Yet More NoMa Residents

Just a few days after NoMa announced its first new housing in a century, the downtown DC neighborhood will get yet another bump in residents with the opening of The Loree Grand on Tuesday. The Loree Grand at Union Place is the first phase of the Cohen Companies planned Union Place development, which is intended to deliver more than 700 new apartments, 9,000 s.f. of retail, a daycare center, and central courtyard open to the public. The Loree Grand, named after local resident Loree Murray who fought local gangs and drug-dealers and had her home firebombed as a thank-you, is the only portion of Union Place to begin construction so far. The opening of the apartment building brings 212 new rental units to 250 K St., NE, with 173 parking spaces in two levels below the 10-story frame. The building, designed by GTM Architects and built by ADC Builders, began construction in July 2007. The bulk of the 212 units are variations on 1-bedroom apartments with the remaining 30 units in various 2-bedroom configurations. The first two floors attempt to replicate traditional Washington DC row house design, with entrances both on the street and from the interior. Cohen did not pursue LEED certification on the building, but the building does support a green roof. Two weeks ago the Loree Grand began taking initial applications from artists for 30 artist-designed apartments, thanks to a partnership with the Cultural Development Corporation. Phase II of Union Place is currently on hold. Cohen also built the Velocity condos in the Capitol Riverfront (ballpark) neighborhood, and is exploring another mixed-use project at 14th and Virginia Avenue, SE. 

Washington, DC real estate development news

Artists Line Up for Housing

The scene at Flashpoint art space in Penn Quarter at 7:45 this morning was a flashback - hopeful denizens waiting in line for the newest housing offering. The scene was not, however, a replay of the condo frenzy of 2005, but a new subsidized housing venue aimed at struggling area artists. Eleven eager applicants waited in line for one of 30 units designated as "artist housing" in the new Loree Grand nearing completion in NoMa, the first phase of Union Place, a new 212-unit apartment building at 250 K St., NE. The benefaction comes from a partnership between developer Cohen Companies and the Cultural Development Corporation (CuDC), encouraging "artists, arts administrators, and arts educators" with dedicated subsidized rental apartments. The CuDC began accepting applications today and will continue through May 24th. So who's an "artist?" To screen the uncreative, an independent panel of arts professionals will review three artistic competencies: demonstrated body of work and commitment to an artistic practice, active ongoing participation in the arts industry and potential for an affordable live-work unit to positively impact an artistic career. Commercially successful artists need not apply, as the unit allotments are based on need. But don't picture starving sidewalk caricaturists in tie-dyes; in DC "struggling" is a relative term. The CuDC is looking for painters, filmmakers, graphic designers, even "arts administrators"and educators, with incomes based on the DC Department of Housing and Community Development's income limits. That puts income minimums at $34,958 (have IRS forms in hand) for a studio and income maximums at $82,160 for the largest two-bedroom apartments. Cohen purchased the land for just over $1 million and has spent $45 million on construction costs with ADC Builders and GTM Architects, the general contractor and architect, respectively. The 10-story Loree Grand - one of the few multi-family buildings underway immediately east of the railroad tracks, will also offer 3,700 s.f. of retail space, which Eric Siegel, Executive VP at Cohen, says he hopes to fill with a food-wine-coffee shop along the lines of Tryst in Adams Morgan or Busboys and Poets. 

No retail tenants have yet committed, and Siegel dismissed rumors of a hot yoga studio. First-in-line Lisa Simmons camped in her Mini for the night to ensure her place in line (pictured at right). The DC native is a short-film maker whose focus is "urban dance in urban spaces." The self-professed nomad now floats between her mother's and boyfriend's places and leapt (well, slept) at the chance to be surrounded by other artists close to Union Station's transit options. Painter Matthew Mann heard about the housing through CuDC's Red Circle, which brings together artists and business leaders. Mann was in line so early for the appeal of "affordable space" that "wasn't derelict." Julia Suszynski and Katherine VanWyk, interns with the Shakespeare Theatre Company, are hoping for a new apartment when their subsidized intern housing runs out. Both heard about the housing through their current work and Suszynski said she thinks artist housing "is an interesting way to segment people." Both hope to qualify as arts administrators. Emma Fisher, Communications Manager with CuDC, said she was happy with the early turn out and expected more applicants throughout the day. Units should be ready for move-in by June. Rentals run from $999 to $1330 for a studio, and up to $1657 for a two-bedroom. Correction: The income guidelines quoted above are determined by the U.S. Department of Housing and Urban Development, not by the District government. 

Shaun Courtney contributed to this story. Washington, DC real estate development news

Cohen Proposes Southeast Development

Though much has been made of the development plans in the Southeast ballpark area, another part of Near Southeast is finally getting some attention, not without drama. This week, the National Capital Planning Commission (NCPC) will review the Cohen Companies' plans to permanently close several unimproved streets that fall within the original L'Enfant city and are technically federal property, but that are now effectively segregated from all other life forms by the Southwest Expressway and Anacostia River. The intersection of 14th Street, M Street and Virginia Avenue in SE could get the addition of 815,000 s.f. of hotel, retail, office and commercial space, if the District and the Developer manage to jump some technical hurdles before a June 1, 2010 deadline. A little background: MIF Realty had a 99-year assignment agreement (lease) with the District for the Southwest Gangplank Marina. In June 1999, the Cohen Companies, under the name CASCO Marina LLC, sought to take over the leasehold from MIF, a contract between the two companies required that the lease transfer take place prior to November 22, 1999 or the contract would be automatically terminated. Enter the District. The District's Redevelopment Land Agency (RLA) stepped into the lease transfer, requesting several hearings and ultimately ruling that MIF was in default on the property for not having properly addressed damage and disposed of insurance proceeds. RLA would overlook the default in exchange for a re-negotiated lease for the marina upon the transfer to CASCO. The RLA officially handed down this decision on November 22, 1999 at which point MIF contested the default claims and simultaneously allowed the contract between CASCO and MIF to end. CASCO proceeded to sue the District for interference in the transaction and for $25 million in punitive damages. 

 After several suits and appeals, the District and CASCO eventually entered into a settlement agreement. The District will transfer the Southeast property, valued at $8 million, to the developers and ensure District support of the street closings and necessary zoning changes to allow a development with a 6.0 floor to area ratio density. In exchange for the land and support, the Cohen Companies will release its claim to a leasehold to the Gangplank Marina. The whole process has a ticking clock; if the land exchange, zoning and street closure approvals are not finalized by the June 1, 2010 deadline referenced above, then the Cohen Companies can withdraw from the agreement and could once again pursue a lawsuit against the District over the Southwest property and related punitive damages. The District Council in March approved the land transfer and density elements. The bill was then signed by the Mayor in April and will receive Congressional review. According to the NCPC staff report, the agreement should be law by May 27, 2010. NCPC will review the matter Thursday and submit its opinion to the Council for consideration, the Council will vote on the street closures bill this month. The street closures bill would exempt the developers from several requirements, such as paying rent on the closed street and from having to provide affordable housing to offset the increase in commercial space. NCPC's Staff Report finds fault with several elements of the plan, in both the agreement between the District and the developer and with the actual design. NCPC staff notes that the streets in question are part of the original L'Enfant Plan, and therefore owned by the federal government. But NCPC cannot actually administer the necessary bureaucratic smack down to resolve the conflict between District and the feds about the rights to transfer titles. NCPC's Staff Report also notes that the plan for bridges connecting the proposed buildings would block viewsheds (see image at left for the lovely view from the property line). Now, that's a familiar complaint...think streetcars. The staff recommended an approval of the initial design, but suggest the obstructing elements be kindly removed. The NCPC will take up the issue this Thursday. 

  Update: To clarify, the NCPC's stance on the viewsheds and vistas within the L'Enfant plan reflect the opinion of the District's own Historic Preservation Review Board (HPRB). In January the HPRB recommended that "any encroachment on L'Enfant views and vistas be completely avoided or minimized to the maximum extent feasible." 

Washington, DC real estate development news

NoMa's First Residential Projects

Union Station's finally getting new neighbors as NoMa's very first new residential developments approach completion. The Loree Grand, the first phase of the planned Union Place development, brings 212 new rental units to 250 K St., NE. The building, which began construction in July 2007, is on track to be ready for occupants by March or April. Next door Paradigm Development is hard at work on The Washington Center student housing also slated for April delivery. The new NoMa residents will have gobs of transportation options including the metro, Marc and Amtrak lines, buses, the new bikestation and, if the street cars ever get worked out, a short ride to the H Street/Atlas District. The two new residential elements will be joined by Constitution Square, which is also expected to be finished in 2010. It's looking to be a good year for NoMa. Loree Grand developer, the Cohen Companies, purchased the land for just over $1 million and has spent $45 million on construction costs with ADC Builders and GTM Architects, the general contractor and architect, respectively. The bulk of the 212 units are variations on 1-bedroom apartments with the remaining 30 units built to 2-bedroom configurations. The Loree Grand will also offer 30 affordable apartments, likely to go to artists, arts administrators, and arts educators thanks to a partnership with the Cultural Development Corporation. Though not certified officially green, the building features a green roof with self-sustaining plant life, but makes up for it with 173 parking spaces in two below-grade levels and an additional 39 spaces on an adjoining surface parking lot. The Loree sits on the corner of 3rd and K Streets with 10 stories at 90ft on the corner stepping down to 7 stories at 60ft on the north end. The design features three shades of brick with precast concrete trim-work and detailing. The the first two floors reflect traditional Washington row house designs, with unit entrances fronting K Street and 3rd Street that will also be accessible from the interior. The building includes amenities such as a 2,000-s.f. private fitness center and 1,500-s.f. "party room". On the ground floor at 3rd and K sits approximately 3,700 s.f. of retail space, which Eric Siegel, Executive VP at the Cohen Companies, says he hopes to fill with a food/wine/coffee shop along the lines of Tryst in Adams Morgan. When(ever) the second phase of Union Place finishes, residents will also have access to a child care facility. According to Michelle Pilon, a Sr. Project Manager at the Cohen Companies, Phase II of Union Place is "currently on hold," but will ultimately feature 500 apartment units and 8,400 s.f. of commercial tenant space. 

Siegel indicated the group was working on drawings now for Phase II, but it sounds like neighbors at the Loree Grand won't have to worry about construction noise for a while. Facing the Loree is 1001 3rd St. NE, soon to be home to students of The Washington Center for Internships and Academic Seminars. The 140,000 s.f. project should deliver this April with 95 rental units and 14,000 s.f. for a state of the art auditorium, classroom space and one level of underground parking with 35 spaces for the swarms of interns who hit DC every year. The Washington Center purchased the property in January of last year for $8.2 million from Greenebaum and Rose. The sale also included designs for the six-story building by architects at Davis Carter Scott, whose plans needed only a few interior alterations to accommodate the student housing. According to Steve Griffin of Paradigm, the housing should be home to 1,200 students rotated throughout the year. Most units are two bedrooms, two baths at about 1,000 s.f. each; not too shabby for interns. In 2003 Greenebaum and Rose bought the land which was once home to the Capitol Cab Company. 

The Davis Carter Scott plans, which were sold in 2009 along with the property, originally called for a $20 million, six story, 92,800-s.f. residential building. In May of 2008 Greenebaum and Rose partner, Sam Rose, told DCMud, “For now, it’s a piece of land with a permit. We’re not starting until the world looks prettier." It would seem that $8.2 million looked a lot prettier than a questionable condo project. The two projects are huge improvements over the former cab company and what was at one time a major drug intersection. The Loree Grand is named after Loree Murray, a former area resident who founded Near Northeast Citizens Against Crime and Drugs to organize neighbors against the rampant cocaine trade and violence in the 1980s. The group aided the police in fighting against one of the biggest cocaine drug rings in DC that at one time operated at 2nd and K St NE, future home of urbanites and interns. Liz Price, President of the NoMa BID, said, "all this residential is a new area for us. We're really excited to build residential density in this neighborhood."

Washington DC commercial property news

Velocity Condos Opens in Southeast DC

The Cohen Companies’ Velocity Condos, near the SE Navy Yard Metro and Nationals Stadium, hopes to entice buyers with their October 3rd and 4th "Grand Opening" event to celebrate completion of construction. Developers worked with ADC builders to create a condominium complex that promises to give on-the-go DC-types a taste of “downtown Manhattan in the middle of DC.” Boasting standard "luxury" features like stainless steel and granite, Velocity hopes to entice very patient buyers to invest in the Capitol Riverfront's only new condo for sale.

The 200-unit, 14-story Velocity features standard amenities like the 24-hour concierge service and underground garage parking. But the sales team hopes other touches like Velocity’s rooftop pool deck, private balconies, full-height granite backsplashes, and built-in lazy Susans will go a long way toward separating these units from the pack. Residents may even have a manicured central courtyard to look forward to next year, if plans coalesce for construction of an identical, 200-unit, Phase 2 condominium next door; but that looks unlikely, and the lot is still vacant. 

  Sales Manager Vicki Johnston explains that some of the condo's finer details like extra walk-in storage space and deeper-than-standard bath tubs can be attributed to a woman’s touch as they were envisioned “by the amazing, completely female design team at GTM Architects.” And according to Johnston, Southeast DC condo shoppers might be "surprised" to learn these are “the only condos in the ballpark area. All the other units around here are co-ops and rental units.” Of course that may be by default - since JPI's three nearby condo projects turned rental thanks to the market (JPI fizzled as well), as did Faison's Onyx, all of which are now substantially leased (ok, thanks to giving away months of free rent). Then there's Velocity. Since beginning sales in 2007, only 58 of the available 200 units have been purchased—so it might be premature to rule out rental units in Velocity's future. Despite these modest sales numbers, Johnston sounds confident that the right potential buyer could rake in big bucks on resale, assuming he or she is “willing to hold out for a little while.” Prices for Velocity units begin at $317,900 ($295 condo fee) for a 644 s.f. studio and run the gamut up to $784,900 ($683 condo fee) for a 1,492 s.f. 2BR/2BA/Den combo. The one bedroom, two bath, den condo has been the most popular among buyers thus far and runs $483,900 ($488 condo fee). If you are willing to take the risk while the units are still plentiful, the rewards include a $1,000 credit towards customizing your own closets and a free parking space worth $35,000 (the garage holds an unusually high ratio of 1.5 spaces for condo). Now, it’s only that small matter of the neighborhood building up around it.

District of Columbia retail and real estate development news

Capitol Riverfront Showcase This Weekend

With passage of the stimulus bill now behind us, the Capitol Riverfront BID (CRBID) is teaming with local artist collective Artomatic and starving artist patrons, The Pink Line Project, to highlight a trio of residential properties along the Southeast Waterfront this coming weekend. Entitled “Luck of the Draw,” the festival/marketing showcase will include art installations and live music coincidentally located at three prominent nouveau Southeast developments: the Cohen Companies’ Velocity Condominiums, JPI’s Axiom at Capitol Yards, and Faison’s Onyx on First.

The free public festivities kick off this Friday, February 13th at 6 PM and run through Sunday, February 15th. Residential units and lounges at the three aforementioned properties will be populated with “photography, installation art, graffiti artists, live music, and DJs and dancing;” we can only presume that there might be a few agents on hand (wink wink) to facilitate the transition from the dance floor to the sales office. Talk about mixed-use.

The cross-pollinating event will also serve a prelude to the CRBID’s 2009 partnership with Artomatic, which will be holding a 10^th anniversary party of their very own in the Capitol Riverfront in just a few months. Artomatic had previously teamed with competing development district, NoMA, for their 2008 exhibition.

"With our 2007 Artomatic we began working with the Business Improvement Districts...and found partnering with the BIDs as a perfect way for Artomatic to better engage the neighborhoods we were in and better leverage our outreach and marketing efforts for our event," said Artomatic representative and featured artist, Patrick Oberman.

Cohen Companies Joins Southeast Redevelopment

It’s a one, two, three-phase development for the SE ballpark area. The Rockville-based Cohen Companies (working with ADC Builders) is in the process of attaining permits for its 820,000 s.f. mixed-use project that is planned for 1025 First Street SE (the former home of old-school nightclubs Wet and Edge). Three blocks away from the new Nationals Stadium, Phase One of the project will include Velocity, A Condominium, a 200-unit building with below ground parking for residents. The building will also include a central courtyard and restaurant retail space on the ground floor.

Phase Two will be identical to Velocity with another 200 condominium units. Plans for Phase Three have not been finalized, however candidates for the third building include a hotel with condos, an office building, and more retail space.

Speaking of one of many new developments in the area, Michelle Pilon, project coordinator at Cohen, said the project is an important part of the revitalization of Southeast. “The revitalization of Southeast is going to bring such vitality, urban art, and retail to the area – it will put DC into the 21st century. It will not just be this federal government city, it will have a vibe.” Construction is slated to begin on June 1st with completion scheduled for the end of 2009.