Adams Morgan Condos Release New Renderings

Developers have released new renderings of the condos that will take up the largest vacant lot on Champlain Street.   Federal Capital Partners and Altus Realty Partners will break ground shortly on a 41-unit condominium at 2337 Champlain Street, NW, in Adams Morgan.  Designed by PGN Architects, the renderings show a contemporary structure with a split facade adjacent to the former brass knob warehouse.

Washington D.C. real estate development news

Champlain Street Condos Set to Break Ground

One of the very last infill sites on Champlain Street in Adams Morgan is set to begin a transformation into a condo building in the next sixty days.

Presently a surface parking lot, the site at 2337 Champlain Street NW is being developed by Federal Capital Partners, in conjunction with Altus Realty Partners.  Designed by PGN Architects, the first renderings released to the public show a modern steel-and-glass complex that's very much similar to the neighboring condo building on Champlain, such as the Lofts at Adams Morgan, and Adams Row.

"The project on Champlain has not been named yet," according to Karen Widmayer, spokesperson for developer Federal Capital Partners.  "The project will have 41 condos with on-site parking in garage and surface lots.  It's scheduled to break ground prior to the end of the year, pending required approvals."

Federal Capital Partners acquired the site in July 2011 for $3.55 million, from WWYP LLC, who acquired it back in June 2005 for $1.9 million.  The condominium will take up the vacant lot next to the former Brass Knob warehouse, which is has also been the subject of redevelopment efforts, but will not be incorporated into the old warehouse.

Washington D.C. real estate development news

Abdo Breaks Ground On Gaslight Square

With a bulldozer on-site and several golden shovels in hand, Abdo Development celebrated the groundbreaking of Gaslight Square this morning, the first for-sale condo project to emerge from the post-recession Northern Virginia economy. Actual construction on the 120-unit project will begin later this week, with James G. Davis Construction Corporation serving as general contractor. Design is courtesy of Abdo's in-house architects, with Reston-based Architecture Incorporated designated as the architect of record. The combination of red-brick and large black-rimmed industrial style is an apparent play off the Wooster and Mercer Lofts next door.

The real estate for the $82 million project was purchased in 2007, with the plans approved shortly after and the large plot of land cleared, fenced, and poised for action; but like so many other projects, the busted housing bubble and subsequent market collapse derailed deals. Thankfully, D.C.-based Federal Capital Partners have stepped in with $24 million in equity and mezzanine financing, with United Bank chipping in another $48 million worth of construction financing. The injection of capital will at least get phase one under way, the first of three proposed four-and-a-half-story, 40-unit buildings as well as the platform for building number two. Depending on how condo sales go with the first phase, explains Jim Davis, Principal of Davis Construction, the rest of the development will progress accordingly. "Construction of the first building should take roughly a year," says Davis, putting an initial delivery in early 2012.

Each building will be separated by a wide, landscaped quad, complete with sidewalk, trees, benches, and gaslights, hence the name, but will not feature any other amenities - no pool, concierge, gym, etc. - in order to minimize the condo fees, which have grown in surrounding condominiums. One of the most innovative features of these units, says Davis, is the elevator-cum-condo-entrances, allowing residents to park below grade and take the elevator directly into their unit (Davis credits Abdo with the idea, though its been used as nearby as Turnberry Towers, as well as in DC). Placing the stairs and elevator shaft directly between two units also provides for improved sound and odor control, and "eliminates the normally inhibitive front entrance corridor, allowing light to enter each unit from both sides, similar to a townhouse," says Davis. Ranging from $700,000 to $1.4 million in price, the one and two-bedrooms will offer anywhere from 1,200 to 2,000 s.f. of space, as well as private outdoor terraces.

With Skanska's mixed-use project having broken ground across the street, and Monday Properties racing to construct the tallest building this side of the Potomac, it is certain that Rosslyn is heating up.

Arlington, VA Real Estate Development News

Will Takoma Finally Embrace Its Inner Bethesda?

Denizens of the earthy Takoma neighborhood are finally seeing much-promised transit-oriented development beginning to sprout along underutilized Carroll Street NW, just steps from the Takoma Metro station.

Earlier this month, real estate giant Federal Capital Partners of Chevy Chase, which owns more than $1.8 billion in real estate assets in the mid-Atlantic region, announced the $36 million joint venture with Level 2 Development's Takoma Central, currently building in the 200 block of Carroll Street NW near the District-Maryland border.

Still, even as its neighbor to the north, Silver Spring, sees a burst of development, it hasn't been easy to convince the 17,000-plus globally-inspired Takoma Park citizens -- where illegal immigrants are allowed to vote in city elections and hold office -- to embrace their inner-Bethesda. Takoma Park residents, many of whom refer to the city as a "village," fought a long, but losing battle against a much-maligned CVS along Carroll Street in 1998 that led to the quick demise of a favorite mom-and-pop pharmacy on the Takoma Park, Maryland side. And a Subway sandwich joint that located in the village's historic district found its windows smashed in 2004 with the epithet "shop local" scrawled in spray paint.

But things may finally be changing in the People's Republic of Takoma Park as once development-wary residents embraced the Takoma Central design. That made it an ideal opportunity for Federal Capital Partners' Wade Casstevens, vice president of residential development.

"I think its a great place to live and well-kept secret," Casstevens said in an interview. "There haven't been areas in Takoma that you could build a large complex, so this is a true infill opportunity." Takoma Central will have amenities common to other Class A spaces in Logan Circle, Bethesda, and most recently Silver Spring, such as granite countertops, and stainless steel appliances, not easily found in Takoma. "Our strategy is to look for areas that have one or less competitors, not four or more, which is what we're finding in Silver Spring " he said.

Originally known as Ecco Park condos, the plan converted to apartments in 2008 under the design and ownership of SGA Architects. Takoma Central will be built in two phases.

Phase One, already under construction, is four stories, with a round, castle-like turret at the corner of Carroll Street and Maple, and will have 84 units and 70 underground parking spaces, plus 6,500 square feet for ground level retail.

Phase Two is a five-story, brick warehouse-style complex with 60 units and 35 underground parking spaces and ground-floor retail.

More importantly, the development may fill in a key gap between the bustle and activity of the Metro station and the quarter-mile walk to Carroll Avenue, Takoma Park's main street with well-kept sidewalks and quaint Victorian-era street lighting. Carroll Street NW becomes Carroll Avenue at the Maryland line, for those keeping score.

The 200 block of Carroll Street currently consists of a convenience store, a funeral home, the CVS pharmacy, and several surface parking lots. But the brick sidewalks are crumbling and there is no pedestrian friendly street lighting. Casstevens says the infrastructure and consistency of the street will improve with the completion of Takoma Central. "Right now, that part of Carroll Street looks a little beat up."

Phase 1 construction has begun already and Phase 2 will begin later this year. FCP says they will complete construction by the fourth quarter of 2013.

The construction of Takoma Central will go a long ways to renovating Carroll Street on both sides of the Metro line that the District and Maryland have been seeking to make ripe for transit-oriented development projects.

On the West side of the Metro line, where Carroll Street becomes Cedar Street, the District Office of Planning has been looking at possible enhancements to the neighborhood near the dormant Takoma Theater and its surrounds since Anthony Williams' tenure as Washington D.C.'s Mayor.

The Office of Planning's 2002 report shared the puzzlement over why TOD near Takoma Metro wasn't forthcoming. "Neither Carroll Street nor 4th Street have developed the critical mass of retail, commercial and housing that their Maryland neighbor enjoys, despite being anchored by the most heavily used pedestrian Metro transit station in the District of Columbia."

The Gables, a LEED-certified 142-unit complex opened in 2008 along Blair Road. FCP's Casstevens credits the opening of Gables for influencing their decision. "It was definitely a factor in our choice," he said. The Gables has many of the same amenities that Takoma Central offers, such as stainless steel GE appliances, hardwood floors and black granite countertops.

Still, south of Cedar Street there has been little progress in building a revitalized neighborhood around the historic Theater. Takoma Village, a unique co-housing urban village opened next to the historic Art Deco Takoma Theater in November 2000.

Milt McGinty, father of WUSA-9 anchorman Derek McGinty owns the theater, and wants to raze it to convert it to luxury apartments.

Preservationists want the the city to buy the theater outright but McGinty says the theater, which was built in 1923 isn't for sale and the theater stands in disrepair, prompting some accusations of "demolition by neglect." Like many development disputes, the fate of the Takoma Theater may end up it court while neighborhood redevelopment plans continue to gather dust.

Washington D.C. real estate development news

FCP Plans Condos on Adams Morgan Infill Site

Adams Morgan will get another condominium project - likely within the next two years - on the now vacant lot at 2337 Champlain Street. Federal Capital Partners (FCP) purchased the property yesterday and plans to build up to 40 units on the site.

The fully-entitled residential development site, adjacent to the adaptive reuse project (at 2329, 2335) (currently seeking a new owner) will be developed by FCP in conjunction with Altus Realty Partners. Of the sale, Altus principal Charlie Kehler said, "[w]e’re really excited, it’s one of the last infill sites on Champlain Street."

"We’re going to try to bring this to market as soon as we can,” stated Kehler, of the project which aims to begin construction in the spring of 2012. "We're interviewing architects [currently]." Once selected, the chosen architecture firm will design a complex offering "somewhere between 36 and 40 units, that will range from 500 to 900 square feet."

Of the location, Kehler added, "It's proven to be a strong market." He expects the condos to command "$550 to $600 per square foot." The $3.55 million sale was brokered by Scott Frankel of CBRE and Bruce Levin of MAC Realty Advisors. According to DCRA, WWYP LLC had purchased the property in June of 2005 for $1.9 million.

FCP is a local real estate investment company with over $2 billion in assets acquired since 2003. Altus operates out of Arlington and invests primarily in the greater-D.C. area.

Washington D.C. real estate development news

The Monterey: A Condo Odyssey Ends

The Monterey, which once threatened to add 432 condo units in North Bethesda, has been passed on to a fourth owner this week, to a team comprised of DC-based Federal Capital Partners and New York-based Angelo, Gordon & Co. The team purchased the site for $97 million, or roughly $225,000 per unit, from CBRE Realty Finance.

The 550,000-s.f. building, originally dating from the '60s as the Pavilion Apartments, underwent a condo conversion and began selling units in early 2006, under the leadership of Annapolis-based Triton Real Estate Partners, which purchased the 16-story property in 2005. But in 2007, before having settled any of the condominium sales, Triton defaulted on their loan and CBRE obtained full ownership. After getting the 40-something condo buyers to relinquish their contracts, CBRE's Paul Martin told DCMud last December that his plan was to position the building as a rental property and eventually sell it.

Now, with the title in hand, Federal Capital Partners is planning to complete the unfinished renovation work that Triton began in its attempt to pitch the building as a condo, and convert the building back to apartments. Triton's addition of granite countertops, hardwood floors and stainless steel appliances obviously weren't enough, so FCP and Angelo Gordon, plan to "re-establish The Monterey as the premier Class-A apartment community on Rockville Pike." Prices initially ranged from the low $300's to the mid $800's, and together with the planned facade renovation reportedly drove the price tag of the whole project up to $45m the last time around. In its current incarnation, the new owners will add a slew of "luxury" finishes, including upgrades to common areas and a host of other "Class A amenities." The developers plan to finish within a year. “The Monterey is an outstanding asset in a proven location. Access to capital and experience repositioning high-rise apartments allowed us to structure a deal that appealed to the senior lender, the mezzanine lender, and contractors left stranded by a failed condo conversion. It helped that none of the apartments ever sold as condominiums and that a substantial part of the property was renovated to Class-A condo standards," said Lacy Rice, a partner at FCP. 

North Bethesda real estate development news