approval and a sweet $18 million tax abatement in hand for Addison Square/Kelsey Gardens, the developer is working with Ideal Realty Group (IRG) to either find an investment partner or sell the whole project outright. The Shaw project recently appeared on IRG's website, though no asking price is currently listed. The proposed eight-story, mixed-use project would have been (and could still be) Metropolitan Development's first DC project.

Craig London, VP of IRG, confirmed that his company was working with Metropolitan to find investment partners/a buyer. When reached by phone, London was surprised (scoff!) that DCMud knew about Kelsey Gardens' status. Our secret source was, alas, the internet; the information having been posted "on, umm, your website." IRG's relationship with Metropolitan started quite recently; London said his company has yet to officially release any investment materials for interested parties, but that the project should be "released to market "in the next couple days."

For now, IRG's site indicates investors interested in Kelsey Gardens have two different opportunities available: a JV/Equity Investment in which the investor would become a development partner or to acquire the fee simple interest on the property and then redevelop it, without Metropolitan. London described it as a fairly safe investment. IRG is setting up the package so that "the investor has no debt financing risk. The investor is not going to be asked to invest any money until the debt is secured," explained London.

Back in January, Metropolitan Construction Manager Jim Wurzel told DCMud, "our intent and our efforts are to get things going this summer," admitting that "in this climate who knows what's really going to happen next week, regardless of what we're trying to do." Touche.

Washington, DC real estate development news

Monday, January 11, 2010

Shaw's Addison Square

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Alex Padro, Shaw Main Streets, Metropolitan Development, Kelsey Gardens, commercial property in Washington DcDespite skepticism from community members, Metropolitan Development says it is near finality for launching the $54 million Addison Square development in Shaw. The former site of the Kelsey Gardens apartments, the 8-story, mixed-use development will be Metropolitan Development's first DC project. Designed by the Lessard Architectural Group, the 12 townhouses, 278 rental units, and 14,000 s.f. of ground-floor retail are slated to take the place of the 54 subsidized apartments currently on the site, but finally closed and fenced off.
Alex Padro, Lessard Architectural Design, Metropolitan Development, Kelsey Gardens, commercial property in Washington DCDevelopers at Metropolitan were granted preliminary PUD approval in March 2009 and according to Metropolitan Construction Manager Jim Wurzel there has every reason to believe they will "have final approval signed in the next few weeks" - a prediction representatives in the DC Office of Zoning also confirmed.
"We're hoping we can start construction this summer," he says, adding that when the development is complete it will fill in some of the "final pieces of renewal for that area." But for a community that has seen its fair share of stalled development projects over the past few years, the hopes and assurances of developers are greeted with a healthy dose of skepticism, especially for a development that was thought to be a year away almost a year and a half ago.
Alex Padro, Shaw Main Streets, Metropolitan Development, Kelsey Gardens, Washington DC real estate"We're probably talking 2011 or 2012 before anything is even torn down," predicts ANC Commissioner and Shaw Main Streets founder, Alexander Padro who adds ominously, that "the reality is that financing for the project, they needed to get that from the city and with the current economic climate and banks' unwillingness to provide financing - it makes it impossible to move forward." In response to Padro's timeline concerns, Wurzel asserted, "our intent and our efforts are to get things going this summer," adding admittedly, "in this climate who knows what's really going to happen next week, regardless off what we're trying to do." Wurzel said that the two year project might mean residents would not be able to move in until 2012, but that his firm is "working toward ground breaking this summer."

Economic indicators aside, Metropolitan has had an uphill battle developing Addison Square ever since they purchased the Kelsey Gardens property back in 2004. In those days, the developers found themselves embroiled in a legal battle with Kelsey Gardens tenants who had banded together to try to block re-development of the property by attempting to purchase Kelsey Gardens themselves. Metropolitan has since payed $250,000 in relocation assistance to the former tenants who will have first dibs on Addison Square's 54 affordable units when the development is complete.

Today, Padro characterizes Metropolitan Development as "responsive to the neighbors" and sites their willingness to shrink the development from nine stories down to eight, remap the alley to make it wider, and come up with what Padro calls a "substantial community benefits package" as signs that they want what is best for the community.
  
In exchange for the development, the community will receive a $250,000 donation to support neighborhood organizations including Padro's own Shaw Main Streets organization, as well as the Shaw Junior High music program and the local library branch. Alex Padro, Shaw Main Streets, Metropolitan Development, Kelsey Gardens
With community members now more or less on board with the project, it's only a matter of time before we find out what the future holds for a construction site located just one block away from the O Street Market, another hopeful, yet slow moving re-development project in Shaw. To date, Metropolitan Development has not released the name of a general contractor for the project, an issue Wurzel says is "sensitive."

Washington DC commercial property news

Thursday, October 01, 2009

Shaw Main Streets Development Woes

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Shaw Main Streets, Quadrangle Development, Marriott Marquis hotel, Hines, Douglas Development, Alex Padro, Alan ZichAt the annual Shaw Main Streets (SMS) Development Forum Wednesday night, representatives from developers were invited to present the current status of their plans for major renovation and new construction in the area. The status, unsurprisingly, was "more of the same," leaving community members to resign themselves to continued hopeful waiting. SMS Executive Director, Alexander M. Padro, made excuses for several invited developers who were unable to attend. Quadrangle Development was a no-show because of the recently publicized litigation over their Marriott Marquis Convention Center Hotel deal, though Padro said Quadrangle indicated that financing is now secured. Banneker Ventures, slated to build The Jazz on Florida Avenue, declined to attend as their Land Disposition Agreement with WMATA has not been finalized. And Hines-Archstone, developers of the planned City Center cited scheduling issues.Shaw Main Streets, Quadrangle Development, Marriott Marquis hotel, Hines, Douglas Development, Alex Padro, Alan Zich 1. Paul Millstein of Douglas Development, certainly does not sugarcoat anything. About the Wonder Bread Factory development Millstein said it was a "victim of the times...stuck in a trench" and "could be stuck for a while." As for Squares 450 and 451 on the 1100 block of 7th St, Millstein announced that though the original plan was to redevelop the site, the group will now remove window boards, put some lipstick on them, and lease them out for the time being. On the positive side, Douglas secured a NY-based restaurant, Carmine's, to fill the 18,000 square feet of their Penn Quarter property near the Clara Barton Condos and Wooly Mammoth Theater. As for their 7th and Florida Ave. project, Douglas is seeking tenants, but according to Millstein the group is being picky, refusing to go the "fast and ugly" way of cell phone stores or fast food. Neighbors gave a round of applause for that one. 2. Next came 1501 9th ST NW a smaller development by a small business, Inle Development. According to the property owner/developer, the space will be leased to a single tenant, Mandalay Restaurant and Cafe, a Burmese restaurant currently based in Silver Spring. Mandalay will have a ground floor restaurant with outdoor seating, a second floor bar and the remainder will be residential space for the restaurant owner and family members. The developer cited a few financing "hiccups" but estimated the project should break ground in three to four months, deliveShaw Main Streets, Quadrangle Development, Marriott Marquis hotel, Hines, Douglas Development, Alex Padro, Alan Zichring late 2010. The project takes up a single lot and will likely be 50 ft in height. 3. On their Addison Square project Metropolitan Development had hoped to be into the ground by now, but it's looking more like summer 2010, at which point the 4-5 weeks of demolition will commence, followed directly by construction. The group received their final PUD two weeks ago, and a few changes mean the 54 units of affordable housing will be distributed among the 224 market-rate units, for a total of 278 rental units in the main building. The ground floor retail plans are largely unchanged with the group looking to have both a white table cloth restaurant as well as a faster, less formal restaurant. 4. Ellis Development Group and Four Points, erstwhile developers of Howard Theatre and Media Center One, formerly Broadcast Center One, said the financing for the projects, which have been repeatedly punted down the road, hit a "road bump," but the group expects the project to move forward, breaking ground on Media Center's 300,000 s. f. mixed-use development on 7th and S Streets NW before the new year. Shaw Main Streets, Quadrangle Development, Ellis Development, Howard Theater, Hines, Douglas Development, Shaw, Washington DC real estateConstruction will take approximately 24 months for Media Center to finish and, as the developer noted, they are one of the few lucky projects to actually have a tenant secured. Over at the Howard Theatre, demolition of the 1940s facade has already begun, ground breaking may still happen this year, and the developers are, of course, talking with prospective tenants. 5. Roadside Development's City Market at O finally has some legs and a timeline. In an agreement with several DC Council members, Roadside received a $2.5 million grant, enabling them to "put the architects back to work." The big day will be September 3, 2010, when the group starts work on stabilization of the historic market. The next big date is January 15, 2011, when the current Giant will close its doors and from which date Roadside will have 24 months to finish construction of the new Giant location.City Market at O, Shaw, Washington DC commercial real estate, Roadside Development The takeaway from the evening, with projects stuck in trenches, hitting road bumps or just plain falling victim to the economic climate, was that Shaw developers seem to be in a regular war zone these days. With so many groups blaming the current "financial situation" for development and construction delays, we are beginning to wonder what they'll blame whenever the financial situation improves...

Washington DC commercial real estate

Thursday, August 21, 2008

Shaw Housing Project Gets Rebirth

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Roadside, O Street Market, Shaw, Washington DC Just a block away from the future O Street Market re- development site, Metropolitan Development is planning to weed out the wilted Kelsey Gardens apartment community. The 54 subsidized apartments will be replaced with a mixed-use building that they hope will blossom into 282 mixed-income rental units, 14,400 s.f. of retail space, 237 underground parking spaces on 7th street, and 7 townhomes on P street. Developers hope to break ground by this time next year, and finish in late 2010, provided zoning approval happens this year. Rachael Preston, Financial Analyst for Metropolitan, said the company has been working on the redevelopment of Kelsey Gardens on 7th Street, NW, between P and Q Streets since 2004, and that the new development is consistent with the redevelopment of the larger Shaw area. "When redeveloped, the Kelsey Gardens site will offer important progress for the Shaw community as well as continuity. Shaw is on the brink of a renaissance, driven by the addition of new residences, commercial activity, and the preservation of important landmarks," Preston said. Kelsey Gardens, Shaw, Washington DC The developer also said the project's inclusion of both townhouses and rental units is key to preserving the neighborhood's appearance and integrity while improving its design. Lessard Design, Washington DC architectureThe new townhouses, designed by Lessard Architectural Group, will be "historically sensitive", but will include "traditional and modern architectural styles to break up the length of the building on 7th Street." And as for the apartments, Preston said, "Metropolitan Development sees demand for rental housing in Shaw driven by access to public transit and proximity to DC's traditional downtown locations to the south and west, and the emerging employment zone of NoMa to the north and east." 

Metropolitan stressed that Shaw residents are part of the neighborhood's identity and will be encouraged to return. According to the developer, "The residents displaced at Kelsey Gardens for construction are guaranteed the opportunity to return to their former home once redevelopment is complete. Shaw is a community of many long time residents who give the neighborhood much of its character. By ensuring that these residents are not displaced permanently, Metropolitan Development is able to participate in preservation of the neighborhood as well as change." Metropolitan did not comment on how its former residents would be accommodated. Though currently known as Kelsey Gardens, the project is listed on Metropolitan's website as "Addison Square." Though some locals have objected to the name, suggesting that a final name may be part of the inevitable negotiations, it is unlikely that many area residents will mourn the loss of the drug and crime plagued housing project. Metropolitan acquired the land last summer and retained the previous owners, The Deliverance Church of God in Christ, as a partner in the deal.

Washington DC commercial real estate
 

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