Arts at 5th and I Finally Moving Forward?

At a Mount Vernon Square Neighborhood Association meeting last night, a Donohoe Companies representative explained the firm’s new plans for the long, long, long awaited Arts at 5th & I project, a real estate development deal initially announced back in September 2008.

The good news: the project, located just off Massachusetts Avenue at the corner of 5th and I streets NW, is apparently finally moving forward, according to its developers. The bad news: completion won't be until 2016, and the ‘arts’ element that gave the project its name has largely disappeared, and the development itself seems to have been distinctly scaled back from earlier iterations.

Renderings from the project's website

Jad Donohoe explained the company’s plans to roughly 15 residents gathered for the community organization’s monthly meeting, though he didn't have any new visual images to release. The new concept includes a boutique hotel with an entrance on 5th Street, and an adjoining apartment building facing I Street that will hold roughly 140 units and max out the height. The project will include at least 4,000 square feet of ground floor retail space; most of that will be dedicated to a large restaurant connected to the hotel and also accessible from 5th Street, but plans include a smaller space on I Street as well. Three levels of underground parking will be accessible from an I Street entrance.

The firm’s initial plans were considerably more ambitious. They included a high-end hotel, residential units (including almost a third that would be tagged as affordable), intriguing artsy elements like a jazz club and art gallery, and a range of retail options like a bicycle store, hardware shop and bookstore.

Not all of those bells and whistles are gone. Approximately 8 percent of the new apartment building’s units will be affordable, and Zenith Gallery may utilize some space in the hotel’s lobby. And Donohoe pointed out that the company is still communicating with the Boisdale Jazz Club, a London-based chain of nightclubs.

But the new plans are much more somber, and that’s largely the result of unfortunate timing. Donohoe Companies won the city’s bidding process in 2008, and funding for projects like this one simply dried up (though that funding had dried up before the bid). Since then, a range of plans have been presented but never acted upon, and the site is currently used as a parking lot and weekly outdoor market. That gives this version a distinct advantage—as long as it becomes a reality. “This isn’t as grand as we’d have liked, but we want to get it done,” said Donohoe.

The timeline goes something like this: On November 13, the Deputy Mayor’s Office for Economic Development will hold a surplus meeting to sign the land over to the Donohoe Companies. The city will package the documents and pass them along to the City Council by the end of November, and the City Council should approve them sometime early in 2013. The company will spend the next 13 months working with architects, getting permits, and acquiring financing before breaking ground in early 2014.

“That’s generally pretty quick, though it sounds far away,” explained Donohoe. The project would be done 24 months later.

The gathered residents didn’t seem to mind the long time horizon; most were relieved to hear that the project was finally moving forward. Donohoe acknowledged the long wait. “I know this has been a slog,” he admitted.  And its not over yet.

Washington, DC, real estate development news

The Gallery of Bethesda Demolition Complete, Excavation Underway

With a $55 million construction loan recently secured, and demolition complete, developers Donohoe Companies and MPM Investments are aggressively moving forward on the Gallery of Bethesda, its 17-story 234-unit residential tower at 4800 Auburn Avenue.

“Donohoe Construction is making great progress on the site," said Jad Donohoe of Donohoe Companies.  "Excavation will finish up in November. The 17-story building will 'top out' in July of next year. And then by early 2014, residents will be moving in. The Gallery of Bethesda is going to bring more life and more activity to this part of Bethesda, and it’s going to prove all over again why Bethesda is one of the best places to live in the Washington region.”

The Gallery will be a quarter-million-square-foot tower featuring a 0.25-acre public plaza, a rooftop pool, and 4.600 s.f. of ground floor retail space.  The project is one of three towers that will make up downtown Bethesda mega-development in Woodmont Central; an additional residential tower is slated to be built at 4850 Rugby, with a six-story office building at 8280 Wisconsin Avenue (possibly breaking ground this summer), completing Donohoe's trifecta, not to mention JBG and Bainbridge, both of which are building 17-story residential projects in the neighborhood.  When all three phases are complete, WDG-designed Woodmont Central will bring nearly 600,000 square feet of residential, office and retail space to downtown Bethesda.

The $55 million construction loan, secured in mid-May, is financed by AXA Equitable Financial Services LLC, and sister company Donohoe Construction is the general contractor.

Bethesda, Maryland real estate development news

Woodmont Central Office Building Up for Bid, Construction to Begin Midsummer

Donohoe Development's Bethesda office building at 8280 Wisconsin Avenue, one of three components of the developer's ambitious Woodmont Central megadevelopment, went up for bid last week, with an eye towards breaking ground in midsummer.

"Right now we're pricing it among subs as a GMP [Guaranteed Maximum Price]," said an estimator at Donohoe.  "Assuming things go forward as planned, it's supposed to start construction in July."

The rectangular six-story building, designed by WDG Architecture, will feature just over 81,000 square feet of office space, including 10,500 square feet of ground floor retail.  Developers anticipate LEED Silver certification. In renderings, the Wisconsin-facing facade is a visually interesting massing of planes, mostly metal and glass with a few precast concrete panels for contrast.  On the northeast corner is a vertical element that denotes the entrance to the Battery Lane District.

The first phase of the Woodmont Central project, the Gallery of Bethesda, kicked into gear last month, when demolition began at 4800 Auburn Avenue, the planned site of the residential tower.  That 17-story building will feature 234 dwellings, just under 200 below-grade parking spaces, and 4600 s.f. of ground floor retail space.  A second 16-story residential tower is also planned at 4850 Rugby Avenue, separated from the Gallery of Bethesda by a large plaza, but is reportedly still in the design development stage.


Bethesda, Maryland real estate development news

Demolition Underway at Woodmont Triangle

Demolition crews are clearing the way for Donohoe Development Company's high-rise apartment and retail development, The Gallery of Bethesda, in Woodmont Triangle.

Commercial offices and surface parking lots at 4800 Auburn Avenue will make way for 234 apartments and 4,660 s.f. of retail.The new 17-story building "includes its own pedestrian street, public art, and a variety of green amenities," according to the project webpage.

The Gallery of Bethesda is the first residential building Donohoe plans for the area. Another phase of development includes a second high-rise with 221 apartments and 14,520 s.f. of retail space at 4850 Rugby Rd.

Both residential highrises are part of a larger plan dubbed Woodmont Central that brings office space, residential units and retail to the neighborhood. A third building at 8280 Wisconsin Ave. will feature 81,000 s.f. of "Class A" office space and 10,500 s.f. of ground-floor retail space. WDG Architecture designed all three buildings.

Update:
New renderings were added to this post.


Bethesda, Maryland, real estate development news

Mount Vernon Triangle's Critical Mass

Mount Vernon Triangle may soon be a bit crowded. The small neighborhood, tightly encircled by L'Enfant's avenues, has been struggling for years to develop a critical mass of development, a moment that may now be at hand.

If all the projects currently in the pipeline for the neighborhood are built, Mount Vernon Triangle will more than double its square footage of office space, add 1,570 apartments/condos and 380 hotel rooms, and increase retail offerings by 157,500 s.f. Despite its shortcomings - no Metro stop, convention center, or arena within its borders, it can claim close proximity to each, a fact that continues to fuel development.

Case in point: two new projects by The Wilkes Company and Quadrangle, with preliminary designs by Hartman-Cox, and targeting a 2012 start date for construction: 400 K (300,000 s.f. office space, 12,500 s.f. retail) and 300 K (500,000 s.f. office space, 25,000 s.f. retail - pictured at left). Both are part of the larger Mount Vernon Place development that started with a pair of condominiums. Two additional buildings by Wilkes and Quadrangle are also in the works for the area: 440 K (planned as a 234-unit apartment with ground-floor retail, but that could turn into office space) and 255 H Street, a 400-unit apartment building.

Numerous other large developers have projects on the boards - Steuart, MRP Realty, Bozzuto, The Donohoe Companies, Kettler, and Equity Residential - but few have pulled the trigger just yet, and Bill McLeod, executive director of the Mount Vernon Triangle Community Improvement District said those who don't take action soon, "will end up missing out." McLeod, who has been with the MVTCID - created by Mayoral Order in 2004 - for the past five years, added that investors have been paying attention to the area of late.

Equity also hopes to start construction next year on the 170-unit apartment and historic restoration project "Eye Street Lofts", originally a vision of local Walnut Street Development that was iced in 2007. Equity - the largest publicly traded owner and operator of multifamily apartment complexes in the U.S. - bought the land fully entitled a few months ago. Equity will go before the Board of Zoning Adjustment on December 13th. With the area designated as a historic district in 2001, the project received HPRB approval in 2006 (as pictured below) to restore two circa 1880, 3-story townhomes, a 2-story garage/ warehouse, and a small former blacksmith shop in the alley. The building currently leased by BicycleSPACE will be razed.

Nearly a decade after Mount Vernon Triangle was first targeted for redevelopment by the Office of Planning and ten major property owners in the area in 2002, existing apartments are 96-percent leased, condos are sold out, 230,000 s.f. of office space is leased at 455 Massachusetts Avenue and, notes McLeod, only the top floor of the 392,000-s.f. office at 425 Eye Street needs a tenant.

The Meridian, at 425 L Street, a 390-unit apartment developed by Steuart Investments and Paradigm, is now under construction. The topping out of the 14th (and final) story occurred this past September, the project will begin leasing soon and should complete by next June. Phase II of the project will be a 300-unit apartment located next door at 400 New York Avenue.

Next in the queue in Mount Vernon Triangle is Kettler's $80 million, 13-story, 233-unit apartment with 7,000 s.f. of street level retail at 450 K Street (pictured right), under construction next spring and delivering in 2014.

Of great interest to those invested in the area is the timeline of the K Street Streetscape Improvement, the contract of which is currently being finalized by DDOT. The 18- month infrastructure project should be underway early next year, said McLeod, resulting in a mid-2013 completion date.

The long-anticipated $9m reconstruction of K Street between 7th Street and 3rd Street will bring new paving, sidewalks, streetlights, and plantings. Streetcars are also in K Street's future, though the District's focus is currently on funding other legs first, i.e. the H Street Corridor.

Driving much of the current wave of development regionally is the gradually opening financing spigot and Washington D.C.'s perch on the top of the national real estate market. But Mt. Vernon Triangle has something else more rare in downtown DC: empty space. The Downtown Business Improvement District (BID) notes that only about 5 million s.f. of unbuilt space remains available downtown, 2.5m of that at CityCenter and 2m of that above the Center Leg Freeway. That leaves the equivalent of only a few office buildings that could be built downtown before growth has to expand outward, and Mt. Vernon is the nearest spot.

Yet if all projects currently in the pipeline are realized, Mount Vernon Triangle will max out its 600-room hotel capacity, reach 93-percent of its residential capacity (4,250 units), 87-percent of its office space capacity (3 million s.f.), and 84-percent of its retail space capacity (335,000 s.f.). Of the 380 hotel rooms planned for the area, 350 of them are contained in what was once one of the most talked about projects for the triangle, "The Arts at 5th and I" a mixed-use development on the corner of 5th and Eye Street, still considered a "top tier" priority by Mayor Gray.

Donohoe and Holland Development won the right to develop the site in September of 2008, but couldn’t finance the project (pictured below) in the face of the recession. This fall, Deputy Mayor Victor Hoskins visited the ANC with a scaled-back, 250,000-s.f. building with two side-by-side hotels, one a 150 room boutique hotel and the other a 200 room extended stay offering 350 rooms above 10,000 s.f. of street-level retail.

In April, it was announced that art in the form of the Liberty North Community Market would be coming soon to the site. The market arrived this fall, and with no plans to begin construction within the next year-and-a-half, the market's vendors have the 2012 growing season to get comfortable.

Donohoe has yet to visit the DC Council for approval its plan, which includes a 99-year ground lease from the District, something that may happen in the next "two to three months," said Jad Donohoe, after which 12 to 14 months will be taken to flesh out the design by Shalom Baranes, complete the construction documents, get permits, and secure financing.

Yet another project is less certain. It will require a 30,000-s.f. floorplate over I-395 between K and New York Avenue to build a 10-story, 1.7 million-square-foot Washington Global Trade Center with a sleek, open-clam-shell globe design (to the right), a development that has been proclaimed a long shot.

Washington D.C. real estate development news

Donohoe's Trifecta in Woodmont Triangle

At the end of this month, the Montgomery County Planning Board will likely hand down its approval - with possible amendments - to Donohoe Development Company's Woodmont Central, the multi-phased, mixed use project that will redefine the urban landscape of the underutilized Woodmont Triangle area. "We've been working on this project for many years," said Peter Gartlan, President of Donohoe. "We've made many amendments, we've gotten our site plans re-approved and we're looking forward to moving ahead with our plans."

The biggest draw for the area is 8280 Wisconsin Avenue, now the site of a Texaco station, the area's only car wash. Once the building is razed, Donohoe will develop a 91,600 s.f. Class A office building with 11,000 s.f. of retail. Gartlan said he hopes to break ground on this facet of the project in 2013.

Nevertheless, Donohoe plans to break ground on the two residential buildings in the second quarter of 2012. First up is Phase 1B, also known as The Gallery of Bethesda at 4800 Auburn Avenue. The building will replace old commercial buildings and surface parking with 234 units, 5400 s.f. of retail and its own pedestrian street with public art displays. The second building, now dubbed Phase 2, also know as The Gallery of Bethesda II, will be a 221-unit building at 4850 Rugby Avenue with 19,500 s.f. of ground floor retail. WDG Architecture is on the hook for design of each of the three buildings.

The Montgomery County Planning Board has already approved the preliminary plans of a project that's been in the works following the amendment to the 2006 Bethesda Sector Plan.

Until the 2006 amendment, said Gartlan, density was site-specific. "The adjustment that allows non-contiguous transfer of density was changed specifically to help cultivate the redevelopment of Woodmont Triangle, which is what used to be the center of Bethesda," said Gartlan. Because of the amendment, Donohoe was able to transfer density from one of their sites to another. "We have designed our plans in accordance with the adjustment, working closely with the city, which seems to really like our final designs."

Jad Donohoe, Development Director for the company, told DCMud, "[The transfer is] a new idea and the thought was that because there is such fragmented ownership in that section of Bethesda, this would be a way to bring the density needed to make more of a Bethesda Row-type of experience."

Woodmont Central is much further along than another huge Donohoe project, the hotel, jazz club and retail outlets the company is planning to build called the Arts at 5th and I in Mt. Vernon Triangle. Because the project has yet to be financed, ground breaking isn't yet on the horizon.

Bethesda, MD real estate development news

More Art at 5th and I, but No Buildings

Art is coming soon to the empty lot known as The Arts at 5th and I - unfortunately, the art is not the beginning of the project by Donohoe Companies to build a high-end hotel, retail outlets and jazz club, but rather an open air market to draw crowds to the lot that remains empty. The Mt. Vernon Triangle BID has announced that the Liberty North Community Market will open on the site on Saturdays and Sundays, more than 80 vendors hawking

"arts, crafts, produce, prepared food, and home improvement goods." The news is a reminder that development of the lot, announced in September of 2008, is still not ready for action, but development leader Jad Donohue says the newest timeline points to a presentation to the DC Council in the next few months and construction possibly by the 2nd quarter of 2012. Donohoe also struck a less committal tone about the retailers. Previous announcements listed Spanish hotelier Melia for a 260 room hotel, 100 apartments, Boisdale Jazz Club, and Zenith Gallery's new home, but Donohoe would say only that "we're committed to doing a boutique, lifestyle hotel" but that they are "keeping all options open" regarding retailers. 

The site does not require a PUD, so zoning is not an issue, but the land is still owned by the District, so the Council has to approve terms. Donohoe says details "are still being finalized," but that he expects a 99 year ground lease. He also says that while financing has not yet gelled for the project, there is "alot of interest" from those that had pulled back on financing over the past few years. Promoters initially projected groundwork to start in early 2010, spokesmen for the project then said in August of 2009 that an agreement would be concluded within a month, and in November of 2010 that financing would be cinched up by the end of the year. But the District of Columbia implemented a plan to put parking on the site to generate short term income in February of 2010, an indication that construction was not imminent. The new market will include live music, arts and crafts, from the promoters of the market that once occupied the CityCenter site. Here's to hoping they will have to hunt for yet another site next spring... 

Washington D.C. Real Estate Development News

Donohoe Companies to Develop Near New Silver Spring Library, Purple Line Rail Site

Whether the acre adjacent to the Silver Spring Library at the corner of Bonifant and Fenton Streets will become condos or apartments, retail or restaurants, it's too early to tell. Here's what we do know: Donohoe Companies and Montgomery Housing Partnership (MHP) have been given the go to develop a mixed-purpose, mixed-income project.

The location is key, since the site abuts a future purple line station, scheduled to break ground in 2013. The sixteen mile light rail line will run between Bethesda and New Carrollton. The county issued an RFQ last February, and estimated that the site could hold 120 units of housing, but required that 60% of the housing on the site be subsidized.

VOA Associates have been chosen as architects for the project, which, according to a designer in the Washington office, could begin sometime in 2011. As these things go, we're guessing rail construction time lines will shape development; sometime in 2011 seems soon.

Richard Nelson, Director of Montgomery County's Department of Housing and Urban Affairs says as much. “Transit-oriented urban infill projects can be challenging," he said, "and it was essential to select a team with deep experience in transit-oriented development, multi-family housing, tight infill locations and mixed-use development.”

And don't forget about the rehabbing of the Silver Spring Library. The public has been weighing in on color (Apparently MCPL gave residents free reign to weigh in until earlier this month) materials and design for the 30 million dollar project, which is scheduled to begin in about a year and will take two years to complete.

It's likely the Donohoe project will align with the development of its potential neighbors. Let's hope three years from now when the projects are complete, residents will still like the library colors.

Silver Spring real estate development news

Air Rights Center Gets an Addition

The Bethesda block known as the Air Rights Center, currently featuring a 12-story office building and the 14-story, 216-room Hilton Garden Inn Hotel, is set to become a bit denser, as another 9-story office building will soon replace the smallest building on the southeast corner of the site. Chevy Chase residents adjacent to downtown Bethesda voiced concerns over the scale of the proposed office buildings upon its initial unveiling to the community. Begrudgingly resigned to the fact that the Purple Line train will soon be roaring through their backyards, residents seemingly decided to take their frustrations out on Donohoe. In the wake of the public pressure, developers compromised, using several setbacks to lower the residential-abutting facade to the recommended 60 feet and concentrate the height towards the center of the block, reaching 97 feet at its tallest point. Rewarding the flexibility of developers and their design partner BBG-BBGM, the Montgomery County Planning Board granted the approval to the applicant's proposal.

Fronting 7300 Pearl Street, the facade seems like a simplistic amalgamation of glass, concrete, and right angles, but a side-view from Montgomery Avenue offers a more textured and interesting vantage. Developers appeased the neighboring community not only with design successions, but will also redevelop a northern portion of Elm Street Park, just south of the development across the Capitol Crescent Trail. While their generosity may be genuine, it's not exactly altruistic, a twenty percent public space requirement is demanded by the Montgomery County development approval process. But all that green wasn't quite enough, as developers will put more on the roofs of the building in their efforts to earn LEED Silver Certification (also a MoCo prerequisite).

The cost to reconstruct the proposed portion of the park totals roughly $1 million. The project's landscape architect Parker Rodriquez has already offered designs for the park, while Donohoe will pony up $550,000-$600,000 for the actual improvements, including infrastructure, paving, lighting, fencing, landscape planting, signs, etc. The Chevy Chase Parks Department must approve a final design for the park, and finance the remaining balance. The Montgomery County Planning Board stipulated that no building use or occupancy permits will be issued until the park improvements are completed. Developers believe their compliance with the required park improvements could happen as early as 2012, with the office building delivery following shortly after.

Bethesda, MD Real Estate Development News

The Arts at 5th & I: Closer Than They Were

Development partners Donohoe Companies and Holland Development of the highly anticipated high-end hotel, retail outlets, and jazz club crowned "The Arts" think they are close to wrapping up negotiations with DMPED over the disposition of the currently District-owned site at 5th and I Streets NW. The heart of the project is a 260-room ME Hotel from luxury Spanish hotelier, Melia that promises to "seduce the open mind with art, design, music, and cuisine" (according their website). Perhaps more exciting for the neighborhood is the included Boisdale Jazz Club – the first US location from the London-based chain of nightclubs. It literally packs the previously promised music, cuisine, and libations into one smooth package. Also providing cuisine will be Cappuccinos, a "unique urban style cafe." The mind-seducing design is courtesy of Shalom Baranes, while the art will hang in what will become the Zenith Gallery's new home. Ninety-six mixed income residents are also included in the development plans.

Memphis Holland of Holland Development says that she and her team are optimistic that financing will be wrapped up by mid-December. Talks concerning the release of the property from the District to developers are "still in process" according to Holland. She promised, however, that they are "closer then they were," and hopes to have a deal finalized by the end of the year. But even if the deal can't be wrapped up prior to Vincent Gray's inauguration as Mayor, Holland explained that "we've been in communication with Gray's transition team for some time, and they're on board." Such words point to slow but steady movement in the right direction, but certainly do not serve as a precursor to groundwork, as the Zoning process awaits, and architectural details must be ironed out through a succession of informal and formal meetings.

Correction: Jad Donohoe of the Donohoe Companies recently contacted DCMud to amend one of the above facts, saying "I’m the project manager on this effort, and we are not in talks with the Gray team." Memphis Holland confirms this misinformation and apologized for the error. It should be affirmed, however, that the current DMPED staff has been in communication for some time now with Gray's transition team members, briefing them on all major projects.

Washington D.C. Real Estate Development News

Arts vs. Parking Lot in Mt. Vernon

The District and the Deputy Mayor for Planning and Economic Development (DMPED) are, at least for now, giving up on the Arts at 5th and Eye, the Donohoe Companies and Holland Development project, and installing a parking lot on the undeveloped District-owned site. Though the project team won the right to develop the promised high-end hotel, retail outlets and jazz club in September of 2008, no final agreement has been reached on the land exchange with the District Government since that time. The District Council is scheduled to review the revised project plan in March or April of this year, though that will not happen without an agreed upon land value.

In August, Memphis Holland, a Partner at Holland Development, told DCMud that the group hoped to have a resolution to their negotiations by the end of September. More than four months later, Holland indicates the developers are continuing to meet with the District in order to finalize a contract for the land and determine an appropriate land value. It would seem the District grew tired of underutilized land, opting for a paid parking lot in the meanwhile (not that Mount Vernon really needs more of those). The ANC had resoundingly supported the development during the RFP process, but the protracted negotiations and new surface parking lot have set some neighbors on edge. ANC Commissioner Keith Silver is protesting the DMPED's parking lot decision and the District's alleged exclusion of the community from conversations with the developers about the proposed development. According to Holland the developers had "absolutely nothing to do with the final decision by the District to have a parking lot as the temporary use for the site," but "we have been told this will not impede our objectives to develop the site, as planned, for a mixed-use development." Holland added that the group is continuing to work with project partners including Sol Melia and Boisdale as well as the neighborhood retail mix including Zenith Gallery. That said, the parking lot decision shows a lack of faith by the District government for the near future of construction and development at 5th and I Streets in Mount Vernon. 

Washington DC real estate development news

Marriott & Donohoe Team Again to Open Courthouse Hotel

Marriott has opened yet another link in its impressive chain of DC area hotels, a Residence Inn hotel at the Courthouse Metro in Arlington at 1425 North Adams Street. The Residence Inn Arlington Courthouse hotel's 176 suites replace what had been a vacant lot for almost 20 years. Marriott won the RFP in 2004, began construction in September of 2007 and opened its first rooms for business in August.

The hotel is the newest in the Rosslyn-Ballston corridor. Donohoe Construction company built the project, which was developed by Donohoe Development, designed by Leo A Daly Architects, and is managed by Donohoe Hospitality.

The new Residence Inn has LEED building features certified to meet Arlington County environmental standards boasting a green roof and chemical-free cleaning solutions - made through an in-house process that mixes tap water with salt and electricity, a process used in many hospitals and throughout Europe for, like, years.

As for economic benefits to Arlington, Chris Bruch of Donohoe highlighted the estimated $2 million in tax revenues to be generated annually and the creation of 42 new hospitality jobs, 90% of which are for Virgina residents.

Fire Works restaurant will occupy approximately 5,500 square feet at the street level on Clarendon Boulevard and open up to the Western end of Courthouse Plaza for patio dining. The 240 seat (160 indoor, 80 outdoor) restaurant will offer "upscale casual dining featuring local, fresh and organic ingredients" and is expected to open in Spring 2010. And by the way, it's a pizza place. Bruch indicated that there is still over 3,700 s.f. of ground floor retail space available and ready for a tenant.

Mount Vernon Triangle Waits for All that Jazz

The Arts at 5th and I will keep Mount Vernon residents waiting for just a bit longer. Donohoe Companies won the right to develop the promised high-end hotel, retail outlets and jazz club in September of 2008, but the District has been negotiating the terms of the land lease for the project with Donohoe. According to Memphis Holland, a Partner at co-developer Holland Development, the group hopes to have a resolution to their negotiations by the end of next month.

Assuming the land disposition is approved by the City Council, the developers can then begin the planning process. Planning will take at least 12 months and construction would not begin until an unspecified time thereafter. The group is not expecting any zoning issues at this time, but in this business, you never know.

The 475,000-square foot development will center around a new 260-room ME Hotel from luxury Spanish hotelier, Melia, and also include a bicycle retailer, hardware store, book store/café and new outlet for the Zenith Art Gallery. One update to the original plan is that the Boisdale Jazz club will likely not be in the hotel, but rather at a location down the street at 5th and K, which Donohoe is negotiating terms for, leaving the in-house space for another restaurant. The building at 5th and K falls under the confines of the Historic Preservation Review Board so the structure would be preserved and renovated for the club and restaurant.

According to Holland, the developers have been in constant communication with the community and once they have approval from the City Council will re-engage the local ANC and the downtown neighborhood association. Zenith Art Gallery recently closed its physical location and is functioning from an online gallery. According to Judith Keyserling of Zenith, the gallery founder anticipates that the new space is still several years off.

It is unclear when the plans for the remainder of the 5th street project will fall into place. For now we know that the hotel, restaurants and retail are in the works, but the music won't be heard for a few more years.

Donohoe Galvanizes Bethesda Development in the Woodmont Triangle

The Donohoe Development Company is in the early design and planning stages on what looks to be the largest mixed-use project to hit Bethesda since Bethesda Row went and upped the area’s chi-chi quotient a few basis points (see this month’s issue of Forbes for proof). Now, on the other side of town, in the decidedly less dapper (but getting there) Woodmont Triangle area, Donohoe has teamed with WDG Architecture to realize Woodmont Central: a multi-phase, mixed-use project that will bring office space, retail and, yes, apartments to Wisconsin Avenue and beyond.

Within the next few years, Phase 1A, as Donohoe is calling it, will be the 8280 Wisconsin - a commercial complex with 80,792 square feet of Class A office space, along with 10,820 square feet of ground floor retail, at the corner of Battery Lane and Wisconsin Avenue. At present, it's the site of a Texaco that boasts the area’s only car wash. Unfortunately for area auto buffs, both will be razed prior to build out. It will, however, be the first sign of new development at the very same intersection that had previously been slated to host the now indefinitely on hold Trillium Condominiums.

In a first for Woodmont Triangle development, Donohoe's office building will be followed by Phases1B and 2 - but not at the same site. It’s a split that will allow the development team to benefit from a recent amendment to Bethesda zoning statutes. Said Jad Donohoe, Donohoe's Development Director:

[The parcels] are three blocks apart, but in the same project…Back in 2006 there was an amendment to the Bethesda Sector Plan for the Woodmont Triangle. For the first time it allowed this transfer of density between sites that aren’t contiguous or are even across the street from each other…It’s a new idea and the thought was that because there is such fragmented ownership in that section of Bethesda, this would be a way to bring the density needed to make more of a Bethesda Row-type of experience. If you look at what Federal Realty Trust did on Bethesda Row, those things have been happening on that side of Bethesda for 10 years. By contrast, Woodmont Triangle has been kind of struggling. This is the solution and it’s one of the first projects to take advantage of that provision.

And take advantage they shall. Currently the home to a surface parking lot and "some old two-story buildings", the corner of Rugby and Del Ray Avenues will eventually host The Gallery at Bethesda - a high-rise with 457 rental apartments (including 51 MPDUs), 9,051 square feet of ground floor retail and public park that Donohoe describes as being comparable in size and scope to the nearby Veteran’s Park. "It’s really going to be one of the few green spots there in the Woodmont Triangle for public space,” said Donohoe.

Though still “a couple years away from breaking ground,” Donohoe speculates that "The Gallery will be home to approximately 900 new Bethesdans, with occupancy beginning in 2013. 8280 Wisconsin will deliver in late 2012." The team's first project plan was filed with the Montgomery County Planning Board in January and they're currently scheduled to make a second appearance before the Board on April 23^rd. Bethesda real estate is for sale.

Marriott Digs in Around DC

Marriott International, Inc. is planning an extended stay of its very own in Crystal City's Potomac Yards. As part of development deal with the JBG Companies, a parcel bounded by Crystal Drive, Potomac Avenue and 29^th Street South will soon be home to not one, but two new Marriott- branded hotels – the Renaissance Inn Crystal City Potomac Yards and the equally tongue-twisting Residence Inn Crystal City Potomac Yards.

Situated just minutes from Ronald Reagan National Airport, the new 13-story, 444,000 square foot facility hopes to attract a healthy stock of business travelers with 625 new rooms and 10,000 of meeting space. The team is also looking to draw locals to the increasingly developed Potomac Yards segment of Alexandria with a 10,000 square foot retail component that will sit atop a 500-space underground parking garage.

Of the new rooms going to market, 325 on the facility’s southern end will be dedicated to extended stay suites, courtesy of Marriott’s “Residence Inn” brand. In keeping with the project’s dual nature, the Residence Inn will have its own individualized entrance on the corner of Potomac Avenue and 29^th Street and front on an “outdoor hearth” planned for an adjoining public park.

The two-in-one project expects to clear the threshold for LEED certification - which, according to JBG, would be a first for Northern Virginia hotels. The project officially broke ground on October 22^nd at a ceremony attended by Congressman Jim Moran and Arlington County Board Member, Chris Zimmerman. At the same event, JBG also went public with news that Wells Fargo would be providing $128.7 million in financing for the project. The development expects to open the doors on the new complex in winter of 2010.

Despite the new Renaissance/Residence Inn’s position as the first new Crystal City hotels in 20 years, both JBG and Marriott aren’t content to keep their focus only the Alexandria area. JBG also owns two other large hotels in the immediate area – the Westin Reston Heights and Westin Arlington Gateway. JBG already owns Washington DC's largest hotel, the Marriott at Wardman Park - which will keep the title of DC's biggest since yet another new Marriott, the Convention Center Marriott, reduced the size and scale of the project that should begin construction next year.

Additionally, the Donohoe Companies’ Hospitality Services division is also currently constructing another Residence Inn in Rosslyn’s Courthouse District at 1425 North Adams Street. That project is significantly smaller – 176 rooms and 141,000 square feet – but is being designed by renowned architect Leo A. Daly and will be completed a bit earlier, in fall of next year. Alas, all too late to be completed in time for the Obama-nation invasion next month.

Arlington Virginia retail leasing and commercial property news

Residential "Village" Springing Up in Arlington

This coming fall, Silver Spring-based hotel and golf course developer Sunburst Hospitality will open its first residential project, Vista on Courthouse, in Arlington's Courthouse District. The development sports a blend of townhomes, duplexes and apartments two blocks from the Courthouse Metro station.

Construction at the former Quality Inn site began in the summer of 2007, after languishing for more than 2 years after receiving the go-ahead from the Arlington County Board. Two hotel structures on the site were razed to make way for the new WDG-designed, 11-story, 507,735-square foot tower. Vista will feature 252 rental apartments - with 14 reserved for affordable housing - and floorplans ranging from 1100 to 2400 square feet apiece. In addition to rental units, the developer has also inserted 24 brick facade townhomes, 4 duplexes and 7 “plank townhomes” into the grounds that will go on sale upon completion of the project. Coming in at a cost of $88.5 million, Vista will feature an in-house movie theater and bar, a fitness center, game room, outdoor pool and park.

While the project at 1200 North Courthouse Road is not seeking LEED certification, its website features a laundry list of features labeled “green” - including its “Metro-centric” location and storm water recycling system. Another highlight of the design: a supremely-private, 3-story underground parking area that features direct access to individual units from self-contained, closed door garages – much like one would find adjoining any home in the suburbs. This touch - coupled with sidewalks and private streets - is part of the developer’s strategy to create a “village” atmosphere in the middle of downtown Rosslyn. Construction on the project is being handled by the Donohoe Construction Company.