Clarendon Center Approved and On Schedule

Clarendon Center looks likely to accomplish a feat many other construction projects cannot these days - delivering both planned elements of a project at the same time, on time. Impressive too because the project required complicated excavation, demolition and construction work close to the subway tunnel that runs under Clarendon Blvd. Developer Saul Centers Inc. (SCI) expects both buildings, which offer a mixture of office, retail and residential, to be finished and ready for tenants come the 3rd quarter of 2010.

Construction began in summer of 2008 on the south buildings of the large mixed-use project that sit directly across from the Clarendon Metro. The south buildings topped out in late October and the six-story north office building just received an above grade building permit in late November, for 171,000 s.f. of office space and 42,000 s.f. of retail space. Chris Sowick of Cassidy & Pinkard claims "significant interest" in the project, adding that the buildings do not necessarily require a large anchor tenant; the smaller floor plates of the 6-story north building mean a tenant could rent a space "as small as 7,800 s.f." The south buildings offer 9 stories of office and retail space and 12 stories of residential space, which includes 244 rental units. Nothing is leased on the south building either, though Mary Beth Avedesian, the Vice President of Acquisitions & Development at SCI, said there has been a lot of interest in the project given the proximity to the metro, especially from restaurants. Avedesian indicated the group is in "various stages of negotiation," but nothing finalized. Avedesian offered that rents seem to "still be holding up" at the expected level around $50 to $70 per s.f. for retail space. Construction for the project is by Clark Construction. The buildings were designed by Torti Gallas. 

Clarendon real estate development news

Monument Back at the Helm at Watergate?

Monument Realty appears to be seeking contractors for renovation and construction on the Watergate hotel, suggesting the DC developer may be closer to a work-out on the property it lost to the bank earlier this year. Lender PB Capital Corp foreclosed on the famed hotel this past July, and held an unsuccessful auction, with none of the 10 bidders jumping at the $25m starting bid. Since then, there has been no confirmed word on the fate of the historic structure overlooking the Potomac River. In an interview with DCMud following the auction attempt, Monument's Principal and Co-Founder Michael Darby indicated he had raised the necessary funds to buy back the property, but later accounts suggest the bank turned down the developer, possibly hoping to get a sweeter deal with Holland Development, which was rumored to have been interested in the property. An industry source says Monument is seeking contractors for a "top to bottom renovation of the existing 13-story, 250-room hotel. Renovations will include reducing the number of rooms, while expanding the rooms that do remain to 650 s.f." The project costs are estimated at $20 million. When DCMud inquired about Monument's plans, Natasha Stancill, spokesperson for Monument, responded "we are going to pass on commenting." Which of course increased our suspicion. 

Further supporting a rekindling of the romance between bank and borrower is the fact that Holland now appears to be out of contention. In a statement to this journal, Memphis Holland of Holland Development confirmed that Holland is now just watching the action. "The Watergate Hotel is a complex and exciting project. We were just one of a myriad interested in contributing to the growth and development of the Virginia Avenue/Kennedy Center area. We look forward to watching as this development takes shape and becomes a vibrant center of activity," said Holland. Nor will the former architect be part of the redevelopment effort. "Hickok Cole Architects is not going to be working on the Watergate Project if and/or when the project restarts. I would suggest that you speak with Michael Darby at Monument." said Jeff Lockwood of Hickok Cole Architects. Thanks, tried that. Original plans for the building were to convert the 250 rooms into an 96-unit coop, but Monument reportedly sold only 11 of the high-end units, which started at $850,000 for a one-bedroom home - and that wasn't for the good view. 

Washington D.C. commercial real estate development news

Delivering on Promises in Ward 8

A previously stalled residential project in Ward 8's Barry Farm community is one step closer to realization. The 99-unit Matthews Memorial Terrace was scheduled to begin construction earlier this year, but economic constraints delayed the promised affordable housing. Now, however, the developers are seeking general contractors and hope to begin construction in the new year. The planned development would bring four stories of affordable rental units to Martin Luther King Jr. Blvd. next to the Matthews Memorial Baptist Church, which owns the property (and runs a surprisingly hip website). Developer Community Builders (TCB) along with the Church received final zoning approval for the PGN Architects-designed project in May 2009. The construction would mean jobs and new housing for part of DC hardest hit by the current downturn.

The 79,000 s.f. of affordable housing will provide 32 units of senior housing (1 bedrooms, 1 bedrooms plus den and 2 bedrooms), 34 units of multi-family and individual public housing (most of which will likely go to residents displaced by the Barry Farm redevelopment), and 33 units of affordable housing for individuals and families earning less than 60% AMI. Of the four stories, one will be below grade. Donna Freeman from Matthews Memorial Baptist Church indicated the site currently contains a few structures which will be demolished prior to the new construction. Contractor bids for the residential project, valued at $8.5 million, are due December 14th.

The residential project will sit next to a planned community building also developed by the Church, which received approval in the same zoning process in May. The community building will include a space on the ground floor for public meetings, a second floor dining room and restaurant and non-profit uses on the third floor. The community building is not part of the current bidding process.

Washington, D.C. real estate development news.

CATO Institute Builds Up and Out

The Cato Institute's landmark headquarters building on Massachusetts Avenue in NW will soon expand up and out after razing its southern neighbor and constructing a 34,000 s.f. addition designed by Gensler Architects. While liberals may groan, both the Advisory Neighborhood Commission (ANC) and the Board of Zoning Adjustment (BZA) approved the plans, including the raze request and relief from rear loading requirements, setting in motion demolition this spring followed by construction expected to last 14 months.

The conservative think tank won plaudits in 1993 for its 6-story, HOK-designed glass atrium that conformed the building to its site on diagonal Massachusetts Avenue. Gensler's plans include adding an extra floor to the existing building and constructing a new, 7-story addition that will attach to the southern perimeter. The final product will include approximately 69,752 s.f. of office use, including the 34,150 s.f. expansion.

Bill Erickson, Vice President for Finance & Administration at Cato, said he had been trying to acquire the National Medical Association (NMA) building for almost 12 years, but the NMA had resisted, wanting to stay within the District. Cato ultimately purchased the property in June 2009 for a $7 million, and filed their raze application in July. The NMA will likely move out in February and start their new lease in Silver Spring.

Cato will welcome the addition because, according to Erickson, it is "totally out of office space" and has been renting about 5,000 s.f. from a nearby office. The think tank is also looking to expand program space, increasing the size of their theater to include 194 seats and adding amenities like a gym and rooftop garden for a growing program staff. They will not seek LEED certification despite several green features.
Akridge is managing the project for CATO, and the firm is currently determining the construction costs through consultation with Clark Construction, though no formal contracting has taken place. The estimated total construction cost is $25 to $28 million, which Cato plans to fund through a capital campaign, according to Erickson.

Erickson described the reaction of the community and various oversight agencies as very positive, including unanimous approval from both the ANC and the BZA. Erickson added the Office of Planning and neighbors at 1010 Mass loved the plan and were happy to hear an "eyesore" would be replaced and improved.

Washington, D.C. real estate and development news

Groundbreaking on $35 Million Affordable Housing Project

The Linda Joy and Kenneth Jay Pollin Memorial Community Development groundbreaking ceremony went off without a hitch this morning despite boycotts by local ANC members and the notable absences of Councilmembers Vincent C. Gray and Kwame Brown.

 

Today's groundbreaking coincides with a public memorial service honoring Washington Wizard's owner and philanthropist Abe Pollin. That service will take place at the Verizon Center tonight, at 7 pm. The $35 million project has sparked some controversy and a press release from Local ANC 7D yesterday. Members staged a boycott of today's event in an effort to convince developers and city officials to be more forthcoming with information about the project's community benefit component, a charge Dena Michaelson, Director of Public Affairs and Communications for DC Housing Authority dismissed as "putting the cart before the horse."

"The t's aren't crossed, the i's aren't dotted," Michaelson went on to say, adding that a community benefits package was still being negotiated and would be available to the public upon its completion. 

Washington DC commercial real estate news

Community Boycotts Groundbreaking for Affordable Housing

When the development team for the $35 million Linda Joy and Kenneth Jay Pollin Memorial Community Development in northeast DC announced its groundbreaking scheduled for tomorrow, one thing they didn't count on was fierce opposition from the community. But they've gotten it, and then some. ANC7D organized a phone and email campaign that ultimately convinced Councilmembers Kwame Brown and, according to the ANC press release, Chairman Vincent Gray to boycott tomorrow's press conference and groundbreaking scheduled for 10:45 AM at Anacostia Avenue and Hayes Street, NE. Though Gray's office indicated the groundbreaking was still on his schedule. Pollin Memorial Community Development, LLC's planned development would bring 125 new affordable for sale and rental homes to northeast, a site which is a composite of property belonging to 3 government entities – the District of Columbia, the District of Columbia Housing Authority (DCHA), and the National Parks Service (NPS).

The Pollin project will replace one-for-one the 42 affordable rental units on site, known as Parkside Additions. The project was initially spearheaded by the late Abe Pollin and his Pollin Foundation, which courted the approval of all landowners back in 2006 and received approval for the project from NCPC last year. The current Parkside project was described by the National Capital Planning Commission (NCPC) as “functionally obsolete,” so no real loss there.

In July of 2009, ANC7D reviewed a loan request for $7.9 million submitted by the Pollin Foundation to the DCHCD (DC Housing and Community Development), however with only 30 days provided to submit a response, the ANC unanimously rejected the request, and continues to object. ANC7C04 Commissioner Sylvia Brown told DCMud in an email that the "Pollin team have not been transparent and open to communications." Of particular concern is the community benefits agreement and the plan for relocation and return for current Parkside tenants. According to Michael Price, spokesperson for Councilmember Kwame Brown, "the community is adamant that they are looking for a community benefits package and the Councilmember stands by them."

Terri Bolling, Spokesperson for Enterprise Community Investment, one of the development partners on the project,was unaware of the community's recent actions and plans to boycott the groundbreaking. She remarked "this is so strange" since community outreach "is what we do."

John Stranix, formerly of Clark Construction and now of Stranix Associates, is spearheading the construction effort using designs by Torti Gallas & Partners. The project aims to begin construction in early 2010 with the first units available in 2011.

Washington, DC real estate and development news.

FDA Blooms at White Oak

The General Services Administration (GSA) is gearing up for Phase 4 of the $900 million (and counting) Food and Drug Administration (FDA) Headquarters Consolidation at the former site of the White Oak Naval Ordnance Laboratory off New Hampshire Avenue in Silver Spring, MD.

More than 4,500 FDA employees have already taken up occupancy within seven completed White Oak campus buildings designed by KlingStubbins and RTKL and built by Tompkins Builders (a subsidiary of Turner Construction). Assuming additional government funding comes through for the 2.3 million square foot facility, construction on the final building should wrap up in 2013. Upon completion, about 8,000 employees from 39 leased offices across DC will relocate to White Oak, uniting at long last the likes of Center for Devices and Radiological Health and the Center for Veterinary Medicine, and fostering what FDA Commissioner Dr. Andrew C. von Eschenbach promised in a 2008 Consolidation Report will be a new spirit of "scientific collaboration."

Phase 4 of the project is slated to begin construction this February. This $130 million portion of the project will add 560,050 s.f. of office, laboratory, and research space to the campus in two buildings and will ultimately toss another 1,159 FDA employees from the Office of Regulatory Affairs and the Office of the Commissioner into the FDA party mix.

Bids for subcontractors are scheduled to be released any day. Until then, FDA Press Officer Chris Kelly tells DCMud that the FDA will be keeping mum "about the construction project, as it is procurement sensitive."

Silver Spring real estate development news

New Toy for Real Estate Geeks: Interactive DC Zoning Map

For those of you who, like us, spend many a gleeful hour pouring over zoning documents in search of a story, project information or lead on a new contract, you now have a fun new toy. Today the DC Office of Zoning launched its new, interactive Zoning Map along with a glossary chock full of terms related to the zoning process- both excellent tools for decoding public information and being generally nosy. The map allows a user to "determine the zoning classification for any property in the District" and to search by address, parcel, square & lot or by PUD (Planned Unit Development). Users can select from a list of zoning data to display such as Overlays, pending PUD's, Zoning District, etc. A report will appear based on the selected data fields with the information requested, including the most recent case numbers. Happy searching!


DC real estate and development news.

The Policy, Kalorama

Sponsored Announcement

UIP Property Management, Inc. presents The Policy, located in the heart of the Kalorama Triangle at the corner of 20th and Kalorama Streets, NW. The Policy is a fully renovated, depression era building built in 1929. The Policy features 62 light filled, spacious apartments including studios, 1br/1ba and 2br/2ba apartments. The Policy has the luxurious feel of a high-end hotel with its grand lobbies featuring custom mahogany mill work and intricately patterned marble floors. The apartment homes were each fully renovated with condominium level finishes, including granite counters and vanities, stainless appliances, individual combo washer/dryers, individual, central heating and air conditioning, new kitchen and bath tile, restored hardwood floors and many large closets. The building also includes a controlled access entry system with 24 hour video monitoring, a bike storage room featuring a bike ramp, and additional storage lockers available for rent. If you want to live in the heart of the city or if you are looking to upgrade, starting at $2,2000, call us today at 202-244-3811 or visit us at our website www.uippm.com.

DC's Janney School Releases New School Renderings

Janney Elementary School in Tenleytown has released renderings of the addition that will nearly double the size of the existing school. The new plans represent the nearly final design for the 4-story addition to flank the school's western side, taking the place of the current playground. Washington DC-based Devrouax and Purnell Architects have designed a modern structure of brick and glass to accompany the historic school, which was landmarked on November 19th by the DC Historic Preservation Board. Construction is expected to commence in March of 2010, after which the old school will be renovated. The new plans come after several years of acrimony, a result of the original plans to build a library and apartment building next door, with the developer therefore restoring the aged school. The school will hold a public meeting on December 15th to procure feedback on the plans. Meanwhile, several months after the official ground-breaking, work actually began last week on the adjacent public library. 

Washington DC real estate development news

National Museum of African American History and Culture Design Process Crawling Along

The design for the future National Museum of African American History and Culture on the National Mall checked off its first of a series of reviews today, when the National Capital Planning Commission (NCPC) heard a presentation from the Smithsonian Institution and their chosen architect, Freelon Adjaye Bond/SmithGroup, about the plans for the building. Though commissioners praised the quality of the design, many expressed "serious concerns" about the current design's size and massing in relation to the Mall and the Washington Monument. The design process is scheduled to last approximately 3 years, with construction beginning in 2012. The 5 acres of land near the Washington Monument have been the subject of vociferous debate first with the National Park Service opposing its use for anything but the grassy space that exists today, then with 22 designs competing for the site and now with sundry federal and local agencies reviewing the merits of the design that won out over five other semi-finalists this past April. Bounded by Constitution Avenue, Madison Drive, 14th and 15th Streets NW, the site would be the terminus of the Smithsonian museums on the Constitution side of the mall, leading up to the Washington Monument. The current design is what the architect described as a pavilion, its base embracing the mound-like structure at the base of the neighboring "temple" buildings, which include the Museum of Natural History and the American History Museum. The building then opens inwards like a "front porch" to reflect a structure common in both traditional West African and southern African American cultures, according to the architect. The mass of the building is aligned with the Museum of Natural History and it is no higher than the American History Museum. NCPC commissioners generally commented favorably on the concept, especially praising the interior design of the building. However, one after another, members expressed concern that the building would diminish the impressiveness of the Washington Monument because, as one commissioner put it, the design "failed" to maintain "the integrity of the mall." Other commissioners mentioned that part of the design process involved the architects providing three alternative design concepts, a process which would "improve the final project." With the design far from finished, NCPC will hear from the team again in the spring of 2010.

Washington DC real estate development news

Retail vs. Office Space Showdown on DC's H Street

An empty lot could become one of the first new commercial enterprises on the 1200 block of H Street NE, if the developer and the community can see eye to eye. I.S. Enterprises owns the lot and is applying to build a 4-story commercial building in the reemerging restaurant and arts district of H Street, but the developer has some appeasing to do before the Advisory Neighborhood Commission (ANC) gives a seal of approval. An October review before the Board of Zoning Adjustment (BZA) was delayed 60 days to allow the developer time to work with the ANC, which had summarily opposed the planned structure. But with the 60 days up and another hearing scheduled next week, the project has yet to come back to the ANC with any changes or compromises.

The developer's plan is for a four-story building with ground floor professional services "such as investment and or insurance brokerage firms" with the top 3 floors set aside for the owner for office space. The lot is relatively small, so the owner is looking for zoning relief for density, seeking a Floor Area Ratio (FAR) of 3 rather than the permissible 2.5 FAR. The zoning requirements also stipulate that first floor ceiling heights come in at 14' to accommodate ground floor retail, but the owner would like to have 10'6" ground floor ceilings and no retail. In asking for these adjustments, I.S. Enterprise puts itself at the mercy of the ANC and the BZA, which must approve it, and can therefore mandate its standards.

According to ANC records, the organization sees the property as an opportunity to embrace the H Street Overlay and continue to develop uses favored by the community; they are unlikely to change their mind. The group strongly opposed the four story height arguing "all the other structures on the block are two stories." The ANC also objects to the overall design of the project stating "it does not reflect any of the architectural elements found on H Street." The ANC further objects the planned ground floor use, preferring retail. Though the ANC's approval is not required, the BZA will give weight to the ANC's position.

Washington DC real estate development news

The Macklin in Cleveland Park

Sponsored Announcement

UIP Property Management, Inc. is pleased to present The Macklin a fully renovated historic apartment building in the heart of Cleveland Park. The Macklin was built in 1939 and boasts 17 beautiful fully renovated apartments. The Macklin was designed in an art-deco style by renowned architect Mihran Mesrobian (1889-1975), who was a prominent Washington architect. The apartment homes have been completely and beautifully renovated with individually controlled central heating and air conditioning, GE stainless appliances including microwaves and dishwashers, washer/dryer units in each apartment, granite counter tops, restored hardwood floors, tiled kitchens and bathrooms and so much more. The Macklin’s historic exterior features were restored, including the original steel casement windows, glass block art deco entry way, and decorative false balconies and concrete panels. If you want to live in the heart of the city or if you are looking to upgrade, starting at $1,600, call us today at 202-244-3811 or visit us at our website www.uippm.com.

Getting Serious at Howard Town Center

After years of vying for the opportunity and negotiating the development, Castlerock Partners LLC finally has plans to break ground on the 2.2 acre Howard Town Center come Fall 2010. Along with development partners AVCO Interests LLC, Hardie Industries Inc and, of course, Howard University, Castlerock secured the site a year ago. The team is still working through the design phases with architects Devrouax and Purnell. Opting not to pursue a PUD, the team added Tompkins Builders as the general contractor in November, a sign the time for waffling is through.

Tim Kissler, CEO of Castlerock, told DCMud that the design phase moves forward as the team shops around for retail tenants. "First priority is a grocery store. Once that is set, we move on to other spaces and prospects," said Kissler. The grocery store was a prerequisite of the RFP and upwards of 45,000 s.f. has been tossed around as the size. Kissler added "leasing interest is strong, despite the slow economy." The rest of the retail space could total 78,000 s.f. with the University looking to support small local businesses in some of the space.

The developer has yet to commit to firm figures on the actual breakdown of residential units, but most recently has suggested there would be 420 units with the required minimum of 8% set aside as affordable, much to the disappointment of the surrounding community.

DC real estate and development news.

Parking Fuels Anger in Bethesda

LOT 31, Bethesda's stalled mixed-use development, has come under fire again, this time for its $89 million, 1,100-space parking garage. The structures are part of two developments at Woodmont and Bethesda Avenues, a joint project between Montgomery County, PN Hoffman and Stonebridge Associates approved in 2007. In a joint press release this week, The Action Committee for Transit (ACT) and the Montgomery County Group of the Sierra Club blasted the five and four-story parking garages that will comprise Lot 31 as wasteful, poorly-planned targets for taxpayer money.

Designed by SK&I Architectural Design Group, the 3-year project is expected to begin construction at 4712 Bethesda Avenue across from Barnes and Nobel sometime in 2011, but has drawn fire from environmentalists since its inception.

ACT and the Sierra Club object to the what they view as an automobile-centric approach to development so close to public transit, at public expense to boot. As part of the deal to entice developers to build, the county offered to pay for much of the $89m parking garage, or $80,000 per parking space, which developers see as a misallocation of resources that could be better spent on public transit. As in previous requests, ACT and the Sierra Club argue that "the high cost of the garage means that even in the improbable event that the garage fills up, parking fees will not cover the cost of construction," and argue for a 300-space garage instead.

So, why is the cost of construction so high? During a 2008 interview with DCMud, SK&I President, Sami Kirkdil explained that the project is more complex than usual parking structures because it requires construction crews to dig five levels into rock while at the same time "basically, taking Woodmont Avenue away," by slowing the traffic patterns around the garage.

This justification does not sit well with environmental groups who believe the number of Bethesda-area drivers has been over-estimated by the County and that the construction of the planned Purple Line,which could potentially stop just down the street from the planned garage, will further dim the need for parking in downtown Bethesda.

For their part, PN Hoffman and Stonebridge promise a "public atrium" component to the project that will serve pedestrians by acting as a meeting point between existing shops along Bethesda Row and their planned mixed-use buildings, with 357,000 square feet of ground-floor retail and residential space.

Perhaps with all of the drivers heading to Bethesda to take advantage of the safer pedestrian environment, all that extra parking will come in handy.

Bethesda Real Estate Development News

Buzzard Point Recommendations

The American Planning Association (APA) has released its recommendations for Buzzard Point, ideas that include swapping Akridge's planned high-security federal building for mixed-use affordable housing for federal employees and military families, a Sydney Opera House-type structure on its southern point to define the waterfront, and turning the PEPCO building into a cultural center for the community. These broad changes were among many suggested after an APA team did a walk through of the area and met with "key stakeholders" earlier in November. Luckily for the APA, the group is not responsible for designing, executing or paying for any of the suggestions.

If you are still scratching your head trying to figure out where this new land of opportunity is, you're not alone. As APA Team Leader Allan Mallach described it, Buzzard Point is an "in between" neighborhood - not quite SE Waterfront, but not SW Waterfront either. It has a large government presence with Fort McNair, the U.S. Coast Guard and PEPCO, but also a "strong existing residential component" largely made up by a variety of affordable housing. Despite the large industrial and government footprints, Mallach indicated the APA focused on the potential future development of more residences to complement the seismic change in the next 5 to 15 years with the departure of the Coast Guard, the arrival of the street car and reconfiguration of the waterfront and South Capitol Street.

Here are the ideas the APA put forth:

1. The Waterfront: The District should plan to buy the Jamal and Monday properties that are currently occupied by the Coast Guard to ultimately convert it to open space with limited development. Mallach admitted that this would "clearly be an expensive proposition," but suggested the District could recoup the costs by trading the development rights of those spaces for greater density elsewhere in the city.

2. Residential. Residential. Residential: A high security federal tenant on the Akridge site would be, according to Mallach, "a major missed opportunity" and the "whole concept of building a high security installation is predicated on the idea that this is not a community, so it doesn't matter." Instead, the team recommends medium-density residential developed in partnership with the federal government for "families of military personnel and/or new federal government hires." But Mallach acknowledged the challenge in convincing a developer to switch from maximum build out of six to eight stories across two or three city blocks to the modest plans for residential development.

3. Steuart Property: The site should be used for a "strong, iconic structure" that acts as the "gateway" to the SE Waterfront from the Anacostia. Mallach likened to their vision to that of the Sydney Opera House. Lest we strive for mediocrity.

4. PEPCO: Though, according to Mallach, PEPCO has no plans to go anywhere in the near future, the planner recommended taking the long view. As some of the stations go offline over time, the APA suggests that the District and the utility provider work out agreements to shrink the utility footprint in the area in favor of, you guessed it, mixed-use development. Ideally the PEPCO facility could be converted into a museum or cultural center much like the Tate Modern in London. So we've got London and Sydney covered.

The final report of the team's findings will be released sometime between February and March 2010.

Washington DC real estate news