Hilton Residential Addition Gets 2-Year Extension from HPRB

After purchasing the iconic Hilton for $290 million in May of 2007, a pair of California dreamers (and developers), LA-based Lowe Enterprises Inc. and Beverly Hills-based Canyon-Johnson Urban Funds (CJUF), are still hoping to follow through on their intentions of adding an apartment tower to the 1,119-room hotel. Unfortunately the market has been rather uncooperative, to say the least, since their vision first started taking shape. With architectural drawings in hand, courtesy of Hany Hassan of Beyer Blinder Belle, developers earned the support of the Historic Preservation Office (HPO) in 2008. There has been little action since.

As Deputy State Historic Preservation Officer Steve Calcott explained to the Review Board (HPRB) earlier this week, like so many others development, "this project has been put on hold due to the depreciation in real estate values, increasingly stringent lending requirements for residential projects, and general economic downturn." This time represented by Architectural Historian Andi Adams of Goulston Storrs, developers successfully acquired a two-year extension on their nearly expired HPRB consent as per Calcott's recommendation. It was a more somber success than their 2008 victory.

The extension is precautionary, as their approved plans and stated course of action are far from set in stone. Project developers recently submitted construction plans and a permit application, and reviewers determined that the plans are inadequately detailed and proposed alterations that would require further HPO vetting and HPRB final approval. VP of Construction Managment Mike Mansager at the Lowe's Washington Hilton confirmed that the project was on hold, and that details like number of units and architectural specifics remain up in the air. "This is entirely market-driven," he explained, "everything is in flux and subject to change." Dansinger did admit that a two year extension doesn't mean two years of inaction, as the project could get moving again quickly if the market continues to improve.

Washington D.C. Real Estate Development News

Onyx Apartments

 

Faison, a Charlotte-based developer with a big stake in the DC condo market, having developed the Whitman and 1010 Mass, partnered with Canyon-Johnson Urban Fund (i.e. Magic Johnson), a major fund for urban redevelopment projects, to build the Onyx, a 14-story residential tower at First & L Sts, within the Capitol Riverfront BID. Construction began in November 2006 and finished in early 2009. Calling it Onyx on First, Faison developed 266 residential units over a four-level underground parking garage with approximately 210 parking spaces, with a striking glass/brick exterior. The majority of units, designed to attract entry-level professionals, are small, and originally sold as a condominium, ranging from the high $200k's to the high $300k's with an average size of 725 s.f., but in early 2008 converted to an apartment building. Onyx residents have a public courtyard, game room, bike room, floor-to-ceiling windows, and pool. The name "Onyx on First" is a play on the address and the nearby baseball stadium, and 1 block from Metro. Designed by Esocoff & Associates. 

Washington DC commercial real estate news

Park Place Opens atop Georgia Avenue Metro

Park Place, perhaps Georgia Avenue's most momentous new development, was celebrated in a ribbon-cutting ceremony today. The new apartment building, a $71 million, 200,000 square-foot housing and retail project atop the Georgia Avenue-Petworth Metro station, was built by Donatelli Development. Donatelli teamed with DC-based Gragg & Associates to work on the project, a 161-unit residential with 17,000 s.f. of ground floor retail. Mayor Fenty issued a press release and said the opening of Park Place meant that "economic development on Georgia Avenue has finally arrived." Amen. Though construction is still incomplete, the development will soon add 156 rental apartments and 5 rental town homes. The building will offer 20% of the space as affordable housing, something the community has long desired, according to Fenty. Residents will also have access to 187 underground parking spaces in addition to the Metro. The ribbon cutting ceremony took place on the landscaped roof, which boasts views of the National Cathedral, Capitol Dome, and National Monument. 

The retail space will be divided into 8 bays and the occupants will include a cafe, two sit-down restaurants and potentially a wine store. Local businesses from the U-Street area (familiar with Donatelli's project there) are considering coming to the area to build their second or third DC-location in the Georgia Avenue/Petworth Community, according to the developer. Funding for the project came from several sources including $15 million from Canyon Johnson Urban Funds (a partnership with Magic Johnson), $55 million Citibank and $2 million of Gragg's and Donatelli's own coffers "because of the financing state." Donatelli was awarded the low-income supporting contract without govt. subsidy by the Office of the Deputy Mayor for Planning and Economic Development through a competitive process in 2004, and construction began in 2006. The project was originally intended as a for-sale condominium, but the meltdown in condo prices in Petworth forced the conversion to for-rent units. Chris Donatelli has had a busy few weeks, just last week we reported on his planned development adjacent to the Benning Road Metro. Donatelli, which also revitalized Columbia Heights, is building another, smaller apartment building across the street from Park Place.

Washington DC retail for lease and commercial property news

The Washington Hilton Gets Nod to Expand

Washington's second most notorious hotel, the Washington Hilton, has sailed through the Historic Preservation and Review Board's (HPRB) approval process with their plans for an 11-story residential addition. With a unanimous 6-0 decision in the bag, the hotel's current owners, Lowe Enterprises Real Estate Group, can move ahead with their intent to bring 160 new apartments or condos to the historically-registered landmark at 1919 Connecticut Avenue NW. The project received historic landmark status in July, triggering the HPRB review.

Beyer Blinder Belle Architects & Planners LLP have been tasked with designing the addition to what is consistently designated one of the Washington area's more aesthetically challenged edifices (up there with Dulles Airport's Jetsons-influenced terminal). Their design will “echo its curvilinear form” – although it will be comprised mostly of glass, in contrast to the Hilton’s concrete-on-concrete facade. According to documents submitted to the HPRB, there is no firm start date for construction, but work on the Hilton is described as “a multi-year project that will occur in phases so that the hotel can continue in operation as the work proceeds.” The cost is expected to total more than $100 million.

In addition to construction, several other elements of the hotel will be renovated. Landscape architects Rhodeside & Harwell will be redesigning the hotel pool, courtyard and residential terrace, while the hotel’s 110,000 square feet of meeting and conference will undergo a dramatic reconfiguration and possibly see the addition of a new restaurant and coffee bar. Parking will also undergo a shift as a new entrance/exit to the residential garage is installed along T Street NW. The residential addition is expected to be sold as condominium units.

Prior to last week’s approval, the project – and the prospect of a massive construction project along Connecticut Avenue, blocks from Dupont Circle – was predictably quick to draw the ire of local citizens associations, including the Kalorama Citizens Association, the Dupont Circle Conservancy, and the Dupont and Adams Morgan ANC, all of which have cited almost-certain complications relating to the project’s bulk, design scheme and traffic.

“Apparently, under zoning law they’re allowed to have some additional amount of FAR [floor area ratio] – which we’re disputing,” said Matt Forman, Executive Vice President of the KCA, whose organization has filed an appeal with the zoning board to contest the addition. “It then comes down to a question of [changing the] design. I didn’t think it was ever going to be a question of HPRB denying the entire project.”

Built in 1965, the Washington Hilton was purchased by Lowe and the Canyon-Johnson Urban Fund in May of last year for $290 million. The renovation plans were announced almost immediately afterwards. Paris Hilton could not be reached for comment.

Washington DC commercial property news

Onyx on First Opens Its Doors

It's time for another ballpark area opening: The Onyx on First by Faison Development and Canyon-Johnson will open its doors Monday. The developer has been giving small tours of the fourteen-story, 266 unit apartment building at 1st and L Streets, SE for the last few weeks, but will officially open the leasing office next week. The $60 million project, near the Navy Yard metro, offers units sized from studios to two bedrooms.

Onyx apartments feature floor-to-ceiling windows, stainless steel appliances, stained concrete floors and full size washer-dryers. The community, which sits two blocks from the Nationals Stadium, includes a roof deck with a pool, WiFi in common areas, a fitness center, 24-hour concierge service and a clubroom with billiards.

Designed by Esocoff and Associates, the project was originally planned as a condominium building with prices in the high $200 and $300,000's, but went rental earlier this year. Construction began in November 2006. RAM Partners, LLC is the property management company.

Onyx on First to Break Ground by Start of November

According to developers Faison and Canyon-Johnson Urban Funds (yes, that Magic Johnson), the Onyx on First - a 14-story, 226-unit condominium located at 1st and L Streets NE, just one block form the new Nationals ballpark - is expected to break ground by the end of October. This $100 million project, which will rise next to Opus’ planned 13-story office building at this location, will also feature a four-level underground parking garage with approximately 210 parking spaces and 65 storage spaces. Pricing is expected to start in the upper $200,000 range to the high $300,000s, with units averaging 725 sf. Completion is expected sometime in 2008, when the new ballpark should be ready.

Washington DC real estate development news