Union Station's Main Hall Set For Big Changes

Entering Union Station's grand Main Hall, amid all the construction netting and scaffolding resulting from the emergency ceiling repairs prompted by August's earthquake, you'd be hard pressed to spot preparation for two shafts set to penetrate the Main Hall's pink marble floor.

The sinking of what will become two 750-square foot escalators openings are just the start of a grand "less-is-more" redesign of the hundred year-old-plus Main Hall, which among other things, will eliminate the Center Cafe and the two circular marble planters, while adding more seating and retail and improving sight lines, signage and pedestrian flow. It's what Union Station Redevelopment Corporation chief consigliere David Ball hopes will create more "vertical circulation" -- improving access to an expanded level of retail space on the venerable station's lower level, freed up with the closure of the much-maligned Union Station 9 movieplex downstairs in 2009.

The remake is the biggest overhaul of Daniel Burnham's Beaux Arts gem since Union Station's 1988 restoration and the largest repair job since January 1953, when 200-plus tons of locomotive and coaches of the Federal Express en route from Boston, sans brakes, plunged into what is now the lower level food court.

Still, getting this far hasn't been easy. Union Station has a virtual who's who of multiple stakeholders, including Amtrak, Union Station Redevelopment Corp., The Federal Railroad Administration, Metro, Ashkenazy Acquisition Corp., which owns the lease to Union Station through Union Station Investco LLC, and Jones Lang LaSalle, which manages the retail spaces.

The replacement designs for what came next became became a bureaucratic slug-fest between alphabet-soup agencies including the Commission on Fine Arts, The D.C. Office of Historic Preservation, and the National Capital Planning Commission who couldn't come to an agreement on what they liked. Compounding the difficulty was the 1969 declaration of Union Station as a National Landmark, which made it subject to the complex Section 106 proceedings of the National Historic Preservation Act.

It was easier to reach an agreement on what they didn't like -- Center Cafe smack in the middle of Main Hall. While the double-decker libation center was popular with 20-something Capitol Hill types, many said the sight lines in Main Hall were spoiled.

"The distracting Center Café makes visitors pause in confusion and forces travelers to circle around the pedestal and stairs to find the trains," said Nancy Metzger of the Capitol Hill Restoration Society in comments to the Union Station Redevelopment Corp. last August.

But the first design by GTM Architects, unveiled in June 2010, was almost a wreck on the scale of the Federal Express. Reminiscent of the 1970's Bicentennial visitors center, the design would have cut a giant hole in the center of the Main Hall, creating a glass and steel platform flanked by two elevator/escalator shafts.

The suggestion of re-opening the floor in the main hall recall(ed) memories of the ill-fated slide show pit," said Wesley Paulson, a member of the National Capital Trolley Museum. Critics such as the National Trust for Historic Preservation said the initial design (left) used too much glass and said that the redesign was no better than the behemoth Center Cafe it was designed to replace. In July 2010, USRC and GTM unveiled round two of the redesign, eliminating the center elevator/escalator shafts while seeking a retro-approach in an attempt to make the Main Hall look like more like its passenger station heyday of the 1920's and 30's, with long high-backed mahogany benches.

But this time, Amtrak police, perhaps channeling their inner-TSA, sought to nix the iconic mahogany, saying that the proposed high-backed benches made it hard for their explosive-sniffing police dogs to do their work, while giving potential bad guys plenty of places to hide.

Finally in December 2010, a compromise was reached. Two, smaller, but parallel escalator shafts closer to the front entrance but on opposite sides of the Main Hall so as not to impede center flow traffic. The escalator shafts would be detailed with wood, brass and marble signage and fittings to help pedestrians find their way to trains and the new retail.

Instead of the high-backed benches, the design called for functional if unimpressive low-slung pedestals that can be easily scooted out of the way for black-tie corporate shindigs in the evenings that the Main Hall routinely attracts, something the long benches would have impeded. Also added would be two new retail kiosks or "luxury marketing units" and an information booth in the center, reminiscent of the original layout.

Construction on the Main Hall improvements will follow the emergency work already being done on the ceiling as a result of the earthquake on August 23. The emergency work will be finished in late 2012.

The improvements in the Main Hall aren't the only ones. Already underway outside Union Station is a redesign of Columbus Circle in junction with the National Park Service, along with plans from Union Station Investco to improve the passenger waiting area with "Best In Brand" stores and new fixtures.

Metro too, is looking to upgrade access to its own station at Union Station as well, with a new improved entrance along First Street NE and a tunnel to H Street, in advance of Akridge's massive Burnham Place project, set to begin preliminary construction in 2014.

Washington D.C. real estate redevelopment news.

The Buzz in Southwest

Early this year, Duane Deason was just beginning the Office of Zoning's review process

for his Eric Colbert & Associates-designed residential building on a nearly 20,000-s.f piece of Anacostia riverfront property at 95 V Street in Southwest's Buzzard Point. Now, with Zoning approval secured in early August, seven years after the land investment was made by Deason, he is finally able to focus on the pursuit of "a variety of options including sale or joint venture." The 8-story, 110,760-s.f. building known as "Marina Place" will offer 97 units, with 9 set aside at less than market rate. On the ground floor, on the corner of V and 1st Street, will be 1,788 s.f. of retail space. Below grade will be two levels of parking split up into 108 spaces. In January, Deason said, "The views are phenomenal because its on a point, almost every unit in the building will have an outstanding view of the water." 

Deason bought his plot of Buzzard Point with the inkling that waterfront property was bound to deliver a substantial return on investment eventually, but it's been slow going for development projects slated for Buzzard Point, with any kind of concrete news much anticipated. Of interest to the area is the South Capitol Street Bridge project, to replace the Frederick Douglass Memorial Bridge, which is "finally proceeding forward," said Deason. The new bridge is part of the planned South Capitol Street revitalization effort to turn the thoroughfare into "a grand, urban boulevard... [with] elliptical traffic circle that will serve as open space for future monuments and memorials." The project, part of the larger Anacostia Waterfront Initiative, includes bringing the Anacostia Riverwalk around the Southwest bend. A DDOT project manager for the South Capitol Street Bridge said, "The Final Environmental Impact Statement was approved this summer which provided a preferred alternative conceptual design. We are currently advancing the plans to proceed with the Land Acquisition phase of the project. Construction is currently unfunded." Although DDOT confirmed that the project is going forward, exactly when is vague, and depends greatly on funding. Deason added that one improvement to the Anacostia waterfront area will involve the large Pepco substation located just north of his Marina Place residential building, "The generators are officially decommissioned in March of 2012 which will allow the removal of the large generators and petroleum storage tanks."

A healthy chunk of Buzzard Point currently waiting on development is privately owned by commanding D.C. developer Akridge: the 9-acre "100 V Street." The site is a game changer for the area, and of particular interest, to not just Buzzard Point but the entire District, as speculation continues that a new stadium for D.C. United on a portion of Akridge's three-block property between T and V Street is being hashed out; a deal that would keep the soccer team, now frustrated with its home at RFK stadium, in D.C. Akridge would not comment except to say that murmurs of a deal are "still just speculation." Steven Goff's Washington Post column "Soccer Insider," has an ongoing poll soliciting reader opinion on D.C. United's future, with the last option being: the team will "remain at RFK until the final brick crumbles, pipe bursts, raccoon visits." Goff also grilled D.C. United's president Kevin Payne recently on the search for land and the pursuit of local investors. For the time being, the sole project underway in Buzzard Point is Camden Property Trust's 276-unit apartment building "Camden South Capitol," to the west of the Nationals' Stadium on the corner of O and South Capitol Street. 

Washington D.C. real estate development news

Union Station North, New Zone to Accommodate Billion-Dollar Burnham Place Project

After 18 months of efforts by the DC Office of Planning (OP) to establish appropriate specifics, the DC Zoning Commission (ZC) approved OP's creation of a new zone - Union Station North (USN) - which will supersede an area zoned for industrial and light manufacturing use in the City's Comprehensive Plan. The USN Zone was created to allow developer Akridge's mixed-use planned development project, Burnham Place, designed by DC-based architect Shalom Baranes Associates, to be built above the Amtrak rail yard located immediately north of Union Station. Burnham Place, estimated early on to cost $1 billion, has been in the works since Akridge bought the air rights above the railyard from the General Services Administration (GSA) for $10 million in November of 2006, a notable transaction due to price and precedent - the deal became the first transfer of air rights from the federal government to a private buyer. The 14-acre, air-rights property will be developed into 3 million s.f. of commercial, retail, residential and hotel space. The new USN Zone District will allow Akridge to build up 90 to 130 feet above the H Street Bridge, as the bridge is technically the ground floor of the property. 

According to Lisa Steen, Vice President of Marketing at Akridge, building heights will be gradual, starting 300' away from Union Station at 90', then rising to 110' and finally 130'. In this way, "The view of Union Station will not be compromised," says Steen, adding, "and the view from the buildings could be fabulous." The ZC Order was approved unanimously in April, and has allowed Akridge to move forward with design specifics, now that allotted heights for residential towers has been established. The decision to create a new zone also ensures that the ZC will have the authority to review and approve any development at the site. Furthermore, the Order allows Akridge to create a unique, and dense, transit-oriented development that utilizes project neighbors - Amtrak, below, and transit hub Union Station, to the south. Amtrak is currently developing a Master Plan - expected to be complete in early 2012 - to double or even triple its capacity at Union Station, and if a intercity high-speed rail is created, Steen speculates the possibility of commuting by rail to New York from Union Station as quickly as commuting by car to Fredricksburg. Building above a railyard poses challenges that Akridge will overcome by building 20-foot-high support columns, strategically placed throughout the rail yard, which will support a concrete platform to serve as site foundation. Potential relocation of the Greyhound Bus terminal and possible redevelopment of the parking garage at Union Station are currently under consideration by Akridge and several other entities including the District Dept. of Transportation (DDOT) and the Union Station Redevelopment Corporation (USRC), created in 1982 to restore Union Station using $8.1 million appointed funds. Akridge has yet to disclose a timeline for the project's multiple phases, other than to say it plans to propose the early phases of construction upon the completion of Amtrak's master plan, expected to come early next year. A tentative goal for beginning the initial infrastructure work on Burham Place is for 2014. 

Washington D.C. real estate development news

A Kick Start for Buzzards Point?

Buzzards Point, the southern tip of the District above Anacostia, is about as desolate a neighborhood one can find in the DC region - empty lots, equipment storage fields, and an overall post-industrial decay that makes ballpark visitors quicken the walk back to their car late at night. An actual buzzard circling above would not seem entirely out of place. But all of that is going to change, and one local developer thinks that time might just be nigh.

The promise of the area is obvious, close to the Capitol and a focal point for DC's highways, the region is still secluded and private, and is surrounded by water, and the area's largest developers like PN Hoffman (along Water Street) and Steuart Investment (with more than 5 acres at the tip of South Capitol) and Akridge among them. But Duane Deason, who bought the empty 20,000 s.f. lot on the Anacostia back in 2004, when a new baseball stadium was maybe, just possibly, coming to southeast, has plans for an Eric Colbert-designed condominium, and thinks the time is right to start.

On the boards is an 80-foot high, 97 unit condominium nearly fronting the water behind the marina. "If you had asked me in the 3rd quarter of last year I would have said we were quite a ways away, but right now I'd say we are moving much faster...the market has notably improved, and I think its a good time to take advantage of that." Deason has an upcoming hearing before the Zoning Commission and is actively pushing ahead. "This is our first hearing before Zoning; there's no such thing as matter of right here, but we're sort of there, we don't need a PUD [zoning change] to do this."

Deason has little company at the moment, the other Buzzard Point developers are sitting on their hands, reasoning that there it makes little sense to develop in isolation without a pre-signed tenant. "Eventually I think it will be a great place" says one developer with skin in the game nearby that is choosing to wait. Deason is confident. "Eventually there's going to be other places, with the PN Hoffman development there, but there's a view of the water, the Coast Guard is there for another 5 years or so. There is the planned riverwalk, that will come. There are a couple of big landowners there that will cause a huge change." Deason says he paid under $1m for the property, including all costs associated with the acquisition, and that while he doesn't have a development financier, he has no financial pressure and will consider a joint venture partner.

"Being only 75 feet off there water, there's just not alot out there that currently that offers that, with a view of your boat...I love the waterfront and I just thought it was a fantastic location" said Deason. "The views are phenomenal because its on a point, almost every unit in the building will have an outstanding view of the water." Deason says most of the units will be less than 1000 s.f., and the new inclusionary zoning rules mean another 7200 s.f. of affordable housing.

While Deason may not have any immediate residential neighbors on the waterfront, another residential developer in southwest has the same sense of potential value and will break ground much sooner, you can read about that at DCMud this afternoon.

Washington DC real estate development news

Akridge's Half Street Half Way There?

Since Washington Metro Area Transit Authority (WMATA) did its best King Solomon impression, dividing its Southeast Bus Garage properties in half for two quarreling developers, only one recipient looks to be moving slowly forward with development plans, while the other has since gone bankrupt. While developers at Akridge reported making progress with their permitting, financing, and leasing efforts for their 700,000 s.f., mixed-use Half Street project, they insisted it would be a much more interesting news story come February or March, when more details emerge. But progress is progress, and news is news, and DCMud knows its readers are always salivating for every little morsel of information, no matter how small the crumbs.

So here's the latest scoop: Akridge is currently finalizing the construction plans, and expects to apply for permitting in the first quarter of next year. With a little bit of luck, the developers intend to break ground on the residential portion of the project by the end of next year. Although there is a distinct possibility the project ends up being constructed in phases, developers hope to build it all in one fell swoop, or at least in one drawn-out swoop, in which case a full delivery of all three buildings would happen roughly 22 to 24 months after initial construction. As developers, architects, and engineers lock in on the specifics of their construction plans, minor changes may be made, and details like number of units may be tinkered with, says Project Manager Adam Gooch, but nothing drastic.

The project's basic programming remains the same: two nine-story, Class A office buildings (totaling over 370,000 s.f.) and one 11-story residential building featuring approximately 280 units (outfitted with the standard amenities: rooftop pool and terrace, private courtyard, fitness center, etc). All three buildings will offer ground floor retail, totaling 75,000 s.f.. The retail spread will be multifaceted, each portion offering distinct sensibilities, and appealing to different demographics. Half Street will be the main attraction for passersby, featuring Class A retail and most likely to attract National's game-day traffic with "name brand tenants and white-table-cloth restaurants" says Gooch. The pedestrian alley in between the two office buildings will offer a more locals-friendly mix of cafes, delis, and boutiques. "It will be a glorified urban marketplace," explains Gooch, "In the vein of Eastern Market, a place where you can come home from work and grab a beer, grab some food, and pick up some flowers for your wife." Most hidden from foot-traffic will be the Van Street retail frontages, which will have a "grittier, more alley-like feel" due to the placement of curb cuts, loading docks, and trash pick ups. Here Half-Street residents might find a dry-cleaners, the local bike-shop, and maybe a sports bar.

Three firms combined forces on the design aspect of the project: HOK shouldered responsibility for the office buildings, Esocoff & Associates for the residential, and StreetSense for the retail. All three buildings will be LEED Certified, with the office buildings expected to earn LEED Platinum. While developers wait to activate the development site for construction purposes, Akridge plans to once again engage the public with their Bullpen Beer Garden during the 2011 baseball season. The 3,200 s.f. tented space will offer beer, wine, margaritas, and live entertainment to the public, and is also available for private events.

Washington D.C. Real Estate Development News

Crescent Falls Church Construction Complete, Minor Finishing Touches Await

A representative of Texas-based Hanover Company confirmed that construction teams have nearly wrapped up the Crescent Falls Church project and the building received their Certificate of Occupancy earlier this summer. This is Hanover's second major development in the Metro area, having completed Ashton Judiciary Square in 2009. The 6-story, 214-unit Crescent, a mixed-use and multi-family residence in Arlington near the East Falls Church Metro, was delivered only ever so slightly behind schedule, originally set to finish earlier this spring. Given that the developers planned to start leasing this summer, and now report the building 25% leased, there is plenty for Hanover to celebrate in a downmarket summer that has seen many more groundbreakings, affordable housing plans, and proposal extension requests than ribbon cuttings. The finished community neighbors the Washington & Old Dominion Trail (W&OD) and Falls Church Park, but the area surrounding East Falls Church Metro remains underutilized - largely a commuter zone, often simply passed over by shoppers on the way to Tysons. This development is part of a larger effort by Arlington and Falls Church officials to encourage denser redevelopment that will help transform the vicinity into a more urban, mass-transit friendly locale.

The new building is stockpiled with the standard amenities: private screening room, concierge, daily hot beverage service, two courtyards – one with a fire-pit and outdoor grilling and dining areas, and the other with dual-sided fireplace and outdoor grilling and dining areas. Like Hanover's previous venture in Penn Quarter, the apartment building focuses heavily on a variety of sustainable features. Developers believe that its metro location, recycling center, technical features, "oversized" bike room, and underground parking garage with priority for low-emission vehicles will help the building receive LEED certification upon review.

Hanover's nationwide record of apartment construction and operation likely helped the company muster proper financing and get this project completed. Other projects originally expected to be delivered on a similar time-line continue to limp along through the recession with little material progress to show for their efforts. Akridge's nearby Gateway development, set for the 500 block of N. Washington Street and unveiled way back in 2006, has yet to get off the ground. Delayed by the economic downturn, developers continue to bicker with city officials over the ratio of commercial (offices and retail) to residential square footage. Akridge is proposing one 73-foot, 5-story office building with 71,000 s.f. of office space and 12,000 s.f. of retail, coupled with a slightly shorter second 5-story building, this one offering 200 units (averaging 800 s.f. in size) and 2,500 s.f. of ground floor retail space. Their current plans offer a 70-30 percent split between residential and commercial, but officials look to push developers closer to a 50-50 setup.

Hekemian's "Northgate" development, a mixed use project, including 124 rental apartments, on the N. Washington St. side of the old Pearson Funeral Home, also had an initial expected completion date in 2010, but continues to trudge through the final site plan approval process and futilely fish for financing packages. A site plan amendment to incorporate the approved North Washington streetscape design is currently under consideration; it is unknown when construction will start.

Falls Church 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

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

Streamlined Bus Terminal at Union Station?

Congress is mulling big changes for Union Station including a new intercity bus terminal, improved rail passenger access and reduced congestion via two new concourses, proposed reinforcement of the H St bridge, altered and additional metro entrances and the renovation and expansion of the north station entrance. During a July Congressional hearing, lawmakers urged project officials to create a master plan so the Members could seek funding from their Congressional colleagues. The project could move forward with as soon as this fall.

The plans seek to streamline Union Station's role as a transportation hub with an intercity bus terminal. The current Greyhound Bus station is separate from Union Station, requiring passengers to walk outdoors for several minutes through a less-than-ideal area in terms of safety and accessibility; Greyhound has recently pursued moving into the train station. The bus terminal may be home to other bus lines including Bolt Bus and DC2NY among others. In addition to the connected bus terminal, two new metro entrances may be incorporated in the redesign.

Initially, the Union Station Redevelopment Corporation (USRC) would not allow buses to use the station as a hub. But after several letters from House Transportation and Infrastructure Committee Chairman James Oberstar (D-MN) and Subcommittee Chair Eleanor Holmes Norton (D-DC), the USRC and Greyhound began cooperating and testified before the Committee in 2008. This most recent hearing was meant to update Congress and expedite the process.

Chip Akridge, Chairman of Akridge Development, which purchased the air rights of Union Station's train lines in 2006, called the plan a "vast improvement for intercity bus passengers" because it offers a safer and more direct transfer. The developer plans to build the gargantuan 3 million-s.f. Burnham Place, named after Union Station's architect, which will extend north of Union station, past the Hopscotch Bridge on H Street, and house a 400-room hotel, residential towers and first-class office and retail space. Akridge requested $40 million for a new bus terminal and two new metro entrances. The metro access points would be at 1st St NE below the H St overpass, with a connecting walkway to the existing metro ticketing area, and at H St. NE, directly adjacent to the planned terminal. In a statement, David S. Ball, President of the USRC, said the group will be able to move forward with plans pending a study of the physical limitations of the existing parking deck, which has been suggested as a location for the bus terminal. The 42,000 s.f. of space, a portion of the total 140,000 s.f. current parking deck, is being evaluated for the cost of delivery of utilities as well as its structural carrying capacity. The study will help determine the cost of building the terminal, allowing the involved parties to make end user, design, construction, financing and scheduling decisions as early as this fall.

According to Ball, the engineering firm has promised delivery of their evaluation of the parking deck this week. Ball also indicated that the current plans and numbers are very fluid; the actual amount of space devoted to the bus terminal may change pending the report.

WMATA Buys 16-acre Ward 8 Site for Bus Depot

Washington DC Mayor Adrian Fenty announced on Thursday that DC Village, a 16-acre Ward 8 homeless shelter shuttered in 2007, has been purchased by WMATA for use as a bus garage. The garage will replace the seldom-missed bus depot near the Nationals' ballpark, sold to Akridge and Monument Realty in 2008 and demolished to make way for a multi-use (but unbuilt) project.

DC Village, an emergency shelter for families plagued by "persistent" problems such as pest infestation, was closed down as one of the Mayor's earliest acts in order to provide for "a better alternative" to homeless families; an accomplishment he had sought since his time on the DC Council.

"The project will not only bring much needed job opportunities East of the river, it will provide significant resources to off set [sic] our current budget gap" said Deputy Mayor Valerie Santos. The Metro authority will pay $6.45 million for the site, on which it plans to build a $90 million facility to house up to 114 buses serving the greater DC area, with the potential to expand service for up to 250 buses. WMATA has been negotiating the purchase since before the shelter's closure. The new garage will replace the bus depot on M Street, near the Nationals' ballpark, which Akridge and Monument Realty fought over in 2007 and 2008 and which ended in a draw, with the two developers splitting the land and razing the bus depot.

LEED Platinum Office Building Opened in Chinatown Today

The redevelopment of Chinatown continues with the opening of a 12-story LEED Platinum certified office building today. The building, at 700 6th Street, NW, appropriately named "700 SIX", features the largest green roof on a private sector building in Washington DC and boasts Capitol Dome views. Mayor Adrian Fenty and Deputy Mayor for Planning and Economic Development Valerie Santos joined the Akridge development team in cutting the ribbon on the $150 million project, one of a mere handful of projects in the city to obtain such a high LEED certification.

Matt Klein, President of Akridge, boasted that "over 90% of the construction and demolition debris was recycled" and that "the building would consume 40% less water than a typical Washington building." The environmental standards set by the project continue a trend for new developments in the city.

700 SIX features 300,487 s.f. of retail space (7,001 SF on ground floor for retail or office and 10,400 SF of concourse-level retail space). According to Mary Margaret Plumridge, Director of Marketing & Communications for Akridge, the space is currently 1/3 leased by the law firm of Cadwalader, Wickersham & Taft. The other 2/3 is up for grabs, though Plumridge indicated that they were currently working with a restaurant group to find a good fit for the ground level, which runs directly next to the G-Street cut through between the Verizon center and the movie theater complex.

The website for 700 SIX describes the glass bridges and metal walls as "virtually free standing with upper-floor windows on all four sides." HOK Architecture, the project architect, is familiar to DC residents as the designer of the new Washington Nationals stadium, and slightly less so for its design of the new office buildings at 88 K Street, SE.

Burnham Place Idles Toward Union Station

Akridge’s landmark $10 million development agreement with the General Services Administration to build over the rear of Union Station – the so-called Burnham Place project – was announced in 2006 and scheduled to go to ground this year. Their ambitious plans for 3 million square feet of office space, a 400-room hotel and residential towers, however, may have to wait if proposed upgrades to the transportation hub go forward later this year. But the developer posits that any boon to Union Station is also one in the plus column for Burnham Place.

“There’s a…Circuit Transportation Bill that is coming up before Congress that we’re working on. It would be six years worth of funds that would support Union Station improvements…The private development, of course, is an entirely different matter,” says Mary Margaret Plumridge, Director of Marketing and Communications for the developer. “The Akridge development of Burnham Place at Union Station certainly would benefit from an enhanced Union Station, but the public and private projects are separate.”

Nonetheless, Akridge spokespeople say the Burham Place development team is in constant communication with Amtrak as they tweak a development scheme that will see new construction from the back of the train station, over in-use tracks, above the “Hopscotch” H Street Bridge and beyond. Before lying brick one, it’s a project that some are already valuing at over $1 billion.

“We are working on pre-development work that includes design and engineering studies,” says Plumridge. “We’re working with Amtrak through the design and engineering processes, the project requires that we build while the trains are running…We’re even having some very preliminary discussions with some potential [office] users.”

Despite the incremental progress, a formal timeline for the project has yet to be and Akridge has also been unable to provide any new renderings of the façade, beyond the aerial jell-o mold shot (pictured) released in tandem with the project’s unveiling in 2006. Multiple inquires from DCmud to the project's architect, Shalom Baranes, have gone un-returned.

District Takes a Stab at Building Secure Evidence Depot

The District broke ground this morning on the Metropolitan Police Department’s new Property and Evidence Warehouse at the former site of the DC Village emergency shelter at 34 DC Village Lane, SW. The $20 million, 30,000 square-foot project is being developed as a joint venture between the Office of Property Management (OPM) and Akridge Development.

The Mayor’s office is pegging the project as "state-of-the-art" with features including a "computer-automated storage system for logging and retrieval of evidence," "video event logging of transactions," "radio frequency handheld portable terminals,” and “refrigerated units for storing DNA samples.” According to the original bid, the evidence warehouse will contain roughly two million items, including “narcotics, possible biohazards, cash/valuables, guns [and] oversize items” – some of which, according to legal guidelines, must be retained for up 65 years.

Though never explicitly stated, some of the security measures lined-up for the new warehouse seem targeted at reducing the reams of missing evidence – including “$16,453 in currency, seven revolvers, one shotgun, one BB gun, one derringer, marijuana, amphetamines and cocaine” – that failed to turn up during a 2008 audit of the MPD’s present facility at 2235 Shannon Place, SE. Per Washington, DC Mayor Adrian Fenty’s follow-up on the project’s status last February, the District also intends to cut costs by moving from the privately-owned building that they currently lease to the federally owned Southwest parcel. Several sites, including the largely abandoned St. Elizabeths Hospital in Anacostia, were bandied about before the OPM settled on the DC Village site that had itself been closed in October 2007 due to “poor living conditions.”

The District plans to have their new facility up and operational by the fall of 2010 and to qualify for, at the very least, a LEED silver certification.

Double BZA Approvals on the SE Waterfront

The District's Board of Zoning Adjustment (BZA) gave the green light to two prominent Capitol Riverfront projects this week that will allow construction to proceed unimpeded into 2010 and beyond.

The first round of approvals centered on Akridge’s Half Street development a block from Nationals Park. Despite a ceasefire in legal wrangling between the Akridge, neighboring developers Monument Realty and WMATA, construction on the 704,000 square foot development – which is slated to include dual office towers, a 300-unit residential building, 75,000 square feet of retail and an open-air marketplace/plaza – has yet to formally commence. The BZA’s approval clears the way for that to change, as Akridge can now clear and prep the site for its planned 2010 start date.

In a concurrent development, the BZA also consented to Forest City Washington’s plans for a second phase of construction at the so-called Yards Park. Those plans call for more than 35,000 square feet of new retail on the site, half of which will be culled from a renovation of the historic, pre-war “Lumber Shed” at M Street and New Jersey Avenue, SE. The development will also include the beginnings of a Capitol Riverfront boardwalk – the highlight of which is scheduled to be a 60-foot stainless steel monument designed by James Carpenter Design Associates. The National Capital Planning Commission previously approved the same development early last month; work on the project’s first phase, a 5.5-acre public park is already under way.

Monument v. Akridge - Everyone Wins

In a Solomonic decision, the Washington Metro Area Transit Authority (WMATA) today agreed to sell the controversial Southeast Bus Garage properties at the ballpark - skirmished over by Akridge Development and Monument Realty, LLC - to both developers. WMATA's decision ends a legal fracas for control of the property WMATA bestowed upon Akridge, an award Monument claimed was improper. The site is located at the corner of Half and M Streets, just one block from the new Nationals ballpark and across the street from the Navy Yard Metro station, and includes a bus garage and employee parking lot. Akridge will pay over $46 million for the 69,607 s.f. bus garage while Monument will pay over $22 million for the 27,558 s.f. parking lot. 

Today's sale is the culmination of an ongoing saga spurred by Monument's lawsuit against WMATA's sale of the properties to Akridge last fall. Monument, which already controls the other side of Half Street, contested the sale and in February won an injunction prohibiting sale of the garage, pending further consideration by the judge. Monument Realty had originally planned 100,000 s.f. of retail for the site on the western side of Half Street, the main strip leading to the ballpark, which would have added to their 275,000 s.f. of office space, 50,000 s.f. of retail and 320-unit residential project already underway on the eastern side of Half Street. 

He's out; no he's safe... The suicide squeeze began when both Monument and Akridge responded to WMATA's solicitation for the garage. Because Monument’s proposal contained an escalation clause that Metro’s offering specifically forbade (oops), WMATA disregarded the escalation and judged Akridge's bid higher, awarding the site to Akridge for $69 million. But Monument asked for the instant replay, pointing back to December 2005 when the Anacostia Waterfront Corporation (AWC) pronounced that Monument Realty was the Master Developer for the Half Street Area. Under this declaration, the master of the street had the right to develop all District-owned properties along Half Street. As Monument's holdings increased to include the eastern side of the street including the Navy Yard Metro, AWC tried to negotiate the acquisition of the bus garage to complete the package. 

Here's the Pitch...Strike One 

Monument, all the while still acquiring real estate in the area, made an unsolicited bid on the bus garage, working directly with WMATA, not AWC, which had just gained control of the area. Metro, deciding to make the call on its own, responded to Monument's offer with an Invitation for Bidders, hoping to get more out of a competitive process. But when the District asked that WMATA end the solicitation and coordinate with AWC, WMATA complied.

Strike Two 

It was then that District stepped in and proclaimed it would purchase the site and negotiate directly with developers. WMATA withdrew its invitation and agreed to sell to the District. 

Let me sleep on it.... WMATA says the District subsequently decided not to purchase the bus garage. WMATA, thinking itself free of its first-right obligation, issued a second Invitation for Bidders. This time, ten companies bid – a process that ended last September and resulted in Monument’s bid being disqualified and Akridge being awarded the site. But in drama worthy of a Meatloaf baseball metaphor, Monument sought a Temporary Restraining Order against WMATA on October 26th to enforce the District's right of first refusal as an intended third party beneficiary, claiming breach of contract, fraud, and breach of fiduciary duty. The District Court threw out the tort claims because of WMATA's sovereign immunity, but did not throw out the remainder. Monument re-filed on January 2 of this year, with a revised motion for a preliminary injunction against the sale, which the judge granted at the end of February. At that time, Co-founder and principal of Monument (and former Akridge exec), Jeffery Neal, said,"The Court recognizes the merits of this case by taking the serious step of ordering injunctive relief. We are committed of the Capitol Riverfront neighborhood as evidenced by our investment of tens of millions of dollars in this project over the past several years. We've always had a grand vision for Half Street and realize the importance of the project as it is the gateway to Nationals Park. It is great to know that we still have the opportunity to make the city's goal of having a coordinated development plan. A successful project for us also equals success for the city and for The Nationals." In February’s injunction, the District Court found that WMATA was obligated, based on its own Policies and Procedures, to offer the host government (here, the District) the first right of refusal on any property it sells, priced at fair market value. The decision stopped transfer of the land until the court could review the merits of the case, and left the highly valued property in legal limbo, just as the stadium was getting ready for opening, and set the stage for today's resolution. 

It never felt so good, it never felt so right The compromise announced today will grant Monument a smaller parcel than Akridge, while WMATA happily walks away having closed a deal for about the same as Akridge's $69 million bid. And it will avoid alot of icy stares across high-priced skyboxes.

Washington DC commercial property news

Akridge's Field of Dreams

With all the talk about waterfront development, you would think the best waterfront property in DC was spoken for. That might just depend on who you ask. Real estate development firm Akridge currently holds the keys to a corporate dream home: nine acres of land on the Anacostia waterfront, which can house 2.7 million s.f. of development and more than 1,600 parking spaces by right, not to mention site lines down the Potomac River. And for baseball fans who dream of finishing up a day at the office with a cold beer behind home plate, the Akridge site is only four blocks away from the new Nationals Stadium. Officially, the site's address is 100 V Street, SW, just within the historic Buzzard Point district. Yet the potential for development is vast; with the possibility of spanning three full city blocks to create a corporate campus that fits nicely within the context of the Fort McNair neighborhood. “We think it’s ideal for a user that has security needs because there are several natural buffers. The site encompasses three full city blocks with water on one side, Fort McNair on the West and a PEPCO sub-station across First Street SW, it is on a point with little thru traffic, and adjacent occupants also have large campus-like properties,” said Mary Margaret Plumridge, Media Contact for Akridge. 

Akridge, which purchased the site in 2005 for $75 million from utility supplier PEPCO, has lovingly maintained its original parking lot appearance, retaining the Field of Dreams look and, Akridge hopes, its promise. The new owners did remove an abandoned oil tank left behind by the previous owners - unfortunately empty. The development team has decided (for now) to avoid setting a firm design plan in stone. It's what Akridge calls the "ideal build-to-suit" opportunity. Basically, if you like the idea of having your office a stone's throw from the Potomac, or the notion that you could catch a home run from your office courtyard (assuming Bonds is still juicing), this might be the opportunity you seek. And in a reverse Field-of- Dreams-scenario, if someone wants it dearly enough, Hellmuth Obata & Kassabaum will design it for the lucky bidder, at which point Akridge will build. Because of Akridge’s by-right zoning, the developer is ready and willing to build and is marketing the site to either a “secure user” or for the traditional mixed-use path. Akridge expects to eventually manage the project that is built, but recognizes that the nature of the user would dictate that possibility.

Washington DC commercial real estate news

Akridge Names Shalom Baranes as Burnham Architect

Akridge will announce shortly that it has chosen DC-based Shalom Baranes as the architect for Burnham Place at Union Station, the behemoth development extending behind the station and over the railroad tracks. Back in November of 2006, Akridge Real Estate Services secured the purchase of 15 acres of air rights above the rail yard north of Union Station (pictured), from the General Services Administration for a hefty $10 million, setting precedent as the first sale of air rights by the federal government. At an estimated worth of $1 billion, Akridge's Burnham Place will extend north of Union station, past the Hopscotch Bridge on H Street, and house a 400-room hotel, residential towers and first-class office and retail space in a gargantuan 3 million-s.f. development. While the project has been on the radar of many a real estate habitué, few details and even fewer updates have been provided. “Burnham Place is an exciting and important project. We interviewed candidates around the world to find a world-class architect with a demonstrated sensitivity to the local context of this site,” says Matthew J. Klein, President of Akridge. “Shalom’s skills and capabilities aligned perfectly. We are eager to move forward with the design phase of this project.” 

For those wondering how a rail station can smoothly function with construction taking place above, consider Akridge's plan: support columns measuring twenty feet from the ground will be placed throughout the rail yard, upon which developers will place a concrete platform to serve as the foundation for the new floating city. Only after four years of technical negotiations with Amtrak was a conceptual construction plan decided upon. After entering into an extensive international search for a design firm, Akridge chosen Shalom Baranes, the masterminds behind the American Red Cross HQ and the Ritz Carlton Georgetown. "For a project of this magnitude in such an important location, we felt it was beneficial to have a local firm who knows the city and the city's needs." said Mary Margaret Plumridge, Director of Marketing at Akridge. Now, the project, named after the illustrious Union Station architect, is beginning to materialize on paper. Developers are just beginning to work on a master plan and PUD which will be submitted this year, although construction on the concrete footings won't begin until 2011. The plans involve a partnership with the federal government and the District Department Of Transportation to upgrade the transit facility, including: a second passenger concourse, an access road from Columbus Circle and an arcade that will connect Union Station to H street. Thanks to good planning, Akridge has the support of the folks at the Smart Growth Alliance and the Urban Land Institute (ULI); both have been effusive about the project since day one. "Burnham Place will contribute to a more cohesive Washington community with connections across the city both in the east/west and north/south directions, via the removal of the current rail yard barrier" added Plumridge.

Washington DC commercial real estate news