Chapin Street Project Up for Review

Though projects like Nehemiah Center and 14 W seem to be DOA, at least one 14th Street corridor planned development still has a a pulse; 1412 Chapin Street, NW, has a date with the Zoning Commission tonight. Buwa Binite of Dantes Partners is seeking zoning approval for a five-story, 44-unit, residential building in the Meridian Hill neighborhood, equidistant from the Columbia Heights and U Street Metro stations. The Office of Planning staff report recommends approval of the application, which would make it the third planned PUD in the immediate area; Dantes' smaller-scale development could be the first to actually deliver.

The proposed residential building would replace a vacant lot that once held the Berkshire, a residential building larger than the proposed structure that burned down in 1996. Units will be made affordable, for 30 years, at no more than 60% AMI, and will likely cost $1,200 or so a month. Below-grade parking will provide twice as many bicycle spaces as car spaces (34 and 17, respectively) with one parking space set aside for service/delivery vehicles. The ground floor, which will include a community room, will occupy 100% of the available lot space, with the remaining above grade floors taking on a "U-shape" to occupy only 80% of the lot space.

The Commission previously expressed concerns over the PGN Architects' design, which included vinyl siding and blue tones. The updated design is for gray and copper-toned paneling, expanded use of blond brick and stone veneer bands. Though the original design for the at-risk west side of the building would not have had windows, with the exception of the interior courtyard buildings, the newest design calls for glass block panels to "enliven the appearance."

For community benefits, the developers will offer $50 SmartTrip card and subsidize membership fees for either a SmartBike or Zip Car membership for each unit upon move-in.

The size of the project matches the scale of the neighboring buildings, though approved PUD's like the wayward Nehemiah Center would be significantly larger than the Dantes project. In all likelihood, the project will gain approval thanks to the staff approval. Though Binite was reticent - "we typically shy away from media attention to any of or projects" - at a community meeting last summer, the developer indicated he hoped to gain approval this May or June and begin construction in October 2010.

Washington, DC real estate development news

Justice Park Showdown

Four development groups are vying for the opportunity build new residential on the site of the former Justice Park, a 12,000 s.f. parcel at 1421 Euclid Street N.W. in Columbia Heights. At an ANC meeting yesterday, teams presented their visions and their reasons to "pick me," though the plans all essentially create the same affordable residential product. As the developers compete over design, community benefits and financing capabilities, one group has less-than-subtly accused the rest of making empty promises. Though that sounds a lot like hot air, it gets to the core of an issue raised by our readers in response to DCMud articles on recent RFP awards and the opaque selection process for winning projects. It will be interesting to see if such a message resonates with the community and if it effects a change in the selection process in the Mayor's office. We're doubtful.

The Argos Group/Potomac Investment Partners joined forces with Sorg Architects and Ellisdale Construction to present a condo building with 34 units, 12 of which will be affordable. The futuristic, Jetson-like glass design will be built to LEED standards and offer 40 parking spaces. The team boasted local credentials and a relationship with the Fraternal Order of Police; we don't know what that has to do with getting the bid but it sounds impressive doesn't it? In the 30-slide presentation, the group did not discuss how the project would be financed, save for one bullet point, on the 29th slide, citing "financial capabilities." Hmm, doesn't quite ooze confidence.

Next up is the Euclid Community Partners, comprised of Dantes Partners, Perdomo Group and Capitol Construction Enterprises. The group proposes 37 units - all affordable rentals - for households earning at or below $60,000 a year. The spin for Euclid was that there are plenty of available luxury condos for high-earners nearby, but not enough workforce housing; they are filling a need in the community. The development team also boasts an available, self-financed $550,000 pre-development budget, claiming that the project would not require District funding. Now that's something to give pause. Dantes had luck on another RFP recently as part of the West End Development project team.

Now, for the self-proclaimed heavy hitter: Mosaic Urban Partners, Bogdan Builders and Bonstra Haresign Architects. The team promoted plans for their "Justicia" (ick, try again), a 27-unit, four story residential building with 8 "income restricted homeownership units." The Justicia team tried to rattle the competition in a two-fold strategy. First, by raising concerns about other groups' abilities to finance and deliver on projects, especially in these tough economic times. Bogdan claims they have abilities, pointing to their Logan Station project, which finished sales in 2009 - a tricky point, since they actually finished build-out in 2007, well before construction financing dried up. Mosaic also argued that a smaller project, like theirs, does not require any zoning approval and is therefore a better bet than one that does. Fair enough, though the competing designs could gain ANC support and probably will not make too many waves during zoning review.

Finally, the Neighborhood Development Company (NDC), with partners Hamel Builders and PGN Architects, propose a 39-unit, 5-story condo building. The project would offer 12 of the units as affordable and boast LEED Silver design elements. The only team to give a timeline, the NDC team indicated the project would require a zoning change, meaning the building would likely deliver during the first half of 2013. NDC has delivered projects like The Residences at Georgia Avenue during the financing crunch, though the team did not indicate whether or not it would require District funding.

According to the timeline on the website for the Deputy Mayor for Planning and Economic Development, a winner should be announced this month.

Washington DC real estate development news


Correction: The developers pointed out to DCMud that though the Logan Station project finished in 2007, their Cityscape on Belmont project was financed and sold out during the crunch. 

Manna Begins Columbia Heights Condo Project

Non-profit Manna, Inc has just gotten underway in its efforts to bring 15 new condominiums to Clifton Street in Columbia Heights, removing one of the few remaining empty lots in the area. Though construction has just begun, the non-profit already has most of the units under contract. Manna - the developer, architect, contractor and even financier - obtained the lot under the now-defunct DC Homestead Program, which helped non-profits get District land for low-income development projects. Construction on the Cardozo Court Condominium, at 1343 Clifton, began last October and is expected to complete by early next year. Cardozo is one of four Manna condominium projects set to deliver over the course of the next year.

Cardozo Court will offer its homes from $175,000 to $260,000, available to purchasers earning at or below 80% of Area Median Income. Manna has begun signing contracts on the units, with nine already claimed.

The total development costs are estimated at $3.4 million and financing is being provided by Local Initiatives Support Corporation, BB&T, Department of Housing and Community Development. Since its founding in 1982, Manna has developed and sold over 1,000 units in the District.

Washington DC real estate development news

Meridian Pint: Building Up to a June Grand Opening (draft)

A June 2010 grand opening is in the works for Meridian Pint, 3DG's much-anticipated Belgian beer hot spot at the site of the old Bi-Rite Super Market at 3400 11th Street, NW, Washington DC in Columbia Heights. 3DG CEO John Goldman tells DCMud, that the $3 million project came out almost exactly as his all-in-one architect, construction, and development team planned. The building "looks almost identical to the rendering," says Goldman, and is a "contemporary architectural statement that's unique for the neighborhood. We hope it will inspire others to think outside the box." Goldman blames "lots of permitting and regulatory delays from the city" as the reason his team was unable to finish exterior construction by their original Summer 2009 deadline, but assures that they have now "delivered the shell to the tenants" whose interior design and renovation is "well underway." Those tenants, by the way, are John Andrade, the current co-owner of Asylum on 18^th Street, NW and his team of managers and contractors. Andrade signed on to a ten year lease of the 9,500 s.f. space two years ago, after Warehouse Theater owner, Paul Ruppert backed out of opening his own live music and food venue at the space. Although Andrade maintains his new place is "not a sports bar," he still plans to coincide what he's calling the "grandiose grand opening" of Meridian Pint and his downstairs bar Joint Chiefs with the start of the 2010 World Cup Games in June. Andrade boasts that he "did the bulk of the [interior] design work myself," and says progress behind the doors is moving at a "blistering" pace. But until the opening, he's keeping his vision for the interior "Top Secret."

  

Washington DC retail and commercial Real Estate News

District Council Hands Out Tax Breaks to Developers

Today, the District of Columbia Council approved three bills that would exempt several developers from property taxes throughout the city, with one exemption lasting indefinitely. Yup. Indefinitely. Councilmembers were handing out tax abatements like candy at a parade to Affordable Housing Opportunities Inc., Neighborhood Development Company, and Donatelli Development. The tax abatements come in exchange for residential developments that provide housing at affordable levels in communities ranging from Georgia Avenue to Columbia Heights, Congress Heights to Naylor Road. Though abatements are often offered as a preemptive tool to encourage affordable housing, the Donatelli project delivered last July; the abatement in this case softens the blow of a major condo development that turned rental when the financial headwinds were too strong.

Donatelli's Park Place, which opened atop the Georgia Avenue-Petworth Metro station last summer boasting 156 rental apartments and 5 rowhouses, offered 20% of the units to low-income tenants. Park Place is a $71 million, 200,000 square-foot housing and retail project. The abatement begins FY 2009 and exempts the developer from property taxes for the next 10 years and increases by 10% for the years 11 through 20 until the point at which the developer is paying full property taxes. In 20 years. Though, according to Brian DeBose, Communications Director for Councilmember Jim Graham, this is the an unusual request from Donatelli, whose projects have consistently set aside affordable housing, without any expectation of tax abatement. Graham saw fit to support the developer, a DC resident, and to "better advantage the building" during an economic downturn.

Neighborhood Development Company's The Heights on Georgia Avenue proposes to bring 69 new residential units and ground floor retail with half of the units set aside as affordable. The Georgia Avenue site was acquired by a partnership of NDC and Mi Casa Inc. – a DC-based non-profit that specializes in restoring aging properties and converting them into affordable housing. Architect Graham Parker designed the building, which will come in at a cost of approximately $25 million. The project received the vote of approval from the ANC for the zoning adjustments needed to bring in the development. The abatement for The Heights is the same as the Park Place abatement.

A bill submitted by Councilmember Marion Barry also provides indefinite tax abatement on two properties owned by Affordable Housing Opportunities Inc. (AHO), and even paying back taxes already received from FY 2008. The exempted are the former Wilson Court Apartments at 523-525 Mellon Street SE, purchased in 2008 for $1.5 million, and 2765 Naylor Road in SE, which the developer purchased in July 2008 for $2.8 million. Nelson Architects designed the renovations for both buildings. Plans for the former property include 36 single room units and 15 efficiencies, including two for on-site staff. The units will be made available to special needs single adults all with initial incomes at or below 30 to 50% of the Area Median Income (AMI). Neighbors have objected strongly to the proposed use, but Troy Swan of SOME indicated the project plans may change since the Mellon Street project did not receive any Low Income Housing Tax Credits (LIHTC). The latter AHO property on Naylor Road will include 40 units at or below 60% AMI and received a LIHTC award from the DC Department of Housing and Community Development (DHCD) in August.


The approval of AHO's abatement for Naylor Road and Mellon Street comes despite a June letter from Natwar M. Gandhi, the District's Chief Financial Officer, stating funds are "not sufficient in the FY 2009 budget or the proposed FY 2010 through FY 2013 budget" indicating the total negative fiscal impact through FY 2013 would total $383,700. Though abatement bill also includes an amendment that would supposedly offset the cost of the lost taxes through parking meters.


Washington, DC real estate and development news.

Image of 523 Mellon Street SE Courtesy of South East Socialite.

New Condo Survey - Harvard Lofts

Washington DC's most recent addition to the new condominium market is Harvard Lofts, a 12-unit condo on the south side of Columbia Heights, located at 1466 Harvard Street. With construction recently completed in May of 2009, Harvard Lofts opened for sale on Saturday for the first time, DCMud provides a first look.

It is obvious from the exterior that the building is a decidedly modern twist to an otherwise historic row of single family homes and small apartment buildings, many of which are still unrenovated. The mostly glass facade incorporates a gated entry to the side courtyard, with private entrances to each of the 4 "townhouse" style condos. Each townhouse, priced from $599,000 to $639,000, has a first floor bedroom and 2nd floor master bedroom and bath, with lofted spaces overlooking the living room below. Townhouses showcase large windows, but are only exposed on the east side that looks directly into the base of the condominiums next door, allowing for little natural light, even on the well lit half of the units.


The main entrance leads to the remaining 8 condominiums, each with a distinct layout and design - a revitalizing break from the shoe box layout of most new condos. In keeping with the uber-contemporary architectural design, most units have double-height ceilings, with floor-to-ceiling windows that frame the historic neighborhood to the north or city and monument views to the south, you choose.



Each condo has a different expression of purely modern design, with hardwoods over a concrete slab, for privacy and structural integrity, and white-on-espresso Porcelanosa kitchens, with Bosch appliances, that vary from traditional u-shaped to contemporary kitchen-living combinations, though the latter are insufficiently small. Although less than 2 blocks from the Metro, tandem parking is available to purchase; most condos have private outdoor space.

The penthouse level features two small one-bedroom units with private terraces, and two 2-bed plus den penthouses, each with several large private terraces at $875,000 each. The developer, Harvard Loft, LLC, notes that pains were taken to make the building green, from choice of materials to efficient appliances and innovative lighting that is both efficient and bright, though no LEED certification was achieved. The condos are open on weekends and by appointment.

Washington DC real estate news

Condos Get Affordable (and Green) in Columbia Heights

District-based affordable housing providers Manna Inc. will soon begin work on the latest residential endeavor for the increasingly crowded Columbia Heights neighborhood: the Cardozo Court Condominiums. Located steps from 14^th Street at 1343 Clifton Street, NW, the 15-unit, low-cost condo development is being developed, designed and constructed in-house by Manna and will overtake a vacant lot once owned by the city, but long envisioned as a potential home for low-income families.

“We acquired the lot back in the mid-90s from the DC government under the Homestead Program. The exchange was that we got the property and would develop it affordably,” said Karen Williams, Project Manager at Manna, Inc. “We have to get approved by [the Office of Housing and Community Development] because it is a Homestead project. That program no longer exists…but is now administered by the Property Acquisition and Disposition Division.”

The three-story project’s units will start at 551 square feet for a one bedroom with the largest, two-bedroom units measuring in at 1025 square feet. All will be available to area residents making less than 60% AMI, and, though there’s no word on what types of amenities are planned for the site, the project will be built according Enterprise Community Partners’ “Green Communities Criteria” – a LEED “aligned” program specifically aimed at certifying eco-friendly, affordable housing. Given the project’s ties the recent flurry of similarly minded DC developments, Cardozo Court looks to be on the fast track to breaking ground by summer’s end.

“We’re two steps away from getting our building permit,” said Williams. “Right now it’s in [the Washington Area Sewer Authority] and then it’ll go to structural, but, with permitting, you can hardly guess at [a solid date]. Ideally, we would start later this summer or in the early fall.”

Prices at Cardozo Court will start at $175,000 and, once completed, the development will join two other two other District-sponsored, brand-new, affordable residential developments: Somerset Development’s Hubbard Place redevelopment at 3500 14^th Street, NW and Jubilee Inc.’s refurbished Ontario Court apartments at 2525 Ontario Road, NW in Adams Morgan.

Washington DC real estate development news

District Officials Decry Condos, Celebrate Affordable Housing in Columbia Heights

A cadre of District officials, including Mayor Adrian Fenty and Congresswoman Eleanor Holmes Norton, gathered in Columbia Heights today for the re-opening of the 230-unit Hubbard Place affordable housing complex (formerly the Cavalier Apartments) at 3500 14^th Street, NW. Spearheaded by the Somerset Development Company and the 3500 14^th Street Tenants Association, the $52 million renovation has not only reinvigorated a Washington building recently added to the National Register of Historic Places, but has secured - and ensured the longevity - of a once notorious Section 8 public housing project as well.

"Just a few short years ago, fire marshals had to stand on each floor to assure the safety of the residents. It was dangerous to walk in the halls or ride the elevators…This building has been made safe again for the residents who live here…But this time with a twist,” said Somerset principal Nancy Hooff. “It has affordable rents [and] it’s near public transportation and shopping. Smart growth, indeed.”

According to the Office of the Deputy Mayor for Planning and Economic Development, residents of Hubbard Place can look forward to updated amenities that include “new elevators, the creation of new community spaces and a computer lab, secure access, new kitchens and baths, windows, roof and all new common areas.” The city block-straddling development also includes a new home for the Latin American Youth Center, which provides educational and vocational services to area youth, as well as two new businesses: the Black Lion Deli and George’s Shoe Repair. In the view of Eleanor Holmes Norton, the dramatic shift in Hubbard Place's fortunes can be attributed directly to tireless efforts of the building’s residents.

“There is no way in which the city and the federal government could have done a thing with Hubbard [Place], if there had not been a determined band of residents who said, ‘We’re not going to let this place go’…I’m just pleased to see something that I can point to that [the US Department of Housing and Urban Development] has done these days,” said the congresswoman, not quite jokingly.

The local government, however, did play a prominent role in gathering the formidable sum required for the large-scale renovation procedures, as overseen by the architects of Kann Partners and the project’s general contractor, Hamel Builders. Out of the development’s $52 million budget, the Department of Housing and Community Development provided $8.5 million for the acquisition of the property, with the District of Columbia Housing Authority pitching in an additional $4.6 million for historic preservation. The building upgrades were funded primarily through $26 million in tax exempt bonds issued by the District of the Columbia Housing Finance Agency. It’s a role that District officials, like Ward 1 Councilmember Jim Graham, were eager to hang their hat on.

“We have enough condos,” said Graham. “We can build condos where there once vacant lots surrounded by hurricane fences. But we are going to keep our diversity and we’re going to keep our low-income housing. We’re going to build new low-income housing…We’re going to do all this because we care.”

Hubbard Place is the second such affordable housing renovation opened by the city in as many weeks. Last week, Mayor Fenty presided over the grand re-opening of Jubilee Housing, Inc.’s Ontario Court project at 2525 Ontario Road, NW, in nearby Adams Morgan. New condos are being built in Washington DC.

Social Safeway Set for Demolition Next Month

Following last year's announcement that Georgetown's old "Social Safeway" at 1855 Wisconsin Ave, NW would disappear (temporarily) in 2009, now executives at the supermarket chain say the aging facility will meet the wrecking ball as soon as it closes up shop once and for all on April 26^th.

"Demolition will start immediately [following the store closing]," said Safeway spokesman Craig Muckle. "We plan to have it done for a March 2010 opening." In the meantime, shoppers at Safeway are stocking up on discounted food as if there were light snow in the forecast.

But fear not, valued customers. As stated above, the new and improved Social Safeway is planned to open next year with a 21^st century design - courtesy of Torti Gallas Architects - and a new floorplan that will largely abolish the current store’s massive and congestion-prone parking lot. By reclaiming part of its underutilized footprint, the from-scratch storefront will bare more resemblance to CityVista’s so-called “Sexy Safeway” rather than it’s former incarnation. Muckle tells DCmud that the new building’s design is the result of a lengthy approval process that the company underwent with locals and DC authorities.

“We had a number of visits with [the Old Georgetown Board] and [the US Commission of] Fine Arts. We went back a couple of times as there were some revisions requested along the way. But I don’t recall there being anything wildly out of line or that needed to be redrawn significantly,” he said. “We did spend a lot of time with the ANC, so I think we can say safely that the ongoing conversation really made the process much less challenging.”

In the meantime, renovation procedures take a much more low-key tactic at the "Not So Safeway" at 1747 Columbia Road, NW. That store will remain open when it goes under the knife (as early as early next month) and, although the store will forgo demolition, the end result will be much the same as in Georgetown.

“Under the current situation, [we couldn’t close the store]. We would have liked to, but if we’re not able to that, we’ll do the in-place remodel. It will be a complete interior renovation and decorum upgrade,” said Muckle. “It will look like…our other upgraded Safeways, of which there are now nine or ten in the area.”

Washington DC retail and commercial property news

Industry Insight: Adrian G. Washington of the Neighborhood Development Company

As the founder and CEO of the Neighborhood Development Company (NDC), Adrian G. Washington has overseen numerous development initiatives in the District with a primary focus on boutique condominiums and affordable housing in Columbia Heights and along a resurgent Georgia Avenue corridor. In between working on a current slate of projects that includes the Residences at Georgia Avenue, the Heights on Georgia Avenue and a proposal for the mixed-income redevelopment of the Park Morton public housing complex, Mr. Washington spoke with DCmud about the state of development in the District of Columbia, the challenges of affordable housing and what the future of the residential market. 

Can you give us an overview of the company? 

I’ve been doing this for about twenty years. I started out as basic as it gets - rehabbing brownstones – and moved up from there. Then, I worked for a big corporate real estate company called the National Housing Partnership and we did a lot of affordable housing stuff. I started NDC about ten years ago by doing really the same sorts of things – rehabbing brownstones. By the next year, we were doing 4-unit buildings, then 10-unit buildings and it sort of just got bigger and bigger. It really kind of took off about five years ago. I brought in my partner here and a couple of junior partners, a couple of vice presidents who really brought it up to a professional level. We started doing bigger projects. We were lucky to be on teams that got selected to do CityVista and the old Convention Center site, now called City Center. We really kind of rode the condo boom when it was hot; we had a lot of really cool boutique projects. So it started out focusing on Columbia Heights because we’re always emerging neighborhood focused. When Columbia Heights became more established, we sort of shifted it. So for our last projects, we’ve done a lot of stuff up and down Georgia Avenue – projects like the Lofts at Brightwood and Lamont Street Lofts. We’ve also done some affordable rental projects like the Residences at Georgia Avenue. As the economy shifted, we started doing more affordable rental projects. Our Heights at Georgia Avenue project will be almost like a sister project – same size, same kind of concept with affordable housing on top and retail on the ground floor. Then we proposed on the Park Morton site and we’ll also be proposing on two of the DC school sites. We’ve teamed with EYA on the Hines School site and with Equity Residential on the Stevens School site. 

Indeed, most of your new construction seems to be focused on Georgia Avenue.  Are you still bullish on the area? 

We hope so. We like it. We’re headquartered here and I live about five minutes away. We’ve always been focused on this area and we just saw it as the next “cool neighborhood.” You have Columbia Heights to the east and with Georgia being a Great Street, the city’s been really interested in what we’re doing and certainly helped out on a lot of things. We’ll be coordinating with them for some of the infrastructure improvements with Great Streets. It’s a really great transportation corridor. It’s got some good parcels that are available and, particularly at the start, there were some great industrial buildings that you could convert to lofts. There's not as much now, but it’s a great area and we kind of adopted it as our backyard. We really wanted to be focused on particular neighborhoods, which is where we are. 

How does the current state of the market affect a company that’s primarily focused on affordable housing? 

I think it’s been good and bad. When things started getting tougher, most people - me included – said affordable housing financing is not going to be affected by the credit crisis. Well, in fact, it has. The most popular mechanism for financing affordable housing is the low income housing tax credit, where essentially you get credits that allow companies to reduce their taxes. Well, a lot fewer companies have taxable gains these days, so the market for that – while it hasn’t crashed – has declined considerably. Also, the District a lot of times provided gap financing. A lot of that comes from the Housing Production Trust Fund that is funded by sale and recordation taxes. At the same time, the gaps have gotten bigger because construction costs went up and land values went up. The District used to be fairly flush and now they’re pretty tight. That’s been a little challenging, but the good thing is that the demand is still there. Land prices are starting to retract a little bit and construction costs are starting to mitigate. So it’s much tougher, just like private development is much tougher. But I think DC is really strong market with basic fundamentals like what you can rent things for and demand. I really haven’t seen things as bad yet as I read in the papers and I’m optimistic because demand for things like condos and rentals really haven’t declined as much as the headlines suggest. 

One crucial element of development is retail. CityVista, of course, has a Safeway and your newly completed building, the Residences at Georgia Avenue, is planned to include a Yes! Organic Market. How do you go about making neighborhoods once thought undesirable attractive to retailers?

Those were two very different cases. In terms of CityVista, Safeway was part of the team right from the beginning. Actually, before we became part of the team, Safeway and Lowe Enterprises, our partners, were already linked to that project. Safeway saw it as a great place to put a new urban model Safeway. The thing with Yes! Organic is that we approached them very early on. We didn’t have a broker or anything. They just saw it as a great location. We had some personal connections with Gary Cha, the head of the company, and, as matter of fact, he liked it much that he wanted to buy it because he saw the potential of the neighborhood and said, “I want to get in on the ground floor.” That’s how we’ve done it. We had the Meridian Restaurant at our Lofts at Brightwood project and it was the same type of thing – a really entrepreneurial retailer that was willing to take a chance and invest in the neighborhood in the same way we were. That’s how we traditionally work – not through brokerage channels, but with retailers who’ve really gotten it and want to get in early on a project and help design the project to meet their specifications. It sort of goes together. 

At this point, it’s safe to say that CityVista has been a success, while other projects in the immediate area have stumbled. What would you chalk that up to? 

 It’s funny because we just had a case study that ULI did and they put together all the people –developers, contractors, lawyers and architects. One of the things that we talked about was doing a true mixed-use project – some condos, some apartments and retail. It’s really hard from a construction standpoint, from a legal standpoint, from an architectural standpoint, but if you get right and you get the right mix…synergy is a corny term, but it really applies to this. We got this great Safeway, we got Busboys and Poets and we have a real mix of retailers at the base, all of which people really want. These kind of lifestyle-type things help it be a place where people really want to be. NoMa is still kind of an emerging neighborhood and people want to feel like they have a sense of community – a place where they can live, they go downstairs to shop, they can go out to eat, they can go to go the gym. And not just a little in-house gym, but a really cool gym like Results. It’s a really cool place and what we’ve seen is that it’s drawn people from all over. You think it would be people who live in different parts of DC, but we have people from Prince George’s County and Virginia. It’s just been a nice sort of synergy and I think the rental component energizes the condo component and the condo component energizes the retail component and vice versa. And I think it’s priced right. It’s not entry-level pricing, but it’s not super-luxury pricing either and a lot of people can afford it. We knew we were going to sell like that.

NDC has a record of vying for some prominent District issued RFPs, including Park Morton, CityVista and 5th and I. How would you characterize your relationship with the Fenty administration and the Office of the Deputy Mayor for Planning and Economic Development? 

I’m not an insider or anything, but I value and appreciate what they’re doing and I’d like to think that they feel the same about us. I feel that our goals converge. They’re interested in developing Georgia Avenue and we are too. They’re interested in promoting local businesses and I live in the city, I work in the city and I hire people in the city. It’s matter of being on the same page and understanding their challenges. For me, having been inside the government at one time, I understand what it’s like to be on the other side of the table - the challenges that you have from a political perspective and from a legal perspective. A lot of times, you go through these long agreements with people and can seem like, “Why are they asking for that? It makes no sense.” Having been on the other side of the table, I understand that they have to get certain things through certain offices and fiscal years and so on. Having spent a bit of time in their shoes helps me understand what their hot buttons are and what’s important. That helps the negotiation process. The important thing is that we share the same goals. We want improve neighborhoods. We want to work with the community. Like most developers, we feel that we have to reflect what’s going on and what people are looking for. 

Are there any details that you can share about your proposal for the redevelopment of Park Morton? 

The first thing that I really want to emphasize is that we’ve teamed with a really great partner. They're called Community Builders. They’re Boston-based, but they have a DC office. They’re really the leading non-profit developer in the country. They’ve done over 20,000 units in terms of projects. They really specialize in these sorts of difficult public housing transformations. They have a great human capital program and do things like job training, education and public safety – things that affordable housing demands. Our team, with our local knowledge and our skill, is a great combination. Essentially, we stuck pretty close to the plan that was developed when we were part of the task force that designed the original Park Morton plan that was in the RFP submission. They’re looking for a three-phase plan – roughly a third, a third, a third - that will provide homes for all the current people who are there and then mix them up with moderate income and market rate. It’s, give or take, 500 units of housing. We’ll be demolishing this area [along Park Road] for Phase I and building a total of 195 units. We’ll have [a separate] building dedicated to senior citizens and mixed-income units. Prior to demolition, we would provide for the relocation of families that are in there now and put them in units in and around the area, so they could stay in the neighborhood. We’d then demolish the [second area along Morton Street] and move people into the first phase, along with new people from outside the community and build another roughly 250 units. Then, finally the third [along Lamont Street] would be building condominiums. By that point, we think the neighborhood will have improved, the market will have improved and that it would a great place to do a condominium building. 

Many owners of undeveloped property are now caught between inability to get financing and maturity default. How is NDC positioned to make it through the next two or so years? 

I think we’re well positioned. We’re either lucky or smart. I’m happy to take either one. We’ve done condo projects over the years and about two years ago, we began to sort of feel something in the air. Four years ago, if you built something, people were lining up. As far as two years ago, things began to slow down and we decided to decrease our exposure to condos. We did a couple of projects, but they were very value priced and we were able to sell out of those. Right now, we have zero exposure to condos. Our project across the street, the Residences at Georgia Avenue, is a moderate income rental. We’re in lease up now and we’re getting tons of responses, so we feel very good about how that project is going to perform. The Heights on Georgia Avenue that’s basically across the street from Park Morton, we just got through with PUD and we’re just looking for financing now. Again, we think we’ve created a product that’s moderately priced and we’re pretty optimistic that we’ll get financing for that. We think that we’re in a very good place. We’re lucky to be part of CityVista that, amidst all the problems, is performing well. We’re well-positioned and I think it’s a great time to be a developer. A lot of newcomers and weaker competitors will be going away. It’s more challenging – you need more creativity – but that’s kind of cool.  

Is it possible to be profitable selling new construction there in this environment? 

I think so. It has to be the right place and the right design. And one of the really crazy but cool things is that things change so quickly. Our focus has been on the kind of building - it’s called podium style - that has first floor retail with four or five stories of residential above it. It’s a stick-built product. What happened in the last few years is that the delta between concrete buildings and stick-built really expanded. This was kind of a nice sweet spot in terms of building a building that’s six-stories high, but the cost per square foot was a lot lower. That was the threshold and, if you wanted to go any higher than that, you’d have to go with concrete. We really looked at this as model for the Heights and Park Morton and we’ve seen prices for this come down. What we don’t know is if concrete construction is going to come back down and become much more competitive. You’ve got to moderate, just from a supply and demand perspective – not just in the US, but around the world. A lot of stuff is clearly not going to get built. Commodity prices, concrete construction, oil and gas, steel – all that’s come down and the demand for labor has come down as well. 

Do you see NDC starting any market-rate condominium projects in the near future? 

Oh yeah, absolutely. Whether you’re condo or rental, I think that DC is great place to live. I think in terms of a competitive advantage, with the new administration and the Stimulus Package, that the city is becoming more in demand. I liked the city before the market went down and I like it even more now. I think that supply and demand is going to come back into balance. We’re seeing things like the month’s inventory start to come down. Real estate is cyclical. We had a particularly strong up cycle and now we’ve had a particularly strong down cycle, but it’s going to come back. Just in terms of how long it takes to do things, if you look at the demand, I think the trade-up buyer has kind of decreased a little bit and speculative investment buyer has gone away completely. But that first-time buyer and the price point from three to five hundred thousand has pretty much stayed there. But nothing’s getting built. Nobody, for any kind of project of any significant size, is starting. There’s nothing in the pipeline now and the way these projects work is that if you’re not in the pipeline now, you’re not going to deliver for at least three years – more like four or five. As the economy straightens itself out and demand is solid and starts to increase, the supply is going to be way low. Things that will be delivering in two, three or four years, I think there will be a great market for. We could easily do a boutique building of under a hundred units in that time frame. I’m really bullish on that.

Washington DC commercial real estate news

New Columbia Heights Destination Open by Fall

With demolition of the old Bi-Rite Super Market location now complete, 3DG Development is progressing steadily with construction of Columbia Height's soon-to-be newest hotspot, Meridian Pint - a Belgian beer-centric restaurant, bar and lounge from John Andrade, the current owner of Asylum on 18^th Street, NW. John Goldman, CEO of 3DG, tells DCmud that, "Demolition has been occurring in phases since we started in September, but we're now done with demolition and are going upwards with steel and framing at this point… The core and shell [are] to be complete by June and doors [will be] open by fall." Located at 3400 11th Street, NW, the site will also will also host second-story office space, to be occupied jointly by 3DG and Somilar International, a DC-based sustainable tourism consultant. Since breaking ground on the project in April of last year, the development team – which also includes 3DG as an architect – has met with the surrounding community as recently as March 11th, when they made a presentation to the local ANC 1A. In keeping with their all-in-one modus operandi, 3DG Construction, LLC is also serving as general contractor on the project.

Washington DC retail and restaurant news

Organic Grocer in Columbia Heights to Build in March

Richmond-based organic grocer Ellwood Thompson’s Local Market has announced it will start construction on its second location (and first District store) in March of next year. The grocer, which announced its intention to occupy the space last month, will build out the 15,000 square foot store inside the DC USA at 14^th and Irving Streets NW. It’s an area that Ellwood Thompson’s CEO, Ryan Youngman, saw as a perfect fit for his stores’ locally grown, organic produce.

ET bills itself as supporting "sustainable practices ...supporting local farmers" with food "free of artificial flavors, colors, preservatives and sweeteners." Said Youngman: "We’ve always seen DC as market that could really handle it. It’s always been on our list of places to go...We’re one independent store and wherever you grow, you want to get your biggest possible audience."

After meeting with nearly 20 developers and scouting locations across the city (including PN Hoffman’s storefront at Union Row, now occupied by Yes! Organic), Ellwood formally partnered with MV+A Architects to resurrect a derelict storefront at 14^th and Irving that the architecture firm had been seeking to fill with a viable tenant. Once completed – with historic facade intact - the new Ellwood Thompson’s will share the block with a recently opened Washington Sports Club location and Best Buy.

According to Youngman, the local community registered almost immediate support once word got out that his organization was vetting it as the possible location for an independent, health-conscious grocer – a feeling that was reciprocated on Ellwood Thompson’s end as well. Says Youngman:

We really just loved the walk of it. We loved the people and the activism aspect of it. I’ve got thousands of e-mails of testimony from people who wanted us to come up there...we just got hit after hit after hit and we’d like to profess our undying gratitude. After 800 or 900 e-mails, it just became the obvious location for us. This is also an economy where we really need to be in a place where the discretionary income is there and it’s under-served in that area. Giant is cranking away up there, but there’s no alternative for a grocery.

Washington DC-based Prince Construction has been selected to build the project. Construction is slated to begin in March of 2009.

Washington DC commercial real estate news

New Condo Opens in Columbia Heights

A new condominium will open its doors this weekend when the Cityscape on Belmont condominium in Columbia Heights opens to the public today. Bethesda-based Bogdan Builders started construction on the 28-unit building in September of last year, and expects settlements before the end of the year. Located at 1330 Belmont Street, NW, the building will feature ceiling heights from 10'8 to 15'4, traditional interiors, and limited outdoor parking, with prices to start at $384,900. The wood frame construction features an exterior skin of brick on the facade, and while it's not "another architectural masterpiece!" - the predictably hyperbolic realtor-speak of the sales team - it does sit on the hill in Columbia Heights, giving it views of the city from the rear. Half the new condos will be on one level, the other half on two, a few with private roof decks, and each with exposure on the north and south facades. Cityscape on Belmont, known until now as Belmont Vista, was designed by Zahn Design. Bogdan purchased the land four years ago in a deal struck nearby at the MacDonald's at 14th & U (ew.) Bogdan's newest project joins a chorus of adjacent developments in what adds up to a busy construction site, all now under construction, including Level2's View14 (170 residential units), the Solea (59 units), and the Nehemiah Center, which has just begun demolition, to be eventually replaced by a large apartment building, all within feet of the entrance of Cityscape. Bogdan's self-proclaimed style is "suburban style" in the city, having previously built sprawling houses in Potomac; recent examples of their urban handiwork are available at Logan Station, the Villaggio, and the Ivy at Harvard.

Washington DC retail and construction news

New Condo in Columbia Heights

There's a new condo in town. Though that wouldn't have been so newsworthy a few years ago, the dearth of new construction makes us happy to be able to report that inventory doesn't just shrink. Drummond Development has come out of the ground with Privado, its most recent project, a 16-unit building on Chapin Street in Columbia Heights.

The project will sit on the crest of the Hill overlooking DC, reportedly providing rare views across the city from the upper floors. Developers hope that adjacent Meridian Hill Park, as well as the recently opened DC USA and newly revived Columbia Heights center, will be an attractant for condo sales, but aren't taking chances. According to Steve Schwat of Drummond, the condominium will feature "real wood stained entry doors, solid real wood floors...dove tail drawers, and Siedle full color video/audio entry systems with biometric fingerprint access." Not mincing words, Schwat says that interior details permeate the thought behind the building, including "super-silent powerful bath fans - not those cheap noise makers everyone else uses...even our garbage disposals are better. Its designed for those that appreciate true quality."

Drummond has seemingly not lost its footing in the current market, completing numerous apartment renovations throughout DC as well as having recently completed Meridian Heights, The Drummond, Archbold, Providence Square, and Penn Circle, all condo projects in or near downtown DC. The project is designed by PGN Architects., and should be complete late this year; the units will range in price from the high $300's to the $900's.

By Rite Development in Columbia Heights

3DG, a District-based architecture and full-service development firm, is now spreading the word about its $3 million plan to redevelop the Bi-Rite building (pictured) at 11th and Park Road in Columbia Heights. 3DG will create a two-story, mixed-use building out of the current one, and plans to offer retail and office space. The development firm made the April 15th groundbreaking announcement today.

Before the shovels have even hit the dirt, 3DG has invited DC restaurateur John Andrade to operate a new two-story restaurant out of the ground floor and below-grade level. Andrade, current owner of Asylum in Adams Morgan, plans to open Meridian Pint in the new building, which will offer American "comfort-food," a "generous vegetarian/vegan section," and downstairs lounge area.

Along with housing Meridian Pint, the new building at 3400 11th Street will also offer office space on the second floor; half of which will be occupied by 3DG and the other half of which will house Solimar International, a DC-based sustainable tourism consultant.

The building itself has been vacant for six years, formerly serving as a liquor and grocery store. According to 3DG, the current structure is "low-slung and out of scale with the rest of the neighborhood." Accordingly, the firm claims it will "transform the prominent corner by applying a modern design language" and "[insert] a second story, set back some 22 feet." 3DG also plans to add an "object wall" which will serve as a 'dramatic design element' within the structure, and catch the eyes of passersby.

"There are so many aspects of this project that we're proud of...Bringing such a fantastic restaurant to the 11th Street corridor. And, we hope, raising the bar for architectural design in the area," said 3DG CEO John Goldman. On the topic of design, Goldman went on talk about the building's 'level of green'. "While we're not going to be going for a LEED certification, we will be building it as sustainably as possible."

Although the ceremonial groundbreaking is taking place on the 15th, actual construction can generally be expected to start within the month, according to Goldman. 3DG plans to deliver later this year.

Washington DC retail news