Holiday Inn Tops Out in Mt. Vernon Triangle

Plugging a hole at the corner of 4th and K Streets, NW, construction has topped out at the 14-story building that will become a 247-room Holiday Inn Express when it completes, perhaps as early as this year.  Kinsley construction, which started work on the project one year ago, is replacing Henry's Soul Cafe on the corner, across from the Museum Square subsidized housing project, a hoped-for redevelopment project whose tenants have stymied redevelopment plans of its own site.  The in-fill project furthers the high-density potential of Mt. Vernon Triangle, with only few vacant lots remaining on K Street since the completion of development of the 400 block of K Street by the Wilkes Company and Quadrangle Development.

Habte Sequar, who previously built several small and mid-sized residential buildings in northwest DC, assembled several small lots to create the 10,700 s.f. site.  Holiday Inn currently operates more than 2700 hotels worldwide; Urgo Hotels & Resorts of Bethesda will operate the hotel.

Project:  Holiday Inn Express

Address:  317 K Street, NW, Washington DC

Developer: Lima Hotels

Architect:  BBGM

Construction:  Kinsley Construction

Use: 247 room hotel

Expected Completion:  Late 2020 to early 2021

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Washington DC retail and real estate development news

Gensler Out, BBG-BBGM in as Watergate Architects

Interior restoration work on the famed Watergate Hotel has been quietly moving forward for weeks now and DCMud has confirmed that hotel owner Euro Capital Properties has engaged BBG-BBGM as the new architectural firm on the project.

BBG-BBGM replaces Gensler as the architectural firm working on the hotel at 2650 Virginia Avenue, NW in DC's Foggy Bottom neighborhood.  Architectural firm Gensler, which completed conceptual designs for the project, has not had any involvement since October, according to a source.

Thomas Luebke, FAIA, secretary with the U.S. Commission of Fine Arts (CFA) said the Commission gave preliminary approval under a courtesy conceptual review of the designs for the restoration last July 2011.  The CFA asked Euro Capital Properties to make a few minor changes.  But Luebke said the CFA has not seen plans since.  "If there is a final proposal, we would love to see it," Luebke said.  Designs submitted to the CFA last year showed very minimal changes to the exterior of Italian architect Luigi Moretti's iconic 1960 structure.

The Shipstead-Luce Act of 1930 designates that exterior changes to properties within a geographic overlay area - the Watergate complex falls within that area - are subject to final approval from the Commission in order to promote design sensitivity.  Under Federal Law, the project must have CFA's stamp of approval on plans for exterior work before the DC permitting authorities can issue permits for exterior restoration work.

Final plans for the hotel must also be approved by the Historic Preservation Review Board (HPRB) in the Historic Preservation Office of D.C. Office of Planning.  According to city staff, HPO staff last met with BBG-BBGM in January 2012 to discuss details of the initial restoration plans, but has not received any new plans from Euro Capital Properties. 

Plans to renovate the hotel have seen challenges since the property was sold to Monument Realty in 2004.  With the hotel still open, Monument plowed forward with plans to revert the building to its historic use as co-operative residences, but pre-sales slumped in 2006 and legal problems beset the conversion.  Monument stalled and closed the hotel in 2007.  Monument's lender PB Capital Corporation foreclosed on the hotel and put it up for auction in 2009 but there were no bids.   

Euro Capital Properties bought the hotel in 2010 with plans to turn the property into a $300 a night luxury hotel.  Euro Capital principal Jaques Cohen has said his company plans to invest $70 million in the project, according to The Georgetown Current.  Progress on the Watergate Hotel restoration again seemed to hit turbulence last fall when some residents of the Watergate complex's co-op residential units voiced opposition to the developer's restoration plans.  Neither Euro Capital Properties nor BBG-BBGM had responded to DCMud inquiries at the time of publication of this article.

 
















Washington D.C. commercial real estate news

The Wharf's "Resort In the City" Anchor Hotel Appeases Critics, Inches Forward

The four-star Intercontinental luxury hotel in the Wharf - the Southwest waterfront megadevelopment - is inching towards reality, though not without some changes along the way.

"Right now we're in the process of gathering equity," says Austin Flajser, President of Carr Hospitality.  "We anticipate construction starting in the third quarter of 2014, with delivery in the first quarter of 2016."

The 245,000 s.f., 278-room hotel from developer Carr Hospitality and designed by BBG-BBGM, will overlook the Washington Channel, now being developed by the Hoffman-Madison team, and feature a lavish 5,000 s.f. rooftoop lounge.  Plans also call for not one but two restaurants, two large water-facing ballrooms, and up to 7,000 s.f. of ground floor retail space.  The design calls for a red and gray brick facade, intermingled with terracotta, granite, and tinted glass.

Developers were forced to alter their plans, though, after ANC 6D passed a resolution recently in opposition to many of the specifics in the Phase 2 Planned Unit Development (PUD).

"We took down the clock tower, which was really just an architectural embellishment," says Flajser.  "We also altered the corners of the building a little bit, and there's no longer any sign."  (The above rendering depicts the original design; the rendering below depicts the revised design.)

In addition to those changes, the height of the structure - a planned 12-stories/130 feet - was also lowered.  After these changes were announced at a special meeting late last month, the ANC voted 4-3 to reinstate their support.  Carr also has a boutique luxury hotel in the works for Alexandria's contentious waterfront plan and has received objections from neighbors there as well.

Parcel 3b, where the hotel will be built, is near 9th and Water Streets (see map, above), and also abuts one of the development's planned piers; if Carr is able to purchase boat slips from the development group, guests could potentially arrive at the hotel by boat. Rates for the rooms will reportedly be between $300 and $400 per night.

Carr Hospitality notably restored the Willard hotel, a project widely lauded for its successful execution.  The Wharf Intercontinental will be its second hotel in the District.  Monty Hoffman of PN Hoffman has been quoted as saying the hotel will be an "anchor" of the megadevelopment.  The first construction at the Wharf should be begin early next year.

Washington D.C. real estate development news

Hoffman-Madison Details Second-Stage Plans for Southwest Waterfront

PN Hoffman and Madison Marquette, the chief developers of the long planned $1.5 billion Southwest Waterfront project, unveiled revised details of its vision for the 3.2 million s.f. development, which will include offices, apartments, a four-star InterContinental Hotel, four piers and a three-acre park -- part of the District's bid to transform its sleepy waterfront into a destination on par with San Francisco's Embarcadero and Seattle's Pike's Place.

While the first stage of what's to be known as the 23-acre Wharf District was approved by the Zoning Commission in 2011, that stage mainly dealt with traffic issues and building heights and setbacks -- today's Planned Unit Development (PUD) submission will give many in the District their first glimpse of the architectural vision and details.

"Each space is going to have its own experience," said Monty Hoffman of co-developer PN Hoffman in an interview. Hoffman's company has built more than 35 projects in the D.C. metro area, including The Lofts in Adams Morgan, the Mather Building near Verizon Center and the coming Northern Exchange on 14th Street. "There will be a different designer on each parcel so each can put their own DNA into the projects," Hoffman said. "It's not going to look like one contrived development."

Hoffman said that his group, along with partners Madison Marquette, builders of Cityline at Tenley, studied waterfront cities like San Francisco and Seattle to bring elements of the Embarcadero and its Ferry Building and Pike's Place to the Wharf District. That will include laying the groundwork (if not the tracks) for connecting to the District's planned 37-mile streetcar network, which could run on M Street SW and Maine Avenue and connect to the Nationals ballpark, said Matthew Steenhoek a development manager at PN Hoffman. The District has a M Street and Maine Avenue connection as part of its third phase of the streetcar plan. Steenhoek said short-term, the District Wharf would be connected by Circulator buses until the streetcar plan is built.

The project is more than 50 years in the making. Ever since the federal government as part of its "Urban Renewal" plan razed much of Southwest D.C. to build the I-395 freeway and apartments, residents of Southwest have been cut off, for the most part, from the revival of the rest of the city while its natural waterfront remained underutilized.

Still, don't look for Baltimore Inner Harbor-style national chain attractions at District Wharf, Hoffman said. "We're not inviting large national brands, we're not going to be dominated by national chains," he said. Instead, emphasis will be placed on integrating D.C. icons like the Maine Avenue Fish Market into a larger community, he said. "We're going to be more Washington-centric."

What it will share with Baltimore's Inner Harbor is an emphasis on water-related activities and entertainment. The Washington Channel is 16 feet deep, which would allow some deeper-draft vessels to sail up to the many planned piers, including 180-foot tall schooner ships. "Water activity will be central, so whatever we can draw to the water will be critical," Hoffman said. To that end, Hoffman plans a partnership with the Capital Yacht Club to bring more boating activities to the piers, including regattas. The Washington Kastles, the District's tennis team, will also remain at the Wharf, although moved from their current location atop the demolished Hogates restaurant, Hoffman said.

So far, Hoffman-Madison has lined up $50 million for pre- development, partly through Monty Hoffman's own pocket as well as Madison-Marquette. "We're self-funded," he said. "We're spending about $1 million a month, but we've got the capital to work with for pre-development." Hoffman didn't say who will be financing the rest of the construction but said that he's got multiple avenues from potential investors. The District's Southwest Waterfront Redevelopment Bond Financing Act of 2008 also provides $148 million worth of related infrastructure improvements along Maine Avenue. The District Department of Transportation (DDOT) last July began rehabbing parts of Maine Avenue in advance of the Wharf project. The Wharf District is expected to bring in $40 million in taxes to the District a year.

The Land Disposition Agreement, or LDA with the District will close at the end of the year,

which puts Hoffman on track for a groundbreaking in the first quarter of 2013, he said.

Here's how the project will break down:

Stage 2 is being designed by Rockwell Group and Perkins Eastman, which absorbed the former master planner of the Southwest Waterfront from Ehrenkrantz, Eckstut & Kuhn in 2010. It includes parcels 2, 3, and 4 along Maine Avenue. Parcel 2 will include 135,000 s.f. of entertainment-related venues, nearly 500 residential units in 357,000 s.f. and 39,000 s.f. of retail.

Parcel 3a will consist of 218,000 s.f. of Class A office space and 15,000 square feet of retail by Perkins Eastman. Parcel 3b will include a 245,000-s.f. InterContinental Hotel featuring a clock tower and 278 rooms. InterContinental operates the Willard Hotel. Carr Hospitality is the developer and BBG-BBGM is the architect.

Parcel 4 will be designed by Handel Architects, creators of the Ritz-Carlton D.C. and Ritz-Carlton Georgetown, and feature industrial and dockyard-related waterfront structures. It will include 168 rental units on 124,000 s.f. along with 130 condominiums on 179,000 square feet and 77,000 s.f. of retail including a fitness club.

Hoffman-Madison plans a public presentation of the plans on Feb. 27 at 6pm at Arena Stage.

Washington D.C. real estate development news

Air Rights Center Gets an Addition

The Bethesda block known as the Air Rights Center, currently featuring a 12-story office building and the 14-story, 216-room Hilton Garden Inn Hotel, is set to become a bit denser, as another 9-story office building will soon replace the smallest building on the southeast corner of the site. Chevy Chase residents adjacent to downtown Bethesda voiced concerns over the scale of the proposed office buildings upon its initial unveiling to the community. Begrudgingly resigned to the fact that the Purple Line train will soon be roaring through their backyards, residents seemingly decided to take their frustrations out on Donohoe. In the wake of the public pressure, developers compromised, using several setbacks to lower the residential-abutting facade to the recommended 60 feet and concentrate the height towards the center of the block, reaching 97 feet at its tallest point. Rewarding the flexibility of developers and their design partner BBG-BBGM, the Montgomery County Planning Board granted the approval to the applicant's proposal.

Fronting 7300 Pearl Street, the facade seems like a simplistic amalgamation of glass, concrete, and right angles, but a side-view from Montgomery Avenue offers a more textured and interesting vantage. Developers appeased the neighboring community not only with design successions, but will also redevelop a northern portion of Elm Street Park, just south of the development across the Capitol Crescent Trail. While their generosity may be genuine, it's not exactly altruistic, a twenty percent public space requirement is demanded by the Montgomery County development approval process. But all that green wasn't quite enough, as developers will put more on the roofs of the building in their efforts to earn LEED Silver Certification (also a MoCo prerequisite).

The cost to reconstruct the proposed portion of the park totals roughly $1 million. The project's landscape architect Parker Rodriquez has already offered designs for the park, while Donohoe will pony up $550,000-$600,000 for the actual improvements, including infrastructure, paving, lighting, fencing, landscape planting, signs, etc. The Chevy Chase Parks Department must approve a final design for the park, and finance the remaining balance. The Montgomery County Planning Board stipulated that no building use or occupancy permits will be issued until the park improvements are completed. Developers believe their compliance with the required park improvements could happen as early as 2012, with the office building delivery following shortly after.

Bethesda, MD Real Estate Development News

ICG's Luxury Georgetown Hotel Still Alive

Expectedly there was a bit of a buzz in 2009 when ICG Properties announced its intentions of converting a 47-year old office building at 1050 31st Street NW into a "luxury" boutique hotel. But since Castleton Holdings Inc. first bought the property from the American Trial Lawyers Association in 2008 for $18.3 million, and shortly after revealed their 50/50 partnership with ICG, little progress has been reported. Prolonged inaction had some speculating that the deal to bring the U.S. only its second Cappella hotel had fallen through. But ICG Principal David Stern assures skeptics that, though behind schedule, developers are still pushing forward, and hope to wrap up and finalize financing within one or two months. "With the equity and debt aspects of deal squared away, " reports Stern, it appears a groundbreaking is not far off (relatively speaking).

Certainly good news, but stay seated, there remains much work to be done, before the physical labor can actually begin. "Once we close on financing," says Stern, "we still have to get a final project architect on record, and then go through six to nine months of planning." Current designs, provided by BBG-BBGM, are very much preliminary in nature. But the finer details will be hashed in early next year as the community relations, HPRB, and Zoning processes commence.

As currently proposed, the five-story hotel will feature 48 guestrooms and suites and an upscale restaurant and lounge overlooking the C&O Canal. Other highlights include an executive boardroom, a rooftop pool and bar, and exclusive spa. Remodeling of the exterior will be mostly cosmetic. “It won’t be a demolition," Stern reiterates, "The hotel renovation would be primarily interior renovation work.” With an expected construction time of approximately 12 months, developers hope to deliver the new hotel by the end of 2012.

Washington D.C. Real Estate Development News

W Hotel Debuts in DC July 8

Washington DC's first W Hotel will open to the public on July 8th, the first local opening for the hip hotelier. The international pop luxury chain, operated by Starwood Capital Group, takes the place of the Hotel Washington, once a grande dame of DC hotels but that had become faded and tired before selling in 2006, first for $120 million and then to Istithmar Hotels for $150 million, then closing for renovation in 2007 and selling yet again to Nakheel Hotels. Both Istithmar and Nakheel are partly owned by the government of Dubai.

Starwood will provide 317 rooms and suites, stretched out from the original 400 rooms, retaining the famed 11th-floor rooftop terrace that overlooks Tim Geithner's office, not to mention the White House, in a decidedly more upscale setting - the word "swanky" being all but ubiquitous in reviews of the hotel chain. In keeping with its "category buster" profile, the hotel was re-designed by architect Dianna Wong, a Los Angeleno, who kept many of the original architectural elements while adding such must-haves as a DJ and "digital fireplace," for an appearance that will be "sophisticated and sleek but never trendy."

The hotel renovation, which took 18 months to complete, entailed a complete gut and overhaul, and the new owners "gutted it to the girders," according to Barbara Martin, Director of the Patton Group, a public relations firm. Some original elements of the building such as chandaliers, check-in desks, and archways were taken out, restored and returned to the building, but the rest will be new. The POV (point of view) Lounge on the top floor will operate year-round, with drop-down screens and raised awnings for yet better views of the executive office.

Opening within the hotel will be J&G Steakhouse. Rates available on the W's website start at $289 per night single-occupancy. The hotel was built in 1888 as department store and renovated in 1917 to become the fabled Hotel Washington. The July 8th event will be open to the public.

Bottom rendering courtesy Dianna Wong.

Update: It should also be noted that BBG-BBGM was the architect of record for the redesign of the hotel. BBG-BBGM has designed numerous hotels both locally and internationally, and designed the W Hotel in New York City.

What Goes Down Must Come Up

You just can't help but stare - but it's okay. The Rosslyn Best Western (pictured) succumbed to the wrecking ball this week to make way for Turnberry Tower, a luxury highrise condo that is to take its place in Spring 2008. The project, after several fits and starts under other names and other developers, is being developed by Turnberry Ltd. of Florida. The 247-unit condo will be decidedly more upscale from the hotel it replaces, with condominiums beginning in the low $800's (thousands, of course) and topping $6m for its penthouse with more than 5000 s.f. All units will have private terraces; and valet parking and elevator access directly into the unit are some of the options available. BBG-BBGM Architects is designing the building for Turnberry, but the new construction isn't nearly as cool as watching the wrecking ball smash the hotel to bits.

At 26 stories, Turnberry Tower will be one of the tallest buildings in the region, competing in height (and sales) with Waterview by JBG, a new condo going up 2 blocks away that has now topped out at 29 stories. Condo sales for Turnberry began in June 2005.

As the Turnberry Turns...

In our latest installment of the Turnbery Towers tale, the Best Western Hotel, located at 1850 North Fort Myer Drive in Rosslyn, has officially closed, making way for construction of this new high-end condominium building. The Turnberry Group is expected to strip the interior of the hotel down to the studs, as well as start demolition of the exterior of the building this October. Official groundbreaking for the new residential building is set for January 2007. The 247 condos at Turnberry Towers (ranging from 1-bedroom to 3-bedroom (configurable to 5-bedroom) units) start at $800,000 and go up to $7 million for the penthouse (slightly higher than the typical night’s stay at the Best Western) – Turnberry reports that approximately 30 percent of the units have already sold. While all units feature amenities such as Miele appliances and terraces, the units are to be delivered "designer-ready" – it’s up to you to finish them. When complete, Turnberry Towers, designed by BBG-BBGM, will be the tallest building in Rosslyn, and the most expensive in the DC region to boot.

Arlington Virginia commercial real estate news