D Day for "New Deal" Housing?

At 3 PM today, the Montgomery County Planning Board will decide the fate of a collection of duplex and three-story apartment buildings, located on 22 acres of land at the intersection of East-West Highway and 16th Street in Silver Spring, MD. Home Properties of New York, the owner of the Falklands Apartments, has submitted an application to raze some of the buildings, created in the wake of FDR's New Deal programs, despite their placement on a list of historic "potentials" - a catalog of possibly-vintage properties that the county has protected from destruction until officially determined as being devoid of historic value.

Home Properties is attempting to demolish a third of the apartments on the northern half of the site in order to clear the way for a collection of new buildings: a mixed-use set of apartments and stores which will create 1,059 residential units, a 50,000 s.f. grocery store and 15,000 s.f. of retail. Demolition of the existing housing needs to be cleared by the Historic Preservation Commission.

The site has been under historic evaluation since 1985; at that time Falkland failed to satisfy the requirements of historic designation. Unfortunately for Home Properties, the real estate may boast some intrinsic historical value. Aside from being the first garden apartment complex in Montgomery County, the Falkland Apartments were inaugurated by Eleanor Roosevelt in 1937. The Falkland residences were created to satiate the rapidly escalating swarms of people that were moving into the area following the inception of FDR's New Deal programs; Montgomery County's population grew by more than 70% during this period.

The apartment complex was reevaluated again on August 15 of this year, when the commission concluded that further investigation was required; on the whole, the site was deemed "eligible" for classification on the Master Plan for Historic Preservation. Home Properties has argued that the apartments are not suited for designation because of the failed 1985 valuation. Members of the community have opinions to the contrary; the Planning Board received more than a dozen letters pleading for historic designation of the site - there were no letters pleading for a mixed-use development. County Planners have recommended that the Planning Board consider all three of the parcels that make up the Falkland Apartment buildings as eligible for historic designation, leaving an all or nothing choice to the County Council.

Falkland Chase Apartments, Chasing a Plan for Silver Spring

One of Silver Spring's largest and most ambitious real estate projects is ramping up for development next year. Though the urban planning vision is not yet complete, developers of Falkland Chase hope to submit a site plan to Montgomery County early this summer for a project that would greatly expand the densified downtown section of Silver Spring, adding high rises, 1250 apartments, a supermarket and retail to East-West highway one block from the Silver Spring Metro.

Michael Eastwood of Home Properties says the development team has not yet signed an anchor tenant but intends to serve up a final site plan to the county "by June or July." The county approved the preliminary plan last November, and Home has been working on tweaking the design that will develop the North Parcel, turning 182 garden apartments into 1250 new apartments in 4 new buildings along the Metro track and soon to be Purple Line. The new residential towers will rise up to 14 stories along the tracks and 6-8 stories along East-West highway, denser but "more sensitive to the neighboring community."

With financing for the property still not locked down, Home Properties has been seeking a full service grocer to help tether a financing partner, courting Harris Teeter since 2005, but still without an agreement. "We are trying to chase them down" says Eastwood, who notes that his team also has the capability of going it alone in a pinch. "We're a REIT so we could do it on our own and will be building in phases."

The northern boundary faces the Metro tracks and is the "locally preferred alternative" for the Purple Line. The property features a 40 foot right of way that could serve as a light rail pass-through (the site is only one block from the station so there will be no stop incorporated), as well as a bike path right of way. Design of the project is still preliminary, and while Nelson Byrd Woltz has been selected as the landscape architect for the project, actual design has not yet been achieved.
Home Properties acquired the land in 2003 and began planning for a quick turnaround, submitting to the county in 2006. Plans were "cued up and ready to go" says Eastwood, but market fundamentals sabotaged early plans. Locals then began a campaign to declare the property - inaugurated in 1937 by Eleanor Roosevelt when the New Deal was expanding, as now, the size of government and the area's population - as historic, an ultimately successful bid that changed the scope of the plans. With many of the apartments protected, Home Properties then doubled down on the northern section switched the architect from Grimm + Parker to Shalom Baranes, increasing the number of units while connecting them better to the street. "It really took from fall of 2007 to spring of 2009 to get the two south parcels on the charts for historic preservation, and get the north to come off the locational atlas" said Eastwood. The residential towers originally conceived would have encircled a private courtyard, the new design adds a street through the center, with street-oriented buildings. "Its a more urban design than what we had originally."

Eastwood says the projects will "definitely be" rental units. Retail - about 10,000 s.f. in addition to the supermarket - will front East-West, aided by a new traffic signal.

Silver Spring, Maryland real estate development news

Falkland Chase To Begin Review Process

Home Properties is set to unveil their Falkland Chase redevelopment plans later this fall. The proposed development site is 9.7 acres of land at the northeast corner of 16th Street and East-West Highway in Silver Spring. The recently revised plans call for the currently standing 180 garden apartments to be demolished in order to make way for an urban infill, multi-building complex totaling some 1,250 rental apartments upon completion. The developers had first proposed stacking over 1,000 units into a single high rise, but smartened up when they realized such a large building would not go over well with the surrounding community. Last week the Montgomery County Planning Board approved a 60 day extension of the Project Plan Review phase, meaning developers will now present their plans to the Board on October 13th. In the works since 2006, just last year the developers caved to pressure from local preservationists and designated two parcels of the Falkland Chase Apartments complex as historic. But that hasn't stopped the developers from moving forward with their massive redevelopment of the northern portion of the property.

Master-planning was done by Shalom Baranes Architects. Four separate buildings (two of which rise 12 or 13 stories), connected by pedestrian pathways, will surround pockets of green space and landscaped courtyards featuring a swimming pool, pond, and water fountain. Nelson Byrd Woltz shouldered the landscape design work. Over 150 units will be designated as moderately priced, serving those making 50-65% AMI, while at least another 59 will be reserved as workforce housing. Also divided amongst the four buildings is the proposed 70,000 s.f. of retail space, with the 20,000 s.f. anchor space set to become a major grocery store. Although nothing is official, Home Properties expects to wrap up negotiations to bring Harris Teeter to the development shortly. The other retail venues will likely feature a mix of restaurants, dry cleaners, and convenience stores. A four story (half below grade, half above) 1,600-space garage will satisfy the parking needs of future residents and shoppers.

Sustainability will be a major factor given the project's proximity to the fragile Rock Creek watershed. Developers have committed to earning at least a LEED Silver Certification, and have promised to recycle as much of the construction waste as humanly possible. Several green roofs, rain gardens, and infiltration beds and cisterns will assist in collecting and processing storm runoff.

The review process is bound to shed light on some public criticism, as at least a few neighbors will be upset with the scope of the project. Developers are pushing to the ceiling on all the zoning specifications, proposing the maximum 3.0 FAR, 166 units per acre, and 143 feet in building height.

Detailed architectural renderings have not been released, although designers describe their material palate as consisting of the usual brick masonry, metal, cast stone and glass. The contemporary facades will also feature a variety of balconies, bays and exterior spaces.

Silver Spring, MD Real Estate Development News

Massive Redevelopment of Falkland Chase Apartments in Silver Spring Planned

It appears the Falkland Chase Apartments, the historic apartment community built in 1937 on 22 acres in downtown Silver Spring along the 16th Street - East-West Highway axis, is in for some major redevelopment. According to sources who attended an August 10th community meeting at the apartments and, plans call for the northern portion of the old Falkland Chase complex to be completely demolished, and ultimately the whole community will be redeveloped into biggest project ever in Silver Spring, totaling 1,050 apartment units (the complex now only holds 450 units) in a group of high-rises. In addition, it is expected that a major grocery store such as Harris Teeter will anchor a string of retail shops planned for the development. A timetable has yet to be announced, but between this project and the Gateway project in south Silver Spring at East-West Highway and Georgia Avenue, this area is quickly turning into a metropolis.

Silver Spring, Maryland commercial real estate news

Falkland Apartments Plan Up for Review, Again

Today, Home Properties of New York, owner of the Falkand Apartments, finds itself once again before the Montgomery County Planning Department concerning the site plan for a multi-building, mixed-use development at the northeast quadrant of the intersection of 16th Street and East-West Highway near the Silver Spring CBD. The 9.7-acre site, split into three parcels, is within walking distance of the Silver Spring Metro and the MARC station.

In 1985, the area was denied eligibility for the designation in the Master Plan for Historic Preservation, but in 2007 all three parcels were found eligible and the Board “directed the Planning staff to initiate an amendment to that Master Plan,” according to the MCPD report on today’s hearing to approve the site plan. In 2008, the south and west parcels were added to the plan, but the north parcel was added to the Locational Atlas, which was created in 1976 and identifies potential historic sites.

That particular restriction called for the removal of the north parcel from the Atlas upon approval of the site plan.

"Faced with the challenge of weighing the benefits of historic preservation with those related to other planning objectives, the Board found that greater public benefit would be achieved through the redevelopment of the north parcel than by the parcel's designation in the Master Plan," according to the Staff report.

Being part of the Master Plan comes with eligibility for financial incentives for qualified rehabilitation and maintenance projects as well as certain protections.

The designation led Home Properties to revise their development plan and follow a few provisions, including 4.72 percent of the dwelling units to be subject to the County’s Workforce housing law for 20 years and the same amount provided for off-site Workforce housing.  Home Properties must beautify the stream on the South parcel, and all buildings must be rated LEED-Silver.

The proposed plan is for a 1.2 million s.f., mixed-use development that includes 70,000 s.f. of retail and 1,250 townhouse units with 12.5 percent MPDUs and 4.73 percent Workforce Housing units.

The project consists of four buildings, oriented to a perimeter public street or a proposed private internal street. The buildings on the East-West Highway include ground-floor retail.

The proposed development provides 65,091 s.f. of public use space, 20 percent of the lot area. This includes a public plaza, garden and pedestrian area.

Staff recommends approval of the proposed plan today.

Maryland real estate and development news

Residents Win Fight for Historic Community

Yesterday's Montgomery County Planning Board meeting couldn't have fared any better for the score of residents that testified in support of preserving and officially naming the Falkland Apartments as an historic community (see Thursday's post). Executives at Home Properties, the owner of the 70-year-old apartment community, are probably not as elated about the setback for their development plans.

Less than 24 hours ago, the Planning Board decided on the record that the Silver Spring apartment complex is a "key part of history and should be preserved," according to the Maryland National Capital Park and Planning Commission. This decision comes in the wake of community activity (petition-signing and all) to preserve the site.

The Planning Board's decision last night initiates a full historic designation process, which begins with the Historic Preservation Commission (HPC), then comes back to the Planning Board for further review and finally goes before the County Council – who will make the ultimate decision on whether the property deserves historic landmark status.

Falkland North Project Details, Images Revealed

Following months of speculation, Home Properties finally released new details and images on February 22 at a Silver Spring Regional Center meeting of its planned redevelopment of the northern portion of the Falkland Chase apartments, the historic apartment community built in 1937 on 22 acres in downtown Silver Spring along 16th Street and East-West Highway. The Falkland North complex, to be located on the 9-acre northeast corner of East-West Highway at 16th Street, will be a mixed-use development containing 1,020 residential units and three levels of underground parking. There will also be 62,000 sf of retail and commercial space, with a Harris Teeter grocery store expected as one of the retail tenants. Monthly rents are expected to be $1,500 for a studio up to $2,200 for a two-bedroom unit – ambitious rates for Silver Spring. The project will contain interconnected towers (the tallest being 15 stories) in a semi-circle around a 1.5-acres courtyard featuring a pond and waterfall. Architecture is by Grimm & Parker, which has the new images of this project on its website. Construction is not expected to begin until close to 2010, assuming all approvals fall into place.

Argent Opens Subsidized Apartments in Silver Spring

The Argent, downtown Silver Spring's only all-affordable apartment building, opens its doors tomorrow. Built in 2009 by Washington DC-based Perseus Realty LLC as "luxury" condos (outward appearances notwithstanding) the condo project languished with few sales (actually none) and financing gone south, sitting vacant for more than a year until sold earlier this year to Utah based Pallas Properties and Paradigm Financial Consulting for $24.8m.

Pallas snapped up the 96-unit property earlier this summer for $258,000 per unit, with the assistance of federal Low Income Housing Tax Credits in a plan that keeps 90% of the units set aside for tenants with less than 60% of the Average Median Income (up to $43,000) and 10% of the apartments at less than 50% AMI. The Argent offers underground parking and, in a rare twist for a multi-family building, stainless steel appliances, ceramic floor tiles, and granite countertops. The deal keeps the units income restricted for 30 years. Montgomery County contributed $5m through the Housing Initiative Fund.

But the addition of an entirely low-income building took neighbors by surprise, reports SouthSilverSpring blog, and not in a good way. Subsidized apartments are rife throughout Silver Spring - the Portico has 23 of 151 units bankrolled by taxpayers, Falkland Chase Townhouses (58 of 70), Alexander House (123 of 310), Silver Spring House (32 of 77), 1200 East West (32 of 245), Gramax Towers (153 of 180), the Veridian (58 of 457), and as DCMud reported just yesterday, the Galaxy is now under construction next door with 82 of 195 units dedicated to low-income tenants. Occupancy of the Argent, located at 1200 Blair Mill Rd., will begin in October. The ceremony will take place tomorrow at 9:30am.

Update Sept 16: At the ceremony, Montgomery County Executive Isiah Leggett released a statement that said “One of my top priorities is increasing the amount of affordable housing in Montgomery County...These units will provide much-needed safe and affordable housing to 96 individuals and families and give yet another boost to South Silver Spring.”

Silver Spring real estate development news

For Sale - Silver Spring's The Blairs

Interested in some property? OK – how about a lot of property, namely a large chunk of south Silver Spring residential and commercial property? Anyone with passing familiarity with Silver Spring is well aware of The Blairs, the massive mixed-use residential, retail and office complex located just south of East-West Highway (and the Silver Spring metro) and north of the DC line, bordered on the east and west by Colesville and Blair Mill Roads. Well, this past week property owner The Towers Cos. placed a “For Sale” in the window, the first time the complete 26-acre property has been put on the market since it was first developed in the 1960s. In total, The Blairs consists of 1,397 rental units spread between three hi-rises, garden apartments, and townhouses, 83,154 sf of retail space (including the Giant supermarket, CVS, and other stores in the shopping strip), and 69,517 sf of office space.

While the complex could simply change hands with residents not even noticing the switch (except for maybe a rent bump), it is interesting to note that the Cassidy & Pinkard sales flier indicates that the property could easily be expanded, stating that new development capacity could include 1,403 additional apartments, and 297,329 sf of new commercial space. Such expansion would certainly add a wrinkle to the already-significant level of development happening at this corner of East-West Highway and Blair Mill Road. Just east across Blair Mill is the still-selling, 151-unit Mica condo conversion, and rubbing shoulders with the Mica is the 96-unit The Argent project, which just broke ground last month at 1200 Blair Mill Road. Just northeast of The Blairs is the 247-unit 1200 East-West project, which broke ground in June, and across East-West Highway from this project is the 460-unit Silver Spring Gateway project. We might as well also go west and throw in the 1,020-unit Falkland North project at the corner of East-West Highway and 16th Street. The best investment of all, with this myriad development? One of those silvery Food Trucks that stops on the works sites twice a day to serve breakfast and lunch to the construction crews – now they will be doing brisk business for the next few years!