Downtown Bethesda Project Heads Back to Planning Board

A hotel is back on the boards for Woodmont East, the long-planned JBG Companies development on Bethesda Row, if the Montgomery County Planning Board accepts the latest amendments to allow redevelopment of an additional site -- Artery Plaza -- that is an existing 11-story office building at 7200 Wisconsin Ave.

New plans include a hotel with as many as 230 rooms along with additional retail and office space, to be considered by the planning board during the April 12 hearing. JBG nixed plans for a hotel in 2009 because of market trends, instead designating the area as office space.

The County already approved the Project Plan and Preliminary Plan in 2008, and approved an amendment to those plans in 2009.  JBG now proposes another amendment to allow additional development of an adjacent site. Total real estate development including new and existing space now could include the hotel, 81,165 s.f. of retail space, 755,739 s.f. of office space, and 210 residential units (with 12.5 percent MPDUs), according to the revised staff report prepared for the hearing. The additional property brings the site to 5.82 acres with 4.85 acres available for developing the more than 1.2 million square foot project.

2009 rendering of Woodmont East

Matthew Blocher, Senior Vice President at JBG, said the company is unable to discuss the project until after the hearing.

But according to the staff report, proposed construction will take place in three phases with some office and retail space created in all three phases. Residential units will be built in the first phase. The hotel will follow in the second phase. The third phase entails redeveloping the Artery building with two upper floors of office space and ground-floor retail.

Federal Realty Investment Trust (FRT), owners of half the Woodmont site, partnered with JBG for the development project designed by Shalom Baranes Architects.

The planning board is no stranger to Woodmont East proposals. The board first heard plans for the site in 2007, at which time it denied the application for further consideration of the project’s impact on Capital Crescent Trail. The developers agreed to reroute the path along Bethesda Avenue.

Other concerns included the impact on buildings already onsite. The new staff report states only a stand-alone restaurant and an office building fronting on Bethesda Avenue will be removed, while the Landmark theater will remain. Already approved plans call for third-phase construction of residential space to replace an existing parking deck.

Staff-recommended conditions on approval of the new amendments still include specific measures to keep the trail open during construction, provide an alternate route and install signs to guide trail users. Other conditions in the report require a green roof, LEED Rating Certification with an effort to achieve LEED Silver, and traffic mitigation measures. This will take place directly across the street from redevelopment of the parking lot into condos and apartments.

Bethesda, Maryland, real estate development news

Mid-Pike Plaza Warmly Received By MoCo Planning Board

The Montgomery County Planning Board gave initial approval last week to the preliminary site plans for Pike & Rose, the replacement for Mid-Pike Plaza, an ambitious vision that would dramatically transform a 24-acre parcel in White Flint, at the intersection of Rockville Pike and Old Georgetown Road.

The preliminary plan, from Rockville-based REIT Federal Realty Investment Trust, proposes to convert the existing surface-parking-and-strip-mall into mixed-use pedestrian- and bike-friendly mega-development with interspersed public green spaces. The final buildout, which was designed by WDG Architecture and Baltimore-based Design Collective, would come in at just under 3.5 million square feet, with approximately half of that total being residential. A list of tenants for the finished development includes AT&T, Bank of America, and CVS, among many others, including - notably - an 8-screen, reserved-seating iPic theater.

Though the project represents a massive facelift for the area, planners have surprisingly received no complaints regarding the project from adjacent property owners or other members of the public, and the planning board was largely receptive to the plans at last week's meeting. Of course, final approval is contingent on developers meeting a long list of conditions, including providing recreation facilities, street improvements, bike parking, vegetated rooftops, and a per-residential-unit payment of just over 1800 dollars to Montgomery County schools.

In accordance with the latest trends in urban planning, plans for Mid-Pike Plaza place heavy emphasis on pedestrian-friendly access, traffic reduction, public spaces, and green solutions. The project, for example, includes a "road diet" that would sharply reduce traffic in the area, largely by reducing Old Georgetown Road to four lanes from six, and a "dramatic" reduction in parking. Phase One also includes generous apportioning of public green spaces; included in the site plan are two pedestrian plazas and a public green that would altogether account for 1.3 acres (of a total 6.7 Phase One acres). Planners have also required Federal Realty to include vegetated roofs on most of the buildings. Smaller pockets parks are splashed throughout the development, and most of the public spaces will be linked by a "recreation loop" of bike lanes and walking paths.

Construction is slated to commence in three phases, proceeding roughly from the southwest corner of the property and proceeding roughly northeast. Phase One, tentatively scheduled to break ground this August, will start with Building 10, located in the very southwesterly corner, a 200-foot-tall, 319-unit residential building with 13,300 square feet of commercial space, Building 11 (directly to the east of Building 10), a 100-foot-tall 251,000 square foot u-shaped office tower with ground floor commercial space, and Building 12, a 70-foot building which will front Old Georgetown Road, and consist of 174 residential units and just over 50,000 square feet of commercial space. Per an agreement with the county, the two residential buildings in Phase One would offer 12.5% moderately priced dwelling units (MPDUs). Phase Two would represent the approximate center of the trapezoidal parcel, and Phase Three would complete the north end of the development as well as fill in spaces on the west and southeast margins.

North Bethesda real estate development news

LCOR, JBG: More Density in North Bethesda

LCOR plans to break ground before the end of the year on its third building - a 19-story, 341-unit apartment - within its recently enhanced North Bethesda Center. Construction of the residential building, the "Aurora", will commence before the end of the year, confirms LCOR's vice president Mike Smith.

JBG is also looking to begin construction on its own North Bethesda project - North Bethesda Market II (NoBe II, rendering to the right) - shortly after the first of the year. JBG's 4.4-acre site plan was submitted on August 24th and is now under review. JBG development executive Greg Trimmer indicated that the developer is just waiting on the county. "We are cautiously optimistic we will get full site approval early in 2012, and plan to begin construction immediately [after approval]."

NoBe II is located north of JBG's North Bethesda Market; there could be a III and IV as JBG owns more land to the south and west of the two sites, but for now, NoBe II is its sole focus in the area. NoBe II will be completed in one phase, taking 2-to-3 years, said Trimmer.

Meanwhile, LCOR's focus for the moment, the Aurora (rendering below), was designed by WDG, and will be built by BE&K; the building's site plan hearing will be held on the 22nd.

Both LCOR and JBG tacked on significant density to their North Bethesda projects in the past year, after the White Flint Sector Master Plan was passed by the Montgomery County Council in March of 2010.

Due to the increased zoning envelope permitted by the new White Flint Sector Plan, LCOR upped the square footage of planned construction on its 32-acre site by 40 percent: from 2.7 to 4.5 million square feet. JBG did the same, also increasing its F.A.R by 40 percent: from 2.4 to 4.0.

Revisions to LCOR's development have been a joint effort, having partnered with FX Fowle earlier this year. FX Fowle was brought on to assist with creating a new, enhanced vision for North Bethesda Center and give it a "fresh look," said Smith.

The enhanced North Bethesda Center plan by LCOR and FX Fowle is for approximately 1.4 m s.f. of office, 310,000 s.f. of retail, 2.4 m s.f of residential, a 350,000 s.f. hotel, and a 15,000 s.f. library. Initial plans by LCOR were to construct eight buildings on site, however Smith said that now the development team aims for "up to 10 high-rise buildings for the property." A Site Plan for 7.4 acres (3 parcels) of the development was submitted on July 29th and is now under review.

Both Trimmer and Smith applauded the foresight of Montgomery County in passing the new Sector Plan last year. Trimmer also gave his company, JBG, a nod, when questioned whether creativity was more apt to flourish on projects located outside of the District; Trimmer said, "I have to credit JBG. We've made a distinct strategic decision to increase the distinctiveness of our architecture and differentiate our projects."

What Trimmer refers to at the moment, North Bethesda Market II (pictured above), was designed by Studios Architecture and is comprised of a "striking" 339-unit residential tower (300-feet tall, surpassing its own accomplishment to the south), a 6-story office building, theater, restaurant, two retail spaces and a public plaza.

Other developers with investments in the area, and looking to go dense are: Federal Realty, with its 24-acre Mid-Pike Plaza (Site Plan for 16.3 acres was submitted on August 3rd) and Promark, with its 11-acre North Bethesda Gateway (no Site Plan submitted yet).

In January of this year, the Montgomery County Planning Board approved the sketch plans for all three of the aforementioned projects: North Bethesda Market II, North Bethesda Gateway and Mid-Pike Plaza. The sketch plan submission is a relatively new step in the approval process (not as exciting for developers) that came with the new White Flint Sector Plan.

Trimmer added, "White Flint is a very good development opportunity; it has strong existing amenities and a large portion of underutilized land."

Another reason developers might eye the North Bethesda area is the 10-percent commercial property tax increase (part of the new Sector Plan) that will help finance an estimated $208 million in construction (and infrastructure improvements) during its lifespan. Last December, Montgomery County officials projected that new growth in the White Flint area could bring in as much as $6.8 billion.

update: Greg Trimmer with JBG, not Trimmen

Washington D.C. real estate development news

Local Grocer to Open Second Location, in Rockville Town Square

Ellwood Thompson's, a grassroots grocer out of Richmond, Va., is opening a second location in Rockville Town Square next spring - a 15,000 s.f. grocery store offering organic and locally sourced products, to be called Dawson's Market.

The recently secured deal was announced yesterday by Federal Realty. Ellwood Thompson's had planned to open a second store in DC USA - the 500,000 s.f., big-box shopping center in Columbia Heights - in 2007, but backed out in 2010 after negotiations fell flat.

Ellwood Thompson's was then approached by Federal Realty for the Rockville Town Square location; the leasing management company had previously signed (also in 2007) the financially doomed A&P for the Rockville site, as was reported by Rockville Patch, but A&P backed out of its lease last year, clearly for different reasons.

Ellwood Thompson's seems to be a likable operation: a local independent market with "a strong commitment to the farm to table movement," sourcing product within a 100-mile radius, and partnering with "small family-owned farms in [the surrounding] community." ET is the largest independent organic market in Virginia, with nearly 30 years in business, after growing from one (Eric Walters) to 120 employees.

Specifics of the new location are currently being fleshed out, such as which local farms will become partners, whether a bakeshop or cafe will be incorporated, etc. Paige Bishop, director of marketing for Ellwood Thompson's said that because the lease has just been signed, "We'll know more details at the beginning of February." And, although the goal is for an April opening, much will depend on what kind of winter descends on the area between now and then.

With strict standards for offering only organic and natural products with the underlying mission stated as being "to help people discover and celebrate a healthy relationship with food," managing the birth of the Rockville operation is a high priority and further expansion isn't in the cards, or on the table, confirmed Bishop, "We have no other expansion plans."

Although its easy to figure that a charismatic local character named Mr. Ellwood Thompson opened the store back in the '80s, an assumption that would be wrong - the market is named after the streets that intersect at its location: Ellwood Avenue and Thompson Street.

Rockville Town Square was completed in 2007, and Jill Powell, senior marking specialist for Federal Realty confirms there are "some small shop leasing opportunities [still] available at Rockville Town Square."

Maryland real estate development news

Federal Realty's Mid-Pike Plaza to Rival JBG's NoBe

Earlier this month, Federal Realty's plans for "Mid-Pike Plaza" passed under the noses of the Montgomery County Development Review Committee. Apparently, it passed the sniff test; but unfortunately it takes a lot more than that to get development projects approved and rolling in Montgomery County. The development site spans 24.38 acres to the west of Rockville Pike and just north of Old Georgetown Road. Developers have plans big enough to warrant the massive site, calling for a whopping total of 1,725 residential units when all is said and constructed. Residents will be joined by roughly 300,000 s.f. of retail, over a million square feet of office space, a 125-key hotel, and a carbon imprint of 4,145 parking spaces (all structurally built). It's yet another sign that White Flint is destined to become drastically denser in less than a decade.

Being still in the wee hours of the project's preliminary planning life-cycle, drawings, courtesy of architect Tim Mount at Street-Works are are rather sketchy (pun intended) and offer only a distant perspective. This fuzziness cannot be attributed to lack of a steady hand, but is rather typical of the master planning stage in which details are scarce, and reveals the wiggle room necessary for developers and architects to successfully navigate the often tumultuous and always tedious planning process. But that process is getting easier and more efficient thanks to the newly approved White Flint Sector Plan, says Federal Realty developer Evan Goldman. "Our Sketch Plan follows almost exactly to the White Flint Sector Plan, which the citizens were already highly involved with," Goldman explains, "making the process a lot quicker, and minimizing disputes." Goldman and Federal Realty will present their Sketch Plan to the Montgomery County Planning Board next month, and hope to submit their Site and Preliminary Plan applications shortly after.

If the market continues to cooperate, and the planning process goes smoothly, Goldman believes they'll be ready to break ground in 2012. He thinks that would place Mid Pike Plaza as the front runner of major developments currently in the pipeline. LCOR has already broken ground on the new U.S. Nuclear Regulatory Commission (NRC) building at North Bethesda Center/White Flint Metro, and JBG's North Bethesda Phase II should follow right behind Mid Pike Plaza. ProMark's North Bethesda Gateway also looks to get in on the action in the coming years.

Phase I of Mid Pike Plaza will land White Flint three new buildings: one high-rise residential, a small office atop retail, and a low-rise residential over retail. "These will anchor our Main Street and usher in improved streetscapes and a community park," promises Goldman. The second phase will complete the streetscapes, the street grid and public space for the retail plaza, and several more pockets of public green spaces, while future phases will proceed to fill in the block with larger buildings, one by one. As for architectural details, those will emerge later. The next step is "to meet with Street-Works in order to create design guidelines for our main storefronts and streetscapes," says Goldman.

With Bethesda having been the economic engine of the region for the last 20 to 30 years, many of local developers concur with Goldman's assessment of White Flint as the "logical next step" for development. "We're setting up a really good street grid, with all sustainable buildings, great pedestrian friendly roads, and great transit," says Goldman. The blank slate that is the area surrounding the White Flint metro will enable developers' smart growth ambitions to play out on a large scale; and it seems that developers and the community are taking this precedent seriously. Aside from the many proposed development projects, the newly established special taxing districting in North Bethesda will also help improve the area's infrastructure: a ten percent commercial property tax increase as part of the new Sector Plan will help finance $208 million in construction during its lifespan. With Montgomery County officials projecting that new growth in the White Flint area could bring in as much as $6.8 billion, it seems like White Flint is ready to take the torch from Bethesda whether they want to pass it over or not.

Montgomery County, MD Real Estate Development News

Bethesda Row Gets a Workout

As we blog, Virginia-based general contractor LF Jennings is hard at work on the latest commercial property addendum to Federal Realty Investment Trust’s success at Bethesda Row, the Champs Elysees of DC's yuppiedom. This time, they're working on a new, 45,000 square foot Equinox Fitness Club at Woodmont Avenue and Elm Street, across from Austin Grill.

Based on designs by Hickok Cole Architects, the three-story, LEED-certified uber-gym will be constructed out of “steel, brick, veneer and curtainwall,” according to the builder, and feature two levels that will include a basement pool. In keeping with the project’s aspirations of eco-friendliness, current plans call for a green roof that will “retain and filter rain water” for re-use in the development. Though the luxury workout spot will abut the decidedly less dapper Shoppes of Bethesda strip mall on one side, wealthy fitness buffs should be able to get a clear view of Bentley Bethesda from the top.

Work at the site began late last month and is likely to complete in spring 2010. That’s just about the same time that FRIT and the JBG Companies will be readying themselves to break ground on the mixed-use retail/residential towers, tentatively titled Woodmont East, on Bethesda Row’s southern side at Woodmont and Bethesda Avenues – meaning there’s beaucoup development in the works for America’s second most liveable city come the New Year.

Bethesda Maryland retail and real estate news

JBG Discusses Plans for Bethesda Row

With preliminary approvals from the Montgomery County Planning Board in place as of last Thursday, the JBG Companies say they are now actively in development on Woodmont East, the large-scale, mixed-use project set to usurp the last vacant parcel adjoining Bethesda Row. Since first going public with the project in 2007, the project has lost one key component - a planned hotel that has since been revised as 208,579 square feet of office space. Meanwhile, the Capital Crescent Trail that bisects the site will remain open for, at the very least, most of the construction period.

"The amendment to the project and preliminary plan amended the use of that southern bit from hotel to office. Otherwise, not much changed…We did some modifications to the open space based on comments from the community. We did some modifications to the building, but not much. The envelope and the height have been pretty much intact from 2007 on,” said Matt Blocher, Senior Vice President at JBG. “It’s within the same density. They’re both commercial use and they’re both the same size buildings. It was purely market driven. “

Located at the intersection of Woodmont and Bethesda Avenues, Woodmont East will feature one tower of office space and a second with 250 residential units and 9,000 square feet of retail. Dividing them will be a landmark well-known to area outdoor aficionados - the Capital Crescent Trail.

“The trail will come right through the two of them,” said Blocher. “As far as what happened at the hearing, [the approval] permits us to close the trail for up to five days at a time if there is significant construction procedures. At this point, we’re not sure if we'll need to close it, except for at the end of the job when we have to do the paving.”

Joining JBG on the development team are Shalom Baranes Architects, as well the developers of neighboring Bethesda Row and owners of half of the Woodmont site, Federal Realty Investment Trust (FRT). Though both developers had initially filed separate site plans for the project in 2007, Kai Reynolds, a Partner at JBG, tells DCmud that the two have been working closely together since the development was first proposed.

“It was the same site plan [that was filed]. That’s just part of the venture. We have been together with FRIT on these efforts for about nine years now. It’s definitely a joint venture,” said Reynolds.

While Bethesda-ites and the developers alike are certainly hoping for repeat of the success of Bethesda Row, both will have to wait for development to get physical. Though nearing the end of the formal approval process, JBG concedes that there are still several key components that need to be worked out before construction can proceed.

"It’s still pretty far off because we haven’t yet begun to design the building beyond the site plan guidelines required by Montgomery County. Design and permitting is anywhere from 12 to 24 months, and then construction is 24 months,” said Reynolds.

Bethesda, MD, real estate development news

JBG Seeks Approval for Bethesda Row Development Tonight

The JBG Companies will make a return appearance before the Montgomery County Planning Board tonight to seek Preliminary Project Plan approval for both phases of their Woodmont East mixed-used development in the Bethesda Central Business District. Located at the northeast side of Woodmont and Bethesda Avenues and wedged directly on one of the last vacant parcel adjoining the Bethesda Row development, the project had previously been approved for 78,300 square feet of office space, 40,350 square feet of retail, a 225 room hotel, and 250 multi-family residential units in two towers.

In the first news to come of the project since it was first announced in 2007, JBG has apparently scrapped plans for the hotel and is seeking consent for a re-jiggered development scheme with a whopping 208,579 square feet of office space, a diminutive 9,000 square feet of retail, and 250 residential units that will, in the words of the Planning Board, continue “the successful theme of mixed retail, restaurant and office uses along ‘Bethesda Row.’” The building once intended to house the hotel will instead be utilized as an office tower and the Thymes Square restaurant next door to the site at 4735 Bethesda Avenue will be razed to make way for the development.

Planning Board staff has already granted pre-approval to all three of portions of the plan. The scenario was much the same – staff approval included – when JBG presented their plan to the Board in November 2007, shortly after leasing the property from Bethesda Row developer Federal Realty Trust. In surprise move, the Board wound up denying their application, following complaints from the community about detrimental affects to the Capital Crescent Trail system and encroachment upon the neighboring movie theater. Federal Realty Trust also tried but failed to get approval for a nearly identical project at the site just weeks before that fateful turn of events.

JBG representatives would not comment on the development until after the scheduled April 30th hearing.

Bethesda Developer Shelves Project

Plans for a 250-unit development in downtown Bethesda were put on ice this week by Street Retail Inc., a wholly owned subsidiary of Federal Realty Trust, citing adverse community reaction. The project, when put into motion, will create a 250-room hotel, 56,000 s.f. of retail space and 250 "residential components" for downtown Bethesda at the NE corner of Woodmont and Bethesda Avenues (site photo pictured).

Phase one of the project, consisting of a single 5-story office building with ground-level retail and eight-screen movie theatre, already sits on the NW corner of the lot and is proposed to be incorporated into the new development. In order to accomplish architectural integration with the surrounding Metro Core District, design team Shalom Baranes Associates has concentrated building density in the northeast portion of the lot, gradually decreasing the concentration of construction to seamlessly transition into the southwestern low-density zones.

Last week, the Montgomery County Planning Department finally reviewed preliminary plans for the development, more than a year since they were originally submitted. During that time, developers have been hitting the streets, dedicating copious time to local government officials, Planning Department members and the community at large in an attempt to head off future dissent and incorporate feasible solutions into the overall plan. It has paid off; one notable example lies in the hubbub that arose when Capital Crescent Trail constituents found out they would lose their trail during the duration of the two-year construction period. As a result of community involvement the development team came up with three alternative solutions to the problem that subsequently satisfied the concerned parties.

Still, many don't want to see more development on what is now open green space, a factor accentuated by the PN Hoffman project approved just across the street. Maryland Politics Watch writer David Lublin opines: "Precisely because so much development is already approved near to that intersection is why more open space is needed." In turn, developers have pulled out because they want to meet those concerns before entering a public hearing.

John R. Tschiderer, VP of Development for Federal Realty Investment Trust, stressed his firm's focus on community involvement. "[We] have been involved in creating Bethesda row for 13 to 14 years, and our investment in its creation has been through a public/private partnership. We have worked through the political and community leadership and the constituents thereof collectively, to create a very distinct and noticeable district. There have been many layers of benefit to all of those involved in the partnership and we are going to continue in that forum."

Shirlington Hotel Approved

Arlington County gave approval this week for a final site plan application by Shirlington HHG Hotel Development on Arlington Mill Drive in Shirlington across from Jennie Dean Park. The proposal for the project, located at the corner of South Stafford St., was for a 7-story, 142-room Hilton (110,000 s.f.) located on a 0.79 acre parcel with street-level retail. The masonry structure with red, blond, and buff colored brick will feature a mix of studio, 1-bedroom and 2-bedroom units, indoor pool, and provide parking with a residential garage located across S. Stafford Street. The entrance will face South Stafford St., and the developer will improve landscaping and sidewalks surrounding the building as part of the project. The county is requiring a minimum LEED score for the project, though the developer does not intend to seek certification for the project.

This hotel was initially given the green light by the County Board in late 2000 as part of a larger development by the Federal Realty Investment Trust, a nationwide developer which has been a shaping force in Shirlington. The completion of the hotel will be the final element of the Phase II plan.

Centex Development in Falls Church Stalls

A combination of astronomical asking prices for land and recent residential market trends has Centex Homes reconsidering whether to move forward with its planned role in the development of Falls Church’s City Center village project, to be located at the intersection of South and North Washington Streets and W. Broad Street. The City Center project will contain a public town square, along with a hotel, new grocery store, retailers, office space, and a mix of residential options, including up to 1,000 condo units, over the next decade (though this, too, is now uncertain). However, the job of purchasing the needed land for this project has proven problematic, as landowners are asking between $2.5 and $5.7 million an acre on the north side of W. Broad – the location of the first two blocks of the project that Centex (teaming with Federal Realty) is tasked to develop. Given the significant distance to the nearest metro station, Centex is re-evaluating the worth of this project, and is now in discussions with the city and landowners on the next step, if any. Meanwhile, while the north side of W. Broad is up in the air, the south side of this project, which is being developed by Atlantic Realty, appears to be moving forward, as most of this land has already been bought or acquired.