Anacostia's BID a Bit Closer to Reality

Anacostia has been slow to take off commercially (though making progress), and much like the expectations for a thriving commercial neighborhood, its Business Improvement District may be close to becoming a reality too.

The neighborhood itself has struggled to attract private businesses and office workers, in part because it lacks nearby services and retail.  Service and retail providers in turn have had little incentive to open shop in Anacostia until more businesses and consumers are on the street.  That conundrum is reflected in the embryonic BID formation.  While corporations typically sponsor the BIDs that promote doing business in the neighborhood, that lack of commerce has hindered the Anacostia BID's formation.  Though landowners in the area point to much potential - a historic downtown, a Metro stop, the coming St. Elizabeths project - without a corporate base to fund the BID, lack of money has kept Anacostia's promoter-in-chief from becoming a reality.  That may be starting to change.

The group met last month to appoint ten board members, and will now be funded by a portion of property taxes from local landowners, but the group will have to wait until tax collections occur in March before it can hire a staff and rent a permanent space.

But that’s still a big step forward for a group that’s been pending for years. In 2008, Councilmember Barry sponsored legislation that would allow the area to create a Business Improvement District. It passed, but the business and property owners behind the effort had several hurdles to overcome before the organization could become a reality.

BIDs in DC, while classified as nonprofit organizations, can’t solicit foundation grants. And when DC’s Office of Tax and Revenue and the Department of Small and Local Business Development reviewed the Anacostia BID's business plan - as required as part of the enabling legislation - they didn’t think it was sustainable.

“So we took a break, got a pro bono counsel, and hired consultants to file paperwork, petition the IRS, and get approval to establish a BID out of the 501(c)3,” explained Stan Voudrie of Four Points Development, the group’s new board president. “It took a lot of time; we were doing it with volunteers.” But eventually, he added, the IRS approved of the group’s new status and the various city agencies signed off on the BID’s new business plan.

Other than Voudrie, the board is composed of representatives from 1918 LLP, Anacostia Economic Development Corporation, ARCH Development Corporation, EDC LLC, Grubb’s Southeast Pharmacy, Honfleur Gallery, Industrial Bank,
NSC, Inc., and Urban City Ventures.

Voudrie says the group will use the time between now and March to prepare for their next steps. After hiring a director and renting a permanent office space, the first order of business will be to increase basic services in the business district, particularly from a visual perspective. “All of the BIDs”—there are eight others in the city—“have that kind of program,” said Voudrie. That means increasing trash pickup, sweeping streets and sidewalks, and planting flowers.

Second, the organization will focus on marketing and business outreach, acting like a local chamber of commerce. “We'll reach out to retailers that we think would bring a service the community would appreciate,” said Voudrie. “We want to be a single clearinghouse where people can find out about opportunities in the neighborhood.” 

And by the same token, the group will allow local business and property owners to speak with a unified voice, addressing issues that might need attention from the city or other institutions.

What the BID won’t be doing, according to Voudrie, is independently establishing a vision for what the neighborhood should look like. “We’ll probably do surveys of people who live and work here to find out their interests, but we won’t tell people what we think they need,” he said.

So all that talk about Anacostia becoming the city’s next arts district might not be on the BID agenda, at least for now, but such ideas might soon be more likely to become reality.

Correction: An earlier version of this article incorrectly identified DC BIDs as not being nonprofit organizations; they are, but are not 501(c)3s. Additionally, the new board has 10 members, not five.

Washington D.C. real estate development news

Today in Pictures - Progression Place

Progression Place may be only one of numerous projects underway in Shaw, but it will be one of the first large development to be completed.  Developers began work in 2010 on with 100,000 s.f. of office space, a 205-unit residential apartment building, and 20,000 square feet of street-level retail. The project was designed by architects Eric Colbert & Associates and Devrouax + Purnell, and built by Davis Construction.
Ellis Development, The Jarvis Company, and Four Points combined forces to build the project above the Shaw Metro station. 

Washington, D.C real estate development news

Today in Pictures - Progression Place

Progression Place - one of Shaw's most notable development projects, is set for occupancy later this year. Developers began work in 2010 on the 320,000 square foot, $150 million development, with 100,000 s.f. of office space, a 205-unit residential apartment building, and 20,000 square feet of street-level retail. The project was designed by architects Eric Colbert & Associates and Devrouax + Purnell, and built by Davis Construction.

Ellis Development, The Jarvis Company, and Four Points combined forces to build the project above the Shaw Metro station. The United Negro College Fund has purchased a stake in the building to be the main office resident.

Washington D.C. real estate development news

Shaw Developers Celebrate Step Forward with Progression Place

One of Shaw's chief development projects, slowed by lost tenants and missed start dates, is finally having its day as developers celebrate a "groundbreaking" Monday for a project that began in late 2010. Developers of Progression Place began work last December on the 320,000 square foot, $150 million development, with 100,000 square feet office space, a 205-unit residential apartment building, 20,000 square feet of street-level retail, but on Monday its developers will fete themselves and the sale of an office condo to anchor occupant United Negro College Fund (UNCF). UNCF officially purchased half the project's office space on December 24th, but developers were already doing site work on the vacant lot in anticipation of the settlement and Eagle Bank's $13m loan made possible by the sale, which was in turn made possible by the city's $3.6m financing subsidy for UNCF. Ellis Development, The Jarvis Company, and Four Points combined forces to build a project that would be hard to overestimate in importance as a beacon for Shaw's development, adding housing, jobs and retail in an area that had little investment in any of those markets. Progression Place is adjacent to the Howard Theater, also being developed by Ellis, and will build in parking for the historic theater and add a rebuilt Metro entrance. UNCF's office condo and the "7th Flats" will both be ready for occupancy in mid 2012. With a new library in place just to the south, and the Convention Center Marriott already underway, the O Street Market remains the largest holdout that could tie together development along the 7th Street corridor. Design is being handled jointly by architects Eric Colbert & Associates and Devrouax and Purnell, and built by Davis Construction and Gilford Corporation. The public ceremony will be held at the Lincoln Theater at 11am on Monday. 

Washington DC real estate development news

Construction Begins Quietly At 7th & S Streets NW

Shaw seems to be the land where development dreams go to die, or at least be indefinitely put on hold, where groundbreakings happen and aren't followed by actual construction. Too often news of impending construction starts dissolve quickly, giving way to news of severed financial partnerships and runaway tenants. Such was the case for Broadcast Center One and their developers (Four Points LLC and Ellis Development) which, even after the loss of Radio One (and the project name along with it), predicted an August groundbreaking earlier this year. The programming was downsized, United Negro College Fund was brought in as a major new tenant, and the project was renamed Progression Place, but August (and a few other months) has come and gone without a groundbreaking celebration. But construction equipment can at last be seen sprawled across the grounds, and the porta-johns are installed, sure signs of progress. As the plan stands, Progression Place will have 100k s.f. of office space, 224 apartments, and wrap-around ground level retail, serviced by 188 below-grade parking spaces. The development plans also call for a face-lift for 7th Street retail frontages.

Four Points Teams With Comstock On Two DC Redevlopment Projects

After a lengthy hibernation in development limbo, Four Points LLC's W Street Townhomes, which earned HPRB approval in 2007 and a go-ahead from Zoning in 2008, is finally moving forward after developers announced their newly formed joint venture with Comstock Housing, a move that no doubt provided the capital injection necessary to jump-start a couple dormant projects. The project, now being nicknamed Cedar Hill, is planned for the corner of W Street and 13th Street SE; at roughly 40 units, it will be one of the most significant multi-unit residential construction projects to hit the streets of Historic Anacostia in many years.

The PGN-designed development will include a combination of larger, single-family townhomes and duplex-style units that double as condominiums. The seven single-family homes will each offer three bedrooms, a parking spot and a front yard. "What we tried to do is capture along W Street the historic nature of Anacostia," explains project architect Jeff Goins, "and then also create something unique for the neighborhood." Developers are waiting to hear back on their applications submitted for necessary building permits, but expect that they'll be able to break ground by mid-2011.

The joint-venture between Four Points and Comstock will also initiate redevelopment of a Lamond Riggs community, a development that went before the Zoning Commission as far back as 2006. The Northeast project that was most recently dubbed The Hampshires, with the design process headed by Arthur C. Lohsen of Frank & Lohsen Architects, proposes approximately 110 units, a healthy mix of townhomes, single family homes, and condominiums. The project also include a generous amount of green space, arriving in the form of a large, centrally located “great lawn,” as well as a number of smaller parks and gardens. The development will replace what was most recently the Med-Star Health facilities, and utilize a series of vacant lots along the 6000 block of New Hampshire Avenue, Peabody Ave, and Quakenbos St.

Each development will offer 10-20% of the total units at affordable housing rates. In a press release issued by Comstock last week, Four Points Principal Stan Voudrie said "We are big believers in the continuing demand for reasonably priced, for-sale housing in Washington, DC. These joint ventures with Comstock will allow us to deliver exactly that in both the Lamond Riggs and historic Anacostia neighborhoods." Christopher Clemente, Comstock's Chairman and Chief Executive Officer added: "We believe the strength of the Washington, DC area economy, and the demand for new housing in the District of Columbia provides tremendous opportunity to complement our existing platform in the greater Washington DC area."


Washington D.C. Real Estate Development News

Ellis Ready to Build Broadcast Center One

Ellis Development Group will reportedly break ground on both of its Shaw projects in the same week in August; the Howard Theater and the newly-dubbed Renaissance Project, the quiescent project formerly known as Broadcast Center One. The developer, along with partners Jarvis Company, LLC and Four Points, faced a major setback earlier this year when Radio One decided not to relocate to the area (hence the new name). But the District stepped in and enticed the United Negro College Fund (UNCF) to fill a large portion of the mixed use project, purchasing an office condominium and ensuring its place in the community for years in the future. Just this week the team received news that the District Council approved $3.6 million for the UNCF, guaranteeing their relocation to Shaw at the northeast intersection of 7th and S Streets, NW, above the Shaw Metro.

The subsidy will come through real estate tax abatement over 10 years, starting in fiscal year 2012, and relocation assistance through a grant of $710,000.

With the loss of Radio One, the developers slimmed down the project to include 94,000 s.f. of office space with anywhere from 180 to 200 residential rental units. The change drops 25,000 s.f. of retail space and reduces the amount of office space by about 10,000 s.f.

Alexander Padro, the Executive Director of Shaw Main Streets, said the project should deliver in phases, office space first. UNCF is expected to occupy in May 2012. Total project costs are estimated at $144 million.

Washington, DC real estate development news

Loss of Anchor Means Back to Basics for Shaw Development

After the recent revelation that Radio One will no longer relocate to the District, Ellis Development Group, Jarvis Company, LLC and Four Points, the developers of the planned Media Center One project in DC's Shaw neighborhood, are modifying their plans and seeking official permission to extend their development timeline. The current approved Planned Unit Development is coming up on its two-year deadline, the requested two-year extension would give the developers time to regroup after recent setbacks.

The loss of Radio One for Media Center's 300,000 s. f. mixed-use development on 7th and S Streets, NW, forced the developers to revert to their "original" plan, a less grandiose proposal planned before Radio One swooped in and then bowed out. According to "Chip" Ellis of Ellis Development, the "new" plan is for 94,000 s.f. of office space with anywhere from 180 to 200 residential units. The units will be rentals "at this time," said Ellis. The change drops 25,000 s.f. of retail space and reduces the amount of office space by about 10,000 s.f. Construction could begin this July, though after years of delays and extended construction time lines, color us skeptical.

The United Negro College Fund will (likely) occupy the majority of the office space, but the development team is working to secure additional tenants, according to Ellis.
In January the Mayor's office proposed $3.8 million in tax breaks to assist the UNCF and entice their move to the District from Virginia. The District Council is set to review the proposal this week. In 2008, DC approved $23 million in subsidies for Media Center One, including $6 million in TIF financing which is now up in the air given the changed project, the massive budget shortfall facing the city and competing development plans elsewhere.

The moves come despite the developers' assertions in late September at the Shaw Main Streets (SMS) Development Forum that Media Center One would move forward and break ground before the new year (2010). On a rather bitter note, the developers had noted that they were one of the few "lucky" projects to actually have a tenant secured. Ouch.

Washington, DC real estate development news

Market-Rate Housing Coming to W Street SE

Stan Voudrie is bringing a new crop of residential development to Southeast Washington DC under the guise of W Street Acquisitions, LLC, at least, someday. Come 2009, a string of underutilized properties at 1226-1252 W Street, SE will be replaced with the W Street Townhomes - an all-new 40,000 square foot project straddling the area between Historic Anacostia and Barry Farm.

The W Street development is said to include 40 units that will be comprised of a combination of larger, single-family townhomes and duplex-style units that double as condominiums. In an unusual move for a Ward 8 project, the W Street Townhomes will feature no affordable housing component. According to developer Voudrie, "It was a by-right project, so it’s market-rate housing." PGN Architects is supplying designs for the project.

Having already received approval from the requisite ANC and HPRB bodies exactly one year ago, the developer is biding his time before beginning the anticipated $3.5 million construction. “We’ve gotten it approved, but we’re not going to start construction right now,” said Voudrie. “With final design, permitting and all that, we’ll be ready to start construction in late first quarter 2009.”

It should also be noted that Voudrie, formerly of West*Group, is a principal of Four Points LLC – a DC-based initiative that plans to bring 1.6 million square feet of new development – including 500 units of housing - to the area of Martin Luther King, Jr. Avenue SE. Plans for that project aren’t expected to begin materializing until 2010, but W Street could be a first foray into testing the waters in an area that is at-once both troubled and ripe for redevelopment.

HPRB Approves 13th and W Project

Today, the Historic Preservation Review Board (HPRB) voted to approve a development plan from Four Points LLC, converting a quarter of a block of land at 13th and W Streets, SE, into 23, three-story townhouses (pictured above). HPRB's approval was needed because of a single historic structure on the property, "the dilapidated and fire-damaged 1242 W Street, SE" according to an HPRB staff report from September 27. The next step will require Four Points to sit before the Board of Zoning Appeals in February.

To comply with HPRB recommendations, Four Points and PGN Architects PLLC must repair the historic house and move it forward to the street-line. Developers submitted drawings that illustrate a "still more close reconstruction of the original," according to HPRB findings. In addition, HPRB instructed that the surrounding townhouses be constructed in a manner "evocative of the Victorian era" (minus widespread typhus and frilly bonnets, presumably).

In a further attempt to preserve the historic site, Four Points proposed the construction of an alley to dichotomize the block; HPRB and Four Points collaborated to create an "L shaped" alley to serve the community and still maintain a historic feel, a characteristic of the historic area, especially within commercial blocks. That proposal has subsequently been approved by HPRB.

While the details are still being worked out, Four Points will continue to work alongside the Office of Planning to maintain historical accuracy. The February Board of Zoning Appeals hearing will review the lot width requirements for each of the 23 structures.

Broadcast Center One Gets the Signal from DC

The DC Zoning Commission approved the application this Monday for Broadcast Center One, a 300,000 s. f. mixed-use development on 7th and S Streets NW, a long-sought ruling that is expected to add impetus to the regeneration of the Shaw neighborhood.

In tandem with the Planned Unit Development zoning application, developers Four Points LLC and Ellis Enterprises also submitted a Land Disposition Agreement to the office of the Deputy Mayor for Planning and Economic Development last Friday for review by the DC City Council. A hearing is anticipated by mid-November.

"We are happy to report that we have concluded land transfer and subsidy negotiations," said Steven Cassell, project manager at Four Points LLC. "Radio One has both accepted a subsidy offer from the city and signed a letter of intent," Cassell added, referring to Radio One, the country's seventh largest radio broadcasting company which will be moving back to DC and into the new digs once the Broadcast Center project is completed. The $128 million development has been in the pipeline for over two years, but if all goes well at the hearing next month construction would begin soon. "Our objective is to be in the ground and digging by February," declared Roy Ellis, CEO of Ellis Enterprises.

The Broadcast Center One complex, with over 21,000 s. f. of retail space, 180 residential units for rent and 103,000 s.f. of office space, will be a blessing to many including the Shaw district at large. "Whenever you bring a company into a neighborhood, you've got real economic opportunity. It's the best thing since sliced bread," added Ellis who, amongst others, sees this development as having a drastic revitalization effect on the local Shaw community.

None will be happier about the deal's approval than Cathy Hughes, founder of Radio One. "Radio One was built with the good will and support of the citizens of DC. I cried for six months when we had to leave," said Hughes. The old Radio One headquarters, located on Nebraska Avenue, had lived out its lease almost ten years ago. Since then, Ms Hughes has awaited the day her company could return to its roots in the District.

Construction of Broadcast Center One will require a convergence of the minds for project managers from five separate companies: joint developers Four Points LLC and Ellis Enterprises, Jarvis Company who is acting as an equity investor in the project, Devrouax & Purnell who will be designing the office building and Eric Colbert & Associates, the architect behind the Broadcast Center residences. The targeted completion date for the project is in the second quarter of 2010.

Iconic Market in Shaw Wins Initial Approval for Development

The O Street Market (pictured), probably the most iconic building in the Shaw neighborhood of DC, has taken a critical step toward restoration with approval by the local ANC (Advisory Neighborhood Commission) this month as part of a massive project covering two city blocks just north of the Convention Center. DC-based Roadside Development, LLC, which purchased the land in 2001 and has spent the intervening time seeking local approval, will develop the blocks between 7th and 9th Streets that now contain a Giant supermarket and the O Street Market, built in 1880 and now just a shell. The historic market will house the new Giant, with over 60,000 s.f. of space, and additional space for retail. Roadside intends to use the remainder of the site to build an undetermined amount of condominiums, townhouses, and apartments, as well as about 800 parking spots, most of which will be underground. Shalom Baranes will serve as the master planning and primary architect for the site.

The site is just two blocks from the Broadcast Center One project by Four Points LLC, which is expected to provide 100,000 s.f. of office space and 185 condos above the Shaw Metro Station, with groundbreaking expected this Spring. Shovels are not expected to turn dirt until 2008. The current Giant will likely close at the end of that year; the new Giant, expected to open in 2009, will be larger than the "urban lifestlye" Safeway going up around the corner at 5th & K as part of the City Vista project. Loading docks will be moved underground, solving the problem of rows of space-hogging loading stations that now take up a full block on 9th Street. Most of the project will rise to 90 feet, though some elements may rise to as much as 110 feet under the current plans. Approval by the ANC was not required but indicates community acceptance of the project and much warmer reception by the city in future hearings.