The Foundry Lofts at the Yards, Opening Soon

The Foundry Lofts, one residential component of The Yards development by Forest City in Southeast, began pre-leasing on August 1st the 170 apartment units that comprise the redeveloped Foundry building, with 10,000 s.f. of ground floor retail. There are three floors of one- and two-bedroom apartments, and 33 two-level penthouses. One-bedroom units will be in the lower $2000/month range, two-bedrooms "from $2,700" and penthouses "from $3,400," with unobstructed views of the Anacostia and beyond. The first apartments will deliver in mid October and the penthouses two months later. The residences will comprise just a few of the 2800 units completed to date in the Capitol Riverfront Business Improvement District, but will be conspicuous as the nucleus of the retail pavilion, overlooking the parks and surrounded by the new retail center. Retailers already leased at The Lofts include Potbelly's and Kruba Thai and Sushi. 

Washington D.C. real estate development news

Neighborhood Report: Capitol Riverfront Southeast

"Our neighborhood is no longer emerging," said Michael Stephens, Executive Director of the the Capitol Riverfront Business Improvement District. "It has blossomed." Stephens cites 35,000 people who commute to work in the area every day and the rising number of residents to buttress the growing retail imprint just north of the Anacostia River.
Retail, restaurants and office space leases are filling in at a more rapid rate than counterpoint emerging neighborhood NoMa, where the snap-up of square footage has been dominated by office leases. Sexier retail - even indie tenants such as as Pound Coffee have defected to Capitol Hill, while Capitol Waterfront is a hot commodity for retailers.
It helps that temporary projects draw the young and artsy to the water - Trapeze School Washington, Sensorium Dining and Art at the Yards generate buzz. Then there's the developing Canal Park that's scheduled to open in May 2012, Yards Park which opened last year, and Diamond Teague Park that was completed in 2009. In the meantime, enter the bridge to connect the two parks. And of course there's the ball park.

Many completed office buildings have lassoed tenants. Monument Realty's 55 M Street S.E. is 86% leased, with tenants such as the FAA and DDOT. Several D.C. government offices plan to move to the neighborhood in the second quarter, and this month Booz Allen Hamilton moved into 20 M Street, bumping the building to 97% leased. And 1015 Half Street, the former Opus East LLC and Prudential Real Estate Investors partnership that was resuscitated by Skanska this past May, is slated to open in July.

Both Lumber Shed at The Yards Park Pavilion and The Yards Boilermaker Shops are among the most anticipated retail projects. Both buildings - the Lumber Shed at 100 Water Street and Boilermaker Shops at 200 Tingey Street - are part of the National Register of Historic Places, with Forest City Washington as developer and Gensler shepherding construction and design. Among other tenants, Neighborhood Restaurant Group has signed a lease for a restaurant that's expected to become a brewpub. According to Ramsey Meiser, Senior Vice President of Development at Forest City, 50% of the Lumber Shed and 70% of the Boilermaker Shops leases are tied down. Estimated opening date is early 2013.

Over at 400 Tingey Street S.E., Michael Stevens confirms that "a major health club" is signing a lease for 30,000 s.f. of this Forest City cite; sources tell DCMud that said major health club is VIDA Fitness, and that the lease is a done deal.

Also destined for the block at 401 M Street is a 50,000 s.f. Harris Teeter, above which will rise two residential towers with 220 units, with 20% affordable housing, also by Forest City. Environmental remediation will continue through the year with construction is expected to begin in the spring of 2012.

The big news as far as grocery stores in the area has been the potential for a Whole Foods at 800 New Jersey Avenue, S.E., however, the developer William C. Smith + Co. and the grocer are looking for tax abatement to the tune of $8 million over ten years. The groups have apparently been discussing a store for the site since 2002. With a city handing out tax breaks to far less game-changing endeavors - but now strapped for funds - the plan is still given better than even odds.

Among residential options, of Capitol Quarter's EYA development of 113 homes, phase I has sold out, and the 130 homes of Phase II are on the market now, with a move-in date of June 1. Construction had started in 2008, with Phase I construction completed in May of last year.

Other apartments include the off-then-on Foundry Lofts project at 201 Tingey Street S.E. which will offer 10,000 s.f. of retail and 170 market rate units. Forest City was able to resume building in September of 2010 as a result of President Obama's New Issue Bond Program (NIBP) that allowed for the D.C. Housing and Finance Agency (DCHFA) to fund the project and kick it forward. Leasing will begin this summer, with move-in likely in October.

In a holding pattern are several other projects awaiting financing. They include Factory 202, the SK&I-designed building that had been home to Federal Protective Services which was to have become a condo building. Forest City is still entertaining other plans for the site, but as of now it is considered a building for a later phase of development.

Though Monument Realty's 55 M Street is filling up, there is no start date for the hotel or residential buildings at Half Street since funding has not been secured since Lehman Brothers' exit. The grand plans for this property tanked with the fall of the economy, leaving a crater sized hole in 2008.

Akridge's Half Street mixed use office, residential and retail tower is also on hold, as developers are in the process of securing an office tenant. "We've just picked things up again in regard to design," said Kathy McDaniel, Project Administrator for Akridge. "Three months from now, we will have more progress to report."

Still on the boards is the CSX plan to widen its rail lines that run under Virginia Avenue, which is not marketed as loudly, partly because it will be some time before the location will be affected. A $98 million TIGER grant will raise the clearance in 38 locations in three states; 23 more need to be funded and amended before the bigger clearance allows for taller trains. The Virginia Avenue tunnel is among the largest and the most expensive pieces of the project.

Washington, D.C. real estate development news

Forest City's Parcel D: The Yards Gets Moving

Last month Forest City presented their updated plans for a mixed-use development at the Yards to the local ANC, gratefully receiving a vote of approval. The National Capital Planning Commission (NCPC) also voiced their support for the project earlier this year. And now the proposal, which sees rental apartments stacked atop ground floor retail, goes before the Zoning Commission next month in hopes of earning final approval. Dubbed "Parcel D," the project is one of the first phases of new construction at The Yards, a Southeast waterfront redevelopment site that will eventually feature 2,800 residential units, 1.8 million s.f. of new office space, and 400,000 s.f. of retail shops and dining places. Forest City already delivered the promised 5.5 acre, riverfront Yards Park early this summer. An expansive, vacant parking lot currently occupies the development site at the southeast corner of 4th and M St.

Under their current Parcel D plans, two towers totaling 225 apartments (20% of which will be offered as affordable housing at 50% of AMI) will rise 102 feet in the air, extending from a single differentiated base structure that will house the 50,000 s.f. grocery store (rumored to be Harris Teeter) a 30,000 s.f. health club, and a few smaller "neighborhood-serving" retail spaces. Developers are in final negotiations with several tenants, and will make announcements as soon as leases are executed, for now renderings reveal them simply as "grocery" and "health club." Below grade parking will serve the retail uses, while a third floor parking deck sandwiched between the grocery store and apartment towers will provide spaces for residents.

Project Manager Alex Nyhan of Forest City told ANC6D that he and his team were optimistic that the predicted LEED Silver certification could be upgraded to an ambitious Gold rating by the project's end. Shalom Baranes is responsible for the building design, which has evolved significantly over the last three years as architects and developers responded to the suggestions of the HPRB, the NCPC, and the surrounding community. While plans are firming up, there is still plenty of work to be done. Senior Vice President of Development Ramsey Meiser at Forest City explains that even if all goes swimmingly next month at the zoning hearing, architectural plans will still need to be finalized, and building permits must be secured, likely a six to ninth month process. "I'm hoping to have construction under way by the middle part of next year," Meiser says. Once a groundbreaking happens, excavation and subsequent construction is expected to last 20-24 months.

Washington D.C. Real Estate Development News

Feds Enable Affordable Housing Surge in the District

Significant press coverage has been granted to The Yards' Foundry Lofts over the last several days, and in the past as well, a project that will move forward thanks to the DC Housing Finance Agency (DCHFA) multi-deal bond release under President Obama's New Issue Bond Program (NIBP). This is all big news, as there are a few firsts here: the first HFA in the country to issue an escrow release under the new program, and the Agency's first mixed-income transaction, as 34 of the Foundry Lofts' 170 new rental units (20 percent) will be marketed to families making only 50% of the Area Medium Income (AMI). But the same funding mechanism also enabled yet more public housing; So Others Might Eat's (SOME) "The Scattered Site Project" will also move forward with the assistance of the released funds.

The Scattered Site Project has been in the works since early 2007 according to SOME's Housing Development Director Troy Swanda, and has been on the starting line and ready to go for sometime now. But with the market downtown, the start gun was without powder, and the project has idled. Now, the recently released bonds combined with tax credits, grants, and SOME's private fund raising will make this multiple-site development a reality. Totaling more than $36 million, the specific funding numbers go as follows: $8.1 million from DCHFA's Tax Exempt Bonds, $11.5 million DHCD Housing Production Trust Fund, $6.7 million from Low-Income Housing Tax Credit Proceeds, $2.9 million from DC Housing Authority LRSP Capital Grant, and $7.3 million from SOME's own financing. SOME and their team of contractors were so poised for action in fact, that they began construction the very day the bond release was finalized. The aptly named development consists of five different properties strewn across Wards 7 and 8 in the Southeast. Three of the properties (350 50th St, 3828 South Capitol St, and 2810 Texas Avenue) will be intended for single adults, while one property (730 Chesapeake St) will be geared for families, and the last (1667 Good Hope Road) for seniors.

The five buildings will offer a total of 245 apartments, all classified as affordable housing, meant to shelter residents making 0-30% AMI. Keeping carbon footprints to a minimum, the properties will feature very limited parking amenities, as residents of affordable housing projects are typically some of public transportation's most devoted users. Two buildings will feature green vegetation roofs and one will be topped with a passive solar water heating system. "Building to green standards is in mind with construction and design of every building," says Swanda. Local firm Nelson Architects is responsible for the design of each building. Developers expect to deliver their first building in early 2011, and will complete the roll out of all five by the end of that year.

Washington D.C. Real Estate Development News

Waterfront Station- Fenty Makes it Official

If no development in DC is official until the Mayor appears for a photo op and a speech, then Waterfront Station became official yesterday.

On the other hand, 1,600 of his employees have been on site since March, when the initial office buildings opened, and have been enjoying the newly opened Safeway. The Safeway closed its old store in March and reopened its "urban concept" store April 16th; the grocery store opening was quickly followed by last month's opening of the newly reconnected 4th Street. The new 4th Street not only creates the new “Main Street” of Waterfront Station, but also a new connecting artery for Southwest.

Two new office buildings flanking 4th Street each now offer 250,000 s.f. of space above the Metro. Development team Forest City Washington, Vornado/Charles E. Smith and Bresler and Reiner, Inc., must have been pleased to have Mayor Fenty on hand, knowing that the DC government has leased 100% of the office space for this phase of the project, a detail that made construction financing a whole lot easier. The building was designed by Shalom Baranes & Associates to achieve LEED certification, though not yet official the green certification is in the works.

To date 88 percent of retail has been leased, with CVS opening in a month and a Z Burger set to open this fall. When Station 4, from owners of Ulah Bistro, opens in the fall it will be the only after-hours restaurant in SW not on the Waterfront.


Washington, DC real estate development news

Southwest Safeway: Hello, Goodbye

While neighbors bide their time, waiting for a new Southwest Safeway to open at Waterfront Station, the old Safeway will likely stick around a little longer; at least its corpse will. Developers have now applied for a raze permit for 401 M Street, SW, beginning the process to demolish the old building. The store closed its doors for good April 6th and the new Safeway will show its wares to new neighbors with a "sneak peak" on the 15th and grand opening on April 16th.

According to Craig Muckle, Spokesperson for Safeway, the team does not expect demolition to begin until sometime this summer, though an adjoining wall between the old and new stores will come down prior to the new store's opening.

Safeway's newest store at the Southwest Waterfront Station will bring relief to residents who have long complained of the lack of necessities, such as bread and milk, that were routine.

Waterfront Station will also include new space for a CVS and Bank of America, as well as an additional 85,000 square feet for restaurants and “neighborhood service-related” retail. The project is a joint venture between Forest City Washington, Vornado/Charles E. Smith and Bresler and Reiner, Inc., and will add more than 2.5m square feet of new development on the site.

Washington, DC real estate development news

Work Begins on Capitol Riverfront's "Crown Jewel"

Developer Forest City Washington broke ground today on the latest Capitol Riverfront redevelopment initiative: the Park at the Yards. Located between Nationals Park and the Navy Yard, the $42 million, 5.4 acre park, designed by M. Paul Friedberg and Partners, was touted as "the core" and "crown jewel" of the greater Yards development. Once complete, the area will feature 2700 new units of housing, 400,000 square feet of retail and 1.8 million square feet of office space. The park’s first phase, scheduled for completion next summer, is set to include “vast open lawns” and landscaped gardens along a riverfront promenade that will incorporate an extension of the Anacostia Riverwalk Trail. Future work will include three retail pavilions, including one in the historically-protected Lumber Shed adjoining the site, with the end result of creating a world class waterfront destination.

“A world class city has to have a world class waterfront…This I think is the biggest piece of that and generations of Washingtonians are going to be thankful that this day occurred,” said DC Mayor Adrian Fenty.

Meanwhile, FCW President Deborah Ratner Salzberg told DCmud that other, more retail-centric pieces of the greater Yards puzzle, such as the Boilermaker Shops at 200 Tingey Street, SE, continue to fall into place. According to Salzberg, roughly 50% of that space is now leased and the FCW development team recently returned from a conference with potential retailers.

Despite rumors of business being slow in the from-scratch neighborhood surrounding the ballpark as construction continues, Claire Schaefer, Deputy Executive Director of the Capitol Riverfront BID, said that approximately 1,600 new residents are now in place in the area’s various rental and condo buildings, with that number expected to climb to 2,000 by year’s end. According to the Office of the Deputy Mayor for Planning and Economic Development, the Yards alone will host some 3,700 Southeast newcomers once work finally wraps sometime in the twenty-teens. Those figures will surely be helped along by the vast number of transit-oriented, “’smart growth” projects coming along as the riverfront coalesces - expanded bus services, water taxis, street cars and even horse-drawn buggies being among the options explored for a site that once hosted a government compound known as the Southeast Federal Center.

“You have to put all these pieces together to get to today…[This is] how a neighborhood gets transformed,” said Congresswoman Eleanor Holmes Norton, who facilitated the nation's first public-private partnership on federal land for the Yards project. “It is especially important to the neighborhood and city that there be a way to reach our river from which we have been isolated forever. This is a part of the city that has been opened to the people.”

Near Southeast PUD Development Faces Re-Shuffle

Forest City Washington and Urban Atlantic (formerly known as Mid-City Urban, LLC) will go before the National Capital Planning Commission on May 7^th to face a second round of approvals for modifications to their Second Stage PUD redevelopment of the Arthur Capper/Carrollsburg Dwellings in what is now the Capitol Riverfront. The project stems from a $34.9 million federal Hope VI grant given to the District of Columbia Housing Authority in 2001; that agency, which selected Forest City and Mid-City Urban for the project in 2003, is aiming for a mixed-income redevelopment at the Near Southeast site, with a one-for-one replacement of the 758 public housing units lost to demolition, plus 525 new affordable units and 330 market rate homes.

"It's a PUD stage two application for Squares 882, which is at 6^th and M, SE. There’s a commercial office building on the south side of that, right up against M Street and then there’s a residential building behind it to the north. The other PUD site is Square 769 at 2^nd and L Streets that is a residential building,” said David Smith, Project Manager for FCW. “Those are the only two that we need the PUD vote for, so that we can move on.”

The development team – which also includes architects from Torti Gallas, the Lessard Group and Shalom Baranes Associates – had their first hearing regarding the changes with the DC Zoning Commission (DCZC) on March 19^th. Citing the economic downturn as a contributing factor, they’re now planning to cut the size of floorplans at their four pending residential buildings along Canal Park with the intent of increasing the number of units on site.

“We are basically shifting around the density of the residential units and moving some parking…we’re above the required zoning amount [for parking]. We’re increasing it some spots and reducing it others,” said Smith. “There’s reduced parking at the office building, but there’s increased parking on another parcel.”

FCW has also been pushing for an extension of time to build a new community center at 5^th and K Streets, SE – a project that has already been pushed back several times since it was first announced. The DCZC gave the team a conditional approval for both the unit increase and parking reduction with the hitch that construction of the community center must begin sooner rather than later – in fact, a full twelve months earlier than FCW’s requested 2012 start date.

“We had asked for a certain date for the community center because of the economic times. The financing’s not there for it and we’re hoping they understand…We’ll find out what their vote is next Monday,” said Smith.

Though the sprawling, 23-acre Department of Housing and Urban Development-funded redevelopment initiative often fails to generate as much buzz as work immediately surrounding Nationals Park (including FCW’s own Yards project), progress in the Capper Carollsburg has been progressing steadily. The new Capper Senior Center and 400 M Street have already taken on tenants, while EYA’s Capitol Quarter project - featuring 137 market rate townhomes, 75 workforce housing townhomes and 86 public housing units - held a grand opening this past Wednesday. Seven hundred thousand square feet of office space is still planned to be split between 250 M Street and the Capper Senior Center’s former location at 7^th and M Streets, SE.

Factory 202 Gets Mixed-Up in Southeast?

Forest City Washington's aggressive development of the Capitol Riverfront via The Yards project is still keeping pace with its brisk timetable, but one component in particular might be getting a little retooling before it sees the light of day. The SK&I-designed Factory 202 project - a renovation and expansion of the Navy Yard industrial building formerly occupied by Federal Protective Services - had initially been inked as a 271-unit condo project. Now, whether due to the enduring pain of the condo market or saturation from competing projects in the area, Forest City is exploring the possibility of a different development scheme for the property.

"We're currently evaluating whether it will be all residential or include some mixed-use retail," said Gary McManus, Marketing Manager for Forest City.

Another contributing factor to the planned renovation and two-story addition to the historic warehouse/factory - still slated for a 2011 completion - is the fact that the property remains in the hands of the General Services Administration (GSA). Said McManus:

That’s former federal land…GSA actually owns that site and we’re partnering with them...When we actually begin development of a new building or redevelopment of one of the existing buildings, we buy that parcel from GSA at that point. But…nothing is happening on that building yet, we haven’t bought [it].

As such, a definitive start date for project has yet to be scheduled. Nonetheless, work continues on several other mixed-use Yards projects. The Park at the Yards is under is construction, while the adjoining “Lumber Shed” renovation, new retail pavilions and stainless steel spire all recently received approvals from the DC Zoning Commission and National Capital Planning Commission. Meanwhile, the Boilermaker Shops at 200 Tingey Street, SE continues to court retailers for what (one day) will be space along the linchpin of the Capitol Riverfront boardwalk.

Waterfront Station 1 Tops Out in Southwest

Waterfront Station officially topped out today, and while that alone may be cause for celebration, backers must be more pleased that the office building is entirely leased. Once completed, the Southwest Washington, DC development - a joint venture between Forest City Washington, Vornado/Charles E. Smith and Bresler and Reiner, Inc. - will add 2.5 million square feet of office, residential and retail space to the former site of the Waterfront Mall at 4th and M Streets, SW.

District authorities, in particular, have reason to commemorate the project's construction milestone. City agencies, including the Office of the Chief Financial Officer, Office of Planning, District Department of Transportation and Department of Consumer and Regulatory Affairs, have already leased the entire 628,000 square feet of phase one’s Shalom Baranes-designed dual office buildings and are currently scheduled to move in once construction ends in March of 2010. The towers, which abut the Waterfront/SEU Metro station, will also include new space for the present Safeway, CVS and Bank of America locations on site, as well as an additional 85,000 square feet for restaurants and “neighborhood service-related” retail. Both buildings are aiming for a LEED silver certification. Clark Construction is currently serving as general contractor on the project.

Mayor Adrian Fenty, on hand to officiate the proceedings, also took time to wax nostalgic about his history with the project. “I’ve been the mayor for twenty-six months and ten days and I can tell you that this has been a priority of our administration for that entire time," he said. "I was on the City Council before that and I followed, as an interested appropriator, all of the discussions around Waterside Mall."

Meanwhile, Ward 6 Councilman Tommy Wells and Councilmember-at-Large Kwame Brown applauded the project for revitalizing a long-neglected Southwest site and proceeding as planned, despite the current state of the real estate market.

“I believe the financing [for this project] was closed on the day the Dow dropped 700 points [on September 29th, 2008]. This team saw it through,” said Wells. “You may see other cranes that have stopped working, other places that they stopped digging, but these guys are work because of this great development team.”

In between accolades, not much mention was a made of the development’s projected phase two component, which is intended to include nearly 1,000 residential units, along with more retail and office space, to fill Waterfront Station’s eventual 2.5 million square footprint. The current timeline calls for design work on the next phase of development to begin this coming May and Deborah Ratner Salzberg, President of Forest City Washington, Inc., was optimistic that the project will a be success based on its convenient location and the inroads made so far.

“People are going to come up from this Metro, they’re going to head home, they’re going head to school, they’re going to go to work and they’re going to shop. Waterfront Station will be an active retail hub,” said Salzberg.

Washington DC real estate development news

Double BZA Approvals on the SE Waterfront

The District's Board of Zoning Adjustment (BZA) gave the green light to two prominent Capitol Riverfront projects this week that will allow construction to proceed unimpeded into 2010 and beyond.

The first round of approvals centered on Akridge’s Half Street development a block from Nationals Park. Despite a ceasefire in legal wrangling between the Akridge, neighboring developers Monument Realty and WMATA, construction on the 704,000 square foot development – which is slated to include dual office towers, a 300-unit residential building, 75,000 square feet of retail and an open-air marketplace/plaza – has yet to formally commence. The BZA’s approval clears the way for that to change, as Akridge can now clear and prep the site for its planned 2010 start date.

In a concurrent development, the BZA also consented to Forest City Washington’s plans for a second phase of construction at the so-called Yards Park. Those plans call for more than 35,000 square feet of new retail on the site, half of which will be culled from a renovation of the historic, pre-war “Lumber Shed” at M Street and New Jersey Avenue, SE. The development will also include the beginnings of a Capitol Riverfront boardwalk – the highlight of which is scheduled to be a 60-foot stainless steel monument designed by James Carpenter Design Associates. The National Capital Planning Commission previously approved the same development early last month; work on the project’s first phase, a 5.5-acre public park is already under way.

Yards of New Retail in Southeast

The National Capital Planning Commission (NCPC) has signed off on Forest City Washington’s (FCW) plans for the second phase of development at their previously announced Waterfront Park - the public space component of their sprawling 42-acre development in Southeast, The Yards.

The centerpiece of the project is the rehabilitation and restoration of the so-called “Lumber Shed” – a 19,000 square foot, pre-war industrial building that will be re-purposed as a new retail pavilion. The Shed, included on the National Register of Historic Places, will be improved with walls of glass so that, according to the naval-gazing NCPC, its “concrete structure [will be] revealed and retained.” Two similarly-styled new retail buildings will be constructed next door and serve a combination of “restaurant, shopping and neighborhood retail uses.” Both of the newly constructed retail pavilions – measuring in at 6,288 and 10,277 square feet - will feature second story terraces intended for outdoor dining. Architecture firm Gensler is handling designs for both the renovation and new construction.

Phase II of development at the Park will also include the beginnings of a future Southeast Waterfront boardwalk. FCW has commissioned a “70-foot polished stainless steel structure” from designer James Carpenter that will serve as an “iconic statement about the rebirth of the Navy Yard Annex and Southeast Federal Center as The Yards, and the rebirth of the Anacostia Riverfront itself.” According to NCPC documentation, this “visual marker” will reflect the sky and water during the day and will be softly lit internally at night.”

Other improvements planned for the Waterfront Park’s 1100 foot span between the north bank of the Anacostia and Water Street, SE include multiple street art installations, newly planted trees, a bicycle network and a connection to the Anacostia Riverwalk Trail. Despite the quantity and quality of FCW’s plans for the Waterfront Park and surrounding retail, they, in fact, have yet to definitively acquire the all of the parcels on site, including the Lumber Shed. According to the developer, it’s a unique kink of their deal with the federal government, who years ago utilized the site as a naval annex.

“The arrangement with the General Services Administration [is that] we acquire individual parcels, whether there’s an existing building on it or its open land where the GSA had formerly demolished a building,” says Gary McManus, FCW’s Marketing Manager. “There’s a takedown schedule for that. So once we start development on it, then we acquire the site. But that hasn’t happened yet, because we have yet to start construction.”

The NCPC previously ok’ed FCW’s initial plans for the Waterfront Park in February of 2008. McManus tells DCmud that their first phase, currently under construction, “will be done by 2010, probably mid-year. [A final date] on the park pavilions will have to do with retail leasing, but there seems to be alot of strong interest in locating down there by river for riverfront dining...we’re anticipating late 2011 or 2012 [for Phase II].” The project’s third and final phase remains unscheduled at this time, but is currently set to include the development’s maritime components, including piers.

New Tenants for New Developments

Less than a week after Deputy Mayor Neil Albert assured the development community that prominent organizations would "still [be] leasing space here in the District," his words appear to be ringing true. Several developers behind major projects in both Washington and Northern Virginia have announced freshly inked deals this week, despite the tubercular state of real estate market.

Forest City's sprawling Southeast Waterfront development, The Yards, went public on Monday with news of two new tenants for the project's retail component - the Boilermaker Shops at 200 Tingey Street SE. Delaware-based brewery, Dogfish Head, has signed on to open a brewpub in the converted nautical manufacturing facility, as Forest City also nears an agreement with an as-of-yet unnamed jazz club for the site. Once completed in 2010, the Boilermaker Shops will boast 45,000 square feet of retail and up to five in-house restaurants.

Forest City’s slate at the Yards also includes a commercial office building at 401 M Street SE – which, according to the Washington Business Journal, will soon be home to the District’s third Harris Teeter grocery store. Also on the brown bag front, there is talk of a Whole Foods Market for the William C. Smith & Co.’s neighboring Square 737 project.

Over in the District’s second development hotspot, NoMa, another project nearing completion is also rapidly running out of vacancies. J Street Development’s 90,000 square foot condo complex at 111 K Street NE now has confirmed three not-for-profit organizations as soon-to-be tenants: the Sierra Club, the National Association of Student Personnel Administrators and, most recently, YWCA USA – the latter of whom will occupy the building’s entire 11^th floor. According to sources at the NoMa BID, the Gensler-designed building is now 60% leased and will deliver on-time in 2010.

Meanwhile, projects across the river in Arlington are working towards deals with even the most cash-strapped of clients – like the Arlington County government. The Monday Properties-controlled site at 1101 Wilson Boulevard (the pre-2002 home of the Newseum) is being pursued by the County Board as the possible site of a new Cultural Center – as part of a sweetheart deal the developer cut with the Arlington officials late year to facilitate the much beleaguered development of their project at 1812 North Moore Street.

County authorities estimate that it would take $4 million to convert the 53,826 square foot facility into a viable cultural venue. However, Monday won’t be seeing one cent from the County until next year’s numbers start to become clearer. “I will only recommend proceeding with the center once the County’s 2010 budget is clear, and only if a viable center can be developed with no new general tax revenues,” said County Manager Ron Carlee in a prepared statement.

If the County passes on the deal, the space will be given back to Monday “in exchange for approximately $10 million for the value of the public benefits.” At present, the terms of the deal would allow the County to occupy the space rent-free for the first 10 years of a 15 year lease. The Rosslyn Business District has already contributed $1 million towards construction costs associated with retrofitting the former museum.

The Yards Parks Itself on the Anacostia

A new twist in Forest City's development plans for The Yards was revealed today as Mayor Fenty announced the addition of a $42 million dollar riverfront park - that's $42 million for a park - to the sprawling 5.5 million square feet of redevelopment already underway in the surrounding area.

"This is the project that will project the District of Columbia forward from the standpoint of renovating, modernizing, accentuating, bringing to life, and restoring this great neighborhood adjacent to the Anacostia River," said Fenty from inside the vacant warehouse that will soon house the Yards' Boilermaker Shops.

Simply dubbed The Park at the Yards, the 5.5 acre park is being designed by New York-based landscape architects M. Paul Friedberg and Partners and was touted by Ward 6 City Councilman, Tommy Wells, as the new “front porch” for the Southeast Waterfront.  If that is indeed the case, the park seems to be more country club terrace than whittling stoop - the plans currently on-hand call for “well-landscaped ‘outdoor rooms’ with seating areas,” “a riverfront courtyard” that will feature retail and dining on three sides, “a water feature” in tribute to the Washington Canal, “a great lawn” that could potentially host live entertainment and “a scenic esplanade” that will connect foot traffic to the Anacostia Riverwalk Trail. Forest City is also in talks to bring a marina to the site.  The Mayor equated the park to Baltimore’s Inner Harbor and Chicago’s Millennium Park, as a draw for local residents and tourists alike “for generations to come.”

“It’s a great amenity for the city.   It’s welcoming to families. It’s welcoming to children.  It will be welcoming not just our residents, but to everyone in Ward 6 and throughout the District who come,” said Deborah Ratner Salzberg, President of Forest City Washington.  "It will be a true world-class location…to eat, play and just to relax and have fun.”

The Park represents a unique facet of development at the Yards, in more than one regard.  First and foremost, it is the product of a public-private partnership between Forest City and the District, which teamed-up to secure the federally-owned parcel from the General Services Administration (the terms of that deal were not disclosed).

Secondly, it was financed through a Payment-in-Lieu-of-Taxes (PILOT) initiative, described by the Mayor’s office as “the District…selling a bond against future taxes…generated by the surrounding development."  Ahh, the 'generations to come' will be the ones paying for it. Thirdly, after Forest City completes construction, all maintenance and programming of the park will be turned over to the Capitol Riverfront Business Improvement District (BID). The BID’s Executive Director, Michael Stevens, characterized their involvement as including everything from planting flowers to plowing snow.

Construction is planned to begin this January, the developer hopes to have the park open in time for the Nationals’ 2010 opener.  The Park at the Yards is the second such space planned for the immediate waterfront area (the other being Diamond Teague Park to the west) and the capstone to Forest City’s plans for 2,800 condos/apartments, 1.8 million square feet of office space and 400,000 square feet of retail at the Yards. “This is going to be one of the greatest places in America to live,” said Councilman Wells.

Washington DC retail and commercial real estate news

Pattern Shop Lofts Underway

Construction is now underway on the Pattern Shop Lofts, the redevelopment of an historic Navy Yard warehouse. A piece of Forest City Washington's larger The Yards project, the former pattern store was part of the old Navy Yard Annex, but will be converted into a 170-unit "loft" apartment building with 10,000 s.f. of ground floor retail space. The six-story building is being redesigned by Bethesda-based SK&I Architectural Design Group , including 33 two-level penthouse units with private terraces and views of the Anacostia River.

The mixed-use retail and residential Pattern Shop Lofts will be completed and begin leasing units in fall of 2009, according to the developer. The overall project, surrounded by the Anacostia River, U.S. Department of Transportation Headquarters, the Washington Navy Yard, and the new Nationals Park, will deliver 2,800 residential units, 300,000 s.f. of retail space and 1.8 million s.f. of office space by 2013.

The retail space will likely host a restaurant, though Vanessa Lopez-Isa, marketing manager at Forest City said the developer is currently focusing on leasing the Boilermaker Shop across the street, a retail building which will also deliver next fall as part of Phase One. "There has been a lot of interest in restaurants and some really neat tenants that I can't disclose yet," she said of both buildings.


Lopez-Isa said the developer acquired the property through a federal grant and that the development is consistent with Forest City's portfolio of historic adaptive reuses. "We obtained control of the 42 acres directly adjacent to the ballpark after we went in for a proposal with the federal government in 2002 and were awarded site through that proposal process. Pattern Shop Lofts was originally Pattern and Joiner Shop in 1918 and it was part of the Navy Yard Annex...the area we are redeveloping. It was a large-scale wood and pattern house and it is one of five historic buildings on our site." Forest City has experience in other adaptive re-use projects, as at Tobacco Row, its historic project in Richmond.