West End Hotel Ready to Start Construction

The future Hilton Garden Inn in DC's West End

In a deal that marks a step forward for a hotel project at 22nd and M - on hold for four years - developers are set to close Wednesday on construction financing for the project, OTO Development CEO Corry Oakes told DCMud.

If the deal closes today and construction moves forward in a few weeks as developers expect, deep-rooted weeds on the prominent corner in DC's West End neighborhood may soon be gone, salving neighbors' ire.

"We're very excited about moving this long-awaited project forward and becoming part of the community," Oakes said.  He said contractors would break ground on the Hilton Garden Inn, planned for 2201 M Street, within weeks.

Turner Construction will be the general contractor on the project, Oakes said.  OTO, based in Spartanburg, SC, is one of the three developers partnering to build the West End Hilton Garden Inn, a partnership which also includes Starwood Capital Group and Perseus Realty, LLC.  Also Wednesday, the three partners were due to close on a deal consummating their joint venture agreement.

Shalom Baranes of Georgetown is architectural firm designing the terracotta and brick, 10-story, 237-room hotel, which will feature a second-floor, landscaped courtyard, meeting rooms, a rooftop garden and pool and a green roof, according to a project architect.

The corner of 2nd and M has been an empty lot for years

The 15,600 square-foot lot at the corner of 22nd and M hasn't seen action since 2008 when the site's original development team demolished the Nigerian Embassy to make way for a boutique hotel. Developers later abandoned plans for a Starwood "eco-luxury hotel", billed as a "1 Hotel", when they couldn't secure financing for the structure.  They settled on the Hilton Garden Inn brand instead, but by the time developers applied to revise their permits, many neighbors and West End leaders had already gotten excited about the "1 Hotel" concept.    

"During the zoning hearings, I was not shy about my disappointment that the concept switched from the 1 Hotel to the Hilton Garden Inn, as I felt the West End really didn't need more hotels and at least the 1 Hotel was interesting, both as a destination concept and architecturally," West End ANC2A commissioner Rebecca Coder wrote in an email to DCMud Monday. "However, at this juncture the neighborhood simply wants the corner activated."

Developers abandoned plans for this "eco-luxury" hotel

In the project's beginning, developers included Starwood and Perseus with Oppenheim as the architect.  Original plans for the site called for a 150-room, 23-suite hotel, under the Starwood Capital "global eco-luxury" hotel brand "1 Hotel", featuring an organic day spa among other features built to LEED standards.

Years passed.  The lot sat empty, but D.C. wasn't the only place so-called "eco-luxury" hotels, envisioned to cater to a niche market of über-wealthy lovers of greenness and light, weren't sprouting.  According to HotelChatter.com, Starwood's plans for a 1 Hotel in Seattle were withering too, along with the economy. Starwood started excavations for a 1 Hotel in Seattle, but later re-filled the hole and the lot reverted to a parking lot when it couldn't secure financing for the project, according to the Seattle Times.

Then, sometime between the nadir of the financial crisis and the birth of Occupy Wall Street, developers decided to change course on plans for 22nd and M after Perseus contacted more than 40 lenders, all of whom declined to finance the West End 1 Hotel project.

In 2011, developers sought permission to modify the site plans and instead of a boutique eco-luxury creation, they announced plans for a Hilton Garden Inn (a brand categorized as upscale mid-priced) with 237 rooms.  The new incarnation now included Shalom Baranes as the architect, and OTO Development, a hotel development company based in Spartanburg, South Carolina, as a third development partner.  Changes included a redesign of the exterior façades, an increase in the number of rooms and a three-foot reduction in height to 107 feet, and 53 parking spaces in a valet-operated garage.  There were neighbors who balked.

Plans for the Hilton Garden Inn at 22nd and M, West End, DC

"Some neighbors have already said they fear the new hotel will attract "the fanny-pack crowd" to the West End neighborhood," the neighborhood group West End Friends wrote on their web site last year after an ANC2A meeting when developers presented their new plans.

But if hotel site plan changes sparked West End fears of fanny packs, site developers and project architects maintain there is no need to fret about that.  "This is very much upscale for the Hilton Garden Inn brand," lead project architect Patrick Burkhart said.

Burkhart said the hotel would feature a second-floor, landscaped terrace with outdoor seating areas, and a lobby with a fireplace, monumental staircase, and a water feature with plants cascading from the second-level terrace.  The hotel will also feature a ground-floor restaurant and bar with indoor-outdoor seating opening onto the street on the corner of 22nd and M. Burkhart said the hotel marks a move by the Hilton Garden Inn brand into more urban areas, including D.C. where he said it would be the District's third.

West End Hilton Garden Inn, Washington, DC

With a new hotel, the corner will see more activity in years to come.  Demand is up for hotel rooms in the District.  According to Jan Freitag,  Senior Vice President with STR Global, a hotel industry benchmarking and consulting company based in Hendersonville, TN, data shows 10.5 million rooms were sold in the first five months of this year in the Washington, D.C. market, 1.5 percent more than last year.  "More people are coming to DC."

At least some of those people may soon be destined for 22nd and M.  Lucky for the West End, even fanny packs can be luxurious too.

West End Hilton Garden Inn Seeks Modifications This Week

This Thursday, the joint venture between Perseus Realty, Starwood Capital, and OTO Development, "PerStar M Street LLC," will visit the Zoning Commission with its request to modify the PUD zoning application for its West End hotel site, a now-empty parcel at 2201 M Street once occupied by the Nigerian Embassy. The 15,600-s.f. area is currently visualized by developers as a Hilton Garden Inn, a vision that replaces an earlier, sustainable, "eco-luxury" 1 Hotel.

The change in brand, from a 1 Hotel to a Garden Inn, comes with several zoning changes: a redesign of the exterior façades; an increase in the number of rooms, from 170 to 238; a minor increase in density, from 122,235 g.s.f to 124,564 g.s.f. (7.84 to 7.99 FAR); a small reduction in height by 3' to approximately 107'; and 11 additional parking spaces (increased from 42 to 53) in a valet-operated garage.

The Hilton Garden Inn, although not "eco-luxury," aims to become LEED-Silver certified; the Garden Inn is being designed by Shalom Baranes, who replaced the architect of the 1 Hotel, Oppenheim.

The neighborhood ANC was disappointed in the change from the 1 Hotel to a new plan and new flag; ANC 2A Chair, Rebecca Coder, emailed the following: "While the West End didn't need another hotel, the fact that the 1 was a unique concept made it palatable." Coder added that the ANC is hopeful that the concerns articulated by residents, related to the design and desire for unique retail, will be considered by developers.

The current version of the PUD, which accommodates the scrapped 1 Hotel plan for the site, was approved in June of 2008, and the buildings at 22nd and M Streets, NW – the Nigerian Embassy and Asia Nora – were razed in February of 2009 in anticipation of the project's start, which never happened.

In March of 2010, the PUD application was given a two-year time extension, due to "difficulties with financing based upon changes in economic and market conditions beyond the applicant's control;" a report by the Office of Planning in support of the time extension stated that Perseus Realty contacted 40-plus lenders unwilling to provide financing, citing the general decline in the hotel market and the negative growth in revenue generated by existing hotel rooms.

The construction extension requires that a building permit application be filed by June of 2012, however, from that time, a full year is given before construction must be underway – "no later than June 27th, 2013" – which means that although Robert Cohen, president of Perseus, said in August that the development team's goal is to begin construction in June of 2012, there is no pressure from the District to begin next year, and still another hurdle awaits – construction financing.

The Office of Zoning explained that the upcoming hearing, on Thursday the 27th, to review zoning request, may or may not result in proposed action by the Zoning Commission: "It’s possible that the Commission could take proposed action at the end of the hearing and then it would be referred to NCPC for a 30-day comment period before final action could be taken. If they don’t take proposed action at the end of the hearing, then the next step would be for it to be placed on one of the scheduled meeting agendas for decision."

In August, Neil Jacobs, president of SH Group, Starwood's luxury hotel brand management company, stated the reason for the brand change was that, "With a 1 Hotel we were limited in the number of rooms we could get onto the site. We didn't want to compromise the brand, and commercially [the Garden Inn] is a better choice."

OTO Development came on as a partner after the decision was made, in the fall of 2010, to desert the 1 Hotel in favor of a more affordable Garden Inn.

The Hilton Garden Inn will contain a 5,000-s.f. restaurant offering seasonal sidewalk seating, and if all goes well with the upcoming PUD change process, and ability to secure construction financing, developers aim to deliver the hotel and restaurant by the summer of 2014.

Washington D.C. real estate development news

Hilton Garden Inn Aiming for Next Summer at One Hotel Site

The West End has been waiting on 1 Hotel for several years. In a way, the wait is over, according to Robert Cohen, President of Perseus Realty LLC, half of the site's development team along with the Starwood Group, who said, "There is no more 1 Hotel [for this site]." Instead, there will be a 238-room Hilton Garden Inn with a 5,000 s.f. restaurant, and construction is expected to begin in June of 2012.

New design, Hilton Garden Inn:
Previous design, 1 Hotel:
Perseus Realty is currently applying for an amended PUD with the Zoning Commission, using the above (first rendering) working design by local architecture firm Shalom Baranes. "It's a first class design," explained Cohen. "It'll be the nicest Hilton Garden Inn in the country." Shalom Baranes principal Patrick Burkhart is in charge of the new Hilton Garden design, the 1 Hotel design was done by Chad Oppenheim of Oppenheim.

"Due to the climate in the last two or three years, we felt that a Hilton Garden Inn is a better use for the site. Nothing more than that," said Neil Jacobs, president of SH Group, Starwood's luxury hotel brand management company, formed in 2009. "With a 1 Hotel we were limited in the number of rooms we could get onto the site. We didn't want to compromise the brand, and commercially [the Hilton] is a better choice."

The 1 Hotel brand is alive and well, confirms Jacobs, who notes the construction of a new 1 Hotel currently underway on 6th Avenue in New York.

The Starwood and Perseus investment at M and 22nd Streets, NW is the site of the former Nigerian Embassy and Asia Nora - both razed in 2008. A restaurateur, yet to be selected for the 5000 s.f. space, will be largely dependent on qualities that are interactive and community focused, according to Cohen.

8/11 addition: previous project and design commentary, Former Swanky 1Hotel...

Washington D.C. real estate development news

"1" Hotel Sees the Green Light at End of Tunnel

Perseus Realty, LLC received a unanimous vote of approval from the Zoning Commission on Monday for their PUD of "1" Hotel, DC's first LEED certified hotel. They last met with the ZC at the end of February to hammer out more details on their project to be located at the corner of 22nd and M Streets in the West End neighborhood, across from the Ritz Carlton.

The 125,000 s.f. luxury hotel, pledged to be LEED Silver certified, will have between 148 and 170 rooms, depending on how many suites developers decide to create, on ten guest room levels. Perseus, along with Starwood Capital Group, purchased the land back in November 2006. The Nigerian Embassy and Asia Nora (see photo below) are currently on the site but will be demolished in order for construction to begin.

Starwood hopes to turn the "1" Hotel concept into the first global, luxury, green hotel brand. According to a source at Perseus, who asked not to be named until approval was completed, "In addition to the architecture, which is great, what makes this project special is more the concepts behind it and what it is trying to get accomplished. This is all new to DC. It is the first LEED certified hotel. It is definitely a work in progress, but we are all still really excited about it. This is a way for guests to act in an environmentally conscious way but still have everything they want and need."

The building will have an exterior layer of energy efficient glass to let in daylight during cold months and shield the rooms from heat during warmer weather. The guest rooms will have individual energy controls that will activate when a key card is put in place by the guest, in order to save on light and temperature control costs. The hotel will most likely use a greywater system, recycling "slightly dirty" water to use for heating.

Back in February, the ZC asked the developers for clarification on the "green walls" that are to run from floor to ceiling and divide the L-shaped building into three sections, as well as border the outside tea garden. The walls are made of a mix of plants that grow in both shade and light to give guests an outdoor-while-indoor experience. The walls also have a functional job, as they help to purify the air and get rid of pollutants. Perseus assured the commission the walls could be replaced in one-ft. squares, so that it will not eventually turn into a "brown wall."

Other issues resolved were clarification for an unnamed party in opposition about an abutting wall from the roof penthouse structure that came close to a property line, and the location of a garage entrance. Perseus is still going through the PUD process; their plans now go to the National Capital Planning Commission. NCPC will have 30 days to give their verdict. Developers have not yet released a construction time line.

Washington DC commercial real estate news

DC's First Green Hotel on the Way

Developers of the "1 Hotel" are finally knocking down the former Nigerian Embassy at 22^nd and M Streets, NW (pictured below, looking not much worse than it has for the last decade). Demolition is courtesy of the Starwood Capital Group and Perseus Realty, LLC to make way for what may become Washington DC's first truly green hotel. In 2010, the development duo intends open the District’s first - a 182 room project that’s being dubbed "Washington’s first green luxury hotel" and the east coast flagship for Starwood’s new "luxe-eco" endeavors.

Coming in at 188,000 square feet, the Chad Oppenheim-designed edifice will consist of three "11-story volumes connected by glass enclosed vertical gardens." Drawing upon Victorian-era botanical gardens for inspiration, the architect claims that this configuration will function as a “living machine” that will serve as a natural air and water purification system. In a natural move for such a verdant project, the hotel will seek LEED certification and feature an organic spa, along with a green roof (with lounge) in the heart of Washington’s West End. Additionally, the development team is seeking to boost their green street cred by allying themselves National Resources Defense Council - to whom they will donate one percent of the profits from DC 1. While the embassy will be missed by few, popular restaurant Asia Nora is also being demolished to make way for green hotel, but the hotel group has plans for an organic restaurant within to replace the loss to the food supply of the West End, a neighborhood that will now have one of the highest concentrations of hotels in the DC area.

The 1 Hotel & Residences brand is Starwood’s attempt at bridging the gap between two equally trendy, yet totally opposite poles: high-class living and environmentally sound building practices. The hoteliers, who bought the land in 2006, will have plenty of competition for elegance - once completed it will stand directly across from the Ritz-Carlton and within a block of several upscale hotels - which may make it a good test case to see if green pays.

Other 1 locations currently in the pipeline include Paris, France; Seattle, WA; Scottsdale, AZ; Mammoth Lakes, CA; and Ft. Lauderdale, FL with further expansions planned for Los Angeles and New York. Construction of the DC location is being overseen be Tompkins Builders and, once open, is sure to be the most Google unfriendly hotel in the metropolitan area.

The Great Race

By Beth Herman Le Mans. Indy. Iditarod. The Preakness. The moon. When we think of legendary races, the quest to renovate the venerated Hay-Adams, 800 16^th St. NW, doesn't readily come to mind. But for an intrepid pit crew that included the hotel’s owner/developer, architect, designer, general contractor, an alliance of engineers and other consultants, adding a 9^th story to the Washington landmark hotel took on a whole new meaning when the finish line was only 90 days from demolition, due to an immovable International Monetary Fund guest booking. With feats that included demolishing an 8^th floor rooftop farm containing all of the hotel’s mechanical systems, emergency generator, elevator machine room and other structures, the decision to jettison the Hay-Adam’s rooftop tented function space— used for more than a decade for weddings and other fetes— in favor of building permanent event space, plus a penthouse for systems and machines, was three years in the entitling process and a scant few months in the brunt of its execution. "We realized that the Comprehensive Plan for the District of Columbia allowed for another story to be built,” said B.F. Saul Co. Senior Vice President of Real Estate Development J. Page Lansdale of the iconic structure, “but I could talk for hours about the design challenges.” Green flag Created in 1928 as an Italian Renaissance-style apartment-hotel by renowned developer Harry Wardman and architect Mirhan Mesrobian, the then 138-room Hay-Adams with singular views of Lafayette Park and the White House became the District’s pied-a-terre-of-choice for international glitterati like Ethel Barrymore and Charles Lindbergh. More recently, literary giant Laura Hillenbrand and her husband exchanged wedding vows in the hotel’s storied sanctums, and in 2008/early 2009, famiglia Obama made the venue its pre-inaugural address. For Lansdale, Principal Lee Becker and project manager Brian Farrell of Hartman-Cox Architects, the HITT Contracting team who’d done a previous Hay-Adams renovation a decade ago, structural engineers Thornton Tomasetti, mechanical/ electrical guides Girard Engineering and designer Thomas Pheasant, among many others, building an addition at warp-speed on an 11,000 s.f. historical footprint galvanized them for what some say was unprecedented, exhaustive time-and-teamwork challenge. Closing the hotel in June, 2010 and retaining management staff for the projected October reopening, among their many objectives was to essentially set a time record, Lansdale indicated. In order to meet the challenge, long lead items such as structured steel and elevator equipment had been ordered prior to June, as the team sought to augment two passenger elevators and one freight elevator by engaging an empty shaft from the 1920s that had never been utilized for a fourth cab. Desiring an express elevator from the lobby to what would be the new Top of the Hay, a high-speed conveyor was installed in the space. In order to “turn the hotel back on” for the October IMF mega-reservation, booked one year earlier, framing the addition—plus new plumbing and mechanical systems, elevator system, life safety systems, fenestration, restroom construction (the former tented space had no facilities, with event-goers descending to the 8^th floor) and more—had to be done immediately, with workers toiling seven days a week in two 10-hour shifts. With the cessation of construction noise and vibration in 90 days, painting, carpeting, tile, mill and stonework, fitting out the kitchen and the balance of the finishes, would go on into December on a more traditional work schedule, over a live hotel. 

Rounding curves; avoiding debris Built more than 80 years ago and listed on the National Historic Register, the team had to be “convinced beyond a shadow of a doubt,” according to Lansdale, that the existing structure and its foundation could support the load of both a 9^th floor penthouse—which would house the elevator machine room, mechanical systems, etc.—and the new event space. Investigating load and accruing wind shear, structural engineers Thornton Tomasetti bored through existing footings, into the soil, to produce a detailed analysis. "I will say it wasn’t an immediate response from them to say ‘no problem,’” Lansdale conceded, adding that the prospect of underpinning the entire building, to make it structurally sound enough to support the event space and penthouse, may have made the project cost-prohibitive. “That was the first hurdle,” he said when the structure was ultimately deemed capable. A dearth of building information from the 1920s precipitated a column survey next by Thornton Tomasetti and HITT Contracting, which revealed between 55 and 60 existing columns, to comply with D.C. construction mandates that the new steel columns had to land directly on the center line of the old ones. “It was a tremendous piece of design and engineering on behalf of the designer and contractor working together,” Lansdale said, noting only two locations were missed. “If you fabricate something that doesn’t fit at all, you’ve really lost time and energy,” he said. Citing another design challenge, Lansdale said among zoning requirements was that the new structure had to have a 1:1 setback from the existing roof parapet. With the desired ceiling height to be quite formidable, the space would become “skinny” and almost unusable. Embarking on a series of studies to maximize the space’s volume and meet the requisite 1:1 setback, the result was an 8-ft. perimeter roof edge line, but with a vaulted skylight system that reaches about 13 feet at its apex. Staying on track Usual (and not so usual) zoning quagmires included a conflict between the District’s Comprehensive Plan, which allowed for a story to be added, and existing zoning, which precluded any additional height. A rezoning application ensued before Lansdale, et al, could submit to the Commission of Fine Arts and Historic Preservation Review Board. Where the separate penthouse construction was concerned, a Board of Zoning Adjustment application was required, with the letter of the law stating that this structure, also, needed to have a 1:1 setback, but from the addition beneath it. “There was no way to build (the penthouse for systems and machines) without a waiver of that requirement,” Lansdale affirmed, noting it was ultimately achieved, though the equivalent of a short prison sentence—beginning in 2007—was spent navigating zoning and review board processes. With 11,000 s.f. of separable space, in addition to a kitchen, that becomes five function rooms, public spaces and restrooms, design features and finishes include Crema Marfil marble, custom stained wood, Charles Edwards brass lantern fixtures and fabric wall panels. The addition’s perimeter faces 16^th and H Streets and has what Lansdale said is a giant French door system with double-hinged doors that fall back on themselves, leading out to a balcony with sparkling vistas. “This was a good project to do because architecturally, it really cleaned up the roof compared to what it was before with a tent and exposed mechanical system,” Lansdale said, noting the first events were accommodated in January. “The penthouse part of the design organizes and takes everything out of sight, and if you’re standing on the street, the only thing you see is a set back 9^th floor event space that is actually very beautiful. It’s a completely different ‘skyscaped’ look for that particular address.” 

West End Hotel, Waiting for 2

It may be up to three years before Starwood Capital Group moves forward on with a hotel at 22nd and M in the District's West End. The project that was to have been developed by Perseus Realty has been on hold for several years, having been slated for the city's first eco-luxury, LEED-certified 1 Hotel, a brand that would have offered 150 rooms, 23 suites, an organic day spa, fitness center and restaurants.

"My sense is they are waiting for the financial markets to thaw out a little more," said ANC2A Commissioner Rebecca Coder. "From the neighborhood perspective...there would be a preference for multi-family housing, but we're open to the hotel that's approved as well." Coder said she knew of other developers having approached Starwood about purchasing the land to develop as part of Eastbanc's redevelopment of the post office, library fire station, but the offer was declined.

In phone calls yesterday, both Starwood Capital and Perseus would not comment on the development. But sources say the hotelier has been talking with other operators about possibilities for the site. When asked, Perseus said the company is still the developer for the project.

The two formed an agreement in 2007 to build the hotel. The site was the former location of the Nigerian Embassy and Asia Nora, both demolished in 2008 - no architectural loss - to make way for 1. The project never got off the ground. Last year, Starwood abandoned the 1 Hotel concept, and has since considered other brands. Starwood and Perseus had hoped to decide upon a direction by the end of 2010.

But locals are unhappy that the choice site has become a weed garden. "We are talking to people to decide what to do with the land in the interim, something that may generate money," said Coder. She mentioned the possibility of parking, but the PUD may prevent the developer from such a plan for temporary use. "It's really long time for the neighborhood to put up with an empty lot."

Washington, D.C. real estate development news

West End Hotel Construction Begins

OTO Development has begun work on the Hilton Garden Inn at 22nd and M Streets, in DC's West End neighborhood.  The project had been on hold for years as a previous team sought to put a fashionable "1 Hotel" on the site, but failed to get the project off the ground.  Turner Construction, the general contractor on the project, began site work last week.

OTO, based in Spartanburg, SC, is one of the three developers partnering to build the West End Hilton, along with newly-formed partnership including Starwood Capital Group and Perseus Realty, LLC, a partnership that brought the financing needed to start construction.  Shalom Baranes of Georgetown is architectural firm designing the terracotta and brick, 10-story, 237-room hotel, which will feature a second-floor, landscaped courtyard, meeting rooms, a rooftop garden and pool and a green roof.

West End Hilton Garden Inn, Washington, DC

The 15,600 s.f. lot at the corner of 22nd and M has been dormant since 2008 when the site's original developer demolished the Nigerian Embassy to make way for a boutique hotel.  Starwood then planned a luxury hotel but failed to secure financing for the concept.



In 2011, developers sought permission to modify the site plans and instead of a boutique eco-luxury creation, they announced plans for a Hilton Garden Inn (a brand categorized as upscale mid-priced) with 237 rooms, along with Shalom Baranes and OTO Development as a third development partner.  Although neighbors complained about the "fanny pack crowd that would frequent the hotel, the choice proved easier to finance.

The hotel will also feature a ground-floor restaurant and bar with indoor-outdoor seating opening onto the street on the corner of 22nd and M, and is the beginning of Hilton's play into more urban areas.

Washington D.C. real estate development news

New Hotel Coming to the West End

One of the hottest areas for development these days is the District’s West End, the once-quiet stretch of Northwest Washington between Dupont Circle and Georgetown (north of Foggy Bottom) best known in the past for its unremarkable office buildings and lack of retail … well, excluding the long-gone and missed Cineplex West End Theater and the original Goldoni restaurant on 22nd Street between L and M Streets, and the more-recently gone and not missed Lulu’s nightclub on M Street. But new development is quickly awakening this area, starting a few years ago with the building of the Ritz-Carlton hotel/condo at 22nd and M Streets, followed by the Columbia Residences development and The Atlas on 25th Street, the new Trader Joe’s grocery store, and still more to come. The most recent news now comes with Perseus Realty’s announcement that it plans to build a new luxury hotel for Starwood Capital Group called "The One" at 2201 M Street, the site of the former Nigerian Embassy, just across the street from the Ritz. While Perseus still needs to gain approval for the project from the DC Zoning Commission (as it would exceed current zoning permission), the developer envisions a LEED-certified “green” hotel, with a glass and greenery-filled atrium stretching from floor to roof visible from the exterior. In all, the building would be 125,000 sf and 110-feet tall. Perseus expects to submit its formal zoning application in late July.

Update: The Washington Business Journal is reporting the hotel will officially be called "1 Hotel & Residences," and the $100 million, 5-star hotel will feature 180 rooms, a "double skin," vine-covered surface to insulate the building, and solar water heating. Ground is expected to be broken in summer 2008, with completion in late 2009.

DC May Get its First Green Hotel in West End

DC-based Perseus Realty, LLC has announced further details about the hotel it is building with partner Starwood Capital Corp., collaborating to build DC's first LEED-certified hotel, a 180-room hotel in at the corner of 22nd and M Streets (pictured above) in the city's West End neighborhood, as we reported in June, and the pair has now stated that the building will be a 5-star hotel and released renderings.

Connecticut-based Starwood recently began its new "1" chain of hotels with the groundbreaking in June of its first development in Seattle. The DC site will be the third hotel in the chain, following New York and Seattle, and the first hotel project for Perseus, but unlike its sister hotel in Seattle will have no retail or condominium element. In addition to seeking LEED certification through the U.S. Green Buiding Council (USGBC), Perseus intends to make this only the 2nd five-star hotel in the city after the Mandarin Oriential and the first in Northwest. This "will be the first luxury, eco-friendly hotel chain in the country, " said Gabrielle Kornely, Director of Marketing for Perseus, adding that one percent of profits will be donated to local environmental organizations.

Perseus expects to break ground in mid 2008 on the land it purchased from the Nigerian government, where the now-vacant Nigerian Embassy still stands, for which it reportedly paid $15.5m. While the developers have not yet opened any of the hotels - Seattle will be the first in early 2009 - and the DC site will not contain any independent retail, Kornely says the chain will provide appropriately luxurious services, including a "high end restaurant" and bar, and will be managed by Starwood when it opens in 2010. Construction is being coordinated by the architectural team of Leo Daly and Miami-based Oppenheim Architecture and Design.

Perseus Realty was formed in 2003, and broke off in 2004 into 4 real estate groups, each retaining the name Perseus in order to confuse real estate bloggers, but Kornely says the other Perseus entities are capital investment teams that do not develop on their own. Perseus (you know which one) is also in development of the YMCA property at 1235 W Street, NW, on which it will break ground next year. The YMCA include local retail, incorporating the historic row houses that front 13th St. The building housing the current Y will go away, but its facilities will be replaced and co-located with the retail. Perseus is also under construction on the Argent, a 96-unit condo in Silver Spring which broke ground this summer.

AdMo Hotel Gets New Look, Pushes Forward

Plans for the hotel addition to the Adams Morgan Historic Hotel have a new look, a new design team - and no shortage of comments on both - at yet another Historic Preservation Review Board meeting.

The Board again will hear community testimony at its May meeting before making a decision about the plans to develop at the First Church of Christ Scientist building on Euclid Street. Dozens of residents attended the March and April meetings for their chance to speak, but two meetings was simply not enough time to hear them all. Another 45 minutes will be designated for the project in May when the Board might finally get its chance to ask some questions and cast a vote.

Barbara Mullenex, principal at OPX Global, presented its latest plans in March showing a more subdued, red brick masonry building with light steel windows behind the century-old church that itself is under consideration for historic landmark status. The new building is 90 feet tall on Euclid Street but steps back as the land slopes down 13 feet toward Champlain Street. A 3-floor, mostly glass, 28-foot hyphen joins the two buildings.

Click here for more renderings

Friedman Capital Advisors and national hotel developer Beztak Companies first introduced plans for a 180,000 s.f. "boutique hotel" four years ago. Marriott signed on to manage the hotel as part of the Edition line of boutique hotels created in conjunction with Ian Schrager's hyper-sophisticated brand. But Kevin Montano, head of development for Edition, said the developers terminated the Ian Schrager agreement several months ago.

The Adams Morgan Historic Hotel website still lists Marriott as the hotel management. Brian Friedman did not return calls or emails requesting information about the project.

New construction behind the (not yet designated) historic church will provide space for guest rooms, parking and other more private facilities. The church will be refurbished and repurposed for a restaurant, ballrooms and community room open to the public.

The Board provided concept review for the project in July and November of 2008 when Handel Architects presented a mostly glass building with colored panels. According to the latest Historic Preservation Office staff report:

"In its two concept reviews in June and November 2008, the Review Board offered a range of comments to improve the compatibility of the project. Those comments focused on: 1) increasing the distance and visual separation between the church and the addition; 2) ensuring the connection was light-weight in feeling and lower in height than the church’s cornice line; 3) redesigning the porte-cochere and vehicular access to the addition to ensure it did not extend over to the side yard of the church; 4) shifting the mass of the addition away from the church to the greatest extent possible (moving it further down Champlain Street and/or concentrated at the rear/west side were specifically suggested); and 5) articulating the building’s all-glass elevations so that they didn’t appear flat, monolithic and looming behind the church building. It has been based on this guidance that the HPO has worked with the applicants over the past 18 months to ensure that these points of concern have been addressed."

The building is more clearly separated from the church, the glass connector is much shorter and transparent, vehicle traffic moved to a redesigned porte-cochere that fits better with Champlain Street, massing shifted away from the church, and masonry replaced most of the glass.

The Historic Preservation Office staff report "recommends that the Board find the revised concept to be compatible with the proposed landmark and consistent with the purpose of the preservation act..." If the Board follows that recommendation, it is fairly certain members will offer tips for improvement as plans develop. The real problems could occur with zoning.

Residents who dislike the plan seem to focus on two big factors – height and community impact.

This fall, the Office of Planning sent a report to the Zoning Commission including concerns about the building’s height. The Zoning Commission agreed in November to set down the proposal for a hearing but also expressed its own height concerns.

Designs changed since November based on recommendations from the Zoning Commission such as colors and massing. But the overall height dropped only two feet to fit within current zoning limits, leaving even more uncertainty about whether a high-end hotel can be a good-enough addition to AdMo - the District's preeminent late night bar scene. 

Washington, D.C., real estate development news

New Marriott Almost Ready In Potomac Yards' National Gateway

Developer JBG reports that construction of their Renaissance Arlington Capital View in Potomac Yards is nearing completion and should be ready for an April 2011 opening. Matt Blocher of JBG describes the 300-room hotel, designed by Cooper Carry, as having "the soul of a boutique hotel with the location and amenities suited for business and leisure in and around the nation’s capital."

Situated at 2800 South Potomac Avenue in Arlington, Va, the hotel will offer 17,354 s.f. of flexible event space, including a gigantic ballroom and 13 smaller "break-out" rooms. Banquet and meeting rooms will be outfitted with cutting edge event technology like smartphone applications that enable lighting and audio adjustments, which could become a problem when bored-to-death audience members at the annual pharmaceutical conference learn how to hack into the system and implant inappropriate pictures into the power point presentations. Enhanced networks for cell phone and internet connectivity will allow business conference attendees to efficiently adjust their fantasy football rosters amid stuffy status meetings. It's expected that the hotel and the developing Potomac Yards center will serve as a hub for business travelers; with it's convenient proximity to the offices of PBS, Boeing, Lockheed Martin, Northrop Grumman and IBM, as well as government agencies such as the Pentagon and EPA, and Reagan National Airport, it will surely see an increasing load of visitors upon its official unveiling.

Included on site will be 5,000 s.f. of retail at the corner of 29th and Crystal Ave, a 5,000 s.f. restaurant inside the Renaissance Hotel, and an Illy-branded coffee shop. A below-grade parking garage with 522 spaces will eventually connect the Renaissance Hotel to the separately operated but co-planned and developed 325-room Residence Inn. Both hotels are expected to be the first LEED certified hotels in Arlington County, each with a landscaped green roof and various other sustainable features. The hotel-complex is an important aspect of the expansive 15 acre, 1.5-mile-long development strip being dubbed the "National Gateway at Potomac Yards" which is set to feature 2,848,000 s.f. of office, residential, hotel, and retail space. The project is expected to exceed some $1 billion by the time of completion. "National Gateway" is being developed by the Meridian Group.

Washington D.C. Real Estate Development News

DC's Development Pipeline

Ever since the Fenty administration took over development of the District's publicly-owned property, merging agencies and placing them under his direct supervision, it seems development of blighted blocks has been given a new urgency, even compared to that of the Williams administration - itself a great improvement over its predecessor. But despite weekly announcements from the Mayor and the Office of Planning and Economic Development, many of the projects still have to proceed through the District's infamously thick bureaucracy. But if China can cleanse its murky atmosphere in a few short months, there is cause for optimism that change is in the air here in Washington. DCMud has prepared a rundown of the largest projects now underway, properties in need of developers, and solicitations to look for in the future.

The projects listed below are still being refined. The numbers and square footage assigned to each are conceptual and are subject to change.

Projects With Developers

Southwest Waterfront by Hoffman Streuver will offer 539 market-rate units and 231 affordable units. The $1.5 billion project will also include 350 hotel rooms, 700,000 s.f. of office space and 280,000 s.f. of retail space. On July 15th, the DC Council approved a $198 million TIF/PILOT package to finance park and infrastructure improvements. Groundbreaking is not expected any time soon, with construction lasting at least 6 years.

Waterfront, the erroneously named project at 401 M Street, SW, will deliver 800 market-rate and 200 affordable residential units as well as 1.3 million s.f. of office space and 110,00 s.f. of retail space. Mayor Fenty joined SW Waterfront Associates (Forest City Wasington, Charles E. Smith Vornado) in November to demolish the former Waterside Mall. The $800 million project will sit atop the Waterfront -SEU Metro station.

Clark Realty was selected in February as Master Developer for Poplar Point on the east side of the Anacostia. The number of residential and hotel units they will deliver has not yet been determined, however 30% of all residential units will be affordable. The District and the National Park Services held a public scoping meeting last month for the Environmental Impact Statement of the $2.5 billion project.

Center Leg Freeway on Massachusetts Ave, NW between 2nd and 3rd Streets is being developed by Louis Dreyfus Properties into 100 market- rate and 50 affordable residential units. The $1.1. billion project will cap the exposed section of I-395, and include 2,100,000 s.f. office space and 67,000 s.f. retail space.

The McMillan Sand Filtration Site on North Capital Street and Michigan Avenue will be developed into 820 market-rate units, 351 affordable units, and a 100-room hotel by EYA. The $1 billion project will also deliver 700,000 s.f. of office space and $110,000 s.f. of retail space. The project has long been worked over, but don't make plans for moving in any time soon.

In May the District reached a deal with Hines Archstone to develop a 400-room "high-end" hotel and 100,000 s.f. of additional retail space on "Parcel B", a 53,000 s.f. plot of land that is part of the larger CityCenter DC, the development taking up residence on the old convention center site. The entire $850 million project downtown will deliver 539 market-rate units, 135 affordable units, 476,000 s.f. of office space, and 266,000 s.f. of retail space.

On June 26th, Marriot International, Cooper Carry Architects and EHT Traceries presented plans for the Convention Center Headquarters Hotel to the Historic Preservation Review Board. Located on the Corner of 9th Street and Massachusetts Avenue, NW, the $550 million project will deliver 1125 hotel rooms and 25,00 s.f. of retail space. Having been scaled back from its original 1400 bed facility, the project is well past its early schedule, of construction in 2007.

O Street Market at 7th Street and Georgia Avenue will be transformed into a mixed-use development that will include 550 market-rate and 80 affordable residential units by Roadside Development. The $329 million development will replace a current Giant supermarket with a new 71,000 s.f. store and include a 200 unit hotel and 87,000 s.f. of retail space. The District reached an agreement with the developer late last month to kickstart financing. Of the dozens of projects promising to revitalize the Shaw neighborhood, this may be the first large project to actually get underway.

Skyland Shopping Center on Good Hope Road at Naylor and Alabama Avenue, SE will be developed by Rappaport Companies and William C. Smith Companies into a $261 million development with 155 market-rate units and 66 affordable units as well as 230,000 s.f. of retail space. When? Even an estimate will be fine.

City Vista, which began sales in late 2005, will bring 441 condos with 138 affordable residential units to, as well as a separate apartment building, to 5th and K Streets, NW. The project will also include 130,000 s.f. of retail space and will cost $191 million. The first condominium building completed last October, the remaining condominium and the apartment building are nearly ready for occupancy.

Early this year, Fenty signed a Land Disposition Agreement with Broadcast Center One Partners LLC, (Ellis Development and Four Points, LLC) that will bring African-American-owned Radio One to the district. The $144 million Broadcast Center One at 7th and S Streets, NW will be a mixed-use project with 135 market-rate and 45 affordable residential units as well as 96,000 s.f. of office space and 22,000 s.f. of retail space. According to Fenty's office, "the deal also sets in motion the $22 million redevelopment of the Howard Theater, a long-shuttered landmark that was the hub of black Broadway." If it gets built; the timeline remains uncertain.

Mt. Carmel (Parcel 51B) on 3rd Street, NW between K and H Streets is being developed by MQW LLC (Quadrangle and the Wilkes Companies) into $130 million mixed-use project with 267 market-rate units, 67 affordable units and 90,000 s.f. office space.

Forest City Washington is responsible for the $120 million O Street SE Redevelopment by the SE Federal Center. It will deliver 354 market-rate units, 89 affordable units and 47,000 s.f. of retail space.

The Village at Dakota Crossing in Fort Lincoln by Ft. Lincoln New Town Corporation will include 327 market-rate and 30 affordable units. It will cost $110 million.

Mid City Urban and A&R Development will bring 216 market-rate and 54 affordable residential units as well as 70,000 s.f. of retail space to the area around the Rhode Island Avenue Metro station with their $105 million Rhode Island Station project. First attempted as a condo project, developers have bowed to the market and substituted apartment buildings - at least in theory, as the project has yet to break ground.

The $100 million Shops at Dakota Crossing on New York and South Dakota Avenue, NE will be developed by Ft. Lincoln New Town Corporation into 29,000 s.f. of office space and 461,000 s.f. of retail space.

Lowe Enterprises and Jack Sophie Development have long had intentions to develop Riggs Road and South Dakota Avenue, NE (Triangle Parcel) into 208 market-rate units, 52 affordable units and 23,223 s.f. of retail to the tune of $75 million. The fate of the project is uncertain, as higher construction costs, shrinking condo prices, and more conservative lending practices - especially in low-income neighborhoods, make such projects harder to justify.

Park Place on Georgia Avenue in Petworth will be developed by Donatelli Development into 161 market-rate units, 32 affordable units and 16,000 s.f of retail space and will cost $60 million. Purchased by Donatelli, along with partners Gragg & Associates, Canyon Capital Realty Advisors and Earvin 'Magic' Johnson, will be one of the few developers delivering new condos in 2009.

In February, the District made a Term Sheet with Parcel 42 Partners to develop 95 affordable housing units and 8,000 s.f. of retail space on Parcel 42, in Shaw at 7th and Rhode Island Avenue, NW for $28 million.

In December 2007, the District selected William C. Smtih Companies and the Jair Lynch Companies to develop the $700 million Northwest One New Community that will deliver 1,600 units of housing on former NCRC parcels as well as adjacent DC-controlled and private properties in Ward 6. Located between North Capitol Street, New York Avenue, New Jersey Avenue, and K Street, the site is in an area that has "long been plagued by high crime and poverty", but is surrounded by the up-and-coming NoMa and Mt.Vernon Triangle neighborhoods. The development team, which also includes Banneker Ventures and CPDC (affordable housing provider), will create apartments, townhouses, and condos for all income levels as well as over 40,000 s.f. of retail and 220,000 s.f. of office space. The development will also offer a 21,000 s.f. clinic.

And further down the road...

The District issued a solicitation in early June for Parcel 69 at 4th, 6th, and E Streets, SW. The $130 million development will be an office and hotel project along the Southwest freeway. Proposals are due by September 15th.

In May, Fenty issued an RFEI for the Hill East Waterfront on Capitol Hill East. The District seeks a developer to create 2,100 market-rate and 900 affordable units with 2,000,000 s.f office space and 67,000 s.f. of retail space. The District anticipates a price tag of $1.1 billion for the development of the 50 acres surrounding the former DC General Hospital. Proposals are due by October 31st.

Proposals were due June 3rd for Minnesota and Benning Road, NE Phase II. The $107 million development will include 60 market rate, 392 affordable units and 40,000 s.f. of retail. No developer has been selected.

It is high time the District announced developer for Fifth and I Street, NW. After proposals were submitted in March, the District widdled the teams down to the final four including BG, Buccini/Pollin, Potomac Investment Properties, and a group comprised of Holland Development, Donohoe Development, Spectrum Management, and Harris Development. The winning team, whenever they are announced, will create somewhere around 170 market-rate units, 30 affordable units, 100 hotel rooms and 50,000 s.f. of retail space.

Upcoming Solicitations

The District would like to see 1,469 market-rate and 440 affordable units in Lincoln Heights in Ward 7 at an estimated cost of $576 million.

Barry Farm/Park Chester/Wade Road in Ward 8 will likely include 110 market and 330 affordable housing units and will cost around $550 million. The project is an effort to revitalize low-income properties in the historic Anacostia area.

The issuance of the Park Morton solicitation at Park Road and Georgia Avenue, NW is "imminent" according to the Mayor's office and will cost $136 million with 499 market-rate and 150 affordable units. Axis

The Shaw Redemption

Five metro area developers came together last night to highlight their major (and we mean major) plans for the District's Shaw neighborhood. Hosted by the Shaw Main Streets initiative, the developers on hand included Douglas Development (Wonder Bread Factory), Marriott Hotels (Washington Marquis Marriott), Roadside Development (City Market at O), Metropolitan Development (Kelsey Gardens) and Hines Interests (CityCenter DC).

Douglas Development
The keynote of Douglas' presentation was the long-gestating revitalization of the former Wonder Bread Factory at 641 S Street NW. Contrary to initial plans, the building will not be razed. The developer has obtained the original plans for the facade and will, to the best of their ability, restore the building to its original 1922 appearance. An additional story will be added to bring the building up to 5-stories and 150,000 square feet. The project has been summarily approved by the Historic Preservation Review Board (HPRB) and is aiming for groundbreaking in approximately 7 months, following permit approval. The developer expects construction on the GTM-designed facility to take no more than a year. Once completed, the former Wonder Bread facility will neighbor the proposed Radio One development (the outline of which can be seen in the accompanying renderings).

Several other Douglas projects underway in Shaw were also briefly touched upon. The developer’s proposed development at 600 New York Avenue NW is on hold due to the current economic situation and "lack of synergy," as is their proposed redevelopment of the Howard CVS.

Other projects, however, have had much more luck getting off the ground. The former site of Popeye’s at Florida & N Streets NW will complete its expansion and renovation in the next 3-4 months and will house a Fatburger chain restaurant, a cell phone retailer and office space. Another Douglas mixed-use development at 9^th & N Streets, NW will include ground floor retail, office space and apartments. Although poised to begin construction in the coming weeks, leases for the site will not be sought until the project is completed.

Marriott HotelsThe long-proposed (circa 2001) Washington Marriott Marquis Hotel at 9^th Street & Massachusetts Avenue, NW, long envisioned as an anchor servicing the Washington Convention Center across the street, is now slated to break ground in the first quarter of 2009. Overseen by the Quadrangle Development Corporation and designed as joint venture between TBS Architects and Cooper Carry Architecture, the building comes in at over 1 million square feet. The 13-story project will feature 1250 rooms, 2-3 restaurants, a ballroom and meeting space and a 400 space underground parking garage – all enclosed under an all-glass atrium. Additionally, the Pepco power station and AFL building currently on the site will also be incorporated into the hotel’s footprint, with the latter being converted to hold 42 hotel rooms. The Marriott representative on hand described it as “one of the most complex projects we’ve ever worked on.” The project is hoping to achieve an LEED silver certification.

Roadside Development

The City Market at O is shaping up to bring big changes to the current site of Giant Food on O Street NW. The mixed-use development will feature a new Giant store that will retain the old façade of the O Street Market and was hailed, as least by the pitchmen, as outclassing the new CityVista Safeway in both style and function. Additionally, the site will give way to a new 200 room, limited-use hotel, a large-scale fitness center, a 6000 square foot independent restaurant featuring a local chef, and 600 apartments and condominiums targeted towards “young professionals.” 8^th Street will also reopen for pedestrian use between the two buildings on the site, parking for the facilities will be moved underground. Roadside showcased some interesting architectural features on the buildings, including a 2-story projection on the residential building – currently referred to as “the diving board.” The developers are currently in negotiations with the Deputy Mayor’s Office for Planning and Economic Development (DMPED) to receive Tax Increment Financing for the project and are hoping for a September 2009 groundbreaking.

Metropolitan DevelopmentThough Metropolitan’s Kelsey Gardens has been recently covered by DCMud, the developer still had a few surprises on hand for their presentation. Architects will employ the increasingly common urban technique of breaking the 14,800-square foot, 297-unit building into five distinct facades, in order to affect the appearance of being constructed during different time periods by different architects. Roofs of the “buildings” will be 50% green and feature both private and public terraces. The development will be complimented by 2 levels of underground parking that will feature preferred parking spaces for “energy efficient vehicles” (i.e., hybrids). The project is shooting for 2011 completion.

Hines Interests
The final presentation of the evening concerned the redevelopment of the site of the old convention center, Hines Interests and Archstone’s CityCenter DC project. Designed by Foster + Partners and Shalom Baranes Architects, the 10-acre site is being envisioned as “a new neighborhood for downtown.” Comprised of 4 separate parcels centered around the now-closed (and eventually to be reopened) intersection of 10^th and I Streets NW, the ambitious project is to include 400,000 square feet of retail space, 1,074 residential and hotel units, 1,064,000 square feet of office space, more than 2000 parking spaces and a public park. The hotel on the site is envisioned as a 4 or 4 ½ star facility, while the developer is aiming to lure home furnishing and fashion retailers (possibly a department store) as well – in order to serve the needs of downtown residents and not specifically tourists. The Hines representative on hand posited that the project was 85% ready to go and would be seeking general contractor in the next few weeks.