As Streetcar Construction Lifts, J Street Companies Unveils H Street Restaurant

Now that the District has finished street-scaping along H Street NE, including laying tracks for eventual streetcar service, expect more announcements of restaurant and retail openings and re-openings, deals and closings as construction equipment thankfully disappears.

One of those is J Street Companies announcement that Boundary Road restaurant at 414 H Street NE is open for business. The 4,000 s.f. two-story bistro, owned by Karlos Leopold and Brad Walker, was a former barber shop, and now offers 75 seats, including a 20-seat bar along the part of H Street corridor that likes to call itself "Atlas District West" nearest Union Station.

Atlanta-based woodworker, Steve Evans used 150 year-old reclaimed wood beams to help set off exposed brick walls. A Corehaus chandelier from District artist James Kern, sprung literally from a bedspring mattress, hangs in the two-story high atrium.

Boundary Road opens just at the moment when the block wakes up from a two-year plus construction and parking nightmare known as Great Streets.

While many current retail owners complained about the impact of the Great Streets streetscaping improvements and streetcar tracks were having on their business, it turned out to be a perfect time for remodeling of vacant space, including the owners of Boundary Road.

"It was purely coincidental, but it turned out to be good timing," said Anastasia Kharchenko, J Street's vice president for retail leasing, who said the streetcar plans made a difference in where to locate. "The trolley car service was always part of our decision," she said. "Finding a charming street with life on it was key and the streetcar will create a neighborhood and connect neighborhoods." The struggle of H Street to emerge from the ruins of the 1968 riots, which devastated the historically-black neighborhood, is well-known and well-covered, especially when it comes to the familiar District fault lines of race and class.

But in the past decade, once then-Mayor Anthony Williams announced in 2003 a massive plan to redevelop the avenue, key parts of H Street have finally turned a corner. Steuart Investment broke ground last July on its 286,000 s.f. mixed-use project at 3rd and H, which will include a 42, 000 s.f. Giant and 1,500 s.f. of retail.

Still, Boundary Road, along with the other projects, does little to improve H Street's center where unlike the thriving Arts District at 13th and H NE, near the Atlas Theatre, and nearer in, where Boundary Road and the Giant will be, the middle of H Street still lacks development.

J Street's Kharchenko said that may soon change as soon as the District's long-awaited streetcars finally start running in 2013 and Steuart's 360 H Street 215 unit, mixed-use complex completes, forming one retail-centric zone at the western end of H Street and another surrounding the Atlas Theatre along the east end.

The District recently unveiled a study that argued that its $1.5 billion streetcar investment plan would increase District property values by $8 billion over 10 years, including those in the H Street corridor. "(H Street) is a lot like a mall, with two anchors at either end now," Kharchenko said. "Some parts of H Street have turned the corner, others have not. But when you spend millions of dollars on the transportation infrastructure, it's bound to have results, and that will help the rest of the pockets fill in."

Washington D.C. real estate redevelopment news.

H Street Northeast's Soft Middle

The furthest, eastern-most, end of H Street Northeast, from 12th to 15th, has successfully bloomed into a thriving arts and entertainment district in the past few years, with several haunts having opened in the dense 3-block area in the last year alone. The western end is also about to come into its own, with projects like the Giant set to start construction momentarily. If the corridor has a weak underbelly, however, its the middle, where another project has just been given a 2-year extension before construction needs to begin.

The DC Office of Planning (OP)'s overlay for H Street divides the corridor into three "unique destination districts": housing from 2nd to 7th, neighborhood-serving retail from 7th to 12th, and arts and entertainment from 12th to 15th.

The arts and entertainment district from about 12th east onward has been the obvious development frontrunner, with retail like Smith Commons, a 3-story restaurant/lounge; Toki Underground, a hip Ramen noodle place above The Pug, a go-to neighborhood bar; Queen Vic, a British pub with outdoor deck; DC Ink; and Dangerously Delicious Pies.

Falling outside of the true "entertainment corridor" is HR-57, a well-known jazz club relocated from 14th Street. HR-57 is between 8th and 9th Street and could hint at an entertainment district's takeover of an area planned for neighborhood-serving retail.

The middle of H Street continues to be Pillsbury soft in retail and commercial ventures, with Rappaport's blockbusting project still at least a year out, and now a mixed-use commercial and residential on the largest block of H Street that has failed to get off the ground for the last 4 years has been given another 2 year reprieve due to lack of financing.

601-645 H Street, by H Street Ventures LLC, was granted a two year extension by the Board of Zoning Adjustment (BZA) on May 17th. The project was originally approved by the Board in August 2007, and was granted an extension in August 2009. The project, involves the largest sole-ownership chunk of land in the H Street Overlay at just over 100,000 s.f., and has 560 feet of frontage on H Street . The owner purchased the property in 2005 with ends flanked by two 5-story office buildings at 601 and 645 H Street and empty lot in between.

The project would string three structures into one, creating a "continuous frontage along H Street" which would be "one building for zoning purposes." The plan would retain office space on the ends, add center infill with retail space featuring a 14-foot glass display, as called for by zoning , and stack the top and back of these structures with residential 240 units. A pedestrian connection would run between the office structures; over the retail space, and under residential units.
The project would create 312,000 s.f. of residential space, 191,000 s.f. of office space, and 8,000 s.f. of retail, resulting in more than a 50% increase in the built area. The face would rise nines stories to 90 feet, with 3 levels of below-grade parking containing 487 spaces - more than double the space required by zoning regulations. Despite these factors, it is not density, height or traffic issues that have stymied progress for 601-645 H Street NE, but financing.

The BZA granted the extension due to the owner's "inability to obtain sufficient project financing due to economic and market conditions beyond the applicants reasonable control." Some early neighborhood concerns over height resulted in a reconfiguration, with 13 residential units taken off the top, and tucked into the sides creating a "step down" structure that stands 90 feet and drops off as the building extends to south - to 85', then 50' and finally 40' where the structure meets row houses fringing the site. This design was utilized to create a less looming appearance for the residents in the row houses.

Two ANCs - 6C, in which the project falls, and 6A, which lies 200 feet from the property -along with the Capitol Hill Restoration Society and the Linden Neighborhood Association, have all been in favor of the project, according to the request for extension filed on March 29 by Chip Glasgow of Holland & Knight. Yet, Bobbi Krengel, a 12-year citizen member of ANC 6C, said that the project stands to be improved, and suggests a further decrease in height and increased architectural elements, in order to improve its 560' face on H Street.

A report compiled on April 27 by ANC 6A's Economic Development and Zoning Committee said that financing may be problematic due to lack of a long-term office tenant. Currently, a Department of Human Services' branch - the Income Maintenance Administration (IMA), designed to serve "low income neighborhoods" - has a lease on 645 H Street that is set to expire in 2013. According to ANC 6A, H Street Ventures has been trying to secure a long-term lease with the District, but so far no lease has been signed. The DC Office of Property Management's Real Estate Services "could not comment on pending negotiations."

So for now it looks as though a functioning trolley line will connect the two ends of H Street before there is much reason to hop off in the middle.

Washington D.C. real estate development news

Changes in the Atlas District

How to redevelop H Street: knock down the old buildings and replace them with a surface parking lot. At least that's the strategy of a pair of local property owners, Tae and Sang Ryu, if they receive approval to demolish four buildings at 1305-1311 H Street, NE, the so-called Meads Row. The properties adjoin local landmark the Atlas Theater, and the owners intend to replace them with a large surface parking lot to service patrons of the increasingly crowded Atlas District.
   

Though the duo has been seeking to raze the buildings since 2007, the ANC6A has already expressed their disapproval of the project - especially regarding the Atlas' next door neighbor at 1311 H Street. "Although [the property] is currently in bad physical condition, we would like to help you take advantage of a number of tax and zoning incentives that would allow the current building to be rehabilitated in a manner that will protect your financial interests and allow H Street to be restored to its former charm and economic health," said ANC Chair Joseph Fengler in an open letter to the developers. The chairman goes on to point out that buildings designated for historic preservation receive federal tax credits for renovation costs and that the property would most likely qualify for a grant under the H Street Main Street’s façade improvement program.

Despite the helping hand, the Ryus are still pursuing a raze order for the site and have submitted an application to the Historic Preservation Office (HPO) for review. According to Bruce Yarnall, Operations and Grants Manager of the HPO, “[the case] will first have to go before the board for a landmark hearing, then the raze request will be determined based on the landmark action.” A designation hearing will be held February 26^th to determine whether the HPRB agrees. Either way, the Atlas District’s main corridor will be gaining one landmark or losing one tinderbox.

Meanwhile, local entrepreneur Leon Robbins is planning to add a new mixed-use development to the eastern end of Northeast’s H Street corridor, AKA the Atlas District. Robbins, who currently owns and operates Stan’s Inc., a men’s discount clothing store on the same street, plans to build new three-story building on a vacant lot at 1383-85 H Street NE – one that promises add new office space and possibly another entertainment venue to the nightlife-centric neighborhood.

The 7,000 square foot project will be comprised of a commercial or retail ground floor with a second story mezzanine and, finally, a third floor of office space. Robbins’ intent, in accordance with the H Street Northeast Arts Overlay, is to purpose the first floor space for an unspecified entertainment venue. Specifically, the developer has been in talks with an established DC comedy club about the possibility of bringing another location to H Street. (As specified under the overlay, ground-floor space must be put towards “an arts, retail or service use” and must “contribute to sidewalk activity and neighborhood vitality.”) The mezzanine would then be used as “back-of-the-house office” for the club’s management. While the new building will not feature a green roof, due to constraints its $750,000 construction budget, the development will feature a roof deck, planted gardens and an isolated “interior court.”

The project will feature no on-site parking. An architectural consultant to the project, Jennifer Fowler of Fowler Architects, said before the Board of Zoning Adjustment that parking was "impossible" due to its landlocked nature. “The characteristics of the property make it unique…There is no alley access. It is impossible to provide parking.” The BZA agreed with that assessment and has lent their approval to the project, as have the Office of Planning and the local ANC 6A.

“We are very excited about this project coming to H Street,” said ANC member Drew Ronnenberg. “First of all, I think it’s an example that shows design guidelines work…I think the high quality of this building shows the kind of things that our ANC and all of H Street wanted it to bring and this is it. This bears fruit.”

Final designs for the project are being handled by Robbins’ brother, David Robbins of the Baltimore-based Architecture Collaborative Inc. The developer plans to begin construction in August of 2009.

Washington D.C. retail and development news

AvalonBay's "Hipster" Apartment Building Aims for December Move-In

AvalonBay's latest real estate development, the "AVA H Street" apartment building (which is not technically on H Street - it's at 318 I Street, NE) is set to go vertical any day now, a critical milestone for one of the more unique projects in the booming H Street corridor.

"All the dirt's out of the hole, and they're pouring slabs," said Jeff Wood, development manager at AvalonBay. "We're on schedule for first occupancy in December of this year." The building will be entirely residential, with no ground floor retail.

AVA H Street will offer 140 rental units of "pretty sick apartments," according to the project's Facebook page. Jonathan B. Cox, Senior Vice President of Development at AvalonBay, previously told DCMud the building would be "more contemporary and a more unique architectural style than what's now on the market." Though he was coy at the time about the architect behind the building, it's since emerged that KTGY Group is spearheading the design, and the latest renderings, with their colorful facades and prominent branding, do indeed look more unique that most of what's on the market right now. Blake Dickson represented Avalon in the purchase.

AvalonBay acquired 318 I Street through a lender sale, after original owner Broadway Development lost the property (as well as the adjacent Senate Square) through foreclosure in 2009. AvalonBay, a Ballston-based real estate investment trust (REIT), has posted huge profits in recent quarters by taking advantage of depressed property values to accumulate parcels, and by catering to a rental market that remains strong due to the flagging economy. A recent Wall Street Journal story described AvalonBay's strategy as "hipsters and suburbia" - and if the H Street NE address wasn't a giveaway, AVA's Facebook postings ("so rad!" "awesome!" "sick!") make it eminently clear that this building targets the former group.

AvalonBay had planned to build two more apartment buildings near the future Tysons West metro station, but that project ground to a halt after county officials' request for transportation improvement funds were deemed too high by AvalonBay management. (They did proceed with another Tysons project, the 354-unit Avalon Park Crest.)

AVA H Street broke ground back in November, and is just one of a dizzying number of projects in the immediate area, the biggest of which is the Steuart Investments mixed-use behemoth. It's hard to believe, when you see the flurry of construction on H Street today, that just a handful of years ago over twenty percent of H Street storefronts were vacant - a rate that has been reduced nearly to zero in less than a decade. And when the long-discussed streetcar is up and running, the boom will kick into another, even higher, gear.

Washington D.C. real estate development news

Meads Row Bids Adieu to the Atlas District

Late last month, Washington DC's Historic Preservation Review Board voted down a motion for the protection of Meads Row – a series of nearly century-old structures at 1305-1311 H Street, NE that owners Tae and Sang Ryu plan to demolish to make way for a new Atlas District parking lot, much to the dismay of the ANC 6A. With no recourse now left to the ANC, the owners are free to pursue a raze for the property, although, in the view of some city officials, the Ryu's new pay-to-park will have anything but a positive effect on the increasingly developed H Street corridor.

"The 1300 block…is the heart of the arts and entertainment district of H Street,” said ANC Commissioner 6A03 David Holmes, who had been acting as the commission’s “point person” on the Meads Row matter. “It’s the most successful area of H Street in terms of its redevelopment and rebirth from the tragedies that affected it from the 1968 riots and the loss of interest in the business district….[Now] it has lots of bars, lots of restaurants, theaters and so forth. That block is based on the historic architecture of the area and the loss of any of that fabric is important to the business model of H Street.”

The four buildings in question were designed by early 20^th century DC architect, Charles Meads, who was also responsible for some 105 structures on Capitol Hill. Of those, only 73 remain today, with the remainder having been demolished to make way for the Congressional Office Buildings and Senate Park. Meads Row represents the very last remnant of Meads’ H Street properties, which once numbered seven. During their heyday, the buildings boasted an assortment of “well-to-do” shopkeepers, who lived above their storefronts in the buildings’ second-story residential flats.

The properties' history in the area, however, was of little import to the HPRB, who in their denial of the landmark application, state,"Judged only for the H Street buildings Meads work would have to be considered typical of that of Washington's designers-builders of that era." Unsurprisingly, Holmes disagrees.

“These are some of the earliest buildings along H Street and they were important because the builder was trying to set a tone for H Street…They are very upscale and would be appropriate on Capitol Hill, closer to the Capitol, but he was putting it right at the boundaries of the old city’s L’Enfant plan,” he said.

Today, most of the Meads Row properties in are in functional, though somewhat degraded, condition. 1311 H St. has been condemned by District authorities and currently boasts boarded-up windows and a damaged roof. Despite attempts from the ANC to facilitate historic restoration tax credits for the buildings, which directly neighbor the Atlas Performing Arts Center, the owners have expressed interest in no development scheme for the site other than asphalt.

“It’s as if they wanted to put [the properties] in that condition. It’s a practice we’ve seen on Capitol Hill in the historic district too…People want to put up a new three-story building and sell it, so they allow the old building to be demolished by neglect,” said Holmes. “He’s doing it simply to reduce his [tax] assessment by taking down the historic buildings and eliminating the improvements, so he won’t have to pay taxes on the land value…It’s a tragedy. These are important, attractive buildings.”

From U to H, 2 Townhouses and Their Effect on Revitalization

On U Street, near the corner of 14th, a pair of historic - if dodgy - buildings sit, at long last for rent rather than just vacant, uncharacteristically forlorn, and out of sorts with U Street's thriving retail. Outward appearances aside, the perpetually run down pair at 1355 and 1357 U Street with a quirky history has had an oversized role in shaping the street, and might even be credited with the rebirth of the H Street corridor. The townhouses were once the negative of that image, the rare luminescence on a struggling strip, helping deliver U Street's nascent resurgence in the early '90s. Like many properties in the neighborhood, the attractive row houses had remained family-owned for decades, with little attention paid to them as the neighborhood declined. But a group of investors saw the potential for a nightspot, and one, an up and coming restaurateur named Joe Englert, thought a bizarrely themed bar might make it in the rough and tumble neighborhood. In line with neighborhood, the building at 1357 U Street needed work, having been neglected to the point of instability. "Even back then, the building was a mess," says Stuart Woodroffe, a General Manager of the bar. "We had jury-rigged half the place with reinforcements because we were worried the floor would give." "It was a wreck when we were there," said Englert of the building. "The place was falling down then." In spite of its decrepitude, Englert and company opened State of the Union, a Soviet-themed bar (appropriate for the decaying infrastructure and outward bravado) that brought together jazz musicians of all ages and later, roots music, house music, and rhythm and blues, a venue that fused the jazz history of the street with trendier club themes for the proletariat. 

When Woodroffe became the general manager, "he made it much cooler than I would have," said Englert. "I thought we should have a 200 pound go-go dancing babushkas shaking their rumps and table side cabbage roll preparation." Yum. The crumbling building and divisions within the partnership eventually took their toll on Englert, who pulled out of the project - his fifth or sixth bar - because of differences with the owner of the two buildings, Henry McCall. "He was a real character," said Englert of the man who lived - let's say modestly - on Alabama Avenue in southeast DC, and had little financial capacity or personal wherewithal to improve the building, nor interest in selling. Add the strained politburo-style partnership ("ten people owned it, three did all the work"), and the business folded in 1997. "So we had a revolution," said Englert. "The State of the Union was a failed Socialist republic." In its wake, Englert fled the corridor for H Street's Atlas District, where it might be said he had more success.

And so the building that was once a center of U Street's gentrification continued its decline. Prior to 2007 1355 U Street was worth $1.5 million dollars. Despite their peak value, by 2010 the properties were listed in the Notice of Real Property Tax Sale for arrearages of $73,758.59 for 1357 U and $19,087.20 for 1355 U Street and scheduled for auction. The back taxes were paid, and McCall's family, who inherited it when he died three months ago, plans to keep and rent the one that's in better shape at 1355 U Street. Norris Dodson, the listing agent, notes that the family prefers a tenant that's not a bar or club "though the owners are trying to be open minded," said Dodson. The property has been on the market since September and the rate has dropped at least once to $7500 per floor. And as for Englert, the businessman behind many of the area's watering holes, from Dupont's Big Hunt and Lucky Bar to DC9, to the Pour House and Capitol Lounge on the Hill, took a special liking to the eastern half of DC, having invested in The Pug, Rock and Roll Hotel, Granville Moore's and The Argonaut, which had reopened recently after a fire. He's sticking with H Street, with plans for more restaurant and bars to come. Next up? Rumor has it Englert is writing a book on the history of H Street, and has plans to open a barbecue joint called Joe's Coal and Ice House, perhaps for this summer. Sounds strange; we'll see if it works. 

Washington DC retail and commercial real estate news

H Street Transit Developments, Don't Stop Believin'

H Street, NE has been coming into its own over the past few years. With a dozen or so new bars and restaurants and the Atlas District, the area surprises those who remember the H Street of 10 years ago - but for one constant: the utter lack of metro accessibility. Residents can see signs of progress on the line, but continue to wonder about the reality of service. The DC government has made several promises to improve transportation there, including rail, and have already bought the trains. So trains will be running any day, right?

In January 2008, Mayor Adrian Fenty and Councilman Tommy Wells celebrated the groundbreaking on the Benning Road/H Street Great Streets Project, and plans were set in motion to develop an at-grade street car connection between H Street NE and Benning Road. The Great Streets title means the area will receive money for streetscape improvements in addition to transit lines. But Shannon Yadsko, an urban planner at Parsons Brinckerhoff, opines that even if residents see rails going into the ground, "service is probably at least 5 years away." Yadsko says that though she is not connected to the project, she foresees a slew of obstacles including, "DC's ban on overhead wires (which streetcars need to run, generally)" as well as competition with other DC projects for increasingly limited financing. One such project is a similar street car line, in Anacostia, which Yadsko notes is "probably a higher profile project." When DC committed to the project, they purchased the street cars for both the Anacostia and and H Street. You might say they got the whole "if you build it, they will come" thing backwards. According to a WTOP article from last April, the DC streetcars are still chilling out in the Czech Republic. Slightly different from the ambulance loan to the Carribean, but equally odd. Better just hail a cab.

Washington DC commercial property news

Streetcars on H Street

If you were in the H St NE area today, you might have run into a bit of a snag. District Department of Transportation (DDOT) announced in a traffic advisory that construction and installation of street car rails continues along H St NE. The construction is part of an ongoing street improvement through the Benning Road/H Street Great Streets Project. DDOT spokesman John Lisle indicated they are proactively laying the tracks in concrete during the road improvement so that DDOT does not have to dig up the road again once the issues surrounding the street car are resolved. Forethought, how refreshing. So, street cars next week?

Not so much. The street car element of the $65 million Great Streets project still has some unresolved conflicts, and the cars still gather dust in the Czech Republic. According to Lisle, there is still no final plan on where the cars will turn around to continue their loop. Also, the city's ban on overhead wires in the downtown area means DDOT will either have to find a way to power the street cars without overhead wires or have the law changed to allow them. Lisle said the Benning Road project is set to continue for two more years and anticipates the street car line will be running from 3rd and H St NE to Benning Rd and Oklahoma Avenue, NE, by 2011. Others are less optimistic about the timeline.

Today's street closures, with more Friday, will allow workers to lay tracks at the intersections. In addition, the eastbound curb lane on H Street, NE between 3rd and 5th Streets will be closed to traffic for the next day. On Friday, the intersection of 7th and H Streets, NE will be closed from 9 am to 5 pm, as well as the eastbound curb lane on H Street between 6th and 8th Streets. Have patience, its in the name of progress.

Grocery Store and Apartments Coming to H St NE

The H Street corridor may soon have a new 6-story apartment building and full service grocery store, a boon for the up-and-coming neighborhood in northeast Washington DC. Steuart Investment Company has owned several of the lots on the northeast corner of 3rd and H Streets, and in 2005 assembled a developable site by acquiring the remaining portion from BP AMOCO (BP) for $1.5 million, scotching BP's plans for a giant filling station and truck depot. The developer plans to build a six-story building with over 200,000 s.f. of residential and 46,500 s.f. of retail designed by Torti Gallas. The mixed-use building, with neighborhood approval, calls for an anchor grocer and LEED- certified rental units, and will continue the reinvigoration of a corridor already known for its burgeoning restaurant, bar and entertainment scene.

 

Things have not always been so peachy at 3rd and H. BP once had plans for a "BP Connect" gas station megaplex, but the company met severe opposition from the community and, after knocking down historic houses on the site in favor of gas pumps and a truck stop, abandoned plans. The Steuart acquisition was welcomed with relief when its PUD application for zoning changes was first approved in 2006, with local ANC and community groups supporting the application. Steuart will go back before the Zoning Commission November 30th to request several changes to the original plans, reducing the number of stories from eight to six and removing one level of parking. The new proposed application includes 212 residential rental units, featuring studios, one-bedrooms and a few two-bedrooms, as well as two levels of below-grade parking. The first level of parking will service the grocery store with 152 planned spaces and the second level would be reserved for residents with 146 spaces (0.7 spaces per unit). Pending Commission approval, Guy Steuart, Sr., Vice President of Steuart Investment Company, said he hopes "all the pieces will come together" and will be digging by "mid-summer or fall of next year." Construction now underway is Steuart's consolidation of the lot and installation of storm sewer and water connections. 

As DDOT executes the H Street Great Streets Plan, the developer decided to take advantage of the "mess" and install utilities now to avoid future expense and inconveniences for area residents later. However, Steuart said his group will not move forward with construction until a grocer is signed on for the retail space. He affirmed discussions with a full-service grocer, but was unwilling to disclose which one. Previous discussions had fallen through with a grocer that had decided to locate on the other side of NOMA, referring to the Harris Teeter coming to Constitution Square. So residents might be looking at yet another Safeway (which would be consistent with Torti Gallas's extensive work with the grocer throughout the DC area) or perhaps a Giant or even, dare we say, Whole Foods on H Street? No one would have thought that was likely in Logan Circle ten years ago. Meanwhile, the Dreyfus property group plans for a similar-sized apartment building just across the street that has yet to start construction. Hopefully both will rent more quickly than the painfully slow pace of occupancy next door at Senate Square.

Washington DC retail and commercial real estate news

More H Street Development in the Works

Several vacant and blighted District-owned lots on the 1100 block of H Street, northeast are set for considerable improvements, as the Office of the Deputy Mayor for Planning and Economic Development (DMPED) has recently announced their partnership with Wall Development in constructing a five-story residential building with ground-floor retail on the site. Constructed as a matter-of-right project (requiring no Zoning variances), and usurping addresses 1113 through 1117 on the south side of H Street, the 16,000 s.f. building will house 16 one-bedroom units. Approximately 2,000 s.f. of ground floor space will be reserved for a retail component, preferably occupied by a local business.

Still very much in the preliminary conceptual stages of design, H-Street based firm Norman Smith Architecture have offered basic drawings of the planned building but continue to fine-tune their renderings in response to community input. Aside from architectural preferences, community members have communicated concerns about needed repairs to the currently existing drainage system and rear alley. They've also voiced their wish to avoid the likely frustrations of development-generated traffic in the alley. Furthermore, local residents have expressed a desire for additional neighborhood-serving retail beyond new restaurants or bars (of which there are a growing number).

Taurus Development Group will serve as general contractor, overseeing construction that is expected to result in a LEED Certified (the base level of certification) status at completion. Estimated development costs are anticipated to total roughly $4.3 million (including land acquisition costs), according to Stan Wall of Wall Development. Subject to DC Council approval, the official land disposition should be finalized in December. But it will take almost another year to finalize the land purchase and financing, with a groundbreaking following shortly after, and construction completion expected in December of 2012.

Although a ribbon cutting lies at least two years off, developers are still giddy to get the ball rolling, as H Street continues to sprout new projects. Wall explains: "I am excited to have the opportunity to build upon the momentum of redevelopment that has been occurring in the H Street corridor over the past several years." Unlike some of the monolithic super-blocks developed downtown, H Street has been slowly but surely revitalized in what seems to be a more organic fashion. Wall says he's proud to further develop what he articulates as H Street's "own unique look and feel that is eclectic and exciting."

While the development itself will be a much-need community benefit, the District will also require the project to achieve minimum targets for CBE business participation. Wall says he is delighted to cooperate to these ends. Providing affordable housing is also an ever-present and important component: there will be two units at 80% AMI and two units at 50% AMI. Additionally, the development, design, and construction teams plan to partner with Phelps Architecture, Engineering, and Construction High School in order to utilize the development process for valuable learning opportunities (site visits to the project, guest speakers at the school, donations of surplus construction materials, etc.). Sounds like a win, win, win.

Washington D.C. Real Estate Development News

H Street Goes Big

Score yet another win for H Street. The dare-we-say trendy neighborhood that is sometimes maligned for its beleaguered street front, but just as often loved for its gritty resurgence, is closer to getting one of its biggest projects to date. The H Street Connection, a 433,000 s.f. residential and retail project that will fill two full blocks along H Street, cleared a major hurdle in its path toward District approval. Developer Parcel Seven Associates (a.k.a. Rappaport Companies), has been given approval recently by the Advisory Neighborhood Commission (ANC), an event that is certain to make its stock go up when the project goes before the Zoning Commission (ZC) for review. Designed by architects Torti Gallas, the new project will likely get a zoning hearing this summer. The ANC's support will be given weight during the hearings, which come now after more than two years of conversations between the developers and the community. A development of this size will certainly be transformative, but its larger effect may be suturing the voguish Atlas District with the still struggling corridor to the east, roughly from 3rd Street to 10th Street, where major developments are planned but seem on indefinite hold.

The H Street Connection's 52,000 s.f. of retail and 346 to 423 rental units will fit into the space between 8th and 10th Streets NE, replacing a one-story strip mall built in 1987 and occupied by stores like GameStop and RiteAid. The community gave a big thumbs down to the iteration first presented in November 2007; a letter from the ANC described the design as a "monolithic contemporary facade." The development team has since adjusted the design to create the appearance of multiple buildings more in line with the "rhythm and architectural style" of the surrounding neighborhood. In keeping with the community's requests, the massing will sit in the center and rear of the new structure, allowing the sides to step down to better match the surrounding two and three-story townhouses. The developer is asking for a density of of 5.0 FAR, less than the 6.0 allowed in the PUD zoning application. Below-grade parking will add 340 residential spaces and 65 retail spaces, with garage entrances off 8th and 10th Streets. 

According to ANC 6A Commissioner, Dr. Drew Ronneberg, "the city has a strong interest in having the site host 100 additional city-owned parking spaces that would serve retail establishments outside the building." Among other concessions, the developers agreed to a laundry list of community benefits to mitigate traffic congestion and encourage "green" living. The project will have to meet LEED silver requirements, though does not have to seek actual certification. There will be bicycle spaces aplenty in the parking garage, and lockers and showers for retail employees who bike to work. The developers agreed to provide one $20 SmartTrip Card to all initial and future residents up to $15,000, to fund up to $45,000 for a bike share station on undefined public property (quite a bit less than the Union Station bike hub cost), provide car sharing spaces, and pay for a one-time, one-year car sharing membership for initial occupants to max out at $19,000. We can see the marketing materials already. Ronneberg said the ultimate goal behind the community amenities was to "help catalyze...the development of H Street" and that after hammering out the amenities over the past six months "there's certainly nothing major the ANC asked for that did not make it into the package." Chip Glasgow of Holland and Knight, attorney for the developers, said "we have been working with the ANC for a couple of years and it has turned out to be a very good process. We are very pleased with the result...and people are excited." Glasgow indicated he hopes to be in front of Zoning in April or May and to have a hearing "sometime this summer." As for a timeline thereafter, he would not speculate, though Ronneberg suggested a 2012 start would be the earliest the community would expect anything. 

Washington, DC real estate and development news

An H Street Spring

H Street's gritty, scrappy texture is giving way. In its place, the northeast corridor's devotees will soon find supermarkets, condos, smart retail, upscale apartment buildings, and trolleys clanging by pricey latte vendors. Long predicted, the year 2011 looks ready to bear out prognostications of a gentrification and resurgence that had seemed, until now, like a mirage, always ahead, always retreating. With last week's announcement that Giant officials had signed an agreement to anchor the northeast corner of 3rd and H, kickstarting Steuart Investment Co's long dormant development and blessing H Street with its first full-sized supermarket, the strip has become one of the hottest sites for development plans.

The Steuart project will add 215 apartments above the Giant, along with additional retail space. Around it, development booms. The District just announced a 16-unit residential project by Wall Development at 12th and H that should kick off next year, and at the eastern end Clark broke ground on a 257-unit apartment complex in October, as did an Aldi supermarket destined for the starburst intersection next year. And the biggest project by far will be Rappaport's 400-unit residence that will fill H Street from 8th to 10th Streets, while Dreyfus' plans for Capitol Place, a 300-unit residence opposite the future Giant, are loaded and ready for the right moment. And the trolleys, of course, are on the way.

Things could have been so different. Just two years ago a New York team went bankrupt betting on H Street and lost their 432-unit building at auction. The Giant will sit on the former BP site, a plot that was intended to house an interstate truck-servicing megaplex. Akridge's dreams to connect H Street with downtown by burying the rail yard at Union Station haven't progressed, and the most consequential projects have not yet broken ground, so the volte-face is not guaranteed, but its looking like its going to be a big year for H Street.

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DDOT Planning 14th Street Facelift

Washington D.C.'s fast-growing 14th Street corridor between Thomas Circle and Florida Avenue may finally get some much-deserved street-scaping improvements soon, says John Lisle of the District Department of Transportation.

Plans that have been in the works since 2009 may get accelerated after DDOT commences on a similar street-scaping project for U Street later this year, Lisle told DCMud. The 14th Street design, which wrapped up last April at a cost of $450,000, includes iconic "twin-20" Washington Globe lighting along pedestrian walkways and "teardrop" pendant lighting for street illumination.

Included will be dedicated bike lines and pedestrian "bulb-outs" for safety. At key intersections, such as Rhode Island Avenue, Florida Avenue and U Street, crosswalks and sidewalks will get special iconic identification. Cracked cement sidewalks will give way to London pavers, similar to those required in the Downtown DC Business Improvement District. New street furniture such as garbage bins, tree boxes and bike racks are also in the works for the 14th Street upgrade.

Already, parts of 14th Street in the downtown area have gotten similar treatment. The District was able to use $3.6 million in federal Recovery Act funds in 2009 and 2010 for improved street lighting and sidewalks for a stretch of 14th Street between K Street and Thomas Circle, which got its own facelift. A stretch of 11th Street between Massachusetts and O got its own similar upgrade in 2009.

Lisle says that the city has focused on completing its "Great Streets" programs first before tackling major upgrades of other corridors. The "Great Streets" program, started in 2005 by then Mayor Anthony Williams, is working in conjunction with the Office of the Deputy Mayor for Planning and Economic Development to jump-start retail and development on long-dormant corridors that have historically been gateways to the city, such as H Street, Pennsylvania Avenue and Georgia Avenue.

The H Street "Great Streets" corridor has just completed, and includes tracks for the District's trolley car plans, while the $3.6 million Georgia Avenue "Great Streets" project is also nearing completion. Pennsylvania Avenue's Great Streets construction, running from 27th Street to Southern Ave, will finish next month at a cost of more than $25 million in federal Recovery Act money. The District has also used $4.5 million in federal funds to rehab stretches of 17th Street, NW with similar lighting upgrades and street furniture, as well as a project on 18th Street in Adams Morgan to improve lighting and pedestrian access, scheduled for completion in May.

The 14th Street Logan Circle corridor has been ground zero for the District's inner core revitalization. Whole Foods, between 14th Street and 15th Street on P Street, which opened in 2000, now anchors the corridor.
Washington D.C. real estate development news

H Street Project Finally Gets Go-Ahead

On February 6, the DC Board of Zoning Adjustment unanimously approved plans submitted by H Street Ventures LLC to build a mixed-use development at 601-645 H Street, NE. H Street Ventures wants to turn this stretch of block into a 312,000-square-foot residential, retail and office complex valued at nearly $150 million. According to documents filed with the Board, the developer is hoping to build 240 residential units (no decision yet whether condos or rentals), with 13,000 sf of retail space and 180,000 sf of office space. This project had faced much community opposition since its proposal last Spring, with the main concern focused on the nine-story building H Street Ventures was hoping to build between two existing buildings in this space, specifically its height and scale compared to the rest of the block (citing that it violated the H Street Overlay guidelines regulating the construction of buildings over 6,000 sf, thus necessitating a special exception). The developer subsequently worked with neighbors to reach consensus on a reconfigured, more pleasing scale for the building that adhered to all the other Overlay guidelines, and proved its exemption would not set a bad precedent for future construction on H Street. Construction is expected to start later this year, with completion in 2009.

Community Groups Withdraw Opposition to H Street Project

It appears that the back-and-forth, neighborhood vs. developer dance that has been occurring over the proposed development planned for the 600 block of H Street NE has come to an end, with the community groups opposed to the project now stating they back the developer. H Street Ventures LLC is planning on turning 601-645 H Street NE into a 312,000-square-foot residential, retail and office complex valued at nearly $150 million. According to documents filed with the DC Board of Zoning Adjustments, the developer is hoping to build 240 residential units, with 13,000 sf of retail space and 180,000 sf of office space. The community’s concern focused on the nine-story building H Street Ventures was hoping to build between two existing buildings in this space, specifically its height and scale compared to the rest of the block, citing that it violated the H Street Overlay guidelines regulating the construction of buildings over 6,000 sf (thus necessitating a special exception). Hoping to quell community opposition and gain this exception, the developer worked with neighbors to reach consensus on a reconfigured, more pleasing scale for the building that adhered to all the other Overlay guidelines, and proved its exemption would not set a bad precedent for future construction on H Street. The DC Board of Zoning Adjustment still needs to decide by December 5 whether to grant the developer’s zoning relief request, but with opposition now quieted, this should be approved.

H Street End to Get Revision

Bids have closed on a major District Department of Transportation (DDOT) project which will replace 200 feet of Maryland Avenue with a half-acre public park. The new park, dubbed “Starburst Intersection,” will replace a number of scattered traffic islands and leftover bits of sidewalk that currently sit on the pavement. This project is the first step in a $20 million DDOT program which will transform the H Street corridor from 14^th street to Oklahoma Avenue.

“Starburst Intersection is the complicated junction of six roadways - H Street NE, Florida Avenue NE, Bladensburg Road NE, Maryland Avenue NE, Benning Road NE, and 15th Street NE,” according to the DDOT website. Describing the junction as complicated is an understatement; the intersection doesn’t seem to be working for anybody. According to Karina Ricks, Associate Deputy Director for Transportation Policy and Planning, it has been nearly impossible for pedestrians, cars, bicyclists and transit vehicles to make efficient use out of the six-street connection.

“Our primary objective was to create a livable community and to support the local economic development,” said Ricks. In order to exemplify the blight of the current interchange, Ms. Ricks discussed the convoluted path that local senior citizens must walk to get from their senior center, located at the northwestern-most point of the intersection, to the local stores just a few blocks east. “The seniors are in a very livable place where these amenities are so close,” Ricks said in reference to the nearby CVS Pharmacy and Hechinger Mall, “but they might as well be across town.”

The current intersection requires the crossing of three extremely busy, main streets in order to get from the senior building to CVS Pharmacy – a task not unlike Frogger - a game of threading traffic without getting squished. The new design will reorganize traffic in a manageable way, re-time the traffic signals to allow more time for pedestrians to walk and will force seniors to cross only one busy street in order to purchase their necessities. “It’s not just about the seniors,” Ricks added, “but they graphically illustrate the need for this improvement.”

The park will feature an 8' high, 30' long terrazzo panel commissioned by the DC Commission of Arts and Humanities, which will be surrounded by a number of recreational areas and fixed game tables where pedestrians can unwind. Additionally, the DDOT has included provisions for a large water fountain in the overall design. Although the DDOT will be providing the capital investment for the water structure, project leaders are still seeking a neighborhood organization to take stewardship over it. Starburst Intersection will also include a multitude of Low Impact Design features, making it an eco-friendly addition to the H Street Corridor. The Starburst Intersection is projected for completion in early 2009, and should be followed by the stalled trolley plan for H Street, but more on that soon.

Rappaport Hits Minor Setback on H Street

It's back to the drawing board for developers and architects working on Gary Rappaport's H Street redevelopment project. The Rappaport Companies' Parcel Seven Associates, LLC has been planning a large mixed-use redevelopment project running on the south side of H Street between 8th and 10th for over three years now. The rather enormous project, stretching two full blocks and replacing an outmoded single-story shopping strip, is expected to begin work on part of the 52,000 s.f. of retail and 400-odd residences within about two years, but save the 2nd half for much later. Developers endured the requisite series of conversations, meetings, and compromises, and were finally able to bring both DDOT and the ANC (6A and 6C) on board. But the Zoning Commission was not entirely wooed by the long line of witnesses pleading for approval of the obligatory zoning change at Monday evening's public hearing, and unanimously decided to delay final action until September 27th. This gives the architects and developers until Friday, September 3rd to officially respond to requests made by the Zoning Commission, and opponents of the project until September 10th to retort and fault Rappaport's modifications.

There were a number of minor issues with the plan in the eyes of the Commission, but the major hold up was the appearance of the project's closest neighbor in opposition to the project. This was not the first time developers had heard this family's concerns, and Rappaport insisted that they had labored to accommodate the neighbor's concerns about building height and traffic flow. But the strong reservations communicated by the 8th street neighbor were not mitigated to the extent the Commission expected, so Zoning requested more careful consideration of their concerns, particularly the family's anxiety over the likely increase in large trucks turning into the alley around the corner of their home.

One Zoning member requested that the architects refine the pavilion design on the opposite corner, at 10th and H Street, to generate a bolder and more interesting beginning to the rest of the building, while also tying together and re-enforcing the entirety of the design. "It lacks the kind of stylings and flavor of the rest of the building," he lamented. Another panel member was disappointed that the amenities package was rather light when weighed against the aggressive amount of FAR being pursued by the project (4.0 FAR of residential and 6.0 FAR of commercial space). The entire Commission also expressed their interest in seeing a slightly more aggressive phasing timeline; at present, phase two construction would not begin for about seven years thereafter, a timeline "that will depend upon the rate of absorption" of Phase 1, according to Rappaport.

But don't mourn for the Rappaport Companies, a somewhat retooled design should afford the developers the PUD they've been seeking, and panel members were generally optimistic and encouraged by the scope and direction of this project. A final action ruling later this fall does not serve as a serious threat to their hopes of beginning construction in 2012.

The process of give and take is not new to Rappaport; the project was even bigger before it was first rejected by the Commission in 2008. Over the last two years, the design team, including project architect Torti Gallas, has appeased the community by situating the massing of the buildings in the middle and the back to better negotiate changes in the roofline (ranging from 50 to 90 ft.) and blend the new building into the existing facade. The once uniform design has also been reformed to feign the appearance of multiple, distinct buildings strung together, replicating the nature of street frontages on the rest of H Street. The architects have offered large setbacks for the bottom floor retail stores to provide for maximum pedestrian traffic flow and the potential for outdoor dining terraces.

Other amenities being supplied to the community include landscaping and improvement of public space. The project will also look to minimize traffic congestion, and encourage environmental responsibility in achieving a LEED Silver Certification upon finished construction. Parcel Seven has also agreed to support a proposal for the creation of a Historic District for H Street NE. Moreover, a small portion of the residential units will qualify as affordable housing. And while one Commission member pointed out that several of these "amenities" are actually requirements (killjoy), the project seems to have convinced the majority of the community that its arrival is much more of a positive contribution than a hindrance.

The public record on this case will be reopened in late September as the developers attempt to appease the development site's most immediate neighbor, as well as reassure the Zoning Commission that their project is ready for construction to begin.

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