Gensler Out, BBG-BBGM in as Watergate Architects

Interior restoration work on the famed Watergate Hotel has been quietly moving forward for weeks now and DCMud has confirmed that hotel owner Euro Capital Properties has engaged BBG-BBGM as the new architectural firm on the project.

BBG-BBGM replaces Gensler as the architectural firm working on the hotel at 2650 Virginia Avenue, NW in DC's Foggy Bottom neighborhood.  Architectural firm Gensler, which completed conceptual designs for the project, has not had any involvement since October, according to a source.

Thomas Luebke, FAIA, secretary with the U.S. Commission of Fine Arts (CFA) said the Commission gave preliminary approval under a courtesy conceptual review of the designs for the restoration last July 2011.  The CFA asked Euro Capital Properties to make a few minor changes.  But Luebke said the CFA has not seen plans since.  "If there is a final proposal, we would love to see it," Luebke said.  Designs submitted to the CFA last year showed very minimal changes to the exterior of Italian architect Luigi Moretti's iconic 1960 structure.

The Shipstead-Luce Act of 1930 designates that exterior changes to properties within a geographic overlay area - the Watergate complex falls within that area - are subject to final approval from the Commission in order to promote design sensitivity.  Under Federal Law, the project must have CFA's stamp of approval on plans for exterior work before the DC permitting authorities can issue permits for exterior restoration work.

Final plans for the hotel must also be approved by the Historic Preservation Review Board (HPRB) in the Historic Preservation Office of D.C. Office of Planning.  According to city staff, HPO staff last met with BBG-BBGM in January 2012 to discuss details of the initial restoration plans, but has not received any new plans from Euro Capital Properties. 

Plans to renovate the hotel have seen challenges since the property was sold to Monument Realty in 2004.  With the hotel still open, Monument plowed forward with plans to revert the building to its historic use as co-operative residences, but pre-sales slumped in 2006 and legal problems beset the conversion.  Monument stalled and closed the hotel in 2007.  Monument's lender PB Capital Corporation foreclosed on the hotel and put it up for auction in 2009 but there were no bids.   

Euro Capital Properties bought the hotel in 2010 with plans to turn the property into a $300 a night luxury hotel.  Euro Capital principal Jaques Cohen has said his company plans to invest $70 million in the project, according to The Georgetown Current.  Progress on the Watergate Hotel restoration again seemed to hit turbulence last fall when some residents of the Watergate complex's co-op residential units voiced opposition to the developer's restoration plans.  Neither Euro Capital Properties nor BBG-BBGM had responded to DCMud inquiries at the time of publication of this article.

 
















Washington D.C. commercial real estate news

Retail, Fountain, Ice Rink Slated for Washington Harbour

Work to upgrade the retail offering of Georgetown's Washington Harbour has begun, owners MRP Realty and Rockpoint Group LLC announced today.  Washington Harbour is undergoing a $20 million exterior renovation led by architecture firm Gensler and general contractor Clark Construction, after a flood pushed out the restaurants that once lined the riverfront pavilion. Some of the most significant changes are slated for the lower level. Those upgrades include retail storefront improvements and a revamped fountain with lights and animated jets that will double as a 12,000-square-foot ice skating rink in the winter.

Work on the lower level is scheduled for completion in the fourth quarter of 2012, and the fountain will be completed by the end of this summer.

Rendering courtesy of Gensler Architects

Washington DC commercial real estate news

Washington Gateway Finally Breaking Ground?

MRP Realty edged closer to a groundbreaking of the $360 million Washington Gateway in NoMa, as crews this week began disassembling commercial billboards occupying the three-acre site at the intersection of New York Avenue and Florida Avenue, NE.

While some real estate insiders said construction would start shortly, Julie Chase, a spokeswoman on behalf of MRP Realty, said in an e-mail not to read too much into the action on the site as MRP is still in the permitting process. "Yes, the billboards are coming down, but that does not mean they are starting any construction," she said.

The two billboards on the site, both facing the railroad tracks, the Metro Red Line and inbound New York Avenue drivers, have been a familiar sight for road and rail commuters, but now it appears they could finally be replaced by construction cranes and equipment.

The million-square-foot project, designed by SK&; I Architectural Design Group and Gensler and to be built by Davis Construction, will be completed in three phases. The first step will be SK&I's 11-story apartment building with 400 units and 5,200 s.f. of retail.

The initial phase will be followed by two Gensler-designed 11-story office buildings, one with 200,000 s.f. and the other with 400,000 s.f., along with 10,000 s.f. of retail. Gensler is the designer of PNC Place at 800 17th Street NW, and SK& I recently designed Wisconsin Place in Friendship Heights.

All told, the 170-foot high (by some ways of measuring), triangle-shaped project with green space in the middle will have about 15,000 s.f. of retail facing Florida Avenue, NE, which will get its own facelift with new sidewalks, street lighting and landscaping.

The anticipated construction of Washington Gateway comes as the District is in the middle of a $36.5 million rehab of the nearby New York Avenue bridge which will run through September 2013, thanks to federal American Recovery and Reinvestment Act stimulus funding. The bridge reconstruction, which began in March 2011 is about 40 percent complete, according to contractor Fort Myer Construction Company. Already, on the northwestern side of New York Avenue, NoMa West, by Mill Creek Residential Trust, is nearly a year in towards constructing more than 600 residential units, having broken ground in March 2011 and is expected to be complete by spring of 2014.

Washington D.C. real estate development news

GW to Demolish Last of Pennsylvania Avenue Rowhouses

George Washington University plans to demolish a group of historic townhouses along Pennsylvania Avenue, dating back to 1910, to make way for a large office building designed by Gensler.  The townhouses are nearly the last remaining historic real estate fronting Pennsylvania, excepting the Mexican Embassy. The six properties to be demolished from 2134 - 2142 Pennsylvania Ave., include tenants the Froggy Bottom Pub, Panda Cafe, Mehran, and Thai Place. 

The area lies just outside the Foggy Bottom Historic District, and the buildings are not "landmarked" as historic, so no historic review is required. A GW spokesman said "The 2007 Foggy Bottom Campus Plan included a historic preservation plan... During that process, the properties were examined and were determined not be historically significant." Convenient.  GW's idea is to create a sizable development akin to the recently completed Square 54 - located just west, at 2200 Pennsylvania Avenue - a $250-million, 2.6-acre development of GW-owned land developed by Boston Properties. 

For this project, GW would create a similar stream of revenue by again partnering with a third-party real estate developer responsible for developing, leasing and managing the building, creating income for GW through office and/or retail leases. GW media relations affirmed, "The future space will be commercial property with the potential for retail at street level along Pennsylvania Avenue. While similar in type of redevelopment, it will be on a much smaller scale than The Avenue/[Square 54]." The large building at 2100 Pennsylvania Avenue, now occupied by Kaiser Permanente, would be partially demolished, with the east portion left intact, and the west portion expunged. Kaiser intends to vacate the building in October of 2012. 

The glassy design by Gensler will be 11 stories and 130' tall, with an additional 3 floors below grade for 178 parking spaces, resulting in a total of 255,550 s.f., and will target LEED Gold upon completion. The University anticipates filing an application with the Zoning Commission early next year in order to modify what was approved for the site in the overarching Planned Unit Development "2007 Foggy Bottom Campus Plan" and increase by 40' in height and 45,000 s.f. the remaining building at 2100 Pennsylvania Avenue. An initial presentation of the project was given to ANC 2A this past Wednesday, and a second trip to the ANC should take place early next year. A Zoning hearing could come in the summer of 2012. The university aims to begin construction in early 2014.

Washington D.C. real estate development news

Lighting the Way into Crystal City

According to its president and CEO Angela Fox, the Crystal City BID focuses on the "ins and outs of Crystal City" - literally. The BID currently has two projects in the pipeline to revamp primary "gateways" into, and out of, Crystal City. One of those projects is the effort to beautify and "light" the southern vehicle entrance at the intersection of Route 1 and Crystal Drive, which will begin its 6-to-8-week-long period of construction, by Rand, next Monday, October 3rd. The ground breaking ceremony will be supplemented by some detailed renderings of what will be responsible for lighting the project, which Fox described as, "Sixteen LED poles, lit two-thirds of the way up... the poles will follow diagonal [pea gravel] paths through the property" as well as "continue up the façade of the building on site." Although paths are walker accessible, the area is not meant to be a public park. Along with LED poles and pea gravel paths, the 30,000-s.f. parcel will be clad in new turf, and planted with 28 trees. The project was planned and approved almost two years ago, however the land was being used by the county in the interim. When finished, there will be "a lovely gateway experience" said Fox, creating "the aesthetic awareness that you are entering Crystal City." Of the design, Fox said, "It was a very creative process; Gensler held a sort of seminar with their young architects, a design competition over the course of several hours." A few of the resulting designs were then refined into one formal design. Fox added that the goal of the BID has been to "re-brand Crystal City [using] light and illumination" with artistic efforts that exemplify the properties of crystal. The other gateway project currently underway by the BID is the improvement of the Crystal City Metro entrance, a partnership with Vornado that is in the final stage of the permitting process. These two efforts, together with the redevelopment of Long Bridge park at the northern entrance to the city, will offer "three new sparkling entrances," Fox said. "By the end of the year." 

Arlington Virginia real estate development news

MRP to Begin Phase One of Washington Gateway in NoMa

MRP Realty will soon move forward with a long- awaited three-phase, 1-million-sf mixed-use project on 3 acres in northern NoMa. Matthew Robinson, Senior VP of MRP, says the $360-million project known as Washington Gateway will break ground before the end of the year, with the first phase residential and retail. The project has been planned since at least 2006, with several near starts over the past 5 years.

At the intersection of Florida and New York Avenue, NE, the Washington Gateway development team will seek financing on a rolling basis. As for now, the team is focused solely on phase one: 400 units of residential in an 11-story building with 5,200 sf of retail.

In terms of getting the first phase off the ground, all seems to be in line for MRP. An equity partner is in place, construction loans are in the works, construction (sheeting/shoring/excavation) permits have been applied for, and a building permit will be filed at the end of September, according to Robinson. One year into construction, MRP plans to start phase two, which will consist entirely of office space. Further down the road, phase three will consist of office space and a retail component.

Nearly 1 million square feet of built area in all, the three-building project consists of approximately 350,000 sf of residential, 600,000 sf of office, and 12,200 sf of retail. The original plan called for significantly less residential space - 260 units versus 400 - with the space going to a 181-room hotel - a component that was scratched due to changing market needs as perceived by the development team.

Robinson says that getting rid of the hotel component, "makes the residential building better. The additional space allows for greater residential amenities [in the form of] increased shared spaces, [including] an extensive 3,700 square foot club room, and two-story fitness center." A rooftop pool and lounge area will offer "Capitol dome views," adds Robinson.

The 11-story residential building was designed by SK&I, and will be built under general contractor Davis Construction. Construction, if underway before the end of the year, should be complete within the next two years. The two 11-story office buildings, to be included in phase two and three, were designed by Gensler. And although the same height, the grade on site varies by about 40', confirms Robinson, creating a height variation optical illusion.

The overall design of the whole Washington Gateway project is a hollowed-out glassy triangle (labeled number 3 on the map to the left), offering an inner triangle of public space, accessible by an opening on Florida Avenue. All retail will front Florida Ave; retail tenants are being pursued, though phase one will be built on spec. Retail will most likely include "neighborhood serving retail," says Robinson, including sidewalk cafes.

Also a part of the development will be a widening, and repaving of the sidewalks along both Florida and New York Avenues. New trees and street furnishings will be added, and landscape architecture design will be the work of Oculus.

"It's exciting right now in NoMa," says Robinson. Washington Gateway will be followed by Camden Property Trust's 60 L Street, NE (1 & II), located just east of the new NPR headquarters currently under construction. Camden's 60 L Street will become NoMa's largest residential building, with 730 units, if it goes through as planned.

Mill Creek Residential's NoMa West, the largest single-phase residential project in NoMa to date includes 603 apartments with a single retail store. Located north of the FedEx building (just north of Washington Gateway) the Mill Creek project broke ground in March, and aims to finish in the spring of 2014.

Several other projects with substantial residential and office space are planned for the NoMa BID, including the Bristol Group's NoMa Station (II - IV), a follow-up to One NoMa Station (400,000 sf office, and 5,000 sf retail) next door at 131 M Street. NoMa Station II-IV is a massive mixed use project to front 1st Street between M and L Streets, NE, made up of: 700,000 sf office, 50,000 sf retail, and 700 residential units.

8/30 correction: 350,000 s.f. of residential, not 290,000 s.f.

Washington D.C. real estate development news

Watergate Plans Move Ahead

After years of dormancy and uncertainty, the Watergate may be about to launch its rebirth as an upscale hotel, completing the circle after its closure to convert to private residences. Developers of the hotel, which shuttered in 2007, are now close to announcing a plan to renovate and rebrand the luxury hotel. Developer Euro Capital Properties, a European investment firm with dual headquarters in Paris and New York, has hired worldwide architectural firm Gensler to redesign the interior and refit the structure, a process that will begin once Euro Cap has had a chance to run its plans through a triad of regulatory agencies. Redevelopment of the "luxury hotel," considered to command a price point around $300 per night, will require an investment of around $50 million by Euro Cap subsidiary Euro Watergate Hotel and Residences LLC. The U.S. Commission of Fine Arts (CFA) will be the first to review the proposed design changes for the iconic curvilinear structure, a historic landmark, which it will do tomorrow, followed by the Historic Preservation Review Board (HPRB), and finally the National Park Service. Monument Realty purchased the famed hotel in 2004, with financing by the doomed Lehman Brothers, and after physical and legal work attempted its reincarnation as a co-operative residence. Sales began in 2006 for 96 units from $860,000 and up, but only a handful went under contract, and with legal problems besetting the conversion Monument stalled on construction and closed the hotel in 2007. After several attempts to work out the debt, the hotel was put up for auction in July of 2009 by New York-based lender PB Capital Corporation, still owed $40m for the property, an auction that induced no bidders. 

In May of 2010 PB Capital sold the project for $45m to Euro Capital. Senior designer Cory Kessler of the architect's New York office and lead architect on the project, said the project is still "in the conceptual phase," with various exterior design elements up for review, but that outward appearances will change little. "The exterior renovations will be minimal and respectful," said Kessler, who would not delve into specifics. Thomas Luebke, Secretary to the CFA, confirmed that the elements under review this week are minimal. "By and large these [changes] are relatively minor," said Luebke, "not particularly significant in the scheme of the whole complex." The Watergate's developers have declined to comment on the project during the review process, noting only that it will be a "lifestyle brand hotel." Sources at Euro Cap had also considered a blended use with at least a few floors of residential living. "It's a hodge podge of upgrades," continued Luebke. "There are mechanical upgrades that involve some changes to the rooftop, [specifically the] elevator overrun ... and some proposed changes to the grand ballroom, pushing it out toward the water, and elevating the roof up to six feet." However, he added, these changes are "not too noticeable from the street." 

Monument's plans would have carved out the interior, converting some 250 hotel rooms into 96 residences, but those changes were never begun, leaving the hotel in its original configuration. While there are limitations to the exterior redevelopment of the Watergate Hotel due to its historic landmark status, the long-neglected interior provides an opportunity for definitive, upper-crust design transformation. Euro Cap has experience in luxury hotel redevelopments both internationally - notably the Hilton Arc de Triomphe in Paris, its flagship property - and locally; the company first invested in D.C. in the late '90s through the restoration of the Hamilton Crowne Plaza Hotel at 14th and K Streets, NW. Sources say the hotel operator has not been chosen, and that developers are waiting for progress on the design before choosing the best flag for the building. Sources at Euro Cap familiar with the process say the legal and physical challenges of the building, which inhibited bidders at the 2007 auction sale ("too many uncertainties"), have made development of the site complex, calling it "a consultant's dream." Under local preservation law and regulations, projects reviewed by CFA under its Shipstead-Luce or Georgetown jurisdictions do not require review by HPRB. Nonetheless, HPRB staff is reviewing it because the owner is seeking federal historic preservation tax credits for rehabilitation. The Secretary of the Interior’s Standards for Rehabilitation apply to tax credit projects, and are more stringent than the standards under the historic preservation law, extending to the interior, unlike CFA review. Time will tell if the property that brought down the Nixon administration, helped sink Lehman Brothers, and proved a millstone for Monument will prove more fruitful for its newest investor. 

Washington D.C. commercial real estate news

Region's Tallest Building Breaks Ground in Rosslyn

Monday Properties' 35-story, 390 foot office building will break ground on Thursday in Rosslyn, setting the stage for what will be the region's tallest building when completed, at least for a while. Developers will hold a public ceremony for the 580,000 s.f. building that will rise above the Rosslyn Metro station.


The superlative for "tallest" is a contested one, with JBG noting their that their 31-story Central Place tower will also rise 390 feet, nearly the tallest allowable by the FAA along the Reagan National flight path, which caps at 500 feet above sea level. The buildings also both straddle N. Moore at nearly equal 80-foot elevations; nearly, but not exactly. Officials at Monday assure DCMud that their site sits a few feet higher in elevation, giving theirs the edge. In any event, with JBG's project in check, Monday's claim to size will not be in dispute when the building completes in late 2013. Nor will Monday's second first: the first LEED platinum certified office building completed in Virginia, if all goes as planned. Bragging rights for both should allow for equally high leasing rates, and despite a lack of tenants, Monday chose to approach one of the region's lowest commercial vacancy rates by self-financing $30m of the $300m project, something JBG officials must be eying with intensity. Monday says it is confident that that this will attract financial suitors, but that they are prepared to move forward with or without a financial partner, and promise an anchor tenant announcement within 10 months.

Arlington approved the project in December of 2007, but it has been on hold for nearly 3 years as developers sought financing and the right market. Davis Carter Scott designed the skyscraper that Clark will build, with Gensler assisting on interior layouts.

Congressman Jim Moran will join other speakers at the groundbreaking ceremony this Thursday at 11am, true construction will be underway by the end of the month.

Rosslyn Virginia real estate development news

CATO Institute Builds Up and Out

The Cato Institute's landmark headquarters building on Massachusetts Avenue in NW will soon expand up and out after razing its southern neighbor and constructing a 34,000 s.f. addition designed by Gensler Architects. While liberals may groan, both the Advisory Neighborhood Commission (ANC) and the Board of Zoning Adjustment (BZA) approved the plans, including the raze request and relief from rear loading requirements, setting in motion demolition this spring followed by construction expected to last 14 months.

The conservative think tank won plaudits in 1993 for its 6-story, HOK-designed glass atrium that conformed the building to its site on diagonal Massachusetts Avenue. Gensler's plans include adding an extra floor to the existing building and constructing a new, 7-story addition that will attach to the southern perimeter. The final product will include approximately 69,752 s.f. of office use, including the 34,150 s.f. expansion.

Bill Erickson, Vice President for Finance & Administration at Cato, said he had been trying to acquire the National Medical Association (NMA) building for almost 12 years, but the NMA had resisted, wanting to stay within the District. Cato ultimately purchased the property in June 2009 for a $7 million, and filed their raze application in July. The NMA will likely move out in February and start their new lease in Silver Spring.

Cato will welcome the addition because, according to Erickson, it is "totally out of office space" and has been renting about 5,000 s.f. from a nearby office. The think tank is also looking to expand program space, increasing the size of their theater to include 194 seats and adding amenities like a gym and rooftop garden for a growing program staff. They will not seek LEED certification despite several green features.
Akridge is managing the project for CATO, and the firm is currently determining the construction costs through consultation with Clark Construction, though no formal contracting has taken place. The estimated total construction cost is $25 to $28 million, which Cato plans to fund through a capital campaign, according to Erickson.

Erickson described the reaction of the community and various oversight agencies as very positive, including unanimous approval from both the ANC and the BZA. Erickson added the Office of Planning and neighbors at 1010 Mass loved the plan and were happy to hear an "eyesore" would be replaced and improved.

Washington, D.C. real estate and development news

Office Condos Beat the Trend in NoMa

It has been almost 20 months since J Street Development and equity-partner Westbrook Real Estate Partners broke ground at 111 K St, NE, one of the city's first office condos, but the NoMa building is approaching the finish line. As pictured below, the low-energy glass curtainwall side is now complete through the 4th floor, thanks to Clark Construction. According to Colleen Scott, the project Senior Construction Manager at J Street, the developer should finish construction this year.

The 11-story, 90,000 s.f. office condominium building, designed by Gensler Architecture Worldwide, offers a quick escape from DC - just a block away from Union Station. The idea of office condos - sold as shells - will catch the ears of residential developers accustomed to spending a third of their time on selection and installation of finishes, nevermind post-settlement warranty issues. Or calls from cranky homeowners. Or replacing barely-knicked wood floors. Or arguing over color selections made two years before. Oh yeah, anyhow, Scott says the units are selling between $550 to $650 per s.f., which compares favorably to the normal range of new condos. The 111 K St building is the only new office condo project in D.C. at present.

Currently five of the eleven floors have sold, tenants include the Sierra Club, the YWCA, and the National Association of Student Personnel Administrators, non-profits all. Scott suggests one of the reasons for non-profit interest is the availability of bond-financing for these tax exempt organizations at a time when regular mortgages are difficult to obtain.

The builder will not attempt LEED certification. Though Scott was quick to point out that their Gensler architects are LEED accredited and have included many "notable green elements" including a green roof, bicycle storage and shower facility (for bike commuters, so yes, that gives you green points) and landscaping that does not require watering.

GMU Courts Commerce in Fairfax

One of the Virginia commonwealth’s largest public educational institutions, George Mason University, will be getting in on a little private commerce this coming May, when it officially breaks ground on its new $30 million hotel and conference center: the George Mason Inn.

Developed in conjunction with University Hotel Partners, the Inn is to be the newest addition to GMU’s flagship Fairfax campus. Once completed, the development will stand between Braddock Road and University Drive on six-acre parcel close to the university’s Patriots Village dormitory complex. Plans prepared by Gensler Architects call for a seven-story, 150-room hotel to be built alongside a 20,000 square foot flex-space conference center that will include a 175-225 seat restaurant, in addition to meeting, banquet, business and lounge areas.

GMU has already taken hotel operators Aramark Harrison Lodging, which operates fifteen similar “collegiate conference center/hotels” throughout the country, to manage the day-to-day functions of the center. The University has stated its intent to use the facility as a “campus living room,” since according to their projections, “university use accounts for 55% of meeting [and] guest room space.” Which isn’t to say that GMU will be hurting to fill the rest of their vacancies; as Virginia’s second largest university, GMU draws upwards of three million visitors per year to the Fairfax campus alone.

It seems logical enough then that provisions for a conference center and hotel at the university have been bandied about since 2002, when they were first included in a County Master Plan governing the site. With seven years of lead time, GMU has had plenty of time to secure financing for the project; its $30 million budget is to be drawn from state-backed bonds and, once open for business in the fall/winter of 2010, the Inn will be owned entirely by the University. Balfour Beatty will oversee construction.

Three Teams Compete in SW Fire Sale

Officials from the Office of the Deputy Mayor for Planning and Economic Development held a community forum at the now vacant H20 nightclub on the Southwest Waterfront last night to highlight proposals from three development teams vying to revitalize land currently occupied by Fire Engine Company 13 at 450 6^th Street, SW and a neighboring parking lot. The three teams present at the meeting originally submitted their proposals last June. According to Mayor Fenty, a final selection is expected “late next month.”

Each of the three teams would relocate the fire station from its current 6^th Street location to the 4^th Street corner in order to provide for better access and response time. Team 1, Potomac Investment Properties (City Partners and Adams Investment Group, formerly submitted as E Street Development), intends to“animate E Street,” according to Jeff Griffiths of City Partners. Griffiths said that his vision is for the station to occupy the lower two floors of a 10-story, 191,000 square foot office tower with a prominent fire-engine red facade, in keeping with the building’s primary use. The Beyer Blinder Belle-designed edifice would also sport 3,000 square feet intended for community use by Kid Power and the DC Central Kitchen. The building would be topped off by a green roof and feature LEED silver certification.

Phase II of construction would see another 9-story, 301,000-s.f. office tower on top of the fire station’s present 6^th Street location, with a ground floor retail base. Phase II, like its predecessor, would include a green roof and LEED silver certification. In between the two corner-to-corner projects, the team would “create synergy between the two parcels” with improved streetscape and landscaping.

Team 2 (JLH Partners, Chapman Development and CDC Companies) would place the station infrastructure on the bottom two floors of a new 103,000-s.f. office building. Bachelor number 2, however, noted its advanced scouting efforts for potential tenants, including the General Services Administration (hellooo stimulus). But the real centerpiece of their development scheme was their plans for 6^th Street, where they propose a 208-unit, extended-stay hotel adjacent to an 11,000-s.f., publicly-accessible atrium that could be utilized for arts purposes, including performances by the Arena Stage and Washington Ballet.

Team 3 (Trammell Crow, CSG Urban Partners and Michele Hagans) highlighted their ability to unify the 4th Street intersection. CSG principal Charles King said CSG had submitted a proposal for the fire station three years ago, with the intention of transforming it into a DNC headquarters or hydrogen fuel station (insert hot air joke). Further, Trammell Crow is nearing completion on its million-s.f. Patriot Plaza project across the street. If accepted, the new buildings would be thematically consistent.

As if that wasn't enough to seal it, their Gensler-designed office building/fire station would top out at 190,000 s.f. and feature a number of upgrades for the firefighting staff, including additional truck bays. Meanwhile, their plans for a 306,000-s.f. office building on 6^th Street would include 16,000 s.f. for a mixture of retail and community purposes. Team 3 plans to secure financing for the project by sharing parking with Patriot Plaza, and said that with initial funding secured, they could begin construction as early as 2010. “We don’t enter into partnerships we can’t finish or finance,” said King.

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.

Gateway On Its Way

MRP Realty is about to finish the design phase for their long awaited Washington Gateway project located at the corner of New York and Florida Avenues in NE, on the northern edge of NoMa. The 1 million-s.f. project will cost an estimated $350 million to construct, and sit atop the New York Avenue metro station. MRP closed on the purchase of the land from Greenebaum & Rose Associates in August of ’07. Designs are now 80% complete with only interior refinements remaining. The bidding phase and excavation applications will follow, with ground breaking expected in the third quarter of this year.

The project will consist of three buildings, two of which will be office towers. The northern tower - the tallest in the NoMa and Capitol area - will have about 415,000 s.f. of office space. Its sister tower to the south will have roughly 210,000 s.f. The taller building caused MRP a setback in December of 2006 when the National Capital Planning Commission objected to its height, an attribute at least in part caused by a 40 foot height difference between New York and Florida Avenues. The Zoning Commission overrode their objection (yes, they can do that) and made the final approval in February of 2007, deciding to measure the building's height from New York Avenue, although the foundation for the building will be poured on the Florida Avenue level. This allows MRP an extra three stories, making the Washington Gateway more visible to those entering NoMa from New York Avenue - a rare coup for height in our two-dimensional city.

The opposite side of the site features a "T" shaped building, housing a 180-room hotel and a 260-unit apartment tower, of which 8% of the units will be reserved for affordable housing. The rental units will feature 'condo level' finishes like granite counter tops and undermount sinks. A public central plaza will connect each building.

Washington Gateway will also give commuters and residents easy access to the New York Avenue Metro and the Metropolitan Branch Bike Trail. The three-story glass Bicycle Atrium will provide bike storage, lockers, refreshments, trail and neighborhood maps, and an automated bike pump.

MRP is teaming up with Gensler Architecture as master planner and designer of the commercial office buildings. SK&I Architectural Design Group is working on the residential building and hotel while Oculus is planning the plaza and streetscape design.

According to Gensler's Michael Patrick, Washington Gateway "extends the urban grid of NoMA from the south into what was an abandoned and isolated eyesore, and creates a great urban space in a plaza with first class materials."

"The residential building cantilevers an energetic volume of triangular glass which will capture and frame the view for those eastbound on either Avenue. The residential tower and south office building create a ceremonial entry from NoMA, with the office building's plaza facade articulated in high detail of stone, glass and metal to set the tone for the Class A office space inside," Patrick added.

Completion of Washington Gateway is expected in the fall of 2010.

Washington Gateway Project Images, Details

One of the more exciting proposed projects to hit the New York Avenue NE corridor the past year is MRP Realty’s Washington Gateway project, a $350 million development to be located in the NoMa section of Washington, just above the New York Avenue metro station at the southeast corner of New York and Florida Avenues NE, now the location of an abandoned lot and gas station (which will be going out of business in March). And MRP Realty has now provided us exclusive images and information about this anticipated project. Earlier this month, the DC Zoning Commission granted Final Action approval to MRP Realty’s plan for this 1 million-sf, mixed-use project, which will feature two office towers (600,000 sf of office space total), plus a T-shaped structure, with one side containing a 180-room hotel and the other side a 250-unit residential tower (with 8% reserved for affordable housing). 

MRP will also reconfigure, widen, and upgrade the walking areas along New York and Florida Avenues to enhance pedestrian access and safety, and also include new plantings and furnishings. In addition, sidewalk cafes and shops are planned for these thoroughfares. The project will also provide a direct connection to the metro through the Metropolitan Branch Trail via a three-story atrium. There will also be a public central plaza with cobblestones, benches, and a fountain, and will feature bicycle racks and a bicycle pump station. The architect for the office towers will be Gensler, with SK&I handing the residential and hotel tower. Land and streetscaping will be designed by Occulus. MRP expects to break ground in early 2008, with completion scheduled for early 2010. See the Washington Gateway site plan and more images of the project.  MRP Realty was created in 2005 by former Trammel Crow executives, and is quickly rising in the Washington metro developer scene, with over 2.25 million sf under development and another 3 million sf of development in the pipeline. Speaking with dcmud, Jonathan Lischke, MRP Vice President, stated that “[w]e are very excited about the project as Washington Gateway combines elegant and sophisticated urban architecture with sustainable design and smart growth. The buildings will be a combination of glass, metal, and pre-cast; incorporate green elements; and encourage pedestrian and bicycle use through proximity to metro and the Metropolitan Branch Trail. As one of the tallest projects in the District, Washington Gateway will not only have views of the Capitol Building but it will also be highly visible as a gateway to NoMa and downtown DC.”

Washington DC commercial real estate news

Washington Gateway Project Ready to Get Going

In late December, the DC Zoning Commission approved MRP Realty’s plan for its Washington Gateway project, a $350 million development to be located in the NoMa section of Washington, just north of the New York Avenue metro station along New York and Florida Avenues NE. The 1 million-sf, mixed-use project (pictured) is expected to feature two office towers, plus a T-shaped structure, with one side containing a 150-room hotel and the other side a 250-unit residential tower (with 8% reserved for affordable housing). MRP (created in 2005 by former Trammel Crow executives) will also reconfigure the walking areas along New York and Florida Avenues to improve pedestrian access and safety, and also include new plantings and shops along these routes. The architect for the office towers will be Gensler, with SK&I handing the residential and hotel tower. Land and streetscaping will be designed by Occulus. MRP expects to break ground in late 2007, with completion scheduled for early 2010.