Thayer Avenue Condos Reborn as Subsidized Housing

The long-moribund Silver Spring condo project at 814 Thayer Avenue, the former site of the National Association of the Deaf (NAD), has been reconceptualized by a new developer as an affordable housing complex.

The amended site plan was recommended for approval by Montgomery County planners earlier this month.  While the amount of public space has remained the same, at just over 40,000 s.f., new developer Landex Companies has dramatically upped the percentage of affordable housing units, in order to qualify for affordable housing tax credits.

"Before, the project had only allocated seven units [out of a total 52] as affordable," says Elza Hisel-McCoy, Program Manager at the Maryland-National Capital Park and Planning Commission. "Which was the minimum allowed.  Now they've upped that to forty-two units."  The remaining twenty percent of units will be rented at unrestricted market rates.

Architect Wiencek + Associates has also made significant improvements to the overall design, at least in Hizel-McCoy's opinion.  "Before, it was a scissoring facade, alternating floors so the building had a prow," says Hizel-McCoy.  "But now it's a triangle.  There's a single triangular area along the sidewalk - they've come up with a design that integrates the sidewalk and public space much more seamlessly than the previous design."

Landex acquired the 0.64-acre Thayer Avenue property on contract from the previous developer, 814 Thayer LLC (which was a joint venture between Banneker Ventures and Four Points, LLC) 18 months ago, according to Peter Siegel, CEO at Landex.

"We're hoping to close in August on construction financing," confirms Siegel.  "So we'd start construction in late August, with completion taking 12-14 months."

Maryland-based Landex Companies specializes in mixed-income developments, and manages over two dozen properties in Maryland.

UPDATE:  This project is a joint venture between Landex Companies and the Warrenton Group.


Silver Spring Maryland real estate development news

Strand Theater Redevelopment Moves Forward with Zoning Approval

Yesterday developers and architects presented their plans for the redevelopment of the historic Strand Theater and won unanimous approval from the BZA. The Board also granted several zoning variances, permitting developers to expand a historic landmark and a contributing historic structure, as well as an increase in the FAR and a reduction in the required parking. The Strand Theater and the adjacent contemporaneous building located from 5127-5131 Nannie Helen Burroughs Avenue, NE in Deanwood are being packaged together in a redevelopment plan that sees both structures stabilized, renovated, and facades restored to their original grandeur. The ground floor of the renovated buildings will feature new retail options, while the second floor will house small incubator office space for "small and local disadvantaged businesses out of the Ward 7 corridor." In 2008, the District originally awarded the property's development to Washington Metropolitan Community Development Corporation (WCDC) and Banneker Ventures, but WCDC cut their ties with Banneker shortly after their initial proposal, and have since partnered with the Warrenton Group. Serving as fee developer, Warrenton's Principle Warren Williams attended the hearing in support of the project, providing the Board with a brief summary of the proposed redevelopment.

Architectural duties have been assumed by local firm R. McGhee & Associates, and their design plans, in cooperation with guidelines set by the Historic Preservation Review Board (HPRB), will assist in restoring the historically significant architectural features of the Strand (such as the lengthy front awning and detailed cornice work) and its accompanying sister-building. An in-fill brick addition serving as the "building core" is also in the works, intended as a contemporary interpretation of what the Strand might look like if built with modern materials. The interiors will be extensively gutted and renovated to accommodate the ground floor retail space (likely featuring a restaurant or two) and “affordable” office space set to occupy the building upon completion. Principal Ronnie McGhee, who was recently appointed to the DC Board of Architecture and Interior Designers by Mayor Adrian Fenty, presented the architectural specifics to the BZA, and assured the Board that their plans had official approval from the HPRB and ANC7C. McGhee also promised that the iconic, the lighted Strand Theater sign, would be restored to the roof of the renovated building, bringing a welcome glow back to the area's skyline at night.

In 2008 Mayor Fenty bragged that: "There will be more energy back on this corner for the neighbors who live in the Ward 7 community, east of the river in general and for the entire city." Unfortunately, that energy has remained bottled up in storage these past two years, as the property continues to sit vacant and derelict. The Holy Christian Missionary Baptist church across the street, calling the structures as the currently stand an "eye sore," is also excited about the re-ignited redevelopment plans. Reverend Steve Young testified before the Board in support of the project and offered up use of the church's parking lot to alleviate parking concerns, saying: "whatever is needed to accommodate the project we're willing to comply." Developers also cited several convenient bus-lines that may service future retail patrons as justification for a reduction in required parking. By way of community benefits, developers additionally promised that a dug-out basement level will provide space to be used as a community meeting center, and that newly planted trees will improve the streetscape in compliance with the Great Streets Initiative. It was also noted that the area is currently "starved of retail options." The Board agreed that this was a impressive and commendable project that offers a big first step in revitalization of the surrounding area, as well as thoughtful preservation of a historic landmark. While there is still no timeline for expected groundbreaking and subsequent construction, this Zoning approval activity is a positive sign that developers are moving forward with their plans. In the next step forward, developers and architects will seek the blessing of the National Park Service.

Washington D.C. Real Estate Development News

Yet Another Affordable Housing Project For Columbia Heights

The contract to design, develop, and build a 37-unit affordable housing project at 1421 Euclid Street, NW has been awarded to Euclid Community Partners, a triad consisting of Dantes Partners, Perdomo Group, and Capital Construction Enterprises. Developers and city officials say this $11.5 million Justice Park project will offset gentrification trends in the area, and help Ward One and Columbia Heights to remain a diverse and multi-dimensional community. The rental apartments will be marketed to those in the local workforce making no more than 60% of the Average Median Income (AMI). Mayor Fenty, Ward One Councilman Jim Graham, the Deputy Mayor of Planning and Economic Development (DMPED) Valerie Santos, and ANC1B Chairman Gail Holness were all in attendance to officially award the winning contract, and voice their support for the project. Other proposals competing for the contract offered mixed-income developments with only small portions designated as affordable housing units. Clearly affordable "workforce" housing was the priority of the Mayor and his staff, as he elaborated

on his delight at finalized contract, saying: "there was a lot of talk, scrutiny, and debate at city hall about this project ... but we are all glad that the talking has stopped, and the action has gotten back on track."

Questions were raised in the competitive bidding process for this project, but Dantes Parnters now has several opportunities to produce and prove their critics wrong, as principal Buwa Binitie and his company have become actively involved in the development of several other District-owned properties. Binitie and Dantes Partners are bearing the entire load of development responsibilities for the VIDA Senior Residences project at Brightwood and the 5-story, 44-unit residential building on Chapin Street. They have also partnered with EastBanc Inc. as regular favorite project-winners of the Fenty administration, sharing development of the long-neglected West End fire station, library, and police unit buildings, as well as the Hine School redevelopment.

The current 12,325 s.f. Justice Park will cease to be a place for public recreation and become home to construction equipment sometime in mid 2012. That is if the PUD application process or financing struggles don't slow down the project, a common story line for many other developments. In the meantime, a new Justice Park will be constructed across the street on a District owned plot of land that Fenty describes as "lower to the ground, closer to the street, and more accessible to kids, seniors, and families." In addition to the modern design, efficient appliances, class A amenities, front and rear balconies, and rooftop terrace being offered at the new building, Dantes Partners has also agreed to fund the yearly maintenance costs of the new park on the south-side of Euclid. Banneker Ventures, teaming with Regan Associates, will develop the park using a budget of $750,000, but have yet to contract an architectural firm for the design.

Fenty and Santos each stressed their "ongoing commitment" to affordable housing, a rebuttal to the criticism for lack of action on Parcel 42 and other vacant District lots that has angered some city residents, even inspiring protests. But as Councilman Graham's website brags, federal funding has been undoubtedly strong for "workforce" housing: 2,500 units of low-income housing have been preserved and renovated and $256 million of public and private funds have been spent on affordable housing in the last five years. While some detractors contend that affordable housing serves to concentrate poverty and devalue adjacent property, Jim Graham insisted that they were ensuring that "our firefighters, our librarians, our new teachers, and many others" have access to affordable housing. Dantes Partners has projected that their two-bedroom units will cost roughly $1,400 per month, significantly less than the average market rate condo.

The unveiled renderings look suprisingly derivative of the general style of the Villagio apartment building next door. In addressing the press and community members, Buwa was careful to thank the Villagio and its owners for their cooperation and support during this initial design process. For the future residents who aren't lucky enough to have a view of the new park from their balconies, they are at least afforded the next best thing: some quality people watching, looking down on the adjacent BP gas station (and who doesn't look down on BP these days).

The ANC expressed support for the design and the project, but Dantes Partners, along with PGN Architects, will work with the community, ANC, and Zoning Commission to further refine their drawings in the coming months. The developers will seek a nine percent tax break through the District Housing Finance Agency's Low Income Housing Tax Credit (LIHTC). And if that bid is rejected, the development team will be awarded a non-competitive four percent tax credit, and hope for an additional $4.1 million District subsidy.

Washington D.C. Real Estate Development News

Banneker Ventures Questioned on Development Process

Pressure on Mayor Adrian Fenty heated up today as questions increased about the Mayor's developer selection process amid news that WMATA may be backing away from Banneker Ventures as a development partner. Banneker has been awarded numerous projects worth tens of millions of dollars by the Mayor's office despite its perceived lack of development experience.

Today, the WMATA board removed the Banneker project "The Jazz @ Florida Avenue" at 8th and Florida Avenue from the agenda for the real estate committee next Thursday, at which time it would have taken-up a joint development agreement for the WMATA-owned property. Today's move comes after WMATA issued a 120-day extension on the agreement in September 2009. Banneker was chosen for the project in June of 2008, but has not yet started work on the site. More than a year later it announced it would partner with Bank of America and had petitioned for government funds, advances that were to have moved the project forward. The developer had already been pledged a $7m TIF grant from the District.

The move by WMATA likely comes in response to questions raised first by this publication about justification for awarding so many projects to a team with so little apparent experience, then by the CityPaper and Washington Post about the how the relationship between Banneker's founder and D.C. Mayor Adrian Fenty may have affected the selection process. The two men attended Howard University and were in the same fraternity.

In addition to the WMATA site on Florida Avenue, the virtually unknown Banneker has been selected by the District on numerous multi-million dollar projects throughout the city, despite a large roster of construction and development firms available for such projects as private financing for construction was drying up. Banneker's luck began in late 2007 when it was selected by the District to be part of the $700 million Northwest One project. Around the same time, Banneker was named as a master planner on the monstrous Park Morton project (see DC's summary). Despite lack of movement in those two projects, or on its private projects (see more below) it was then selected for a string of projects such as the WMATA site in June of 2008, and by DC for the iconic Strand Theater in July of that year, then in October to head the $33m Deanwood Community Center project. In October of last year the District named Landex Corp, Spectrum Management and the Warrenton Group as developers of Park Morton. The Warrenton Group is run by a former Banneker member that has also had a contentious relationship with the city.

Park Morton raised eyebrows at the Mayor's development process for yet another reason; the District announced just last October that the Mayor had selected its team members for Park Morton in part because that development team said it controlled and would bring the Central Union Mission site into the development plan, increasing its scope. DCMud learned a few days later that the Missions' owners had never agreed to transfer their property to the development team, calling into question the District's selection process and the claims made by the development team to secure the project. Banneker is also being considered for its development offer at Hill East, a massive 50-acre parcel on the Anacostia River. Banneker's publicly-funded projects at the WMATA site, the Strand, Park Morton have yet to break ground.

In a contentious radio interview on the Kojo Nnamdi show following the announcement, Omar Karim, founder and principal at Banneker Ventures, called out the WMATA board for further delaying review of the agreement on the RFP awarded in 2008. In the interview, Karim, who dismissed suggestions that the board had legitimate concerns, argued that WMATA continued to "move the bar" on his project for "political" reasons. The Jazz @ Florida Avenue would theoretically bring 124 apartment units above 20,000 s.f. of ground floor retail and a 61-space parking garage to 3 flea market-sporting lots.

Tom Sherwood, resident analyst at NPR, asked Karim how many contracts he had received prior to Fenty taking office, to which Sherwood ultimately answered his own question with "none." Asked specifically about his experience, Karim answered that he had solid development experience at a large firm prior to starting Banneker, but would not name the firm or elaborate on the experience. As for Banneker's experience, Karim could only cite that his firm held an office building in Silver Spring and an unspecified site in which he "has been in conversations with Safeway about developing." At the time of publication, Safeway was unable to confirm or deny these conversations.

So what about that Silver Spring office building? That would presumably be 814 Thayer Avenue. Banneker purchased the site in May of 2006, submitted plans later in the year, and in July 2007 obtained Montgomery County Planning Board approval of a preliminary plan for a 52-unit residential building, a plan that was reviewed in November of 2007. The next step would be site plan approval, but, to date, the team has not even submitted a site plan to the planning staff for certification. Banneker will need a certified plan before the group can file for any construction permits for the property, making the September 2010 ground breaking date seem, at best, optimistic.

The 5-story Thayer project, designed by Sorg & Associates, would entail construction of a 53-unit condominium, in place of National Association of the Deaf office building. Joshua Sloan, a staff reviewer at the MNCPPC, provided an update on the project, "my understanding is that they want to amend their proposal, but I have not seen anything. I suppose it is "officially still pending." Sloan and his comments are the last stop before Banneker can proceed, a process which "can take a week or a year...depending on the Applicant’s response time to comments."

Banneker's website also boasts the Pattern Shop Lofts on the Waterfront, a project led by Forest City Washington that has not yet broken ground. Banneker registered with the District government as a small, minority-owned business in 2005.

Washington, DC real estate development news

Northwest One Project Announces Start Date

The District announced today its decisions on how to proceed with the first major phase of Northwest One. In an 11am press briefing, the Mayor announced that DC-based Banneker Ventures will join developer William C. Smith & Co. to build 300 units of housing in place of the vacant parking lot at the intersection of North Capitol and Patterson Streets. Groundbreaking is now expected in "spring" of 2010, according to Mayor Adrian Fenty.

The $80m project will include 313 new housing units, with 30% pledged for "affordable" housing. 59 of the units will be set aside for former Temple Courtiers.

The Warrenton Group has been having a good year with DC officials, having been named recently as the local partner for the planned Park Morton, a $130m project announced earlier this month, and having been selected last December (as Banneker Ventures) to build the Deanwood Community Center, and last October rebuild the Strand Theater. Warrenton Group was also given a new lease on life for the Florida Avenue parcel, awarded to Banneker by WMATA in 2008 but not built out.

Architecture firm Eric Colbert & Associates will design the 12-story building, and William C. Smith & Co affiliated WCS Construction team will build it. The larger Northwest One project, in all $700 million worth of development, will also include Jair Lynch and affordable housing provider Community Preservation and Development Corporation, which together will team up as the One Vision Development Partners as a Certified Business Enterprise.

Shaw Main Streets Development Woes

At the annual Shaw Main Streets (SMS) Development Forum Wednesday night, representatives from developers were invited to present the current status of their plans for major renovation and new construction in the area. The status, unsurprisingly, was "more of the same," leaving community members to resign themselves to continued hopeful waiting. SMS Executive Director, Alexander M. Padro, made excuses for several invited developers who were unable to attend. Quadrangle Development was a no-show because of the recently publicized litigation over their Marriott Marquis Convention Center Hotel deal, though Padro said Quadrangle indicated that financing is now secured. Banneker Ventures, slated to build The Jazz on Florida Avenue, declined to attend as their Land Disposition Agreement with WMATA has not been finalized. And Hines-Archstone, developers of the planned City Center cited scheduling issues. 1. Paul Millstein of Douglas Development, certainly does not sugarcoat anything. About the Wonder Bread Factory development Millstein said it was a "victim of the times...stuck in a trench" and "could be stuck for a while." As for Squares 450 and 451 on the 1100 block of 7th St, Millstein announced that though the original plan was to redevelop the site, the group will now remove window boards, put some lipstick on them, and lease them out for the time being. On the positive side, Douglas secured a NY-based restaurant, Carmine's, to fill the 18,000 square feet of their Penn Quarter property near the Clara Barton Condos and Wooly Mammoth Theater. As for their 7th and Florida Ave. project, Douglas is seeking tenants, but according to Millstein the group is being picky, refusing to go the "fast and ugly" way of cell phone stores or fast food. Neighbors gave a round of applause for that one. 2. Next came 1501 9th ST NW a smaller development by a small business, Inle Development. According to the property owner/developer, the space will be leased to a single tenant, Mandalay Restaurant and Cafe, a Burmese restaurant currently based in Silver Spring. Mandalay will have a ground floor restaurant with outdoor seating, a second floor bar and the remainder will be residential space for the restaurant owner and family members. The developer cited a few financing "hiccups" but estimated the project should break ground in three to four months, delivering late 2010. The project takes up a single lot and will likely be 50 ft in height. 3. On their Addison Square project Metropolitan Development had hoped to be into the ground by now, but it's looking more like summer 2010, at which point the 4-5 weeks of demolition will commence, followed directly by construction. The group received their final PUD two weeks ago, and a few changes mean the 54 units of affordable housing will be distributed among the 224 market-rate units, for a total of 278 rental units in the main building. The ground floor retail plans are largely unchanged with the group looking to have both a white table cloth restaurant as well as a faster, less formal restaurant. 4. Ellis Development Group and Four Points, erstwhile developers of Howard Theatre and Media Center One, formerly Broadcast Center One, said the financing for the projects, which have been repeatedly punted down the road, hit a "road bump," but the group expects the project to move forward, breaking ground on Media Center's 300,000 s. f. mixed-use development on 7th and S Streets NW before the new year. Construction will take approximately 24 months for Media Center to finish and, as the developer noted, they are one of the few lucky projects to actually have a tenant secured. Over at the Howard Theatre, demolition of the 1940s facade has already begun, ground breaking may still happen this year, and the developers are, of course, talking with prospective tenants. 5. Roadside Development's City Market at O finally has some legs and a timeline. In an agreement with several DC Council members, Roadside received a $2.5 million grant, enabling them to "put the architects back to work." The big day will be September 3, 2010, when the group starts work on stabilization of the historic market. The next big date is January 15, 2011, when the current Giant will close its doors and from which date Roadside will have 24 months to finish construction of the new Giant location. The takeaway from the evening, with projects stuck in trenches, hitting road bumps or just plain falling victim to the economic climate, was that Shaw developers seem to be in a regular war zone these days. With so many groups blaming the current "financial situation" for development and construction delays, we are beginning to wonder what they'll blame whenever the financial situation improves...

Washington DC commercial real estate

Jazzed about Florida Avenue

You've got to appreciate DC's Shaw residents. The small northwest neighborhood has seen more development projects announced - and sit idle - than any other, leaving residents in a cycling state of hope and apathy as the neighborhood talks about big plans with little effect. One such disappointment was the flea market-sporting WMATA site at 8th and Florida Avenue, awarded to a developer more than a year ago, only to sit out the ensuing financial crisis. But thanks to city and federal dollars, and a restructured partnership, that may finally change.

Banneker Ventures has announced a new partnership with Bank of America (BOA) to develop the former WMATA site into three new "affordable" apartment buildings. Banneker can now go forward with The Jazz @ Florida Avenue, designed by Silver Spring-based Torti Gallas, turning 3 separate lots into 124 apartment units above 20,000 s.f. of ground floor retail and a 61-space parking garage, all straddling WMATA's metro tunnel below. The developers have already applied for, and been granted, Tax Increment Financing (TIF) in the form of a $7m promissory note from the District. And with the District's recent receipt of $33m in stimulus money for housing, the developer has petitioned the District government to receive a portion of those funds. As a result, the apartments will be entirely below-market, open to a mix of income ranges, with the cheapest one-bedroom units to rent out at $768. Developers hope to deliver the project in late 2011.

The long path to development began in May of 2007 when the WMATA Board of Directors issued an RFP for developers to build on the site. The Board did not make its final selection, however, until June of 2008, selecting a team that included Banneker and Metropolis Development. But the latest announcement drops Metropolis from the picture in place of BOA. In addition, the formerly tiny project footprint now includes two adjacent parcels on 9th Street recently acquired by the development team. Bozzuto will serve as the general contractor for the project.

Community Center-Library Combo Coming to Deanwood

Mayor Fenty was joined by representatives from the DC City Council, DC Department of Parks and Recreation (DPR) and DC Public Libraries (DCPL) this week to break ground on the new Deanwood Community Center and Library. After issuing a RFP back in October, the Banneker Ventures-led development team selected Forney Enterprises, Inc. to serve as general contractor on the project. The double duty community center is being designed by Ehrenkrantz Eckstut & Kuhn Architects.

The $33 million project will stand on the same parcel as its dilapidated predecessor, at 49^th and Quarles Streets, NE. The new 63,000 square foot DCC, however, promises to be anything but ramshackle with planned amenities that include an indoor swimming pool, gym, game room, daycare center and fully stocked library – the latter being a product of a collocation agreement reached between DPR and DCPL. “[This]…represents an innovative approach to design that urban areas across the country are employing in order to provide residents a variety of services in restricted public space,” said DPR Director Clark E. Ray. The new LEED-certified DCC plans to open its doors in the summer of 2010.

RFP Issued for Deanwood Rec Center

Hot on the heels of last week’s Strand Theater announcement, Northeast’s Deanwood neighborhood is now in line to receive a new $20 million, 63,000 square foot community center. Banneker Ventures LLC (also the developer behind the Strand revitalization initiative), Reagan Associates LLC, DC Housing Enterprises and the Program Manager of the center’s current incarnation, have jointly issued a request for qualifications to builders that aims to have the new Deanwood Community Center (DCC) open and operational by May 2010. The project is the product of a partnership between the Office of the Deputy Mayor for Planning and Economic Development (OMPED) and the Department of Parks and Recreation (DPR).

Located at 49^th & Meade Streets NE, the new DCC will sport “an in-door leisure swimming pool," gymnasium, game rooms, full library, a child care center, and dedicated senior space, as well as swanky designs by Ehrenkrantz Eckstut & Kuhn Architects (EEK) and a projected LEED silver certification. Everything currently on the site – including the swimming pool, tennis courts and the existing building – will face demolition in the coming weeks.

Proposals are due to Banneker by 12 PM on Monday, October 20^th.

Northeast DC Icon Gets a Little Help

Mayor Fenty was on hand today to announce that the District has finally settled on a developer and would move ahead with redevelopment of the long-abandoned Strand Theater in Deanwood. The project is now in the hands the Washington Community Development Corporation (WCDC) and Banneker Ventures LLC - organizations that plan on transforming the 80-year-old former movie theater into the new home of an 18,000-s.f. restaurant and 18,000 square feet of “affordable” office space. The remaining 16,000 square feet within the Strand will be “dedicated for community and cultural uses,” according to a press release issued by the Mayor’s office.

“There will be more energy back on this corner for the neighbors who live in the Ward 7 community, east of the river in general and for the entire city,” said Fenty from the sidewalk of 5131 Nannie Helen Burroughs Avenue, NE. Fenty and WCDC head Rev. Steve Young, also leader of the Holy Christian Missionary Baptist Church for All People located across the street, went on to promise that 30 - 40 new, permanent jobs will created as a result of the revitalization effort.

Curiously enough, this marks the second time the District has named the WCDC and Banneker as developers in charge of the Strand. The first came this past July, when Deputy Mayor Neil Albert told DC Mud that the project would “break ground in the next two weeks.” Sean Madigan, the Mayor’s press contact, today told DC Mud the District was forced to hold off a bit, while the rest of the details concerning the theater were hammered out.

Banneker has had a dream year lobbying District officials, having secured from District work on the Strand, and having been named Master Planners for the Park Morton redevelopment, and as a developer of the $700 million Northwest One development. WMATA added to the company's portfolio by naming Banneker the lead developer in June for its Florida Avenue project, and Banneker has its own plans in place for 814 Thayer, a 52-unit condominium in Silver Spring's central business district. WMATA Board member and DC Councilmember Jim Graham reportedly pushed for the developer's inclusion in the project; WMATA said it chose the developer based on its "experience," noting the technical difficulty of building a project on top of an existing Metro tunnel, though Banneker has no previous experience building above a Metro tunnel. Or, apparently, above much else. Park Morton, 814 Thayer, and the WMATA project have yet to break ground, and Northwest One has only recently done so, leaving the conversion of several small apartment buildings into condominiums as its only achievements. Banneker's website touts its appointment to several of the above projects, as well as its "tremendous breadth of experience and professionalism." Calls to Banneker’s metro area offices went unanswered.

As it stands today, Green Door Advisors and Blue Skye Construction will handle the build-out of the heavily dilapidated building, located at the intersection of Burroughs Avenue and Division Avenue NE. The Strand Theater is currently on the DC Preservation League’s list of Most Endangered Places in the District. Hopefully, that will be changing as the Strand moves on to a bigger and better future.

Washington DC commercial real estate news

From AWC to NCRC to DMPED, Fenty Lauds Change

Mayor Adrian Fenty, Deputy Mayor for Planning and Economic Development Neil Albert, and Councilmember Jack Evans (D-Ward 2) held a public ceremony this morning to celebrate the one year anniversary of the District's decision to disband and take control over the portfolios of the Anacostia Waterfront Corporation (AWC) and National Capital Revitalization Corporation (NCRC). In a tribute to their combined foresight, the Mayor lauded the District's "significant progress" on over two dozen key from the portfolios since the merge, and offered up morsels of imminent announcements. "There were a lot of properties in these two quasi-public entities and it was the decision of the Council of the District of Columbia to make sure that those properties moved a lot faster, that they got developed quicker, and most importantly, that people saw results and I can say that a year later there has been a flurry of consistent activity," Fenty said. With $60 billion in the citywide pipeline since 2001 and $13 billion in current economic development projects, the Office of the Deputy Mayor's portfolio now includes over 12,000 residential units - including 4,500 "affordable" units - 1,800 hotel rooms, 2 million s.f. of retail space, and 8 million s.f. of office space.

Looking back on their recent successes, the Mayor noted that on May 14th, the District issued a RFEI for a master developer for Hill East Waterfront, 50 acres around the former DC General Hospital site. On June 4th, the District issued a solicitation for a development partner for Parcel 69, a potential $130 million office/hotel project by the Southwest Freeway. Master land planning began at Boathouse Row in SE on July 11th. On Tuesday, the Council approved a $198 million TIF/PILOT package to fund park and infrastructure improvements for the $1.5 billion Southwest Waterfront redevelopment. Yesterday the District selected Argos Group to develop two properties on Capitol Hill, including the Old Engine House 10 into eight condominiums. And looking forward, Albert told DCMud the Strand Theatre project (5131 Nannie Helen Burroughs Avenue, NE), developed by Washington Metropolitan Community Development Corporation and Banneker Ventures, will break ground in the next two weeks. He added that his office will also announce a developer for 6425 14th Street, NW in the coming weeks, a 12,100-s.f. parcel of land in Brightwood. Sean Madigan, Director of Communications in the Office of the Deputy Mayor, predicts an announcement for 5th and I, as well as Minnesota-Benning Road, NE, in the next few weeks, and that the Park Morton development group will be announced "imminently." Evans, who had a hand in the creation of both the NCRC and the AWC, said the decision to create the organizations was correct at the time, as was the decision to consolidate them. "I was there for the creation of NCRC and AWC and at the time when we were looking at putting those semi-private entities in place, the District government wasn't functioning, and so the idea of having an NCRC was something like the Pennsylvania Avenue Development Corporation model to get economic development projects done in the city," Evans said. "Then we learned that the semi-private entities were not doing what they were supposed to and we rolled them back into the government and put them under the Deputy Mayor and as we said today, it seems the decision was absolutely the correct one, because now we have a unified government and we can now focus on these projects and get them done. What we did in the past made sense and what we did last year made sense and we are now celebrating the results of those actions," 

Evans concluded, as the development troika lauded each other's vision and accomplishments. Albert added that a major goal of the consolidation was to establish one point of accountability for economic development in DC, but also to save taxpayers money. "One of the reasons the Council and Mayor worked so hard to consolidate the agencies, was to make sure that there was a single point of accountability on all economic development projects here in the District. Citizens had been asking for it, and they got it with this merger. Also, this merger resulted in significant savings for the taxpayers - over $5 million in savings because of the consolidating," Albert said. Like a gloating parent, Fenty added, "I just love efficient government, we have too much waste - a lot of these quasi-public commissions and entities and boards, they just spend money wastefully and we're gonna put a stop to that too." 

Washington DC retail and commercial property news

WMATA: Florida Avenue Developer Selected

After announcing yesterday that a decision on the year-old Florida Avenue RFP would not be forthcoming, WMATA's Board of Directors met today in a closed-door session and selected a development team. The decision regarding three lots adjacent to the Shaw-Howard Metro had been held off since May of last year, when bids were submitted, and WMATA Media Contact Angela Gates had prognosticated that a decision would not be made "for another six months." In a surprise decision, WMATA officials today gave its staff permission to negotiate a Development Agreement with Banneker Ventures LLC, Metropolis Development Company, LLC, and District Development Group, LLC. The transit authority did not formalize terms of an agreement, so today's announcement opens negotiations between the winning bidders and WMATA to come to agreement on development of the site, but no final plan is certain. The contest for the site had been between nine submissions in response to last year's RFP, and had been winnowed down to three as of yesterday. WMATA's press release stated exuberantly that "the team has the experience to complete the project," though cited only Metropolis Development's experience, pointing to its completion of Langston Lofts, one of the DC developers earliest projects. The 80-unit condominium was built by MDC above a Metro line, requiring coordination with WMATA to produce caissons to straddle the existing tunnel. According to WMATA's Board Action/Information Summary, "The developer provided a better financial offer than its closest competitor and the same type of development - four to five stories of residential units over a ground floor devoted to retail and arts uses...The third competitor did not meet appraisal benchmarks." Despite the surprise timing of the decision, Merrick Malone, principal and Executive Vice President of Metropolis was upbeat about the project: "Metropolis has proven demonstration to build on top of the Metro tunnel, we know how to go through this process."

Washington DC commercial real estate news

814 Thayer Street Seeks Approval

Tomorrow, the Montgomery County Planning Board will hold a hearing on a proposal to tear down the former site of the National Association of the Deaf (NAD) in Silver Spring and construct in its place a modernist five-story condominium building.

The plan calls for a 52-unit residence at 814 Thayer Avenue, between Fenton and Grove Streets, a five-story building with shifting floorplates to create overlapping residences (see above rendering). The new condos, replacing the NAD building and adjacent parking lot, would include 45 market-rate residences and seven Moderately Priced Dwelling Units. In building residences, the project will address concerns of the Silver Spring Central Business District Sector Plan, which notes that currently the "disjointed pattern of commercial activity and the lack of a residential population [in Fenton Village] dilute pedestrian traffic - a key component of retail activity."

Because of regulations mandating that 20 percent of the project's area be developed as public-use space, the proposed condos would be set back 17 feet from Thayer Avenue, allowing for a 4,2620-s.f. public plaza, with plans for trees and other greenery, game tables, and two county-mandated art projects

Since its last reviewed submission in November, planners have consulted with an artist and can now provide more details about one of the proposed - well, mandated - displays, designed in honor of the NAD (now half a mile away, on Fenton Street): "Down-lit glass columns separate the work into panels of inspirational quotes to add color and vibrancy. The free-standing piece on the northeast side of the plaza will be a historic teletype machine...A glass piece of 'paper' will serve as an artistic intervention and show how Braille text was created by the machine."

814 Thayer LLC purchased the $4-million property, which currently houses an office building, in May 2006, and its development plan was first reviewed by the Montgomery County Planning Board in November 2007. The original NAD building dates back to 1965, and was purchased by the Association in 1971 for $640,000.

UPDATE: This project is a joint venture between owner/developer Banneker Ventures and co-developer Four Points, LLC. Banneker projects the project will break ground in fall of 2008 and complete construction the following year.

Northwest One Unfolds

On Monday, DC finally began work on the Northwest One site, the ambitious but still conceptual site located across the street from NoMa, on the northwest side of North Capitol Street. DC Mayor Adrian Fenty initiated the first groundbreaking of Northwest One by commencing demolition of Terrell Junior High School, at 1000 1st St. NW, making space for a new $47 million mixed use facility including a new school, library, and recreation center. The Northwest One site is bounded on the east by North Capitol, on the west by New Jersey Ave., and on the south by K Street. The District, through Forrester Construction, will replace the junior high and the distressed Sursum Corda and Temple Courts housing projects, which haven't been doing much to bring up property values in the neighborhood.

The next stage of development will be to demolish Temple Court, which the District bought last summer and has begun relocating tenants in anticipation of tearing down the building this summer; both housing projects remain mostly occupied at this point. Ordinarily, the District would build replacement housing before evacuation of existing subsidized housing, but according to Sean Madigan of DC's Office of Planning, the condition of the projects is "so bad" that the Fenty administration decided to purge and demolish immediately.

The District currently owns most of the entire development site, part of which was acquired when it took control of and disbanded NCRC last year; the remainder is owned by the DC Housing Authority. Late last year, the District selected One Vision Development Partners, a joint venture between William C. Smith, Jair Lynch, Banneker Ventures, and CPDC, as its development partner for the entire project. Details of the project - both the scope of development and compensation to the development team - have yet to be finalized, but the team has proposed the construction of more than 1,600 new apartments, condos and townhouses priced for mixed-income buyers and renters, as well as a 21,000-s.f. clinic, about 40,000 s.f. of retail and 220,000 s.f. of office space. According to Madigan, an increase in density and the "right mix" will be crucial to the success of the project. Once the administration comes to an agreement with the developer, the project will be placed on the lap of the city Council for approval.

Immediately replacing Terrell Junior High will be the Walker Jones school, library, recreation center and athletic fields, a project that Mayor Fenty described as being "a first-class facility from top to bottom." "If we are to expect excellence from our students we've got to provide great facilities that promote an integrated environment for learning," Fenty added Monday during his on-site speech. According to the Office of Planning and Economic Development, Walker Jones will be one of the first new schools constructed during Fenty's reign, and it will be ready, says he, in time for the kick-off of the 2009 school year. The new Walker Jones will house 100,000 s.f. of classroom, a 20,000-s.f. community recreation center and a 5,000-s.f. library along with some new playgrounds and sports fields. The entire project is expected to meet the District's green building standards.

The complete project is said to be in the ballpark of $700 million in new development. After production of the new school and its amenities, the District will then focus on the new housing, of which a third will be market rate, a third will be affordable, and a third will serve as workforce, some of which will serve as replacement housing for current residents. Madigan referenced NPR's recent decision to build its new facilities across the street from the site as "a huge vote of confidence for Northwest One."

Silver Spring’s National Association of the Deaf Building to be Replaced with Condos

The site of the former headquarters of the National Association of the Deaf (NAD), located at 814 Thayer Avenue (between Fenton and Grove Streets) in Silver Spring, will soon feature a new, modern-design condominium building, according to plans presented by developer Banneker Ventures LLC. The developer is hoping to deliver a five-story, 60-foot building containing 52 residential units (seven of which will be moderately priced dwelling units), plus 37 parking spaces, all located just blocks from the new “town square” in Silver Spring.

The architect on this project is Sorg and Associates, and the firm is proposing a radical design for this project along the lines of its Visio and T Street Flats proposals in downtown DC. Specifically, it hopes to design the building with the front angled so the windows offer views down the street instead of just in front. In addition, there will be a sculpture paying homage to the former NAD building and mission. Assuming all plans and permits are obtained, Banneker expects this project to be completed within two years.