Ft. Totten on the Rise

One of Ft. Totten's most transformative developments is at last on the way, and with it, a new neighborhood. The Art Place at Fort Totten, the 826 unit mixed-use complex that sits between the Metro station and South Dakota Avenue, is ready to begin construction "within the next few weeks." The project, conceived by the Morris and Gwendolyn Cafritz Foundation, will form a new community with over 300,000 s.f. of retail, 2282 parking spaces, a children's museum, and senior's home in 4 separate buildings.

The plan has been on the boards for years - developers hoped to break ground in 2010 even after the market crash - as part of plans by the city to spur all local owners to coordinate development of the area, one of the last Metro centers that has not seen significant development. The first phase is expected to complete 30-36 months from now.

With construction fences now up, and raze permits all but finalized, developer Jane Cafritz says demolition will commence "in the next 3 to 4 weeks" on "Building A" at South Dakota and Galloway. The multi-phase project will start with the demolition of 5 of the 15 buildings on the 16 acre site in order to make way for 1 of the 4 planned mixed-use buildings. This phase will incorporate about 530 residential units and 110,000 s.f. of retail, though no grocery store at this point due to the Walmart planned across the street, which may be underway as early as this summer.
Cafritz says timing on the project was not affected by the announcement of Walmart. "We're there to be a catalyst in the neighborhood."

Phase 1 will also incorporate a small subsidized housing component and the senior living center; and about half of the 98 units of senior housing will go to current residents of Riggs Plaza. Cafritz notes that the project was designed in phases partly to accommodate existing tenants "that we have great repsect for that have been on site literally for generations." Ultimately all the buildings will be connected by an underground parking garage. All buildings have been approved by DC zoning officials but timing and design issues for Buildings B, C and D have not yet been finalized. While no office space has been planned, Cafritz notes that the first phase will incorporate flex-space that could be either retail or office. The Children's Museum is planned for the second phase of construction.

The Cafritz Foundation had earlier dangled the prospect of hosting both the Washington National Opera and the Shakespeare Theatre for storage, rehearsal space and related shops, a scenario that has now been shelved, but Jane Cafritz says her team is now talking to other similar non-profits. All residential units will be for-rent, the "Foundation owns this and intends to keep this," says Cafritz.

Master planning for the site was done by Ehrenkrantz Eckstut and Kuhn (EE&K), Shalom Baranes Architects (SBA) has designed the first of the four buildings, and MV+A Architects is designing the retail, all to meet basic LEED certification standards.

The eight-story Building C is planned as entirely residential, built in two C-shaped wings, joined at the second level, to accommodate the possibility of a new 3rd Street connecting the Arts Place property to the neighboring Food and Friends property, should the neighbors decide to sell or redevelop at a later date.

Washington D.C. real estate development news

Ft. Totten: Hanging Tough, or Just Hanging?

Being on top of a Metro station means that real estate development and rising property values are a given; or so goes the axiom. More so if that Metro line is vermilion and close to downtown. Ft. Totten is proving the exception, with neighborhood-transforming projects sidelined, and now a distressed apartment sale shows why developers have held off.

Despite Ft. Totten's 3 Metro lines (Green, Yellow, Red), its bike trail, its local parks, its juxtaposition at several major traffic arteries and ample developable land, developers have balked at building out what seems on paper to be a model of transit-oriented, mixed-use development.

Clark Realty Capital, the only developer to have built on the site, demonstrated the hazards of pioneering, having recently lost its 5.6 acre property in a distress sale to Greystar, which paid $55m for Fort Totten Station (Greystar also snapped up 909, Axiom, Jefferson at Capitol Yards, all near the ballpark, and Jefferson at Thomas Circle.) Clark had completed the project in late 2007 after obtaining a $47m financing loan in 2006 plus a ground lease from the Washington Metropolitan Area Transit Authority, but had gotten several foreclosure notices late last year. At the time, Clark called the project "the anchor for a comprehensive revitalization plan for the Fort Totten Metro site...the first of several developments planned for the Fort Totten neighborhood," but hedged its bets with little retail space and low budget architecture.

Clark's vision might still come true, but not soon. The few single family homes in the area sell (after a while) for around $200,000, and commerce is all but forgotten. The Morris and Gwendolyn Cafritz Foundation and Lowe Enterprises, the two biggest private landowners in the area, have both iced plans for development. Representatives of Cafritz refused to speak about their project, and a representative of Lowe would say only that the project has been "put to the back burner." An Urban Land Institute (ULI) study in 2009 (sponsored by WMATA) noted that the project is "a mere 3.5 miles from the U.S. Capitol" but that "the Fort Totten market will support calls for smaller, more affordable units, and basically allow only for wood-frame construction."

If anyone sees opportunity in Fort Totten, it is WMATA. The publicly chartered organization still owns 9.3 acres around the Metro station (on top of the 5.6 it leased to Clark), and can't afford the pessimism of a private developer. The transit agency has been pushing for the past several years for Ft. Totten to be a different kind of example, one that showcases revised concepts of transportation planning, and has been working to corral developers to integrate plans, so that the individual pieces are built in some semblance of an organized whole.

Foremost among those pieces are Cafritz's Art Place and Shops at Fort Totten, 2 million s.f. with a mixture of community-serving retail, residential (over 1200 units) and arts and cultural space to house arts promoters like The Washington National Opera. Cafritz expected to begin construction in the first half of 2010.

The Lowe team (with partners Jack Sophie Development and City Partners Development, and now JBG too) was to include 898 residential units on 9 acres of land (see rendering below right), and was to have preceded Cafritz. Together the projects would have added more than 200,000 s.f. of retail space. But if its clear that projects need to be coordinated, its also clear that the area cannot yet support that much development, at least to its financiers.

Laura Cole, an executive with RCLCO and formerly head of ULI when it issued its Fort Totten study, says that there's a gap between what a financier would typically support and what might work for the area. Cole notes that a financial institution will require traditional parking-to-apartment ratios, a model that is simply too expensive for a neighborhood like Fort Totten, and sites the DC USA site as a model of overbuilt parking requirements.

WMATA is attempting to change that philosophy, and followed up with another study in 2010 with urban development planner Parsons Brinckerhoff. Nat Bottigheimer, Assistant General Manager for Planning at WMATA, seconds Cole's assessment of the financial inviability of traditional notions of housing development, but is also keen to change the way planners see parking in general. Bottigheimer's vision for the undeveloped site is a communal approach to parking, where evening uses (for residents) piggyback on daytime uses (office and retail). "We should experiment with a kind of residential building that doesn't reserve spaces for cars, the building might provide 50 or 75 shared spaces instead of 150 dedicated parking spaces...[y]ou don't want to be just doing standard models, you also want to push the envelope as a public agency to promote the achievement of these public goals that we're in business to support." Hence the ULI report.

"We don't want to find out that we've built adequate parking, and others have developed theirs, and together we all contribute more than the necessary amount of parking...but that requires alot of coordination with other property owners to come up with an overall development plan." Bottigheimer pleads the case for a concept he admits is an "untested product in this market," but points out that "it costs $40,000 per space to build...more than a vehicle. Most of these are just car storage spaces, there's got to be an efficiency to provide a better system than we have now."

While WMATA has no specific plans for its own property, and can't force other developers to abide, it still has an influential voice at the District's Office of Planning. "We will collaborate with the District to get the kind of development that makes sense for the area" says Bottigheimer...we need to do more research with the development community to see how this could work." Admirable as that may be, it still requires developers to invest in an area that now is 0 for 1. At least WMATA seems intent to keep trying. Says Bottigheimer, "all options are open."

Washington D.C. retail and commercial real estate news

Art Place at Fort Totten

Coming off its recent zoning approval, the Art Place and Shops at Fort Totten development is now being readied for the initial stages of planning and demolition, in what will be a 2 million s.f. transit-oriented project with a mixture of community-serving retail, residential and arts and cultural space to the area between South Dakota Avenue and the Fort Totten Metro. The Morris and Gwendolyn Cafritz Foundation are seeking bids to work on the nearly 17 acres of land in northeast DC's Fort Totten community. The project will be executed in several stages with one massive building in the first phase and the rest to follow. Developers expect to begin construction in the first half of 2010 and have the first building ready within 24 to 36 months from now.

Initial schematic designs call for the demolition of the Riggs Family Apartments and three warehouses currently on the site. The demolition will make room for the construction of four buildings comprised of 929 multi-family one- to three-bedroom units; 305,000 square feet of retail space; 170,000 square feet of cultural and arts spaces; and a 47,000-square-foot children's museum. Ehrenkrantz Eckstut and Kuhn (EE&K) is the master planner for the site, Shalom Baranes Architects (SBA) has designed the first of the four buildings, and MV+A Architects is designing the retail, all to meet basic LEED certification standards.

The first phase of construction will begin with Building A at South Dakota and Galloway Street, which will be joined below grade by a common foundation and parking garage, but above grade will appear as 3 distinct, adjoining buildings. The residential portion of this phase will offer 529 units including 98 units of senior housing and 43 affordable units out of a project total of 161 units set aside as affordable at 60 to 80% AMI. The retail space includes approximately 59,000 s.f. for a grocery store with supporting retail lining the street as residents walk to the metro. Cafritz Foundation Board Member Jane Cafritz speculated this retail could include stores like card shops, dry cleaners and restaurants, and is shopping around for a grocery store to anchor the first stage of development.

Though buildings B, C and D received approval, Cafritz said their exact designs are still up in the air and dependent on market conditions around the time of construction. In the PUD zoning approval, Building B is planned for three stories of retail and cultural use to include the 47,000-s.f. ground floor children's museum, ground and second floor retail and space for a child care facility and seniors' center.

The planned seven-story "cultural and arts spaces" in Building D would potentially serve both the Washington National Opera and the Shakespeare Theatre for storage, rehearsal space and related shops. The developers also offer to provide upwards of 20,000 s.f. in this building for a public library and an additional 30,000 s.f. of "community space;" giving away space like free samples at Costco.

The eight-story Building C is planned as entirely residential, built in two C-shaped wings, joined at the second level, to accommodate the possibility of a new 3rd Street connecting the Arts Place property to the neighboring Food and Friends property, should the neighbors decide to sell or redevelop at a later date. Of the 400 rental units, 30 may be set aside as affordable for artists- everyone loves the arts these days.

All this development does not come without growing pains. Several current community members living in the Riggs Family Apartments were outspoken during the PUD review process. They will be displaced from their current home and moved into temporary housing on the same site until the new affordable spaces in the Arts Place project are ready. One senior from the community and a resident of the Cafritz apartments testified in objection to the handling of the current residents, saying that residents had not been told where they were going or when.

Despite community complaints, Jane Cafritz tried to paint a rosier picture, adding that that temporary homes for the tenants are fully refurbished with new appliances and the developers will try to accommodate seniors with first floor units. Highlighting the benefits of the new project though, Cafritz said the foundation will pay the gap between the rates on the affordable units and the actual cost of a market rate units, absorbing that cost for "20 years or the life of the tenant," whichever comes first. The former Riggs tenants will have first dibs on the new affordable residences at Arts Place and Shops.

Building A images courtesy of Interface Multimedia.

Washington DC Real Estate News.

Fort Totten or Bust

Northeast’s Fort Totten will be almost unrecognizable (a good thing) by 2012 if a group of local developers are able to get their proposals off the ground. In presentations made at yesterday's DC Economic Partnership Annual Meeting and Development Showcase, developers brought forth not one, but two major development proposals for the intersection of South Dakota Avenue and Riggs Road NE. Together, they plan to bring more than million square feet of retail and nearly 2000 units of housing to the area - essentially the same model of high-density shops, apartments and arts space that Montgomery County planners used to such great effect in Silver Spring.

First on the block is Lowe Enterprises Real Estate Group and JackSophie Development’s Fort Totten Square. Plans for which have been bandied for the past 2 years, but according to Lowe's staff and publicity literature, the project is now on track for a 2010 completion. Designed by Hickock Cole Architects, their 9-acre parcel will feature 900,000 square feet of residential and retail space, complimented by 100,000 square feet of “grocer-anchored” retail. Residential units will arrive in the guise of The Dakotas – an 875 unit development that will also sport on-site parking.

In a concurrent phase of development is the Fort Totten Arts Place – a 20-acre redevelopment project being funded by the Morris & Gwendolyn Cafritz Foundation. Standing right next door to Fort Totten Square project – and on top of the neighborhood enclave that currently stands at 4^th and 5^th Streets NE – the EEK/MV+A-designed stretch of storefronts and apartment buildings will almost be a neighborhood in and of itself. For starters, the development will include 1220 residential units (220 reserved for seniors) and 147,000 square feet of retail. The latter will be reserving 9,000 square feet for a brand new Safeway supermarket, 82,000 square feet for neighborhood businesses and 6,000 square feet for a major banking branch.

You might be thinking, “Where is all the art at Arts Place?” The Washington National Opera might be a good place to start – they’ll be getting 75,500 square feet of rehearsal space, costume shops and production and administrative offices. The Shakespeare Theatre Company will also join them on the block will their own 75, 500 square foot space of administrative offices, costume and prop shops, and, yes, rehearsal space.

It’s also been seen to that the local community will get their fair share of benefits out of all redevelopment hoopla. There will be a new 27,000 square foot DC Public Library, 15,000 square feet of public performance and meeting space, a 20,000 square foot senior center, a 10,000 square foot daycare center, a gym, a health facility geared towards seniors, a cyber café, and a renovated and reconfigured plaza in Morris Square. Altruistic organization Food & Friends, which delivers meals to the terminally ill and is already located in Fort Totten, will also receive an expansion of its existing facility.

These twin packages of development should serve as a fine compliment to the joint Clark Realty – Washington Area Transit Authority apartment complex at the Metro station that completed Phase I of its’ $58 million, 3-building development earlier this year. If the Lowe and Cafritz projects make it out of the planning stages, we're going to be looking at very different Fort Totten in the future.