Marriott's New Bethesda HQ

The skin on the 22-story Marriott headquarters in Bethesda is nearly installed, providing an early look at the one of the many projects that will line the Bethesda stretch of Wisconsin Avenue.  The site 800 feet north of the Bethesda Metro station at 7750 Wisconsin Avenue will serve as Marriott's new global headquarters opening in mid 2021, and include an "urban campus," chosen for its urban amenities and proximity to public transportation. The project will include a 244-room hotel operated by Marriott opening in 2022.  Boston Properties and the Bernstein Companies jointly own the land and are co-developing the hotelier's headquarters, while Bernstein will solely own and develop the hotel.  The projected $600 million project will be home to an estimated 3500 Marriott employees in the the 785,000 s.f. office building.

General Contractor Hensel Phelps is building the pair of towers that were designed by Gensler to achieve LEED Gold standards.

Bethesda Maryland commercial real estate news

Today in Pictures - NPR Home in NoMa

Under construction since the summer of 2009, work is winding down on National Public Radio's new home in NoMa.  Three years may seem a long time for a mid-sized office building, but developer Boston Properties first had to abate the toxic substances from the 83-year-old Chesapeake and Potomac Telephone Companies Warehouse before they could begin building on top.

Initial work was secretive, as NPR refused requests to release initial plans or renderings of the project, which bears an unfortunate resemblance to the FBI headquarters downtown.  Hickok Cole Architects designed the addition to the historic warehouse, which is providentially set back from the historic structure.

Washington D.C. real estate development news.  Photos courtesy Rey Lopez

Retail, Coming Soon to The Avenue in Foggy Bottom

The Avenue is the newly completed $250-million, retail-centered mixed-use project taking up 2.6 acres of George Washington University's property at 2200 Pennsylvania Avenue, NW.  The occupies the southeastern corner of Washington Circle, where the old GW Hospital once stood. Leased to Boston Properties as the developer, The Avenue, also known as Square 54, incorporates 80,000 s.f. of retail space, which will soon begin occupancy and create a new retail center in the Foggy Bottom neighborhood.

Incoming retail tenants will join three already in place at The Avenue: Devon & Blakely, a gourmet deli, opened in April; NIH Federal Credit Union, opened in May; and Citibank, which opened last week.

The soon-to-arrive retailers are as follows:

• Whole Foods Market – The high-end grocer with lowly, grassroots beginning in 1980 in Austin and world’s largest retailer of natural and organic foods (redemption through $20 beer class offering every Thursday in Logan Circle) will occupy approximately 36,000 s.f. across two levels beginning September.

• Circa at Foggy Bottom (Late June/Early July) – American-style bistro, owned by The MHG Group of Falls Church. This location will be the third in the DC-area; behind Dupont in 2007, and later Clarendon. Circa offers over 20 wines by the glass and seasonal cocktails, including a blackberry margarita with a splash of Chambord.

• Roti (Early July) – Mediterranean-themed eatery out of Chicago. Pronounced “row-tee,” this location will join three already in the District; two more are to follow suit in the fall.

• Sweetgreen (Late June/Early July) – Fast-casual restaurant, menu-listed and mix-your-own salad/wrap options, big choices with small environmental footprint (i.e. biodegradable packaging), tart fro-yo offered in house and out of the Sweetflow food truck.

• CCLC (July/August) – day care provider

• District Commons and Burger, Tap & Shake (August/September) – two-in-one concept (sit-and-eat in restaurant or grab-and-go from the counter) from the Passion Foods group. District Commons and Burger, the restaurant portion of the dual combo, will offer boozed-up milkshakes for full-grown kids, and 20 American microbrews on tap.

Commercial tenants, occupying 440,000 s.f. of office space at The Avenue, are:

• Law firms: Bergeson & Campbell, Hunton & Williams, and Vinson & Elkins

• Financial institution: Ares Capital

• Manufacturing/Tech firm: Danaher Corporation

• Shared office space: Regus

Residential units at The Avenue are ready to be occupied as well, and to date approximately 130 out of the 335 have been leased.

Washington D.C. real estate development news

GW to Add Science Building and Go Solar

George Washington University has another construction project in the works. Thanks to funding from Square 54 and low construction costs from favorable market conditions, the university has approved replacing an 8-story, 1200-space parking garage with an 8-story, 400,000 s.f. science and engineering complex with buried parking. The university also has separate plans to green its residences by adding what it says will be DC's largest single solar power network.

Although the city has not yet approved the science building, GW expects to start the $275m project within a year. The university’s project team includes Philadelphia-based Ballinger Architects, as well as Hickok Cole Architects, Boston Properties as the project manager and Clark Construction for pre-construction services, all of which are working on Square 54. The LEED-Silver designed building will double the space on the GW campus dedicated to science and engineering.

"The board’s decision to build the Science and Engineering Complex marks an important milestone in the development of George Washington into a world-class research university," said GW President Steven Knapp.

The science building, at the corner of 22nd and H streets, NW (see map, above), will feature two levels of below-ground program space, approximately 350 underground parking spaces and a retail venue on the ground floor along Eye Street.

The building is expected to be completed in late 2014 with occupancy expected in early 2015. Project planning has been underway since 2006. GW is using ground lease payments from Square 54 as part of the financing for the new project, and has been working to redistribute the lost parking as part of the Campus Plan, but has yet to release any details about where the 850 lost spaces will go.

At the same time, GW will implement "the largest source of on-site solar power in the District of Columbia," for "thermal" solar power, that is, not photovoltaic cells. The new solar thermal system will heat water for three residence halls, subtracting "about 70 tons of carbon annually," according to the school. The university intends to generate 10 percent of energy from on-campus renewable sources by 2040, and reduce carbon emissions by 40 percent by 2025, and by 80 percent by 2040 when it reaches "carbon neutrality." The remaining carbon emissions will be "mitigated" through the purchase of local offsets, such as planting trees. "This is just one of the very fist steps we are taking" says Michelle Sherrard of GW, of the solar conversion.

Skyline Innovations, a one-year-old Washington D.C.-based solar energy company, will install the solar thermal units on Building JJ, 1959 E Street and Ivory Tower free of charge and sell the hot water the systems produce to the school for a fee tied to the price of natural gas. According to Aaron Block, Director of Market Development for Skyline, the company assures lower energy costs for the user with no start-up costs by guaranteeing a lower-than-market rate for energy, which it finances by retaining the renewable energy credits. That makes Skyline the number one provider of solar energy in DC (it subcontracts installation). GW won't reveal the amount that it saves with its thermal energy conversion.

The system works by converting sunlight to thermal energy via hot water rather than electricity. An array of rooftop panels collect solar energy and convert it to heat. A series of tanks in the basement loop into the rooftop collectors, a heat exchange allows the heat to be converted from the closed-loop system into the public water.

With all the new construction, the GW Hatchet reports that Foggy Bottom residents are angling for a new Metro entrance as the completion of Square 54 adds more users of the single-entrance Metro station.

Washington DC real estate development news

Whole Foods in Foggy Bottom

Various real estate blogs are reporting that Whole Foods has signed a lease agreement with Boston Properties to occupy 37,000 s.f. in their Foggy Bottom development. The site on Washington Circle, known as Square 54, has long been rumored as a prospective house for the upscale grocer, but Boston Properties had declined to comment on the possible tenant, maintaining a Whole Foods policy of not commenting on leases and plans.

The grocery store will be the closest full-service supermarket to many Georgetowners, providing stiff competition for the newly opened Safeway just north of Georgetown. The former hospital site will provide 335 apartment units and 440,000 s.f. of office space, on a 60-year lease from George Washington University to Boston Properties. The residences are expected to open in early 2011, with Whole Foods thought to open in mid 2011.

Washington DC real estate development new

GW Site Wrapping Up

Thanks to a recent topping out, Square 54 now dominates the corner of Washington Circle nearest the Foggy Bottom Metro. A little more than two years after breaking ground, Boston Properties and general contractor Clark Construction are well underway building and filling the new mixed-use campus. Gossip about tenants includes a Whole Foods filling a large portion of the retail, though the only officially announced leases belong to law firm Hunton & Williams, NIH Federal Credit Union and lunch time favorite Devon & Blakely.

Square 54 will bring 335 rental units, 440,000 s.f. of office space, an open central courtyard and retail plaza on I Street, over 80,000 s.f. of retail space (including the mystery supermarket), and over 1,000 underground parking spaces. The project is a partnership between Boston Properties and George Washington University, which owns the 2.6-acre site. The site was formerly part of GW Hospital; Boston has a 60-year ground lease on the land.

The residential portion will include 292 market-rate rental units and 43 units set aside for affordable and work-force housing. According to the developers, the residential portion of the project will deliver in May 2011 and begin leasing in January or February of that year. Residents will have access to approximately 250 parking spaces and at least three car-sharing spaces will be available for resident use.

The commercial/retail building will deliver in March 2011, according to Richard Ellis, a Project Manager for Boston Properties."All of the retail space is currently accounted for," according to Ellis. Ellis's calculations generously include the 15,000 s.f. under lease negotiations with a potential grocer, though he declined to comment on the Whole Foods rumors. Hunton & Williams signed on for 190,000 s.f. of office space in the commercial building and according to Jake Stroman, a Senior Project Manager at Boston Properties, the total leased office space and space under lease negotiation is 315,000 s.f., leaving 125,000 s.f. of office space up for grabs.

The project was designed by Connecticut-based Pelli Clarke Pelli Architects, LLP and Sasaki and Associates, the architect of record was Hickok Cole; Boston recently hired design team Carlyn and Company Interior Design to work on the residential interiors.

Washington, DC real estate development news

Whole Foods - Gentrification Comes Belatedly to Chevy Chase

Chevy Chase may get its first Whole Foods, the much-anticipated second "anchor" to the Shops at Wisconsin Place, by the spring of 2010. While the Bethesda-Chevy Chase corridor may seem like a scripted stage setting for the Whole Foods phenomenon, Chevy Chasers have until now had to drive all the way down to Tenley for their organic Gruyere, or eke by (gasp) on Giant or TJ's foodstuffs.

New England Development (NED), Archstone and Boston Properties are jointly developing the Wisconsin Place shopping center at the Chevy Chase-DC border. The entire development took five years to complete. Today, the shopping center features 432, SK&I-designed, upscale apartments, 295,000 s.f. of office space, and 305,000 s.f. of swanky shopping destinations including Cole Haan, White House/Black Market, and Bloomingdales—a.k.a. "Wisconsin Place Anchor Number One."

Turner Construction began working on the shell that would become the new Whole Foods back in August of 2004. Just this past July, Wisconsin Place General Manager, Christine Norris assured DCMud that work on the grocery's escalators had already begun.

Now, four months after that update, construction by L.F. Jennings is underway and Amanda Orr, Communications Rep for NED, told DCMud that Whole Foods is "slated for a spring opening, for sure," but she could offer no more detail because the Whole Foods powers-that-be "made it very clear that they don't want any outside media reps speaking on their behalf."

Unfortunately, when it comes to answering questions about the new store's square footage, its design, and even the estimated Spring 2010 grand opening date posted on the Wisconsin Place web site - Whole Foods PR rep, Katie Hunsberger is only willing to confirm that the store will open sometime in the first half of 2010. And yes, we know River Road has its own, in a bad strip mall.

We got it: What happens in Whole Foods, stays in Whole Foods.

Chevy Chase Real Estate News

NPR to Start Work on New NoMa HQ

It's time turn down the volume on 88.5 FM and swap out your cardigan and khakis for a Hazmat suit, because work on National Public Radio's new NoMa headquarters will begin next month.

NPR's new 400,000-s.f. HQ at 1111 North Capitol Street, NE, will rise from an expansion and renovation of the Chesapeake and Potomac Telephone Companies Warehouse and Repair Facility presently on site. The historically-protected (and Meads Row isn't?) 83-year-old structure, however, is rife with toxic substances, including asbestos, the removal of which will constitute the first phase of development since the project was announced one year ago.

"The abatement of hazardous materials from the inside of the building and the interior demolition [will begin] in July," said NPR media contact, Danielle Deabler. “The actual construction is anticipated in late 2010 or early 2011…Our move-in date is fall 2013.”

Given the lengthy timeline in place for a full build-out of the new headquarters, Deabler tells DCmud that NPR’s development team for the project - Boston Properties and Hickok Cole Architects - have yet to produce a final design scheme for NoMa’s newest corporate high-rise. According to the NPR rep, a picture of the supposed façade that made the rounds a few months back was merely an example of Hickok Cole’s preliminary vision for the site.

“We don’t have a rendering that we are releasing publicly right now. The only rendering that has been drawn up is the one [the architects] used to bid with. Since that most likely won’t be won’t it looks like, we don’t have a final [design] to show yet,” said Deabler.

The development team is currently in the process of selecting a general contractor for hazmat removal and construction. Final bids were due on June 2^nd and a final choice will be announced shortly. (Expect NPR's pledge drive to be even more intense this year, as well.) Meanwhile, NoMa's first hotel opened its doors last week.

Square 54 Breaks Ground

With blue shovels in hand, George Washington University officials broke ground this morning on the greatly anticipated and hotly debated Square 54 project on Washington Circle. At its delivery in 2011, the $250 million mixed-use project in Foggy Bottom will include 333 residential units, 13% of which will be work-force housing, 440,000 s.f. of office space overlooking Washington Circle, an open central courtyard and retail plaza on I Street, over 80,000 s.f. of retail space (including the supermarket that has students salivating), and over 1,000 underground parking spaces. “Is it possible that this is the best mixed-use project in the city? I say yes,” Chairman of GW’s Board of Trustees, Russell Ramsey said. “This is about the vision for GW in ten years, in twenty years,” he said. 

A partnership between GWU and Boston Properties, the 2.6-acre former GW Hospital site is, as Mayor Adrian Fenty noted in yet another groundbreaking appearance this morning, the last major development site on Pennsylvania Avenue. The developers have entered into a 60-year ground lease for the redevelopment effort; Square 54 is part of a three-part development initiative that includes the campus 20-year “grow up, not out” plan and the redevelopment of The School Without Walls. Jack Evans, Council- member of Ward 2, said the project, designed by Pelli Clarke Pelli Architects, LLP and Sasaki and Associates, would bring in $12 million a year in tax revenues for the city and benefit not only the university, but also the Foggy Bottom community. While there is a history of tension between residence-hungry GW and its development-resisting neighbors, at this morning’s rainy groundbreaking, GW officials spun it optimistically, saying that the development was a positive for everyone in Foggy Bottom and welcomed neighbors in attendance. Robert Chernak, a GW official, told DCMud this morning “Beyond the project itself, the impact it has really had is on the relationship with people in the community. There was some negativity. This is finally bringing the parties together to have rational dialogue and bring together all involved. It’s about people effected in the long term.” 

 Said GWU President, Steven Knapp“Square 54 is a shining example of what GW and the city can accomplish when we work together. It represents the importance of sustainable practices and has been recognized by the Smart Growth Alliance. It will enliven the streetscape. It was thoughtfully conceived to contribute to the open space of the city.” As DCmud reported last year, GW was asked to revise the height and density of the proposed building, and the National Capital Planning Commission recommended that the Commission approve the revised proposal in April 2007. And no, a grocer has not yet been selected for the retail space.

Washington DC retail development news

Prime Lot on Capitol Hill Being Stitched Up

20 F Street NW, currently a surface parking lot next to the Irish Times, Phoenix Park Hotel and Hotel George, will soon sprout a 165,000-s.f. office building (pictured), once developer Boston Properties selects a contractor. The 10-story building is being constructed for the American College of Surgeons (ACS) who will purchase the land from Boston Properties just prior to the onset of construction. The College's Board of Regents is purchasing the site and constructing the building to house its growing Washington, DC staff and to create a more visible presence for the surgical profession.

BP has been accepting construction bids since the RFP was issued on November 19th, and will continue to take offers until January 24 - although a list of General Contractors allowed to make an offer has been limited to Clark, Bovis Lend Lease and Balfour Beatty. Subcontractors are still being encouraged to take bidding positions with the big three. Although the final exterior design is essentially complete, according to inside sources, though ACS is still making nips and tucks to the interior design.

Currently, the plan involves the construction of an office building with amenities such as a two-story atrium lobby, a first floor fitness and conference center and, more uniquely, a rooftop deck. Not to mention being just stumbling distance from the Irish Times. On the whole, the building is said to be the ultimate "gathering space," full of luxury amenities and a Hill location, but not LEED certification. The surgeons and affiliated organizations will operate on the 3rd and 10th floors, or about 35,000 s.f.; the remaining 120,000 s.f. of leasable space is currently available. The estimated ground-breaking date is this May.

New Friendship Heights Commercial, Residential Center Gets Underway

Demolition has now begun on Wisconsin Place, a mixed-use, 1.1 million s.f. project at the corner of Wisconsin and Western Avenues in Chevy Chase. Wrecking crews began a very visible demolition in January of the Hecht’s department store, while the foundation is currently being poured on the 480,000 s.f. residential tower, which is expected to come out of the ground in April. The nine-building, four-architect project, developed by a partnership of New England Development Company, Archstone-Smith, and Boston Properties, will be completed by 2009, and include 423 residential units, 305,000 s.f. of office space, retail space, and a 20,000 s.f. community center.

While there are a number of prospective vendors for the town center, Whole Foods Market and Bloomingdales are the only confirmed companies at this time. The trapezoidal Wisconsin Place will front four different streets; specialty retail and office space will overlook Wisconsin Avenue and the Metro Station, while Bloomingdales and other retail space will be located at the corner of Friendship Boulevard and Western Avenue. Connected to the community center, the residential tower will encircle a courtyard, with exterior units facing the new Whole Foods Market on Willard Avenue and a one-acre park at the corner of Willard Avenue and Friendship Boulevard.

Construction on the eight-acre property began two years ago with the construction of the Bloomingdales’ parking garage on which the store will eventually sit. Hecht’s Department store remained open until late last year, a condition of NEDC’s acquisition of the property from Hecht’s parent company, May Department Store Co., but has now been closed for demolition. Bloomingdales, expected to open in September, will take Hecht’s place as the plaza’s department store. The "Residences at Wisconsin Place", developed by Archstone-Smith and designed by Bethesda-based SK&I Architects will include 423 "luxury" rental studio apartments. According to Darryl South, Vice President of Development at Archstone, the residences will feature a high percentage of glass including living rooms with floor-to-ceiling windows. Initial occupancy of these one, two, and three bedroom apartments, starting at $1700 a month, will begin in June 2008.

Washington DC real estate development news

DC’s Downtown Parking Lots Disappear

So much for easy parking downtown. For those who prefer surface parking over the subterranean alternative, downtown DC just got more difficult as the last of the surface parking lots is developed into office space. The latest lot to go was at E St. between 8th and 9th Streets, adjacent to the Hotel Monaco. In its place will rise a joint venture by Boston Properties and KEG 1 Associates to produce a Class A office building with three levels of parking, two roof top decks, a fitness center and 325,000 sf of rentable office space. Construction commenced in April, with occupancy planned for October 1, 2007, on which date DLA Piper Rudnick is scheduled to become the first occupant. According to Boston Properties, 271,000 sf of office is already spoken for, and The Washington Stage Guild has leased 11,000 of the 16,000 sf of retail space. Downtown DC office space has some of the highest occupancy rates in the country, with many buildings currently above 95 percent occupancy.