Clark Realty Requests Revision with WMATA's Tenley Property

Yet another version of the redeveloped Safeway in Tenleytown could be in the works if the Washington Metro Area Transit Authority Board approves a proposal to sell an adjacent .25-acre site to Clark Realty Capital. Clark offered to purchase the "chiller site" as an addition to the Safeway redevelopment plan that includes residential units above the new grocery store.

For WMATA, the purchase is a chance to repurpose underutilized land, get a new air conditioning unit for two Metro stations, and possibly bank extra cash. If the sale goes through, Clark will develop the land and put a new chiller plant in the building. The air conditioner for the Friendship Heights and Tenleytown Metro stations is already about halfway through its 20-year life cycle.

“This is an opportunity for us to get some value from the real estate holdings while improving our service,” said Steve Teitelbaum, senior real estate adviser at WMATA.

For Clark, purchasing the extra land means a continuous street front on Wisconsin Avenue and more space for development by increasing the lot to 2.75 acres from the roughly 2.5 acres it now covers. Clark's John Sunter said additional residential or retail space will be created "generally in proportion to the increased size of the site."

Current plans show four floors of residential space above the new Safeway on 42nd Street. Both the lot and the building slope back toward 43rd Street. Other residential units include townhouses and free-standing houses around the property. Sunter said the team is working on revised plans using the WMATA lot and that they "look forward to sharing any changes with the community at the appropriate time."

Elevation along Davenport Street

Redevelopment of the Safeway site has been a hot topic for some time now. Clark, Safeway and Torti Gallas presented revised plans in January to mixed reactions from residents. Among the concerns were issues of height and density in the primarily single-family community. Another presentation in March showed height reduced by one story, among other alterations.

Jonathan Bender, chairman of Advisory Neighborhood Commission (ANC) 3E, said that while some residents' concerns were addressed in the revised plans, there still was room for improvement regarding the impact of increased density on the community.

"I, and I believe most of my fellow commissioners, do not object per se to the level of density Safeway/Clark proposes," he said in an email response. "Instead, several of us are concerned that Safeway has not committed to the steps necessary to minimize the burden that such density could occasion. Perhaps the biggest concern is parking in the neighborhood."

He said the ANC has asked that the new residents be ineligible for Residential Parking Permits (RPPs). The project is intended to encourage public transportation in lieu of using personal vehicles.

But the ANC likely would support using the WMATA site, especially if it facilitates the incorporation of other ANC suggestions.

"I and other commissioners actually suggested that Safeway/Clark look into purchasing this property long before we knew they had been talking about doing so with WMATA, and perhaps before they actually had done so," Bender said. "I would especially like to see the WMATA plot used in part for additional retail offerings and enhancements to the streetscape."

The WMATA board will vote on the sale proposal April 26.

Washington, D.C. real estate development news

Today in Pictures - Flats at Atlas District

Clark Realty Capital, which broke ground on the first phase of Arboretum Place in October of 2010, is getting close to delivering its project at 1600 Maryland Avenue, NE. The first phase of construction, "The Flats at Atlas District," will yield 257 apartments when the dust settles this summer. Originally expected to initiate construction back in 2009, the project idled but a HUD loan put air beneath the developer's wings in a submarket that has seen little development of this kind. The project was designed by Niles Bolton, with interior design by RD Jones, with construction by Clark. Completion is expected "this summer." Initial leasing, which began last Thursday, is going well, according to Tracey Thomm of Clark Realty Capital, with "higher leasing volume than expected" on the 24 units just released. The Clark project sits on 5 acres, only 3 of which have been used for the Flats, leaving another 2 on which the developer will likely add another 200 units or so in the next phase, beginning pre-development this year. The developer notes that the Flats is the product of several years worth of design work that "respects the history of the neighborhood." Thomm says that "we made alot of changes based of community feedback that has substantially improved the design," something she hopes will be apparent to the community now that the project is open to the public.
Washington D.C. real estate development news

Montgomery County and RST Development Open Galaxy Apartments In Silver Spring

While Silver Spring has seen a renaissance when it comes to the improvement of the downtown, with splashy new condos and best-in-brand retail, it was never going to become another Bethesda, given the eastern-side of Montgomery County's distinctly working class roots.

Still, for the most part, the redevelop- ment that has consumed much of downtown Silver Spring over the past decade meant flashy condos and apartments for 20-something and 30-somethings who walked to work, iPod in hand, to the Discovery Channel or NOAA, or took the Metro to jobs in the District. Those condos were often paired next to legacy apartment complexes for more working-class families with far fewer amenities.

Now a new apartment complex is trying to bridge that divide. This week the Galaxy Apartments at 8025 13th Street in Silver Spring opened, offering 195 units. The mid-rise, five-story building (though note the 6-story rendering) designed by A.R. Meyers & Associates and built by Clark Realty Builders has all the amenities expected by the downtown hipster class, like a swanky Vegas-style lounge created by Hartman Design Group with a bar and leather-wrapped pool table, along with state-of-the art fitness center with floor-to-ceiling windows more befitting a Hollywood spa.

The difference this time is that there will be 82 affordable units. For singles with incomes between $33,000 and $45,000 a year, a 628 s.f. one bedroom apartment with a den will go for $1,120. That compares with the market rate of $1,770 for a similarly fitted apartment in the same building.

There are similar income restrictions for larger units, up to five residents with a maximum combined income of $69,660. The affordable units have already sold out, said Karen Widmeyer, a spokeswoman on behalf of Hercules Real Estate, the management firm for the apartments.

The site was a previously a surface parking lot owned by the Montgomery County Parking Lot District, and has been in the planning stages since 2005, going through several iterations - initially with 328 units and 700 parking spaces, shrinking in size while adding significantly to its subsidized housing component. The public parking, as well as the county-owned garage, have been integrated into the unit, now with 368 spaces.

Developers are seeking to distinguish the latest affordable housing offering from the many other high-rise apartments within walking distance of the Silver Spring Metro, pointing out the Galaxy's condo-like finishes, including granite countertops, custom cabinetry, ceramic flooring, stainless steel appliances and full-size washers and dryers. "All the units have the same amenities," said Eric Burka of Streetsense, the Bethesda-based design firm which markets the Galaxy. "It's the same if its market-rate or affordable."

The Galaxy was a partnership between Montgomery County and the developer, RST Development. The financing included a tax-exempt bond mortgage of $38.5 million, provided from the Montgomery County Housing Opportunities Commission, along with a $5 million loan from the County's Department of Housing and Community Affairs.

The Galaxy will soon be joined by another mid-rise rental unit, Priderock Capital Partners' $30 million Heritage development on Georgia Avenue (rendering above) which will offer 210 rental units on 1.8 acres starting in December, currently under construction by KBR's Building Group. The Preston Partnership is the architect of record.

The Orion Condominiums are also are being constructed next to the Galaxy on 13th Street, and the 46-unit building will begin delivery this summer.

Maryland real estate development news

Safeway Tries Again With Revamped Tenleytown Design

Officials from Safeway, Torti Gallas and Clark Realty Capital unveiled more renderings of its planned Tenleytown site last night - with once again, decidedly mixed community reviews.

Plans to replace the backwards-facing Safeway store at 42nd and Davenport, which has cheekily shown its veteran rump to Wisconsin Avenue passersby for the better part of thirty years, have been in place since August 2009. But opposition from the Office of Planning and the neighborhood ANC over an above-ground parking garage forced Safeway to suspend the project in January 2010.

Now Safeway, and its architects have returned with a newer, scaled down version, with the 56,000 square-foot store being folded in to a five-story complex with 184 apartments, 14 town homes and more than 140 spaces 0f underground parking for customers. There will also be dedicated parking for residents.

Still, a few in the Northwest DC community that is well known for its opposition to development on Wisconsin Avenue, worried about adding such high-density housing and traffic to a the single-family neighborhood, fear additional traffic and delivery trucks on nearby narrow residential streets such as Ellicott and Davenport.

"There is a great deal of concern on the density of the units," said Tenleytown residents Adam Rubinson, who attended Safeway's Jan. 18 unveiling at St. Mary Armenian Apostolic Church. "The concern is pretty much unanimous," he said in an interview.

Rubinson wants to see a "stepped-back" design along Davenport so as not to overwhelm its neighbors across the street. Safeway and Torti Gallas say they have done just that with a design that will top the trees in the neighborhood but not block sunlight during morning and evening hours.

Rubinson wants to see the height of the project, currently 79 feet, lowered to no more than 55 feet, with one story below grade, similar to that of the brand-spanking new Whole Foods along Willard Avenue in Chevy Chase, less than a mile away. "There are plenty of developers who are willing to do just that," he asserted.

Improving the look and size of the store is key for Safeway in a suddenly uber-competitive market like Washington D.C. Unionized middle-market grocery chains such as Safeway and Giant, even with their single-digit profit margins, once ruled the roost in D.C., where shoppers had little choice but to tolerate dirty stores, bare shelves, long lines and surly staff.

Now amid an influx of higher-end choices such as Whole Foods and Harris Teeter, the Safeways of the world must upgrade their legacy stores to keep pace with a changing market. "Everyone who sells food is a competitor," says Safeway spokesman Craig Muckle. Often they are stuck in between high-end but non-union grocery chains like Whole Foods and Wegmans that can charge a premium for their quality and variety, and low-cost producers like Wal-Mart, with the volume and a non-union workforce to wring additional profits out of food shoppers.

The 35,000 square foot Tenleytown Safeway, which first opened in 1957 and was remodeled in 1981, is no exception, facing competition from the aforementioned, newly-constructed Whole Foods in Chevy Chase, an existing Whole Foods in Tenleytown and a remodeled Giant Food along Western Ave. in Chevy Chase.

Muckle says if all goes well, the project could break ground in 2014. Safeway had hoped to start on the new Tenleytown Safeway once retail construction adjacent the Georgetown "Social" Safeway was completed, but now will have to wait. Torti Gallas is also the architect on that project as well. The 200-plus United Food and Commercial Workers members who work at the store will be "farmed out" to other stores during the reconstruction, according to UFCW Local 400 Secretary Mark Federici.

The debate over the size of the store and its accompanying town home and apartment developments threatens to devolve into the protracted tug-of-war that surrounded the redevelopment of the Newark Street Giant.

That store, just a mile further south on Wisconsin Ave, saw organized neighborhood resistance for the better part of a decade before the Bozzuto Group got the OK to start construction on a new 56,000 square foot facility this spring. Rubison says he hopes the Tenleytown Safeway development process doesn't go down that path.

"I think if Safeway can make some reasonable compromises, the chances of that happening are close to zero," said Rubinson. "But if they take a hard line, especially on the overall massing of the building and the number of units, and residential parking, I could see this getting mired in delays."

Safeway plans another question-and-answer session on Feb. 2 in the lobby of the Tenleytown Safeway between 6:30pm and 8:30pm.

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

First Piece of Arboretum Place Puzzle: The Flats

On Wednesday Clark Realty Capital broke ground on the first phase of Arboretum Place. Amidst the late morning downpour, developers plunged shovels into the muddied earth at at 1600 Maryland Avenue, NE, signifying the start to the first phase of construction, set to yield 257 "high-end apartments." The initial phase has been dubbed "The Flats at Atlas District," and developers expect the residences along with 5,000 s.f. of ground-floor retail to deliver in two years time. Originally expected to initiate construction back in 2009, the market downturn put a significant dent in developer's optimism. But HUD's 221(d) financing program and now Wednesday's ceremony has brought some relief to those who've worked on the project. "We are thrilled to have finally broken ground on The Flats and become part of the exciting Atlas District community," said Project Manager Tracey Thomm at the groundbreaking, explaining that "Without the involvement of HUD, none of this would have been possible."

The proposed multifamily luxury apartment community that will eventually total some 674,757 s.f. and 430 units, is located on a ray of the newly improved "Starburst" intersection (still way less delightful than an actual Starburst), directly across the street from Hechinger Mall; some apartments will have views of the Capitol. According to the developer, the long-awaited complex will bring "high-quality housing to an area that has not benefited from new residential development in many years." In addition to the growing number of retail options in the Atlas District, future residents will plenty of amenities right outside their door - a pool, a business center, a gym, indoor half basketball court, entertainment space, and landscaped gardens complete with fireplace and "meditation courtyard" are all in the works.

Georgia based Preston Partnership brained the architectural aesthetic that fuses sharp angles and a modern facade of dark red brick, cement, and large glassy bays, conveying both a sense of sophistication and an industrial-tinged simplicity. The interiors are equally classy, the renderings of the common spaces inviting the eye to superimpose an image of a lady-wooing 007 onto the leather ottomans. Another Clark subsidiary - Clark Builders Group is charged with making the architectural drawings a reality, and will begin work just in time for the winter months.

Washington D.C. Real Estate Development News

Clark Breaks Ground on Arboretum Place

The Maryland Avenue ray of the officially completed and freshly paved Starburst Intersection has a brand new mixed-use, multi-family development in its future. Like most developments, Arboretum Place, a planned apartment community at 1600 Maryland Avenue, NE, has been continuously delayed by financing complications, originally hoping to break ground in early 2009. But Clark Realty spokeswoman Joy Lutes has confirmed that construction on the project broke ground earlier this month, making the ratio

of hipsters to construction workers in the Atlas District a bit more even.

This will be the first major residential project to get underway in the H Street
vicinity. "We are excited to undertake this project in an area of the city that has continued to experience growth even during the economic downturn and be able to contribute to this historic and vibrant neighborhood," says Clark Development Executive Tracey Thomm.

Originally billed as a 430-unit condo/apartment project, only a smaller initial phase is officially in the works. For the first phase, the $36 million development will deliver 257 apartments, a 250 space parking garage, and 5,000 s.f. ground-floor retail. Units will be offered in a variety of types and sizes: studios as well as one and two bedrooms. According to the developer, the project will bring "high-quality housing to an area that has not benefited from new residential development in many years." Respecting the eclectic and independent nature of the Atlas District, developers say they intend to link up local businesses with the new retail spaces. Clark Realty will also serve as general contractor as the development team aims to deliver the first residencies in the spring of 2012.

Georgia based Preston Partnership provided architectural designs that call for sharp angles and a busy, modern facade of dark red brick, cement, and large glassy bays. The liberal use of glass will offer extensive sight lines into the large central courtyard. Aside from supplying enjoyable outdoor public space, the courtyard helps to disrupt the massing of the buildings, allowing interesting interplays of space, and also blending the development more smoothly with the character of the surrounding residential neighborhoods. Like most residential developments these days, developers have qualified the project with the "luxury" tag, meaning a pool, a business center, a gym, indoor half basketball court, entertainment space, and landscaped gardens complete with fireplace and "meditation courtyard" are all included.

Although H Street currently offers a growing plethora of chic boutiques, trendy bars, and hip restaurants, the area still retains some grittiness: an overabundance of suspect take-out Chinese food spots, liquor stores, and boarded store-fronts. Adding to the aesthetic blight of the area is the scarred H Street, ripped up and littered with orange cones and Jersey barriers while it awaits the ever-delayed streetcars. The only other major residential development on the strip, The Rappaport Companies' large mixed-use redevelopment project running on the south side of H Street between 8th and 10th has been in the works for over three years now, but won't be moving forward soon. Arboretum Place may serve as a beacon of hope, like the Atlas District, a dark horse neighborhood that might challenge 14th & U (or Midcity, if the branding sticks) for the title of most artsy alternative 'hood.

Washington D.C. Real Estate Development News

Planned Community for PG County Line

Bethesda developer The Artery Group will be back before the Montgomery County Planning Board tomorrow afternoon to vie for final approval of a sprawling 314-acre "planned community" at the Prince George’s County line in Burtonsville.

Bounded by Sandy Spring, Greentree and Old Gunpowder Roads, the so-called Fairland Community will bring 365 homes, a community center, public open space, "an extensive trail system," and a new, 11-acre elementary school site intended to divert students from currently overcrowded Burtonsville Elementary. A dramatic metamorphosis from its genesis as a golf-centered townhouse community, the project will include 46 moderately priced dwelling units of affordable townhouse and duplex residences, according to Lisa S. Schwarz, Senior Planning Specialist for the Montgomery County Department of Housing and Community Affairs. The rest of the homes on site will be detached, single-family units, to be built in three phases.

The history of the development dates back to 2004, when it was first approved by the Planning Board with a plan calling for a golf course and 400 homes on the Montgomery side of the county line. Despite support from area residents and inroads on a proposed land swap with Montgomery County for construction of the golf course, the project’s encroachment into a neighboring jurisdiction led to a veto from the Prince George’s County Council. With the developer getting a mulligan for the golf plan, tomorrow’s hearing concerns Artery’s recently amended, links-free development scheme; Planning Board staff have already lent their approval to the proposal - a move usually indicative of an impending green light from the Board itself.

The Fairland Community is precisely the kind of large-scale development Artery typically pursues in the metro area's far-outlying suburbs. In conjunction with Clark Capital Realty, they were responsible for The Pinnacle, a $55 million, 328-unit garden apartment complex in Germantown. The developer is also currently working on Arora Hills, another 1330-unit “neo-traditional” planned community in Clarksburg, with Beazer Homes and NVR.

Barry Weighs in on Poplar Point

While the inevitable fallout from the Poplar Point decision continues, one of DC’s most controversial politicians has made it plain where the blame lies: Mayor Adrian Fenty. Councilman Marion Barry opined on the subject of the District’s split with developer Clark Realty Capital over the $2.5 billion Poplar Point redevelopment in Southeast – a project once slated to deliver a hundreds of new residential and hotel units to the neighborhood, along with a new stadium for the DC United.

This past Friday, the former mayor and current Ward 8 representative issued a statement condemning both Mayor Adrian Fenty and Deputy Mayor Neil Albert’s handling of the development process. The full text of the letter follows below, courtesy of The Washington Post [grammatical errors in the original].

January 30, 2009

Honorable Adrian Fenty
1350 Pennsylvania Avenue, NW
Washington, DC 20004

Dear Mayor Fenty;

This letter is to express my disappointment at the way you and your administration has handled the Poplar Point development. The announcement this afternoon terminating the partnership with Clark Realty is another staggering blow to a project that was already hindered by an unfocused approach. I told you over a year ago that your quick change in direction to put the project out as an RFP would stall the efforts to keep things moving in the right direction. I still believe that the original approach was the best option to rapidly plan and execute this critical development. The setback today demonstrates how your administration's decision making places the promise that is Poplar Point farther out of the reach of the residents of Ward 8.

For over three years the Advisory Neighborhood Commissions, heads of civic associations, ministers and other community persons have spent hundred of hours giving input in what we in Ward 8 wanted to see at Poplar Point. Moreover, I have personally met with Deputy Mayor Neil Albert at least a dozen times as it relates to the development of Poplar Point. Early on he discussed with me the attitude of Council as it related to the original approach to the project. I told him repeatedly, that the great majority of Councilmembers, for the sake of urgency and expediency, would support the sole source deposition if the community were in agreement with the plan, which they were.

It has always been understood that this would be a complicated process. The clear attitude was to support a direction that would allow planning and other preparations to keep pace with the mountain of federal requirements that have to be satisfied. This is no longer possible, at minimum a year has been added to the process.

I have never seen the Ward 8 community so unified behind a project such as Poplar Point. Now I will be forced to face my constituents and community leaders to tell them we are headed back to the drawing board. Over my concerns and those of the people, many of whom it took a long time to convince to support any project at Polar Point, you charged ahead without us. I am certain that this serious misstep will have a lasting negative effect on the public support for the project. In addition, it will be difficult to attract a quality developer to the project. Even so, I remain optimistic that your administration will move quickly to resolve this situation. Your next steps will be crucial in maintaining the promise made to the citizens of Ward 8.

I look forward to your response on this important matter.

Sincerely,

Marion Barry
Councilmember, Ward 8

Unpoplar Point - Clark and District Sever Ties

The District announced Friday that it is ending its agreement with Clark Realty to develop Poplar Point, the 110-acre parcel that fronts the Anacostia River. In an unusual late night announcement, Deputy Mayor Neil Albert said "Clark is a great local company that will continue to do excellent work in this city. But in this extremely challenging economic environment it is no longer practical for Clark to pursue the deal structure we currently have in place." The District announced on February 14, 2008, that Clark had been selected to lead the development team. Development had always been contingent upon several key factors, such as transfer of the land from the federal to the District government and a favorable environmental impact study. Several groups have since contested the project, noting the diversity of wildlife that exists on the site, and the desirability of converting it into a 70-acre park and mixed-use development. In an interview with DCMud last May, the Deputy Mayor said the project remained on track. "Poplar Point is off in the distance, but Clark, the main developer hasn’t had problems getting the money they need. There is such a strong interest in the development of the District that as long as that interest remains, these projects will stay on schedule." Development was never expected to be imminent, with most of the interested parties pegging construction over a 10 to 20 year timeframe, the announcement is a setback for the District, which began the official search for a development partner back in August of 2007. "The District will continue the planning process for Poplar Point and pursue avenues for site remediation and infrastructure development. In the near future, the District will issue a solicitation for vertical development partners for site. All development activities will continue to be contingent upon the outcomes of the environmental impact study process," said Albert.

Washington DC commercial property news

Clark to Add Residential to Lonely Atlas District

Metro area developer Clark Realty is moving forward with their planned Arboretum Place project - a 430-unit condo/apartment development at the tail-end of the H Street corridor - aka the Atlas District.

Described by the developer as a "multifamily luxury apartment community," the project will sit on a 5-acre vacant lot located at 1600 Maryland Avenue, NE. A firm timeline for the project has yet to be established, but Clark’s publicity contact at PR firm Tomb & Associates, Joy Lutes, tells DCMud that "Clark's intention is to move forward with the project and break ground after the first quarter." Designs for Arboretum Place are being handled by the Preston Partnership.

In furtherance of the project’s “luxury” qualifier, the developer plans to outfit the community with a pool, a business center, a gym, entertainment space and gardens – amenities competitive with other H Street developments like Senate Square and, eventually, Clark hopes to attract local retailers, though it is incorporating only about 5,000 s.f. of retail space on the site. In a neighborhood best known for outlets like “Fish Sandwiches” and “Alex Carry Out,” it will likely be a welcome and necessary change.

But nothing on H Street happens quickly: note the talk of development at places such as Capitol Place (on hold), the District's H Street Corridor Revitalization Plan, the H Street trolley line (always pending), and the District's Starbust reorganization plan for the nightmare intersection at Maryland Ave / H Street / Benning Road, to name just a few of the ambitious projects that have garnered far more time and money in outreach and planning than actual construction. Maybe next real estate boom.

Washington DC retail and real estate development 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.