Convention Center Marriott: Going Forward, Looking Back

Today it all becomes double super official, as suits and helmets mix it up at the site of the future convention center Marriott Marquis hotel this morning for an official groundbreaking. Construction began last month to build the 1175 rooms that will be owned by The Washington Convention and Sports Authority (WCSA), operated by Marriott, designed by TBS Architects and Cooper Carry Architecture, developed by Quadrangle Development and Capstone Development, on land owned by the District of Columbia. Got that? Okay, for those attending today's event that want to keep the players straight, here's a recap of the last decade of the ups and downs that got us here:

In 2001, the city issues an RFP for construction of a convention center hotel, with the Convention Center then just starting construction; the city calls for a privately funded hotel. DC chose neither of the proposals submitted by Marriott or Hilton, but subsequently announces it has chosen Marriott as a partner. Spring of 2003, the Convention Center opens amid high expectations and early success, but over time conventioneers have difficulty securing large blocks of rooms and opt for other locations; hopes of a post-construction neighborhood renaissance are unrealized. The Washington Convention Center Authority Act of 1994 is amended to further fund the Authority to build a hotel to service the convention center and add yet more convention space. Initial plans call for 1400-1500 rooms in a building that would span both sides of L Street and become the largest hotel in the city.

By early 2007, after numerous iterations of design and location, the District swaps its old convention center site for Kingdon Gould's site at 9th & Mass., Gould retains the northeast corner of what may one day become the CityCenter project. In September of 2007, Mayor Adrian Fenty announces that DC has signed a new agreement with Marriott for the hotel, now dialed back to around 1100 rooms on only one block; Marriott, which does not own the hotels it operates, agrees to lease the property for 99 years. The hotel will feature additional meeting space, an underground tunnel connecting to the Convention Center, and a glass canopied courtyard. The building will feature over 100,000 s.f. of meeting and ballroom space, 25,000 s.f. of retail, and 385 parking spaces. Marriott agrees to earn a LEED Silver rating and hangs on to the land north of L Street, now a decaying row of storefronts.

In June of 2008, HPRB considers plans for an 1100 room hotel, ultimately approving it as long as the American Federation of Labor building (pictured) is spared. With a deal inked involving Quadrangle and Capstone, construction seems near at hand, but the unfolding financial crisis drains developers of financing, halting progress.

In April 2008, the Gaylord National Hotel & Convention Center opens just south of the District inside a $2 billion project with 5 new hotels, a serious competitor for DC's convention trade. In 2009, an agitated Mayor Fenty pursues a public financing option that would have committed the Authority to picking up the $530,000,000 tab in full and proposed legislation that would have removed Quadrangle in place of a city funded program. The Council balked at the cost, and in July of 2009 the Council passes legislation, the New Convention Center Hotel Amendments Act of 2009, granting the WCSA authority to spend more than $200m to go toward construction, up from the previous $135m, with the rest to come from developers.

In August of 2009, Fenty signs the bill with much fanfare, construction of an 1175-key hotel appears imminent, but just two months later, a JBG-controlled company sues the city to delay consummation of the deal, alleging impropriety in DC's awarding process, in what some suspect was related to JBG's disagreement with Marriott over development of their Woodley Park project. JBG contends the city gave the development team a sweetheart deal financed by the city that it never offered the competition. In January of 2010, the Authority countersues JBG, alleging JBG intended to "extort" the city. JBG's suit was dismissed by a Superior Court judge in March.

In July, Marriott, the city and JBG said they had reached a deal to end the stalemate, planning then goes into high gear. By September of 2010, the city authorized WCSA to release $250m in bonds, and in early October preliminary groundwork gets underway. On October 20th the Authority announces it has sold its entire $250m bond release, clearing the last foreseeable hurdle. Today at 11, with speeches that seem longer than the planning, the parties will officially break ground on the hotel.

The four-star hotel is expected to be complete by the spring of 2014.

Washington DC real estate development news

DC Officially Gets its Convention Center Hotel

Washington DC Mayor Adrian Fenty will hold a very public ceremony this evening to officially ink the legislation that will kick-start, finally, the District's Convention Center Hotel. In a 5:30pm ceremony, the Mayor will sign the New Convention Center Hotel Amendments Act of 2009, granting authority to spend $182m in TIF funds and $35m in bonds to go toward the construction, operation, and maintenance of an 1160-room, 14-story hotel opposite the lonely Convention Center. Technically, the bill amends the Washington Convention Center Authority Act of 1994 to further fund the Washington Convention and Sports Authority (WCSA), which will own the hotel, and instructs the WCSA to contract Quadrangle Development to get it built, and with Marriott to operate the new hotel. The Act authorizes Tax Increment Financing (TIF) and the issuance of bonds, to fund up to $206m in construction and operational costs. The remainder will be paid for by private developers. Funds derived from bonds and TIFs will go solely toward hotel expenses, and not into DC's General Fund. The District government has actively conspired to get the new beds as a rebuttal to National Harbor, which hosts a larger convention center and five, count 'em, five hotels surrounding it. Not to mention that a nice river runs by it. But back to DC, where the massive hotel will serve the convention center, and ensure the success of the convention center. Of course, it was the convention center itself that was supposed defibrillate the moribund Shaw neighborhood and spark development of the area, expectations that many of the convention center's original backers feel have not been met. Officials have maintained that construction could start as early as October, with about a three-year time frame for completion. Plans for the hotel went through many iterations before today, beginning with an even more ambitious plan that would have stretched the hotel over L Street and onto the next block for more than 1400 rooms. The city had also pursued a public-financed option that would have committed the Authority to picking up the $530,000,000 tab in full. The current version incorporates the historic American Federation of Labor Building (pictured) into the Marriott, which will otherwise overtake a swath of surface parking lots. The hotel will become the third largest in DC, and fourth largest in the region. The largest, at 2000 rooms, remains the Gaylord, at National Harbor.

Washington DC retail and commercial real estate news

Convention Center Marriott Tiptoes Forward

In an inconclusive show-and-tell session before the Historic Preservation Review Board on June 26th, Marriott International, Cooper Carry Architects, and EHT Traceries presented plans for the long-anticipated convention center hotel. During the informational presentation, the development team presented plans for a 1,100 plus room hotel at the corner of 9th Street and Massachusetts Avenue, NW, across from the Washington Convention Center.

The hotel, which will likely achieve LEED Silver Certification for its use of glass and brick, will take up the majority of the block, save the PEPCO power plant that supplies the White House with electricity, and the American Federation of Labor headquarters, a historic building that will remain. The hotel is intended to bring jobs and revenue to the city through traditionally high hotel taxes while serving Convention Center guests.

Norm Jenkins, Senior Vice President with Marriott International said the project was essential to the success of the existing Convention Center which has yet to meet city performance expectations.

"This is a great hotel site, but it's a tight hotel site, and we need to get 1100 plus rooms on the site in order to satisfy the needs of the Convention Center...the city sunk $850 million into this Convention Center several years ago and that project will never be optimized until you have this headquarter hotel," Jenkins said.

Laura Hughes of EHT Traceries raised the issue of the historic American Federation of Labor building on site and explained the history of the building, which was designed in 1915 and designated as historic in the 70's. State Historic Preservation Officer David Maloney cited the building as one of his staff's main points of interest in the project.

"I think the staff does not have any major concerns at all with what's been proposed. I think it's appropriate to expect that the facades of the historic building would be restored to their historic appearance, which I think it anticipated. The treatment of the public space in front of the building is also important...The other thing that's important about the historic building is integrating it with the hotel in a natural way...It's a small building relative to the size of the new hotel, so it's somewhat of a design problem to make it look as if it fits in a continuous streetscape..." Maloney said.

He added that the staff was concerned with how the design relates to the city and Massachusetts Avenue, the over 130 foot height of the project, the building being secondary to the Convention Center and the treatment of public space along Massachusetts Avenue.

"Mass Avenue, as you know, is one of the city's important L'Enfant boulevards. It is historically a residential boulevard really with green space in the front yards. And this building, because of its nature, has very difficult servicing requirements. But their staff, as well as the department of Transportation, have pushed the hotel folks to try their hardest to make sure that there is a sense of continuous green space maintained along Mass Avenue," Maloney said.

While the meeting concluded with accolades from staff members, the board still had questions about the building's width, appearance, and name.

"My last point, slightly in the jocular vein, is why do we use all of these aristocratic French revolutionary terms like marquis and Monaco? Wouldn't it be nice to have a democracy? I mean I'm not saying you name it The Log Splitter, but I mean, maybe the President..., said Chairman Terch Boasberg, to general laughter. The developer will return in the coming months for concept review and permitting.

Steven Siegel from the Office of the Deputy Mayor of Planning and Economic Development noted the urgency of the project and said the Mayor asks about its status each week. "He asks how the projects going. And every time I tell him the date of delivery, he says that's not soon enough. So we're all working very hard to make sure that this process moves forward smoothly. And, you know, it's obviously important to the success of the Convention Center to make sure that this hotel is delivered as quickly as possible and as soon as possible," he said.

The project is on the HPRB's July "List of Cases Filed for Consideration." A final agenda for the July 24th meeting will be available on July 18th. The Atlanta-based architects are also responsible for Bethesda Row and the National Gateway Hotel Complex in Arlington County.

Groundwork Gets Underway at Convention Center Marriott

Construction crews could begin preliminary groundwork as early as next week for the Convention Center's newest addition, the 1,175-room, 15-story Marriott Marquis, a project headed by Quadrangle Development and Capstone Development. The Washington Convention & Sports Authority (WCSA) announced earlier today that it will provide limited early access in order for developers to orchestrate initial site remediation work including: "removal of underground storage tanks, demolition of the Erhlich Building, erecting fences, placing signage around the site and readying the area for construction."

A more ceremonial and celebratory start to construction will soon follow, says Gregory A. O’Dell, Washington Convention and Sports Authority President. "The Authority and the District are finalizing the documentation and preparing to close on the bonds as we anticipate a groundbreaking within the next 30-45 days," he explains. Once construction begins, a build-out of 42 months is anticipated, placing the delivery date in the spring of 2014. While this is not the official groundbreaking, convention center authority spokeswoman Chinyere Hubbard confirms that this is indeed the beginning of construction and an indication of nothing but green lights going forward. There are "no further legal obstacles", says Hubbard, who notes that the WCCA board will officially approve the financing bonds tomorrow.

The soon to be active construction site is bounded by Massachusetts Avenue and L Streets, NW. Because of District height limitations, the massive hotel is burying much it's square footage beneath the earth, so the first order of business for contractors is to dig a giant hole and start building back up to ground level. Progress above ground might not be visible for almost a year after construction starts. Upon completion, the building will feature over 100,000 s.f. of meeting and ballroom space, 25,000 sf of retail, and 385 parking spaces. The plan also calls for a below grade tunnel (vehicle and pedestrian) connecting the hotel and Convention Center. The hotel will become only the third Marquis in the country. Developers and District officials hope the already impressive Convention Center will be a world-wide attraction now that an accompanying state-of-the-art, large-scale hotel is on the way.

Last year, Mayor Adrian Fenty signed the New Convention Center Hotel Amendments Act of 2009 that authorized Tax Increment Financing (TIF) and the issuance of bonds, to fund up to $206m in construction and operational costs. Private developers will pick up the remaining portion of the estimated $550 million total cost. With JBG's spat over the project and ensuing lawsuit now ended, today's announcement means the project is officially moving forward.

Washington DC real estate development news

DC Officials Pitch New Plan for Convention Center Hotel

The DC City Council’s Committee on Economic Development was briefed today on a new scheme devised to underwrite the fully-approved and shovel-ready, if financing challenged, Marriott Marquis Hotel. The city's newest plan for the mostly vacant property next to the Walter E. Washington Convention Center would get construction going by mid-October.

Today’s hearing was spurred by legislation introduced by Mayor Adrian Fenty, himself described as "tired of waiting" on the project, this past spring that would have effectively removed the project’s developer, Quadrangle Development Corporation, and made the new Marriott wholly city-sponsored. In the intervening weeks, officials from the Washington Convention Center Authority (WCCA), the Office of the Deputy Mayor for Planning and Economic Development and the Office of the Chief Financial Officer (OCF) have been feverishly working on a fiscal reconciliation that would preserve the public-private partnership.

"Given current economic conditions and the lack of liquidity in the capital markets…the District, led by the Washington Convention Center Authority and its partners at Marriott and Quadrangle, was forced to pursue alternative plans, including an option whereby the Authority would finance 100% of the hotel by selling bonds,” said recently appointed (though still unconfirmed) Deputy Mayor Valerie Santos. “We’ve made considerable progress on a new financing proposal, such that the new hotel would once again be largely privately financed.”

The crux of the proposal depends of the Committee’s authorization of an additional $22 million in city-backed debt to get the project going. This deal, presented to the District by the development team only last Thursday, would ensure that more than 60% of the hotel’s $537 million budget come from private funds, with DC footing the bill for the remaining costs. At present, lawyers from the OCF are currently exploring whether the project could also qualify for stimulus funds under the American Investment and Recovery Act, thereby offsetting the District’s burden in a year of record high spending.

The sense of urgency behind the proceedings is well founded, as Greg O’Dell, head of WCSA, said his operation is continually losing business to other comparably-sized convention centers, such as those in Denver and Indianapolis, which have on-site hotels and hospitality amenities. Furthermore, city officials also view continued development at Prince George’s County’s National Harbor as a direct threat to the Convention Center’s revenue stream – a feeling that has only been exacerbated by Disney’s recent announcement that they’ll be building their own mega-hotel/meeting space just across the river. That leaves the District, in the words of Councilman-at-Large Michael Brown, directly “behind the eight ball.”

Both the public and private sides of the development team will now spend the next two weeks finalizing the in-and-outs of their proposal before returning to the Committee on July 14th for a final vote. In the meantime, Committee members repeatedly stressed that the project’s fast track status will not delay other city development in the pipeline or cause any fiscal belt tightening.

“This will not cause us to postpone any projects that are already authorized…Nor will this require expenditures from the general fund. This is not going to be publicly financed deal,” said Committee co-chair and Ward 2 Councilman Jack Evans. This would not be the first partnership for Marriott and the developer, Quadrangle and Marriott jointly built a 224 room hotel together in Bethesda in 2004.

Washington DC real estate development news

Convention Center to See More Marriotts

If all goes according to plans, three Marriotts will eventually be built on 9th Street NW, immediately west the Washington Convention Center at the convergence of Downtown, Shaw, and Mount Vernon Square. Although one notable hotel - the Marriott Marquis - is currently underway and set to complete in 2014, two more Marriott hotels are being conceptualized just north of the Marquis, at the foot of the Shaw Historic District.

The parcel in question, north of the Marquis construction site, running along 9th Street between L and M Streets, NW, bears six boarded-up storefronts. Around the corner on L Street a large co-op and two good-sized row houses have sat shuttered. The 1,175-room Marquis aims to fill a void in convenient hotel options for conventioneers upon completion, and although the new hotel will be the second largest in the District, original plans for the Marquis, by joint-development team Capstone and Quadrangle, were even bigger, calling for a 1,400 to 1,500-room hotel spanning L Street, and spilling into the blighted area to the north. The idea for one hotel, connected by a pedestrian bridge, was scrapped years ago, before the Marquis broke ground in November of 2010. But now, current plans by the same developers for the Marriott-owned land between L and M Streets call for the revival of increased hotel space in the form of two new Marriotts: a Residence Inn and a Courtyard Marriott. 

A source from Capstone says that building two additional hotels will “meet the city’s original goal for the convention center of 1,600 total rooms.” Marriott has not given a reason for building three hotels instead of one, but varying price points is likely a factor, as all three Marriott brands are targeted to different customers. The zoning process for the two additional hotels has not begun, says Norman Jenkins, president and founder of Capstone, and subsequently, “a start date has not been solidified.” However, the future plan is to “retain all of the boarded buildings that front 9th Street and incorporate them into the hotel," giving the redevelopment a “really neat old/new look.” As for the boarded-up real estate on L Street – the co-op at 919 L Street and the two row houses – the goal is to demolish them, if granted approval. 

The recent demotion of a few “non-contributing structures” (i.e. non-historic buildings) at the northern parcel of land created a small amount of space to be utilized as parking for an influx of construction workers for the next three years at the Marquis site.  Capstone was mum on where the development team is in the entitlement process, however, no permits have been applied for with the Department of Consumer and Regulatory Affairs (DCRA), so it seems Marriott's 2nd and 3rd hotels on the site will arrive well after the Marquis is finished. 

Washington D.C. real estate development news

DC Passes Convention Center Hotel Bill

The District Council today passed legislation that authorizes and helps finance a new convention center hotel. The bill provides for District financing of nearly 40% of the costs of the Marriott Marquis Hotel, which government and civic leaders have sought for years to provide services to support the city's investment in the convention center. The project has been on-again off-again for several years, with builder Quadrangle Development Corporation reducing the one-time size of the project and negotiating with the District, which by one recent plan would have funded the entire project in order to help kick start the neighborhood and use of adjacent Washington Convention Center. Council members have been motivated to alleviate the Center's obvious Achille's heal - its dearth of hotels in the immediate vicinity - while distancing themselves from the cost of the project. Councilmember Kwame Brown (at-large) said in a press release that though today's legislation was "not ideal," the overall result was positive. "We went from a 100 percent publicly financed hotel to a deal that requires the developer to fund the majority of the costs." The mayor is expected to sign the legislation, which could get construction going as early as this fall. Development of the four-star hotel is expected to cost more than $500 million.

Washington DC retail and commercial real estate news

CityCenter on the Launch Pad

Two months away: So say developers of CityCenterDC, for now downtown Washington DC's largest surface parking lot, who are poised to announce an official start to their transformative mixed-use plan to develop nearly 700 units of housing, 185,000 s.f. of retail, 520,000 s.f. of office space, and central shopping plaza, to replace the site left vacant when the forgettable convention center was demolished in March of 2005. Officials say they are nearly set to announce a late April or early May start date to the project, despite any lack of signed tenants to date.The upcoming groundbreaking is in keeping with the April start date Hines officials promised DCMud in June of last year, though it represents a slippage from original intentions to start construction in early 2008 amid the financial crisis. Current tenants such as Bolt Bus have been given until the end of March to vacate the site. With a spring construction start, developers should wrap up construction by late 2013, just as the Convention Center Marriott is nearly finished next door, a pair of events that should have a profound impact on downtown and Mt. Vernon Square, already a bottleneck for traffic.

Filling the chasm downtown, the Hines-lead team, chosen by Mayor Anthony Williams, will rebuild 10th Street and add an east-west oriented pedestrian shopping plaza, hotel, apartments (458), condominiums (216), parking (1500+ spaces) and two office towers. The central retail plaza will be framed by stepped-down buildings to encourage a naturally lit shopping thoroughfare, in what Mayor Adrian Fenty predicted will be a "bustling area where people come after work to shop or eat or to hang out, a city center." The whole site is designed to achieve LEED Gold certification.Construction without an anchor tenant would be an important indicator of faith in the downtown commercial market, as DC's retail spaces show strong demand, financial markets stabilize and the Washington DC office market remains buoyed by an expanding federal presence. CityCenter's backers have been energetically courting large tenants to sign on prior to construction and have tantalized news purveyors that brand name leases are "in the works." Howard Riker, Vice President at Hines, told DCMud last June that the team was reworking some of the floorplans to make way for a major tenant, soon to be announced, and the team has been close to signing several tenants that could have anchored the project, a prospect that still might be close at hand, but there are "no signed leases to date" says Hines' Dawn Marcus. Larger office projects such as Monday Properties' 35-story office tower in Rosslyn have since broken ground sans lessee.

Gerry Widdicombe, Director of Economic Development for the Downtown Business Improvement District (BID) notes the difference 185,000 s.f. of retail will make for downtown. "This is really the capstone for downtown DC. We have about 5 million square feet [of buildable space] left on vacant lots or dilapidated office buildings...the old convention center site is about 2.5 million [s.f.] of that, 1.8 million is the air rights building, then we're almost built out." Widdicombe credits former city leaders with setting parameters of a strong residential presence rather than solely office space - despite the commercial's greater tax base value, and for fostering a vision of a retail center. "Everything's working pretty well. The thing we're lacking is retail, hopefully we'll have an Apple store, maybe a Bloomingdales, to get us over 500,000 s.f. of destination retail." He notes that when the BID formed downtown had 95 surface paking lots and 30 dilapidated buildings. "Now we've got 5."

Putting that concept to paper, and soon to ground, is the worldwide team of Foster + Partners, which created the master plan and is bookending the site with apartments (overseen by Archstone) and office towers, and Shalom Baranes, designing the interior condominiums and integrating the retail. Along with a new 10th Street and I Street, the plan introduces a new vertical pedestrian street ("9 1/2 St"), an east-west pedestrian promenade, and at their intersection an expansive public plaza encompassed by two-story retail spaces with street-level access. The dominance of retail is not lost on its designers and developers, who sloped rooflines downward to the plaza and raised ceiling heights, a major sacrifice in a height restricted city, while stacking an extra floor of retail and creating - if successful - a destination akin to the European fountain, albeit less historic. DC is a city without plazas, and the architects have their sites set on a remedy.

"The real focus of the project is the public realm and retail" says Robert Sponseller of Shalom Baranes, a design principal for the project. "If you take the architecture aside, DC has always lacked a critical mass of urban retail. We're stuck with low height, so our retail space is squeezed. Here the ceiling heights are 16-22 feet, with a 2nd level of retail around the public plaza area...these are literally modeled on the best European street designs of Barcelona and Berlin." Sponseller says the alleys, or "intimate pedestrian streets," in his words, are 24 feet in width beneath residences that stoop to 4 or 5 stories above the plaza. "The Foster plan is remarkable for its clarity and simplicity. There is great pedestrian access, its really an intense, mixed-use project" says Sponseller.

The northern tier of the lot will be filled by a public park on the western margin, a hotel north of I Street in the middle, still just conceptual and without a flag, and a lot on the east owned by Kingdon Gould that has no firm plans for development at this time. Gould obtained the land in a swap with the city, giving up real estate at the Convention Center Marriott to get the northeast parcel of CityCenter.

Hines is a Houston based, privately owned real estate investment firm with offices in 68 U.S. cities and 15 countries. Old convention center photo courtesy Wrecking Corporation of America.

Washington, DC real estate development news

National Harbor To Get 350-Unit Apartment Building

National Harbor, the 300-acre multi-use waterfront, Pleasantville-wannabe development on the shores of the Potomac River in Prince George's County, Maryland, is set to receive its first apartment building in the nearish future. With an expected late-2011 groundbreaking and 2013 delivery, the recently-announced project will see 350 new apartments atop 25,000 s.f. of ground-floor retail courtesy of Bozzuto Group. The Peterson Companies, which originally spawned the concept of National Harbor, and has seen nearly 75% of its 400 current condominiums sold, 40% of its 46 townhomes sold, and four manor homes sold, not to mention the construction and opening of the Gaylord National Resort & Convention Center as well as a plethora of neatly packaged retail. Peterson contacted Bozzuto over the summer about bringing the “fourth residential food group" (i.e. apartments) this to the development site. With the market steadying, and long-held dreams of building at National Harbor, Bozzuto gladly accepted the offer.

National Harbor, which will eventually feature 10 million s.f. of development programming if Peterson's ambitious plans are left unhampered by any future market meltdowns, already contains a whopping six hotels, two marinas, three condo buildings, and a slowly growing number of shops and restaurants. The new apartment building is proposed for the intersection of American Way and Fleet Street, catty-corner from a new CVS and Potomac Gourmet Market, both set to open their doors within 120 days, according to last week's press release. Even more action is on the way, with a 500-room, 15-acre Disney resort hotel project promised by the entertainment conglomerate in 2009, the 140,000-square-foot Children's Museum expected to break ground next year, and the return of Cirque du Soleil in 2012. The apartment building will be LEED certified and will include the standard throng of amenities, a pool, fitness center, cyber cafe, billiards room, media room, and one wild card feature, a "Zen garden" (sounds mysterious, and also a little cheesy).

For those who wonder what kind of soulless creatures would seek shelter in a cookie-cutter concrete jungle so vanilla and seemingly void of authenticity; first, lose the self-righteousness and nauseating alliteration, and second, you're apparently not alone. Residential population remains only around 500, with condo sales slow after a fast start out of the gate in 2007. However, swaths of convention-goers keeps the area feeling busy.

By no means a full-blown, sell-out hit, the development has, however, had slow but steady improvement and a strange cult following, as well as a heavy influx of visiting shoppers and diners arriving in the summertime. But National Harbor is not without its detractors. Despite the myriad of freeways within reach, and a couple water-taxi services, Smart Growth advocates have cited the limited mass transit options as a significant flaw in the development, and a Metro stop doesn't look to be arriving any time soon. Furthermore, cuts in local public busing budgets have angered Prince George's County residents, all while the County has subsidized a new bus line shuttling tourists and Harbor residents between the Green Line's Branch Avenue and the Harbor's convention center.

While it might not be the most environmentally-friendly operation, or beacon of smart-growth development innovation, it's hard to argue with the market, as the project continues to line up a healthy list of big-name suitors, pack its convention center and hotels with corporate conferences, as well as keep residential sales relatively steady.

Prince George's County, MD Real Estate Development News

Convention Center Marriott Awaits Zoning Approval

Final plans for a new Convention Center Marriott will head before the Washington DC Zoning Commission tonight for a public hearing. Now dubbed the Washington Marriott Marquis, adjacent to the Walter E. Washington Convention Center, it is expected to catch little to no flak, as it conforms to the non-residential zoning standard already in place, and has been pushed for by District officials.

Additionally, Marriott is developing the project in unison with the Fenty administration under a handy piece of city legislation entitled the Public Space Utilization Act – which allows the Mayor to "enter into lease(s) with private parties for the rental of the space above or below streets and alleys in the District." That Act, however, leaves final approval of any such lease to the Commission, which will tonight discuss how the plans on hand sync with city regulations concerning building height, off-street parking, and traffic flow – all areas Marriott’s draftsmen appear to have to managed meticulously.

The plans for Marriott’s parcel at Massachusetts Avenue and 9^th Street NW call for construction of a new 1,150 room hotel with a two-level underground garage. Additionally, the AFL building currently on the site will get an extreme makeover into a 42 room “boutique hotel” connected to the main facility at several junctures. The PEPCO power station eyesore on the block will remain (but possibly receive an aesthetic makeover) and an underground tunnel linking the Marriott to the Convention Center’s east end will be constructed. Marriott has taken on Quadrangle Development Corporation to assist in the development process and has enlisted TBS Architects and Cooper Carry Architecture to design the project. Marriott hopes to garner a silver LEED certification for their flagship facility.

It is, however, important to note that tonight’s meeting will not address the project’s second planned component one block to the north, on the opposite side of L Street NW. Sean Madigan of the Office of the Deputy Mayor for Planning and Economic Development told DC Mud in 2007 that Marriott had abandoned plans to build a smaller, secondary hotel wing on that site and had instead chosen to redevelop the AFL building. The development team has yet to present any concrete ideas about what may happen with that parcel.

Tonight’s meeting is being held tonight at the Office of Zoning Hearing Room (441 4^th Street NW, Suite 220) and begins at 6:30 PM. The proceedings are open to the public, so this would be a good chance to get a head start on booking a room for 2012 inauguration.

Washington DC real estate development news

DC Announces New Convention Center Hotel

Washington DC Mayor Adrian Fenty announced today that the District has signed an agreement with Marriott International to build a new hotel at 9th and L Streets, on the west side of the new convention center. Marriott had been planning on as many as 1400 units at the site, and has been expected to begin the project since at least early this year, but will now scale the project back a notch, building approximately 1140 rooms and not begin construction for at least a year. The hotel is expected to open in 2011.

The two-acre site, combined from 2 parcels separately operated by the Washington Convention Center Authority (WCCA) and Kingdon Gould III, is currently mostly vacant and is being used as a parking lot. Gould's portion of the site is being traded for a portion of the old Convention Center site that the District now controls. Gould was not part of the agreement today, but has agreed in principal to terms of the transfer. Marriott has agreed to begin the planning process immediately, incorporating the land south of L Street and north of Massachusetts Avenue, along 9th Street. Sean Madigan of DC's Office of Planning says the site plan will no longer include the parcels north of L Street, which Marriott previously acquired in expectation of building into the final designs, but will likely incorporate the historic office building at the southeastern corner of the lot into the hotel. The utility building at the northeastern corner of the block will remain. Madigan said the transaction has been signed and will be executed "shortly", but would not speculate on a timeframe.

The entire transaction is valued at about $540m, of which $134m will be contributed by the DC government through Tax Increment Financing (TIF) in the form of bonds issued by the WCCA and repaid by taxes generated through the hotel. The city will lease the site to Marriott for 99 years, on which Marriott will build and operate the hotel.

Furthering DC's new legislation for the construction of 'green' buildings, Marriott has agreed to meet the District's standards with a building that will be LEED certified, meeting the U.S. Green Building Council's "Silver" standard. The hotel will include 100,000 s.f. of meeting space and at least 400 new parking spaces, but it is unclear if retail will be included in the new design.

National Harbor Project Update

Far from cutting any red ribbons, the next landmark for the 300-acre, 7.3 million-square-foot National Harbor project in the Smoot Bay area of Prince George’s County will be the completion of its first building with two stories of retail and restaurants and a third story containing the condominium sales center at the end of May. While the retail space will not be filled until 2008, the 37,000 s.f. waterfront building will include space for outside dining and a cylindrical window-wrought viewing area.

Developed by Fairfax-based Peterson Companies, National Harbor will be a mixed-use, waterfront mini-city with a marina and four piers, which will include residential, office, and retail space as well as six hotels, including the Gaylord Conference and Convention Center - the largest combined hotel and convention center on the eastern seaboard. The immediate shoreline will host waterfront shows, concerts, and events. Renderings show nighttime events with flashing lights, fanned seating, and a stage backed by the harbor and marina.

Over 4,000 Hotel Rooms

The Washington Post described the harbor as a location that “will compete directly with the District for hotel guests,” thanks to five hotels that will eventually total over 4,000 rooms, 2,942 of which will be completed by 2009. The 2,000-room Gaylord National Hotel and Convention Center will be completed by Perini Tompkins Builders in March 2008 and will open for full service in early April 2008. They are currently taking reservations. Other hotels included in the project are the 162-room Marriott Residence Inn and 151-room Hampton Inn and Suites, both under construction by Herman Stewart and set to open in March 2008. Also opening at this time is a 195-room Westin Hotel that will include bottom level retail stores and a cylindrical, window-rich Westin Restaurant. A 184-room Aloft brand hotel and 250-unit Wyndham Vacation Ownership time-share will not be completed until the end of 2008

Harbor to Feature 2,500 Residential Units

The residential portion of the harbor will include 2,500 units, 500 of which will be located in three of the “downtown district” buildings, while the remaining 2,000 will be in the eastern portion of the project. Neighbors weary of the urbanization and subsequent transportation bustle that the project will bring to the area have called for townhouses as part of the residential development to give it more of a neighborhood feel. According to Stuart Prince, of Peterson Companies and the Residential Development Director for the project, townhouses and villas will be in a subsequent phase of the project. Final residential plans have not been announced; however, One National Harbor, a 253-unit condominium building is currently under construction with a projected completion date of December 2008. Prince said he and his team have noticed the increase in construction prices and decline in condo sales in the overall condominium market, but are not worried that National Harbor condo sales will suffer as this trend suggests, “we have a unique site, waterfront property, that is not necessarily correlated to the overall condominium market.”

Prince added that although there are no metro stops nearby, the project will have direct access to the Beltway with its own interchange, and create water connections to Old Alexandria and DC and a shuttle to the Nationals’ stadium. After a decade of planning, construction on the National Harbor project began with the Gaylord Convention Center in 2005 and continued with the groundbreaking of the Marriott Residence Inn in January 2007. Condo sales will begin in the summer for One National Harbor, which will begin delivering units in the late summer of 2008.

DC Announces New Convention Center Site Agreement

Mayor Adrian Fenty announced plans today for one of the last remaining parcels of land on the site of the old convention center. Under a new agreement, the city will allow development of a 400-room "high-end" hotel and 100,000 s.f. of additional retail space on the 53,000 s.f. plot of land now known simply as "Parcel B". This portion of the site had previously been reserved for construction of a library, but the District had not made any final decisions on the facility and did not want to further delay what is being designed as a "new city center."

(Dcmud's information on "Parcel B" is too new to have renderings - the rendering shown is of the southern parcel.)

Standing in a corner of the current Convention Center, overlooking the site of the old one, Fenty said the District reached a deal with developers Hines Archstone to lease the site for 99 years. The District had previously cemented a deal with Hines Archstone for the southern half of the site - a project estimated at $850 million that will add 350,000 s.f. of retail space, over 670 apartment and condominiums with at least 134 affordable units, and 465,000 s.f. of office space between New York Avenue, 11th, H, and 9th Streets NW.

“The one thing the District is missing that so many other large cities have is a bustling area where people come after work to shop or eat or to hang out, a city center.” Fenty said. In addition to the office, retail, and residential space, the project will include an additional 1.5 acres of public open space. There will be a park in the northwest corner as well as a central plaza between the residential buildings on the corner of 9^th and H streets.

The “B parcel", bound by New York, 9th, and what will be 10th Street, was originally considered as a potential site for a museum or library in order to attract more families. Today, however, Fenty said that while the District is still “working aggressively” with the Library Board, there is a significant amount of programming under the current plan to attract DC residents to the site."

As the master developer, Hines Archstone had the first right of refusal to lease the B parcel from the District if the city chose not to locate a library on the site.

“This area is surrounded by museums; the Newseum just opened a few blocks away, the Portrait Gallery, the Spy Museum…we want this place to provide a social atmosphere outside their homes where residents can come and sit without having to sit at a café or pay to eat or drink,” Fenty said.

Kingdon Gould III acquired a parcel on the Northeast corner of the site - the last site to reveal development plans - in a land swap that the city conducted to facilitate construction of the Marriott next to the new Convention Center. The Parking Management, Inc. president has his own plan for the site, but it must be "consistent with the entire site's master plan."

While retailers have not yet been announced, the developer has committed to devoting thirty percent of retail space to merchants with six or fewer stores in the United States, but will focus on a wide range of grocery stores, restaurants, fashion stores, and entertainment or performance venues. There are also plans for one larger retailer like Nordstroms or Macy’s; Fenty and the development teams will be meeting with companies in the coming weeks, but a final announcement is not likely for about six months.

The project will generate 3,000 development-related jobs and 2,500 direct permanent jobs. It will also generate a projected $32 million a year in annual direct tax revenues. According to developers, the District will receive more than $200 million in consideration for the land as part of the land lease including a minimum of $28.5 million in lease payments, $55 million to provide affordable housing on site, and $48 million in payments for new infrastructure. Two new streets, I and 10th, will be constructed through the site.

When asked about the likelihood of delivering the project in a timely manner given the not-so-exuberant state of the economy, Councilmember Jack Evans, D-Ward 2, said the District has not been affected by the economy and that this project’s success would be no different than that of other D.C. projects like the Nationals Stadium.

“The Southwest waterfront looks pretty good. Poplar Point is off in the distance, but Clark, the main developer hasn’t had problems getting the money they need. There is such a strong interest in the development of the District that as long as that interest remains, these projects will stay on schedule,” Evans said.

The first phase of the project, which includes the office, apartments, and condominiums, will begin in the second quarter of 2009, while the entire project will be completed by the end of 2011.

Evans added that this summer the city is planning to set up a large screen in the parking lot on-site to continually broadcast the Olympic Games. He said the city’s goal is to use the backdrop of the Chinatown arch to attract families and residents to the area.

“This is the most exciting property on the East Coast,” he said.

Old Convention Center Site, New Designs

Wondering what was going on at the old Convention Center site? We were too, so we asked around. Plans for the Old Washington Convention Center Site Redevelopment continue to move forward in the design phase, as Developer Hines Archstone, along with architects Foster and Partners (of London) and Shalom Baranes Associates square away more details on their 10.2 acre site, bound by New York Avenue and 9th, H, and 11th Streets.

The $850 million office, retail, and housing redevelopment deal is the largest undeveloped property south of Massachusetts Avenue, in what DC's administrators hope will be a thriving, mixed-use, pedestrian-friendly center.

Included in the plans are, at a minimum, 25o,000-s.f. of retail, two office buildings totaling 465,000-s.f., two apartment buildings, two condominium projects, and 1900 parking spaces in underground garages. Each of the Class "A" office buildings will rise 11 stories and offer - uniquely for DC - two levels of retail. The two buildings (see rendering below) will be connected through an enclosed glass bridge at the third story. Each is designed to include double height lobbies with stone walls and floors, and an exterior shaded curtainwall and an atrium on each will face each other.

The residential portion will be divided into two apartment buildings with 455 rental units, and two condo buildings with 215 for-sale units, 20% of which will be affordable housing. Each rental building will be eleven stories high with one level of retail, with a pool on the fifth floor of one. The exterior will be adorned with terra cotta precast panels and a curtain wall system. Residents will apparently have ample terraces and courtyards, with additional landscaping on the roof. Like the offices, the pair of apartment buildings will be joined on the second story with an enclosed pedestrian bridge.

Moving on to the condominiums, at ten and 11 stories in height, architects again envision two full floors of retail, joined on the third story by, yes, an open pedestrian walkway. The building will also feature two floors of retail and elaborate landscaping on the roof, terraces, and courtyards. Two new streets will be created to have the effect of shrinking the blocks and providing better pedestrian access for the retail, and the northwest corner of the parcel will feature most of the 1.5 acres designated as open public space. A central plaza will sit in the middle of the four residential buildings, with fountains and landscaping, connecting to the street with paved pedestrian alleyways.

This past November, the city traded a parcel on the northeast corner of the site to developer Kingdon Gould III for a piece of land close to the new convention center, on the site now planned for the much anticipated Marriott. What Gould will choose to do with this plot of land is still unclear, as is an additional 100,000-s.f. on the site is still controlled by the city, according to Sean Madigan of DC's Office of Planning. Originally, talk of putting in a new central library was on the table, a goal of former Mayor Anthony Williams, although the city is now considering new options: additional retail in the form of an anchor store, another mixed-use development, or an entertainment venue. The city has not ruled out the possibility renting or selling the land to a developer, a decision that will reportedly be made within the next two or three months.

Hines Archstone is hoping to receive the Gold or Platinum rating for LEED certification on the office buildings, while expecting a Silver rating for the residential buildings. The project as a whole was accepted into the LEED Neighborhood Development certification, a pilot program of the U.S. Green Building Council.

"This is a tremendous milestone for the city and the Hines Archstone-Smith team," said William B. Alsup III, senior vice president for Hines Interests. "With the closing of the legal documentation with the City and approval of the schematic design, we will continue to work collaboratively with the city and its agencies to complete the detailed plans and specifications and secure the necessary building permits to enable us to begin construction by this time next year."

"This project is going to be a true city center - our downtown retail anchor - befitting a world-class city," Mayor Adrian Fenty said in a press release recently. "We are creating a place, designed by one of the world's most pre-eminent architects, which will complete the recent transformation of our downtown." Space will be offered to both national and local retailers, with 30% set aside for those with six or fewer stores in the country. Over half of the 2,500 new permanent jobs created are required to be given to qualified DC residents.

Planning has been taking place for over four years at this point. After months of hearing community input, the Deputy Mayor's Office of Planning and Economic Development approved the master plan for the site in October 2006. The District and Hines Archstone closed on their deal in December, which included approval of schematic design, zoning, and financial details, and presented revised designs and plans on January 10. Developers are now putting the final touches on designs, and will begin bidding and permitting by November. They expect to break ground in January 2009, and after the downtown endures a 35 month construction period, we can all look forward to completion in July 2011.


"This long-awaited project will set new precedents and rival the best live, work, shop, and play urban mixed-use developments the nation has seen to-date," gushed Ken Miller, senior vice president of Archstone-Smith. "This development will further the transformation of our Nation's Capital into one of the most thriving, dynamic, and culturally rich cities in America."

The Streetcars are Coming - in Prototype

For all you Paul Revere-types out there harboring fears that the arrival of the streetcars spells doom, with cumbersome, monument-obstructing wires and disaster for DC as-we-know-it, tomorrow's Streetcar Showcase is for you.

Despite a minor setback of DDOT failing to make it to last night's Georgetown ANC meeting to present their plans, streetcar service may eventually cover 37 miles of the District, but will begin with limited service in Anacostia and at H Street-Benning Road by 2012. But on Wednesday, May 5th through Saturday, May 8th on Lot B of CenterCityDC (a.k.a. the still undeveloped old convention center site at 9th and H Streets, NW), The District Department of Transportation (DDOT) is giving District residents, workers, and those rare tourists interested in DC transportation matters, a chance to ogle and board the District's latest transportation innovation.

Admittance to the 10:30 AM showcase is free. And if you still haven't gotten your fill of streetcars, you can stop by the free streetcar propulsion technology seminar at the Renaissance Hotel at 999 9th Street, NW on Thursday, May 6th to listen to the top minds in transportation technology and planning discuss ideas for how the streetcars can be integrated into our transportation mindset.

Ellen Jones, Executive Director of DC Surface Transit Inc. - a veritable posse of entities and BIDs including the Downtown, Golden Triangle, and Georgetown Business Improvement Districts, as well as the Washington Convention Center Authority (WCCA), the Washington Convention and Tourism Corporation (WCTC), and the National Capital Planning Commission (NCPC) - explains that the seminar will cover all aspects of "the adaptability of the three cars that we've [the District] purchased and what can be done with them."

Thursday's panel of experts will include everyone from Downtown BID's Executive Director, Richard Bradley, to what Jones affectionately calls "five ubergeeks with over 200 years of propulsion system experience between them" from the American Public Transportation Association, to urban design guru Greg Baldwin. Stop by and get answers to any question you've ever pondered about the green-ness of the project, how DDOT intends to get around that pesky 19th century Federal statute prohibiting overhead wires in the District, and ideas for how Prius-style battery technology can safeguard our views from wires for many miles of the tracks.

Washington DC Real Estate and Development News