Champlain Street Condos Set to Break Ground

One of the very last infill sites on Champlain Street in Adams Morgan is set to begin a transformation into a condo building in the next sixty days.

Presently a surface parking lot, the site at 2337 Champlain Street NW is being developed by Federal Capital Partners, in conjunction with Altus Realty Partners.  Designed by PGN Architects, the first renderings released to the public show a modern steel-and-glass complex that's very much similar to the neighboring condo building on Champlain, such as the Lofts at Adams Morgan, and Adams Row.

"The project on Champlain has not been named yet," according to Karen Widmayer, spokesperson for developer Federal Capital Partners.  "The project will have 41 condos with on-site parking in garage and surface lots.  It's scheduled to break ground prior to the end of the year, pending required approvals."

Federal Capital Partners acquired the site in July 2011 for $3.55 million, from WWYP LLC, who acquired it back in June 2005 for $1.9 million.  The condominium will take up the vacant lot next to the former Brass Knob warehouse, which is has also been the subject of redevelopment efforts, but will not be incorporated into the old warehouse.

Washington D.C. real estate development news

Adams Morgan Church Hotel Project Makes Its Case

In a spirited zoning board hearing last night, the Friedman Capital Advisors and Beztak Companies' - developers for the Adams Morgan church hotel - presented a strong case in support of the project, while critics found themselves on the ropes - at one point, with deliberations becoming so heated that a screaming woman in the audience had to be escorted out by security.

It was a striking contrast with last week's hearing, in which developers were roundly and repeatedly rebuked by the board for a late and insufficient submission.

This hearing kicked off with Councilman Jim Graham reading a statement in support of the project.  Treated with worshipful deference by the board, Graham said the hotel was "overwhelmingly supported and endorsed by residents.  I live about two blocks away from the location myself."  He also defended the controversial $46 million tax abatement given to the developers, stating "this project will create jobs, and they can't build this project without the abatement."  (Can't or won't, though let's give the honorable councilman the benefit of the doubt here.)

Graham also presented the hotel project as something of a last chance for the historic 100 year old First Church of Christ, Scientist facade, as the owners have vowed to sell it to other developers if the hotel project falls through, and "if that happens, the church will be lost.  Which no one wants."  Graham went on to acknowledge that there were still people who had legitimate objections to the project, but that it should move forward.

Board member Peter May, the lone skeptic, asked Graham to elaborate on these legitimate objections.  Showing why he's survived in politics all these years Graham adlibbed a meandering non-response that included the phrase, "projects like this deal with challenges all over the city.  All over the world!"

Vice Chairman Marcie Cohen shared neighborhood concerns about traffic, saying she walks her dog on Champlain all the time, and "always notices lots of traffic, and parking on both sides."  (Anyone who frequents the Adams Morgan area has surely noticed the same.)

But a traffic consultant swore that after reviewing the traffic impact analysis, the hotel would not create more traffic.  Cohen, clearly skeptical, asked, "So even though it'll be heavily traveled and there'll be increased movement with taxis, et cetera, there's no significant impact?"

"No," said the consultant, "No significant impact."  There followed a long silence in which everyone debated internally whether to trust the science.  There followed a long presentation by the developers, which contained a few interesting tidbits.

- Chopping off the top floor increased per-room costs to $530,000, from $486,000; $500,000 per room is the industry threshold for profitability in a project like this, so the loss of that extra height could be a significant blow.

- The building will seek LEED Silver certification, at least.

- Assuming the zoning board gives approval, developers are looking at a hearing with the HPRB around Thanksgiving.

- Under questioning about a vague section of the plans, it emerged that the toilet exhaust fans blow out into the courtyard.  "This seems to be problematic," said one board member.

And then there were the fireworks.  After it emerged that a man who claimed to represent a group of Champlain Street residents under the name "Champlain Street Neighbors," only represented one actual Champlain Street resident, and seemed to have padded his resident list with inaccurate and/or questionable names, the board went on the offensive.  Chairman Hood noted it was a "federal offense to falsify a federal form," and moved to revoke the organization's party status.  Under questioning, the man's case seemed to fall apart, and his sub-Jim-Graham-level adlibbing skills ("How many people on this list live on Champlain Street?"  "Yes.") only further annoyed the board.  Hood accused him of submitting "misleading documents" and was "very taken back" and intended to "talk to legal counsel."  When a woman in the audience loudly protested this, Hood had her removed from the hearing, and called for a recess.

The recess seemed to calm everyone's nerves, though it was getting late and Hood moved to end the hearing.  The next meeting was set for October 10, and judging by the tone of this latest hearing, the hotel project is well on its way.

Washington D.C. real estate development news

Shrinking AdMo Hotel Rebuked By Zoning Commission

In a brief but heated zoning board hearing on Thursday night, representatives for the Friedman Capital Advisors/Beztak Companies' controversial hotel project in Adams Morgan received a series of stinging rebukes, after botching their documents submission.  Though required to submit any amendments 21 days in advance, developers submitted the newest amendments on Tuesday evening, with disastrous consequences.

The proposed project, which has been n the works for over four years, encompasses properties at 1770 Euclid Street NW, and 2390 Champlain Street NW, and consists of just over 42,000 s.f. of space currently occupied by the 100-year old First Church of Christ, Scientist, a parking lot, and a small office building.  The OPX Global-designed plans call for up to 227 rooms and 174 parking spaces; Thursday's hearing was primarily to discuss changes to the building's proposed 90-foot height (which has been extremely problematic) and to the number of parking spaces.

However, these changes were never addressed, as members of the zoning commission raised serious concerns about the timing, quality, and adequacy of the submitted papers.

Vice Chairman Marcie Cohen feared the community had not had time to review the latest plans.  Commissioner Michael Turnbull objected strongly and at length to the quality of the renderings that the board was given.  "I only have little tiny drawings.  You need full size ones.  Black and white is unacceptable, I need color.  I need a ground floor plate that shows the entrance, the lobby, et cetera.  These little black and white cartoons don't convey what the building actually looks like.  They're muddy, they're not accurate."

The roadblock comes at an unfortunate time, falling just a day after the project's developers won support from the Office of Planning as well as a local group that had obstructed the hotel over height concerns.  Friedman / Beztak had agreed to drop the height from 81 feet to 72 to appease height activists despite broad support from the greater community.  Friedman also had to agree to make numerous repairs at the Marie Reed Center as a condition of the neighborhood's approval.  Last December the developer had agreed to reduce the height from 92 feet after a similar slap-down from the Office of Planning.

Still, zoning commissioners weren't impressed.  Peter May, though he began by damning the project with the faintest of praise ("Generally speaking, the development of this case has been positive.  I don't know that it's been positive enough, but it's been positive."), was the sole supporter of moving forward despite the late submission, asking his fellow board members if there was some way to mitigate the damage, and pointing out that if they were to turn down the amendment, they'd have to reschedule the hearing for sometime in December.

Chairman Anthony Hood didn't have a problem with that.  "The way this was presented to me, I don't have a problem waiting until December," he said.  Hood, like Cohen, had concerns that the community hadn't received a fair chance to review the changes, and was clearly irked by the last-minute submissions.  "I spent the weekend reviewing stuff [for this case] and then I get all this stuff on Tuesday. It's not ... popular."

Perhaps encouraged by Hood's apparent irritation, Vice Chairman Cohen quickly moved to cancel the hearing and to refuse to even acknowledge receiving Tuesday's controversial packet.  However, after May pointed out that if they went that route, the developers would have to "get back in line for a hearing date," the board moved instead to simply push the hearing to the 13th.  After a series of procedural moves designed to delay the business at hand until next week without setting everyone back to square one, it was suggested that the applicant be allowed to explain why the submission was so late and so shoddy.

"I really don't want to hear from the applicant," said Hood.  But cooler heads prevailed, and the project's representative was allowed to speak.  Apologizing for the late submission, the representative promised to make all materials available to the community, to submit better drawings, and to observe the proper regulations governing the timing of submissions.  He then pointed out that the changes at hand had been made to address the District's and the community's main concerns; a reduction in height, and a reduction in the number of parking spaces.  "These could make supporters out of a lot of objectors, or at least take people who are against this project and turn them neutral," he said.

However, after reps from ANC1C declined to comment on the new plans ("We've received three sets of documents in the last 72 hours; we're not prepared to comment."), the meeting was quickly adjourned, postponed to next week.

Washington D.C. real estate development news

Your Next Place

First impressions are vital, and this duplex co-op impresses from the moment you walk in, the foyer lit from far above by a huge skylight.  It was a lot like that time I met my girlfriend's parents and refused to take my sunglasses off the entire meal (what, I was hungover!), except, you know, the complete opposite.

From the entry level you ascend to the main level, which features a huge triangular living area.  The skylit dining area is next to a wall of french doors, which open onto a panoramic view of the city.  Next to that is the superlative kitchen.  Look at that diamond-shaped, marble-topped island!  Look at the custom cupboards, the commercial-grade appliances, the six-burner stove that comes equipped with a griddle!  The gap between the quality of your cooking and the quality of your kitchen will never be larger.  There's also a beautiful study, for your studying (just kidding, being an adult means not ever learning anything ever again), and a truly fine master bathroom that's far too nice for the disgusting things you're going to do in there.

The unit comes with a parking space (indispensable in Adams Morgan) and storage.  Also, the prospective owner will have the rights to build a private roof deck.  I don't know about you, but designing and building your own roof deck sounds like a no-brainer.  I'd just cover the entire roof with Slip-n-Slide material, put up a padded barrier around the edge's perimeter, and let loose.  Yes, I'm 33 years old.

2370 Champlain St. NW #34
3 Bedrooms, 2.5 Baths
$775,000

AdMo Hotel Gets New Look, Pushes Forward

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

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

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

Click here for more renderings

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

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

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

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

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

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

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

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

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

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

Washington, D.C., real estate development news

Friedman/Schrager AdMo Hotel Rebuked by Office of Planning, May Shrink

The Brian Friedman/Ian Schrager/Marriott International Adams Morgan hotel project received a mild rebuke when the Office of Planning issued a setdown report last month criticizing the hotel design as too tall, among other things. The report went on to list several other points of contention, including concerns about the roof design, the inadequacy of Champlain Street as a main thoroughfare, a dearth of information about potential transit use by hotel patrons, and an “overall lack of information and inadequate drawings.” (!!)

The most potentially problematic of the Office's objections was the height overrun, which at 92 feet was two feet over the C-2-B PUD maximum. While the Office does have the prerogative to grant a 5% flexibility height exception, an anonymous source tells DCMud that developers are now leaning towards lopping off that two feet rather than making the case that the 92-foot height is "essential to the functioning of the project."

One possible avenue to this (speculation alert!) would be amendment of the roof design, to which the Office of Planning also took exception. Looking at the mockups, the present roof design seems to consist of multiple stacked tiers or platforms ("the rooftop would exhibit multiple heights where only one is allowed"). Amending this to a flatter, more consistent design seems like an obvious two-bird-one-stone solution.

Friedman’s plan to convert the historic First Church of Christ building at 1782 Columbia Road into an 174-room Ian Schrager-designed Edition boutique hotel has traveled a bumpy road from the very beginning. Early community resistance centered around a 20-year $46 million tax abatement the city awarded the project. With the D.C. budget in tatters and the tide of conventional wisdom starting to turn against Nineties-era orthodoxy about the public value of municipal givebacks like tax abatements and publicly-funded stadium construction (many studies have shown the economic benefits promised by builders seeking subsidies have been negligible or nonexistent), many observers wondered why a luxury hotel needed handouts. (Standard rebuttal - a number of hotels in DC received similar abatements; the abatement is a vital part of the financing package, i.e. the hotel can't be built without it; the abatement is just a discount on future tax revenues - estimated at $7 million per year - none of which will reach city coffers if the hotel isn't built.)

Local critics also wondered if the location was right for a high-end hotel, pointing out the neighborhood’s lack of access via public transportation, its potential harmful effects on area rents and, again, the narrowness of adjacent Champlain Street (some online commenters astutely observed that design mockups seemed to fudge street proportions). Friedman assuaged some of these concerns by emphasizing the number of jobs that will be created by the hotel's construction (1,500 construction jobs alone), partnering with the Adams Morgan Youth Leadership Academy to provide jobs and apprenticeships to local youth, and throwing in a 4,000 square foot Adams Morgan community center.

Overall the plan calls for a conversion of the existing church building into a restaurant and bar, with the southfacing c-shaped hotel itself being built on the church's rear parcel (now a parking lot) and on the adjacent lot on Champlain, the present home of Washington City Paper and jazz radio station WPFW.

Washington D.C. real estate development news

FCP Plans Condos on Adams Morgan Infill Site

Adams Morgan will get another condominium project - likely within the next two years - on the now vacant lot at 2337 Champlain Street. Federal Capital Partners (FCP) purchased the property yesterday and plans to build up to 40 units on the site.

The fully-entitled residential development site, adjacent to the adaptive reuse project (at 2329, 2335) (currently seeking a new owner) will be developed by FCP in conjunction with Altus Realty Partners. Of the sale, Altus principal Charlie Kehler said, "[w]e’re really excited, it’s one of the last infill sites on Champlain Street."

"We’re going to try to bring this to market as soon as we can,” stated Kehler, of the project which aims to begin construction in the spring of 2012. "We're interviewing architects [currently]." Once selected, the chosen architecture firm will design a complex offering "somewhere between 36 and 40 units, that will range from 500 to 900 square feet."

Of the location, Kehler added, "It's proven to be a strong market." He expects the condos to command "$550 to $600 per square foot." The $3.55 million sale was brokered by Scott Frankel of CBRE and Bruce Levin of MAC Realty Advisors. According to DCRA, WWYP LLC had purchased the property in June of 2005 for $1.9 million.

FCP is a local real estate investment company with over $2 billion in assets acquired since 2003. Altus operates out of Arlington and invests primarily in the greater-D.C. area.

Washington D.C. real estate development news

Adams Morgan 1950s-era Auto Dealership Back on the Market

Booze-filled, bauble-covered bodies course through Adams Morgan's main ventricle, 18th Street, hopping in-and-out of bars and filling out a strip of nightlife that is arguably unrivaled elsewhere in the District. Two blocks east, running virtually parallel to 18th, is Champlain Street.

At 2329 Champlain Street NW, there is a 30,000+ sf building that at first glance appears to have been built out of river rocks. Brick-and-cement in actuality, the structure was built in 1957 to house an auto dealership, and later became the Brass Knob warehouse, until 2004.

Adjacent to the lofty warehouse space, at 2335 Champlain Street NW, is a compact, 100-year-old brick building, and former site of the Georgetown Plating Polishing & Repair Co.

First sited for redevelopment in 2005, a plan to turn the combined properties into a 22-unit multi-family residence was approved in May 2006, but crashed around '07/'08. Involved parties are now back on their feet, for the most part.

Gourley & Gourley LLC was the lender in '05, and is now the owner, and selling.

In February of this year, Gourley & Gourley, along with counsel Holland & Knight, and with conceptual drawings by Bill Bonstra of Bonstra│Haresign Architects, approached the Board of Zoning Adjustments with the request to bump up the 2006 design of 22 units to 31. The BZA approved the change in March.

The approved 31-unit design now needs a developer, and finding one rests with Robert Meehling of CB Richard Ellis. Meehling seems confident. Blaming time and circumstance for killing the first go at developing the adaptive reuse project, Meehling said he believes the area has a solid market for units pegged at $550 to $600 psf.

The current, but still evolving, design will preserve the existing façade, and add two levels of high-ceiling units. According to Bonstra, the design will incorporate "raised bedrooms" on the first two floors, while playing with a glassier, full-window concept above, and will overall honor the "neighborhood aesthetic." The auto dealership/warehouse portion was built with 1.5' thick walls, which will be preserved, but the use of the smaller brick structure is yet to be determined.

D.C. Real Estate development news

Jubilee Housing to Renovate and Expand Adams Morgan Property

A vacant, boarded, and derelict facade in Adams Morgan is set for a makeover and a fresh tenant in the new year, as local non-profit and affordable housing provider Jubilee Housing recently received approval from the BZA to renovate 2448 18th St, NW. The narrow, four-story brick building is sandwiched between the bright blue Reef and the red and white Draft Pix and will abandon its former life as a mixed use (residential/retail) building for new beginnings as a non-profit administrative headquarters.

The juxtaposition of eyesores and eye-popping color is a common theme in

Adams Morgan, but not necessarily a welcome one, as ANC1C voted unanimously to approve the developer's plans. One ANC member explained their appreciation for any change for the better to the BZA, saying of the property: "It’s been abandoned for six years, it’s gone through several different ownerships, it’s been blighted property during that entire time." Jubilee had apparently been the only entity to make a genuine effort to reach out to the community and communicate their plans for restoration and reuse. Such was news was ultimately appreciated by the local ANC and well received by the BZA.

Project architect Ronald Schneck of Square 134 Architects describes the building as being "in very poor condition," forcing a rather aggressive renovation (a level III renovation for the jargon-heads out there). This is essentially new construction, as almost 50 percent of the building will be gutted and renovated, with building codes forcing the installation of two new staircases and an elevator. These additions essentially made the traditional ground floor retail and residential space above unfeasible, as roughly 800 s.f. of usable ground floor space didn't exactly have local businesses lined up around the block for tenancy.

"You end up carving up the available space in such a way that you have bad housing and you have bad retail, neither works well," explains Schneck. As consequence, the space will become the operation headquarters of one of Jubilee Housing's affiliate organizations or another local non-profit with a "similar social mission": Jubilee Jumpstart Daycare Organization, Columbia Road Health Services, or Primary Healthcare Organization, etc.

Earlier this year Jubilee finished restoring the Ritz to use, and even more recently completed the resuscitation of the 23-unit Sorrento and the 47-unit Euclid with a well-attended ribbon cutting ceremony earlier this month. Without wading into the merits of subsidized housing, seemingly always a sticky subject on comment threads across the blogosphere, the revival of a dilapidated and crumbling facade is good news no matter how you spin it.

Washington D.C. Real Estate Development News

Adams Morgan's Champlain Street Slated for a Residential Uprising

Just east of the main night life drag - 18th Street in Adams Morgan - in Reed-Cook is Champlain Street, pegged as a prime area for residential development, despite the street's struggle to overcome a crime-ridden reputation thanks to a dead end that brought cops staked out in squad cars over the past few years. Now, three projects, that will bring a combined 90 residential units to the street, look to be making moves in the next one-to-six months, the first of which will be one that was sidelined in 2009, D.B. Lee Development's boutique "Eden" condo.

Bill Bonstra designed it several years ago, the market softened, but that area of the city has seen a lot of interest, like the Brass Knob project.  "Eden - hence the name - is really about the outdoors, sustainability, and is actually designed to take advantage of the maximum sun angles of the property." "Most outdoor space for as many of the units as possible." combo of masonry and "metal panels that slice through the building almost like a knife." Fits into the neighborhood context by maintaining the street wall. 18 units, very spacious. 4 story, wood-frame on podium, parking along the back. "is really expressive of its name."

The condominium designed by Bonstra | Haresign will replace two 3-story brick rowhouses at 2358 and 2360 Champlain St; permits to level these and make way for the second coming of "the promised land" are pending. A building permit, approved two years ago, was reinstated at the end of August and an assistant with D.B. Lee confirmed that the project aims to be underway soon, with financing secured this summer.

Since 2009, the number of condo units to be tucked into the Eden has doubled, as verified by a Champlain Street neighbor, "I believe the developer is adjusting to market conditions and reducing the square footage and increasing the number of units [from 9] to 18."

The Eden will be built directly across the street from D.B. Lee's last boutique (11-unit) condo project The Erie at 2351 Champlain, completed in 2009. The Erie property is saddled up to an infill site at 2337 that was purchased in July and will be turned into a 40-unit, PGN Architects-designed condo by Federal Capital Partners and Altus Realty Partners. Construction is in the design phase and is expected to be underway in late spring/early summer of 2012.

On the other side of FCP's property, still an apple's throw away from the Eden, is the 1950s-era auto dealership and plating shop at 2329/2335 approved as a 31-unit residential project currently listed for sale with CBRE. The broker asserts there has been promising interest of late.

At the top of Champlain, only 200' north of the Eden and the Erie, developers continue to wrangle with the design for the reinvention of the 100-year-old First Church of Christ Scientist at 1700 Euclid Street NW. With a substantial footprint, the project will also extend down Champlain and overtake the headquarters of the Washington City Paper. The plan is to create a 227-room luxury hotel by the boutique-hotel mastermind Ian Schrager, with ongoing community debate over the potential effect it could have on Adams Morgan, and wide eyes regarding the $46 million tax break from the District.

It remains to be seen whether new residential in the middle of Champlain will significantly impact the street, and if the luxury-hotel-created ritz at Euclid Street will trickle all the way down Champlain to the historically rough end at Kalorama Road, recently improved with a new, flashy mural.

Washington D.C. real estate development news

Local Builder Starts Condo Project in Adams Morgan

A local real estate developer will turn a pair of historic apartment buildings in Adams Morgan into 43 condominiums for delivery next year. Urban Investment Partners (UIP) acquired the properties at 1801 and 1811 Wyoming Street last year for $6.9m and has plans for a $4.5m upgrade expected to complete in late 2011. Washington DC based architect David Haresign of Bonstra Haresign is the lead architect on the project, EHT Traceries is assisting with historic building conformance. The building dates from 1909 and was originally designed by architectural firm Hunter and Bell. The apartment buildings were put up for sale by Marcus & Millichap in early 2009 and went under contract shortly thereafter, but the tenants exercised their rights under DC's Tenant Opportunity to Purchase Act (TOPA) and negotiated a contract with UIP in late 2009. UIP Principal Steve Schwat say tenants will be out in about 90 days and expects renovation work to commence immediately thereafter. Schwat says he expects about 16 of the tenants to purchase their units at "deeply discounted prices", but that the building will be extensively rebuilt - "a full gut renovation" - with finishes that rival "an Ian Schrager hotel." 

Finishes will include "extensive landscaping" between the buildings, large patio spaces on the garden level units, and interior finishes like two-tone cabinetry and Cesarstone counters, pocket doors, smart wiring, gas cooking, and a bike storage room. Schwat also has designs for often overlooked roof, including "huge" roofdecks with benches and water. "People will actually want to use them," he notes. UIP has undertaken numerous TOPA re-trades recently, including the Policy in Kalorama, the Shelby in Dupont, and the Macklin in Cleveland Park, all within the past two years. "We haven't done a condominium in a couple of years, I'm excited to start that again" says Schwat. "We love the idea of working with tenants, there's alot of benefit to both parties. Whether tenants exercise their TOPA rights or not we're going to work with them to get a product that benefits everybody...many people are scared of TOPA, but for us its been a great experience." The hardware store on 18th Street will be emptied and fully renovated during the reconstruction.

Washington DC retail and commercial real estate news

Affordable Housing Opens in Adams Morgan

Wednesday marks the celebratory opening of the Ritz, DC's newest affordable housing project. Developers of the 60-unit building, at 1631 Euclid Street, NW, Washington DC, will celebrate the project's completed renovation with a 2pm grand opening ceremony. The $7m renovation project rehabilitated the 82-year-old Adams Morgan apartment building, allowing Jubilee to relocate their corporate offices off-site. Hickok Cole Architects produced designs for the renovation, Ellis Denning served as general contractor. Jubilee is a non-profit, faith-based organization that provides low-income housing and support services to Adams Morgan residents. According to the developer, "more than 400 people" stood in line to file an application when the project opened last month; the building has now begun occupancy but is not fully leased. The Ritz was purchased by Jubilee at its founding in 1973, when it was one of the first two properties acquired with the aid of Enterprise Community Partners. Today, the Ritz is the largest of seven Adams Morgan apartment buildings owned and operated by the company. As part of their “Campaign for the New Jubilee,” the affordable housing operator has been conducting top-to-bottom renovations of all their properties. In addition to the ongoing work at the Ritz, their Ontario Court building (2525 Ontario Road, NW) is also currently undergoing renovation procedures; work on their Mozart (1630 Fuller Street, NW), Marietta (2418 17th Street, NW) , and Fuller Court (1650 Fuller Street, NW) buildings concluded in 2008. Renovations on Jubilee’s two remaining properties, the Euclid (1740 Euclid Street, NW) and the Sorrento (2233 18th Street, NW), are scheduled to commence later in the year. Work on the Ritz finished in summer 2009.

Washington DC commercial real estate news

DC Teams with Feds for Adams Morgan Affordable Project

Mayor Adrian Fenty was on hand last Thursday for a ceremonial ribbon cutting at the newly refurbished Ontario Court housing complex in Adams Morgan – a 27-unit, 100% affordable apartment building developed by Jubilee Housing, Inc. with designs by Bonstra Haresign Architects. The $9.4 renovation of the 86-year-old edifice also includes a new 4,000 square foot home for Jubilee’s JumpStart Early Childhood Development Center in the very same building at 2525 Ontario Road, NW.

David Bowers of Enterprise Community Investment, Inc. – one of the project’s backers, along with the US Department of the Treasury, the DC Department of Housing and Community Development and PNC Bank – began the festivities by leading a prayer in which he blessed not only the residents of the newly renovated building, but the project’s financiers as well – who, according to Bowers, are “not in the building business, but the people business.” Jim Knight, Executive Director of Jubilee Housing Inc., echoed that sentiment while exploring the various funding sources used to realize the project.

“Housing advocates and city officials have come together to create a funding source that goes by the name of the Local Rent Supplement Program,” said Knight. “It ensures affordability for the lowest income earners among us….The city government [also] came together and worked to create the Housing Production Trust Fund. We’re one of the few localities in the country that has one of these resources. It has been funded in the past and it is here at Ontario Court.”

According to the Mayor’s office, the project received $3.5 million from that fund for upgrades including “new mechanical, electrical and plumbing systems, new carpeting, upgraded kitchens and bathrooms, installation of new security systems, new air conditioning, and new laundry equipment.”

Far from being merely a local initiative, however, Ontario Court also received a big boost from the U.S. Treasury Department via their Community Development Financial Institutions Fund’s New Market Tax Credit Program. The program, which was created in 2000 to “provide tax incentives to induce private-sector, market-driven investment in businesses and real estate development projects located in low-income urban and rural communities,” was used to raise capital for Ontario Court - a project that Mayor Fenty says is indicative of a sea change in the DC development community.

“When the market-rate housing boom was coming through the District, people said, ‘This is the renaissance of the District of Columbia. This is the city come to life,’” said Fenty. “Market-rate housing has a place, but what we’ve seen over the past two or three years, as the market has stabilized and returned a little bit to normalcy, is an appetite and patience for building what is probably even more important to the District of Columbia – and that’s affordable housing."

In the coming months, the Department of Housing and Community Development will continue to pursue such developments in the Adams Morgan area by “putting money into” renovation projects at 1703 Euclid, 1720 Euclid, 1631 Euclid and 2233 18^th Street, NW - the last two both Jubilee properties.

Adams Morgan Fixer-Upper Gets Fixed-Up

The Kalorama / Adams Morgan neighborhood will soon have one less dilapidated tinderbox for neighbors to revile. Located at 2110 19^th Street, NW, the three-story apartment building at the site has gone from bad to worse over the past half-decade. Luckily for area preservationist aficionados, however, renovation (if you can call throwing out everything except the facade a renovation) is currently underway and, once completed, this real estate ugly duckling will emerge a swan - courtesy of DC apartment developer and management company Keener Squire Properties and the architects of Eric Colbert and Associates.

Originally known as the The Hilltop, residents of the then 15-unit tenement - described by The Washington Post at the time as a "badly deteriorated building" - were bought out of their leases in 2005. Another District development company, Nicol Development, then tried their hand at culling 22 condominiums out of the building shortly thereafter and summarily failed, leaving nothing but a condemned husk of a building in what was (ironically enough) one of the District’s more desirable neighborhoods. But then 2007 happened, and Nicol lost control of four local projects, this one to the lender. The property had been informally floated above $5 million by Nicol, then more formally listed at $3.8 million but still no takers. Cut to the summer of 2008, when Keener Squire was able to pick it up at the “fixer-upper” special rate of $2.1 million.

“My client bought it at auction,” said architect Eric Colbert. “Someone had tried to develop it a while back, but they didn’t know what they were doing and wound up abandoning the project…It must have been at least five or six years [since people lived there.]”

That's about to change. Keener-Squire is currently projecting a 12-month timetable for a complete renovation of the once-roughshod apartment complex. The building’s original 25,000 square foot shell will receive an extra 5,000 feet during the course of the build-out, allowing for a total of 35 new residential units and two new floors. Keener-Squire’s in-house general contractor, Wayne Construction, is overseeing work at the site. Sources say the building is being designed as rental apartments, but, as always, market forces will ultimately dictate the final outcome.

Dupont Apartment Building Reopens After Renovation

In keeping with its past successes buying and renovating historic but neglected apartment buildings, Urban Investment Partners (UIP) is putting the finishing touches on their $1.8 million renovation of the Absecon Apartments - now named The Shelby - in Dupont Circle. Located at 1706 T Street, NW, the Shelby is just one of the century-old rental properties in the area that's been blighted by years of mismanagement and poor upkeep. According UIP’s Steve Schwat, the condition of the building took even the seasoned real estate professionals by surprise.

"When [buildings] are fully furnished have a nice young couple living in there, they don’t look so bad. But everything in the building is at twice its expected useful life,” said Schwat. “[At T Street], we had units in the basement that were built but never permitted…It was just crazy in there - holes in the floor, holes in the walls. It was as bad as I’ve ever seen it.”

Luckily for prospective renters and the neighborhood in general, the developer - working in tandem with Bonstra Haresign | ARCHITECTS and their in-house general contractor, Urban CM – has succeeded in completely overhauling the once dilapidated building and its 24-units. Said Schwat: "The entire building was renovated, we performed selective demolition, all new electric, all new plumbing, all new separately controlled HVAC, granite counters and stainless steel appliances. It’s pretty much condo-grade finishes, but it’s a rental building."

Additionally, UIP has taken it upon itself to reincorporate original elements of the building’s façade that vanished from lack of upkeep over the intervening decades. As a contributing site to the Strivers Historic District of Dupont Circle, the development team will be outfitting the Shelby with a steel and glass version of its original awning. Other architectural flourishes, along with a new front entry door, will round out the renovation for what Schwat calls an “Ian Schrager, boutique hotel kind of feel." The Shelby is currently leasing up with occupancy set to begin on May 1^st. Open houses for potential residents are scheduled for April 17th, 18th, and 19th, 9-5 each day. For more information call 202-244-3811.

UIP is doing much the same with two other concurrent rental renovations in the District: at The Macklin at 2911 Newark Street, NW and a second at 1921 Kalorama Road, NW.

Washington DC real estate development news

Adams Morgan Renovation Yields New Apartments

Everything old is new again, especially in Adams Morgan. In a timely full-circle, yet another of Adams Morgan's numerous Depression-era apartment buildings will be getting a full makeover in the coming months...just as we coincidentally circle the drain of our own financial crisis.

Starting next month, Ellis Denning Construction and Development will begin a $2 million renovation of Urban Investment Partners' (UIP) six-story rental apartment building at 1921 Kalorama Road, NW. Kunal Shah, Purchasing Manager/Estimator at Ellis Denning tells DCmud that the each of the building's 59 units will be receiving a top-to-bottom facelift with new kitchens, bathrooms, flooring, finishes and paint jobs (now lead-free!).

Ellis will be overseeing the selective demolition of certain internal portions of the aging building, from which they're planning to carve three new apartments out of the current 60,000-square foot plan.

In addition to Ellis, UIP has also taken on Bonstra Haresign Architects to design both the renovations and new construction. Given the structurally sensitive nature of the planned procedures, Shah declined to comment on a timeline for the project, but did note that only thirteen of the building's 60+ residents will be permitted to remain in the building once work begins.

The very same team of Ellis and Bonstra is currently at work on another nearby apartment complex at 2525 Ontario Road, NW, while Ellis has also paired with Hickock Cole Architects for a similar project at The Ritz at 1631 Euclid Street, NW. Both of those developments are owned by affordable housing provider Jubilee Housing, Inc.

Eden Comes to Adams Morgan

DC developer D.B. Lee Development is planning the final architectural details for The Eden, a 9-unit boutique residential building coming soon to Adams Morgan. Designed by Bonstra Haresign Architects and interiors by D.B. Lee subsidiary Capital Design Group, the 21,000 square foot project will feature an underground parking garage. Though the developer has yet to decide whether they will market the Eden as condos or rental apartments, progress on the development is nevertheless ongoing.

"We've already started demolition of the existing townhouses. We expect to be into permit in the next couple weeks," said President Dennis B. Lee. “Once we get our building permit, it should three to four months [until construction]."

At 2360 Champlain Street, NW, the Eden backs up to the Adams Morgan's nightlife strip, and will sit across the street from D.B. Lee's last project, The Erie and a block over from the developer's 2424 Lofts on 18th Street. As a matter of right, the Eden does not require approval from the local ANC; nonetheless, the developer says it is consulting with the community on matters of design and placement. “We’re meeting with the neighbors to the north and we’ve met with the ANC…and told 

them what our project is about,” said Lee. “As soon as we get our drawings back, we’ll meet with them again to show them what we’re up to.” According to Lee, the project’s cost is undetermined, but delivery is currently slated for fall of 2010. 2424 Lofts sold out in 2007, the Erie has sold one of its eight units, and sell for above $1m each.

Washington DC retail and commercial real estate news

The Ritz Gets Low-Income Makeover

Local affordable housing provider Jubilee Housing, Inc. has begun renovating its flagship Adams Morgan property, the Ritz, at 1631 Euclid Street, NW. In addition to revamping the economically priced units in the 82-year-old Adams Morgan apartment building, the renovation will also allow Jubilee to relocate their corporate offices off-site and reallocate the space to an array of community interests.

The nearly $7 million renovation will amount to 60 units of affordable housing for Jubilee – which breaks down as 10 efficiencies, 20 one-bedroom, 10 two-bedroom and 10 three-bedroom rental apartments. According to Kathy Guillaume, Jubilee’s Director of Development, new amenities planned for the Ritz include community-oriented additions such as a "computer center, multi-purpose classrooms, community room, [and an] after school center for teens," in addition to energy efficient infrastructural upgrades for the apartments and communal areas. Hickok Cole Architects is designing the renovation, Ellis Denning is serving as general contractor.

Jubilee will move out and into a new location on Colombia Road, allowing for the creation of a new teen center. The Ritz has been under Jubilee’s control since the company’s founding in 1973, when it was one of the first two properties acquired by company executives Terry Flood, Barbara Moore and Carolyn Banker with the aid of Enterprise Community Partners founders, Jim and Patty Rouse. Today, the Ritz is the largest of seven Adams Morgan apartment buildings owned and operated by the company. As part of their “Campaign for the New Jubilee,” the affordable housing operator has been conducting top-to-bottom renovations of all their properties. In addition to the ongoing work at the Ritz, their Ontario Court building (2525 Ontario Road, NW) is also currently undergoing renovation procedures; work on their Mozart (1630 Fuller Street, NW), Marietta (2418 17th Street, NW) , and Fuller Court (1650 Fuller Street, NW) buildings concluded in 2008. Renovations on Jubilee’s two remaining properties, the Euclid (1740 Euclid Street, NW) and the Sorrento (2233 18th Street, NW), are scheduled to commence later in the year. Work on the Ritz is on track to wrap up in July of 2009.

New Residential Nixed in Adams Morgan

While some DC area developers of late have been forced to convert condos to rental apartments in the face of mounting economic woes, others have abandoned the residential component of their upcoming projects altogether. No surprise there, but counting the toll on the lost housing supply is patchy. But one such casualty is Combined Properties, Inc.'s proposed redevelopment of an Adams Morgan retail strip at 1755-59 Columbia Road, NW.

After acquiring the property in 2004, the developer initially planned to demolish the 5,000 square foot facility currently on the site and build a new five-story, mixed-use building in its stead. The untitled project was said to include a level of ground-floor retail (possibly a restaurant), along with four-stories of new residential housing and an underground parking garage at the intersection of Columbia Road and Champlain Street, NW. Dorsky Hodgson Parrish Yue had been named as architects for the development.

Now, it would appear that the FootLocker and Popeye’s locations currently embedded have received a stay of execution. A source within Combined Properties tells DCMud that the “project has been downsized to retail only” and that details concerning the newly-rejiggered project “should be available in about six weeks."

The project would have been a homecoming of sorts for Combined Properties, as the development corporation that was founded by entrepreneur Herbert H. Haft, who began his real estate empire with a single drug store once located in Adams Morgan, just a few blocks away at the intersection of Columbia Road and 18^th Street, NW. Haft also founded a number of recognizable national enterprises before his death in 2004, including Trak Auto and Crown Books.