New Georgia Avenue Development Requires Dump Truck of Cash

An unassuming four-story residential building will pop-up at 2910 Georgia Avenue over the course of the summer and within in a year's time will have all 22-units sold. That, anyway, is the prediction of developer Art Linde, President of ASL Development Corporation, who has been working in "emerging areas" in the District for 20 years - areas like 14th Street in the '90s and U Street a decade ago. His fairly standard four- or five-story buildings often sit in the shadow of a larger project's spotlight, but today, a new condominium project with a firm timeline and construction financing seems like a relative star in areas hit by stalled development, like lower Georgia Avenue.

Linde purchased the property for $560,000 from Howard University in November 2009, applied for construction permits in December 2009, will begin construction this May and expects to deliver 10 months later. A stunning timeline in today's climate and no easy feat. Linde said he always signs his own loans, never takes financing from "the government or metro," but for this project he had to hand over a "dump truck full of cash" to secure a loan from Bank of Georgetown. Linde is unique in that he actually had a dump truck and enough cash to fill it. As he said, some developers today would not even be able to buy of one the units in his new building. A one-bedroom will run around $220,000 and a two-bedroom around $300,000. Yeah, times are tough.

The Developer described buying the lot as a "no brainer" because of its location on a "wonderful little street" in an area with a "rich history." Project Architect Eric Colbert and Associates said the design "gives harmony to adjacent structures" in the largely residential townhouse neighborhood. The project will be brick with large double-hung windows and bays that step out into the public space to "break down" any appearance of mass said Colbert.

The matter of right development will come in at five floors, plus a penthouse, and will be no higher than 50 feet. A side yard area will be covered in brick and provide 11 parking spots for residents of the one- and two-bedroom units. What about retail? Linde said the area has a dearth of quality housing and is rife with vacant lots. "You need to put heads in beds before you start building any retail," asserted Linde. Adding, "doesn't do any good to put in a Trader Joes... or a Starbucks if there aren't any people to drink the coffee." Considering his dump truck of cash, perhaps there's something to this philosophy.

Small though they may be, the developer said he takes care with his buildings, making sure the interiors are well built. They sand and finish the wood floors in place, no Masonite or cheap pieces of lumber. The windows are double hung wood, no vinyl. In short, "nothing that fell out of the back of a Home Depot truck," said Linde.

Though everyone seems to be "hoping" to start construction "very soon" and to deliver in the "next year," for once, it might actually be true.

Washington, DC real estate development news

Lower Georgia Avenue Pines for Development

No one doubts that development throughout the greater Washington DC area has slumped. Minimal solace may be had knowing that DC is faring better than the rest of the nation, but even within DC some pockets seem destined to be condemned to all bust and no boom. Case in point: lower Georgia Avenue.

Despite much virtual ink being spilled on the development potential of the southern end of Georgia Avenue, the potential seems lost, as projects big and small fail to start. The same could once be said of the street's more northern leg, but thanks to recent projects like CVS (pictured, right), the District's RFPs and of course Chris Donatelli, Chris Donatelli and Chris Donatelli, the atmosphere is finally changing. But not to the south.

Park Morton and Howard Town Center are supposed to breathe life into the moribund boulevard, but neither project has begun. In fairness, Park Morton was only awarded in October 2009, though the timeline is still fuzzy and the District's budget to assist such projects is tight. The District's attempt to turn the Bruce Monroe school into a mixed-use project has failed, despite an RFP and ceremonial demolition. Even smaller renovations appear non-existent, with streetfront stores a window to DC's past.

For-sale lots sit vacant. The owner of a lot at the corner of Georgia Avenue and Kenyon Street in NW, is looking to sell his land and plans for $1.4 million. The property had been in the hands of Carthage Development, which asked $3m for the land and plans. 3205 Georgia Avenue LLC then purchased the lots in 2007 for a combined total of $1.4 million, but over two years of interest payments later, planning for a mixed-use project left the owner with construction permits in hand, but no construction. Designs call for a 21,000 s.f., five-story, matter-of-right development with retail, second floor office space and 18 residential units on the third through fifth floors in a building designed by Maiden and Associates.

Just to the south at Hobart Street, another vacant block long sported a for-sale sign until Howard University sold the lots in November to 2910 Georgia Ave LLC for $560,000. Now permits have been filed for a 22-unit four-story residential building with 11 parking spaces. As far as permitting goes, the project is on track, though the status of financing is always a guessing game.

Slightly to the north is another planned residential development, The Heights, which sits at 3232 Georgia Avenue, just down the street from the planned development at Park Morton. Despite inklings that project partners Neighborhood Development Company and non-profit developer, Mi Casa, Inc., were looking for a general contractor to begin construction this spring, work has yet to begin. The new, six-story, almost 86,000 s.f. project is among the more promising in the area.

In a neighborhood with so many potential projects, something may yet give, and the start of one large projects may be the shot heard round the city. But for now, long, hard fought battles for each development will be the way of lower Georgia Avenue.

Washington, DC real estate development news

Wheaton Considers 18-Story Metro Development

Plans are finally taking shape in Wheaton to replace the existing Safeway and add as much as 500 residential units worth of new neighbors. The Safeway, across the street from the Wheaton Metro, dropped the idea of relocating to the AvalonBay development (a project now on hold) last fall and began working with developer Patriot Realty, creating concepts that are now starting to gel. New plans call for doubling the supermarket's size, adding retail and parking, and building an 18-story residence in three towers. The newly developed, LEED-certified Safeway will displace the box building and large parking lot opposite the Metro entrance, adding retail, residences and 550 parking spaces to downtown Wheaton. Initial designs insert 140 parking spaces below grade that will service retail customers and 411 residential spaces on the 2nd, 3rd and 4th floors, accommodating residents. In an effort to hide the three-story garage between the retail and residences, the team plans to cover the garage in a skin that "fits in and doesn't necessarily look like a parking structure," according to Steven A. Robins, Patriot Realty’s attorney from Lerch Early & Brewer. Hord Coplan Macht is the Baltimore-based architecture firm planning the new building and designing the common spaces. 

Lee Driskill, a Principal with the firm and the lead architect for the project, says the mid-level garage will be blended almost seamlessly with the exterior of the upper floors. "The goal is to make the 3 levels of the garage meld with the design of the building. You will not see it." At least not from south or west, where most of the traffic runs. "This is still very conceptual, but its not going to be an open garage. The goal will be to make [the exterior walls] look integrated, potentially the majority of it will be glass. It will follow the design of the unit openings above" says Driskill. Ventilation will be likely achieved with screens on the less visible north and east sides. According to Driskill, the overall strategy is to break the massing along Georgia Avenue, separating the design into 3 vertical towers that are more apparent than actual, since structurally it will comprise one integrated, "tall and elegant" building. "The skin has been organized to have these three tower elements come to the fore." Though the county's Staff Report was largely favorable, controversy remains over the public space, an issue that could cost the developer $1m. Montgomery County requires a developer to either set aside 20% of the lot as public space, or contribute to a fund to purchase off-site space. In their review, county planners found little value in Patriot's planned outdoor space and "suggested" adjustments that removed it, a change that would effectively require Patriot Realty to buy into the off-site fund. At $35 per square foot, based on the assessed value of the land, that would cost Patriot $960,000. The modification irks Patriot, which blames county planners for the change, but, according to Robins, "it's just a question of how much it costs...and just figuring out how to pay for the land; whether its the land value or the cost of improvements." Its only money. The Wheaton Safeway development will face Preliminary and Project Plan Review this week where the Planning Board will consider the "favorable" staff report, said Robins. After that, "we still have to get Site Plan approval...hopefully we could begin construction early next year." The county will take up the issue at its next meeting on Thursday. Patriot previously built 8045 Condominiums, Crescent Condominiums, and the Portico apartment building, all in Silver Spring. 

Wheaton Maryland commercial real estate development news

Donatelli Breaks More Ground in Petworth

Developer Donatelli Development broke ground this past week at 3801 Georgia Avenue, until now a vacant lot in DC's Petworth neighborhood. The 49-unit, 7-story project will rise across from the Petworth Metro, and across the street from Park Place, Donatelli's last project. Originally the project was a joint venture between Willco Residential and Donatelli, but a source at Donatelli says Willco is no longer involved in the building. Eric Colbert & Associates has designed the heavy-gauge steel and concrete building. Donatelli reports that the project will not have a retail component. Given its proximity to Metro and retail components in the neighborhood, this could be the beginning of a more "downtown" Petworth, which has lacked a concentration of sustained retail, even along the busy Georgia Avenue corridor. While the groundbreaking was more ceremonial than real, actual work on the project is expected to get underway within weeks. The building will take up most of the empty lot, though the northernmost section of the land, at 3825-3829 Georgia Ave., will not be built out at this time. Donatelli plans a smaller project on that portion, with first-floor retail and "a small amount of residential" on the upper floors. That project will be designed by Bonstra Haresign Architects. In addition to proximity to Donatelli’s recently completed Park Place, the corner will also soon be home to a new CVS, and just next door, a historic rehab-turned-restaurant, a project that kicked off just two months ago. There should be no shortage of affordable housing in the neighborhood, as just a few blocks north is the Georgia Commons Project, creating 119 of its 130 apartments as "affordable," while just to the south is the ambitious Park Morton project, a massively subsidized 500-unit community in the final planning stages. 

Washington DC commercial property news

New Restaurant for Georgia Avenue

On Tuesday, District officials and developers broke ground on what will become a first class restaurant on the historic site of the former Billy Simpson's House of Seafood and Steak. The District originally sought proposals for the site in April 2008, selected a developer in September 2008, and in March 2009 the property was added to the National Register of Historic Places. The development team, Donatelli Development and Mosaic Urban Partners, is working with the Hilton Brothers, known for their restaurants Gibson and Marvin in the U Street corridor, to bring the new retail to the Petworth community.

According to Rachel Preston, an Advisor at Mosaic Urban Partners, the project is fully financed. Preston said the team has begun interior demolition and the real estate project could be ready as soon as this summer. A press release from the Deputy Mayor for Planning and Economic Development's office said the historic restaurant operated in the 1960s and 1970s and was an "oasis" for leaders of the Civil Rights movement as well as home to the political forum "Round Table 9." The development team also won the right to develop on another plot of land at 3825-3829 Georgia Avenue, in the form of a small residential building of approximately 12 units with ground floor retail. These developments continue the trend for the Petworth neighborhood, also home to Donatelli's Park Place built on top of the Georgia Avenue/Petworth metro station. When the new yet-to-be-named restaurant opens it may just breathe new life into the "up-and-coming" neighborhood, much like U Street (where the Hilton Brothers currently operate several other restaurants) and Columbia Heights (where Donatelli's projects changed the face of the neighborhood). That, at least, is the hope.

Washington D.C. restaurant and real estate development news

Central Union Mission Pursues Gales School, Again

The District has issued a Request for Proposals to revive the Gales School at 65 Massachusetts Avenue, NW. Officials must be hoping for a better result than the previous efforts to develop the building shell, a swap with the Central Union Mission for its land at 3500 Georgia Avenue - a site that might now be part of the Park Morton Development. The announcement indicated DC was seeking offers from private companies and non-profits to renovate the historic building (circa 1881) and operate it as a homeless shelter, capable of serving upwards of 150 people each night. The RFP is the first sign that the furor over previous efforts have subsided, and the dilapidated building will once again provide services to the city's homeless.

The District ran the building as a homeless shelter between 2000 and 2004. In the proposed trade, DC would have gained the Georgia Avenue property and the Mission would get use of the school as a shelter, plus an additional $7 million. But the exchange was derailed by an America Civil Liberties Union lawsuit claiming an Establishment Clause violation - i.e. separation of church and state - because the trade would, according to the suit, result in a "net gain" of $12 million for the Mission, which the ACLU objected to because the Mission requires homeless men to participate in religious services in return for room, board and counseling services.

In the face of the lawsuit, the Mission proposed to move the shelter to Georgia Avenue, only to face fierce community opposition to a homeless shelter and more opposition when the plan changed to a mixed-use residential and office project. That changed in October when DC Officials announced that the development team of the Park Morton Project, Park View Partners (Landex Corp., Warrenton Group and Spectrum Management), would be absorbing the Central Union Mission Property as part of Park Morton, though Park View has not yet solidified that agreement with the Mission. (Image below at left)

David Treadwell, Executive Director of the Central Union Mission, said that the deal with Park View Partners is a "long-term contract" that cannot be finalized until negotiations between the District and the developers are completed. That said, the property is "off the table as far as a swap with the government goes" said Treadwell. With the swap option gone and the $7 million spent long ago elsewhere, the Mission will now compete for the Gales School. Treadwell said it was his understanding that the concerns raised in the lawsuit had more to do with the cash payments than with the land swap, so the Mission will submit a response to the Gales School RFP.

Treadwell added that he hopes the new proposal will "work for everybody, that is fair to everybody and acceptable to the community" because the Gales School is a "great location for serving the poor and the homeless." Still, the Mission's offer will depend on its ability to raise funds for a project that ultimately will not be a revenue creator, and which may be torpedoed again if perceived to contain any sort of subsidy, a problem that non-religious organizations would not face. Treadwell said the Mission's offer will likely call for an addition to the building of approximately 5,000 s.f. for a new kitchen, classrooms and storage space to serve 150 or more men a night. The project will likely cost $12 to $14 million, "we are entering with fear and trepidation," said Treadwell.

As for the lawsuit, Treadwell said he cannot speak for the ACLU or other parties of the suit as to whether the new arrangements and changes to the original plans will have resolved any concerns. The Gales School was designed by Edward Clark, the Architect of the Capitol, and named for DC's 8th Mayor.

Washington, DC real estate and development news

DC Gets Bids on Georgia Avenue

Yesterday, two development teams threw their hats in the ring to develop a 15,000 s.f. parcel at 6925-6929 Georgia Avenue, NW, across from the Walter Reed Army Medical Center. The District released an RFP in October, looking for a group to plan, finance, build and operate a project that may include mixed-income housing, community-serving retail, and cultural amenities. The vacant lot is zoned for R-5-B, with height limits set at 50 feet and a maximum lot occupancy of 60%.

According to Sean Madigan, Communications Director for the Deputy Mayor for Planning and Economic Development, only two teams met the 3 PM deadline on Friday. Madigan indicated the project managers for the site would be moving quickly to review the applications and announcements about the proposals might become public as soon as this week.

Washington DC real estate development news

Fillmore Sounds Like Music to Silver Spring

Silver Spring's downtown will soon be the heart of an Art and Entertainment District as Montgomery County swaps a shuttered JCPenney for the Fillmore Music Hall, inspired by the original Fillmore in San Francisco. Courtesy of Live Nation music company and Lee Development Group, the venue will sit on Colesville Road between Georgia Avenue and Fenton Street, across from the AFI Silver Theater and down the street from Discovery Communications. In an interesting swap, Lee, which owns the building, will build the new music hall for the county, and both the state and county will contribute $4 million toward construction. The developer will give the Fillmore property (valued at $3.5 million) to the county in exchange for land use allowances on an adjoining property at 8615 Georgia Avenue, currently planned to include a hotel and office buildings. The Fillmore will be a historic reuse project, maintaining the exterior of the old department store that has been vacant for almost 20 years. The new theater could have capacity ranging between 500 and 2,000, depending on the type of performances. The design for the project is by Hickok Cole Architects which is also behind the design for Lee's planned hotel and commercial buildings at Georgia Avenue, which will back up to the Fillmore. The project planned for Georgia Avenue will bring a 12-story Class A Office Space and a 14-story 3 Star Hotel to the 72,000 s.f. of land. The developer indicated the team was deep in the planning stages for the commercial and hotel project and had not yet been through any Planning reviews. In November, the County approved the exchange, with assurances to the developer that the County will pay the developer for any costs it might incur resulting from interceding zoning changes that affect the office and hotel project. The exchange is an aberration from the normal process by which a developer's plan is approved contingent on community benefits. In this case, Lee is building the theater (the community benefit) and promising to give away land without prior project approval for the proposed hotel and office. To offset the risk of not receiving approval and having to adjust designs for the commercial development, Lee received promises from the County that it would pay development costs due to any new regulations imposed on the Georgia Avenue Property. Construction for the music hall could begin by the end of this year, setting the Fillmore Music Hall for a grand opening in late 2011. The County expects a $700,000 yearly profit from the venue. Photo by Lizzie Turkevich. 

Silver Spring commercial real estate and development news

District Council Hands Out Tax Breaks to Developers

Today, the District of Columbia Council approved three bills that would exempt several developers from property taxes throughout the city, with one exemption lasting indefinitely. Yup. Indefinitely. Councilmembers were handing out tax abatements like candy at a parade to Affordable Housing Opportunities Inc., Neighborhood Development Company, and Donatelli Development. The tax abatements come in exchange for residential developments that provide housing at affordable levels in communities ranging from Georgia Avenue to Columbia Heights, Congress Heights to Naylor Road. Though abatements are often offered as a preemptive tool to encourage affordable housing, the Donatelli project delivered last July; the abatement in this case softens the blow of a major condo development that turned rental when the financial headwinds were too strong.

Donatelli's Park Place, which opened atop the Georgia Avenue-Petworth Metro station last summer boasting 156 rental apartments and 5 rowhouses, offered 20% of the units to low-income tenants. Park Place is a $71 million, 200,000 square-foot housing and retail project. The abatement begins FY 2009 and exempts the developer from property taxes for the next 10 years and increases by 10% for the years 11 through 20 until the point at which the developer is paying full property taxes. In 20 years. Though, according to Brian DeBose, Communications Director for Councilmember Jim Graham, this is the an unusual request from Donatelli, whose projects have consistently set aside affordable housing, without any expectation of tax abatement. Graham saw fit to support the developer, a DC resident, and to "better advantage the building" during an economic downturn.

Neighborhood Development Company's The Heights on Georgia Avenue proposes to bring 69 new residential units and ground floor retail with half of the units set aside as affordable. The Georgia Avenue site was acquired by a partnership of NDC and Mi Casa Inc. – a DC-based non-profit that specializes in restoring aging properties and converting them into affordable housing. Architect Graham Parker designed the building, which will come in at a cost of approximately $25 million. The project received the vote of approval from the ANC for the zoning adjustments needed to bring in the development. The abatement for The Heights is the same as the Park Place abatement.

A bill submitted by Councilmember Marion Barry also provides indefinite tax abatement on two properties owned by Affordable Housing Opportunities Inc. (AHO), and even paying back taxes already received from FY 2008. The exempted are the former Wilson Court Apartments at 523-525 Mellon Street SE, purchased in 2008 for $1.5 million, and 2765 Naylor Road in SE, which the developer purchased in July 2008 for $2.8 million. Nelson Architects designed the renovations for both buildings. Plans for the former property include 36 single room units and 15 efficiencies, including two for on-site staff. The units will be made available to special needs single adults all with initial incomes at or below 30 to 50% of the Area Median Income (AMI). Neighbors have objected strongly to the proposed use, but Troy Swan of SOME indicated the project plans may change since the Mellon Street project did not receive any Low Income Housing Tax Credits (LIHTC). The latter AHO property on Naylor Road will include 40 units at or below 60% AMI and received a LIHTC award from the DC Department of Housing and Community Development (DHCD) in August.


The approval of AHO's abatement for Naylor Road and Mellon Street comes despite a June letter from Natwar M. Gandhi, the District's Chief Financial Officer, stating funds are "not sufficient in the FY 2009 budget or the proposed FY 2010 through FY 2013 budget" indicating the total negative fiscal impact through FY 2013 would total $383,700. Though abatement bill also includes an amendment that would supposedly offset the cost of the lost taxes through parking meters.


Washington, DC real estate and development news.

Image of 523 Mellon Street SE Courtesy of South East Socialite.

Groundbreaking for Georgia Avenue CVS

Groundbreakings are never quite as exciting as officials or the press want them to be. Really they are an opportunity to get dress shoes dirty, make a few speeches and wait months for something to replace the ceremonious dirt. Today's groundbreaking at a CVS in Parkview/Petworth Community met all the aforementioned expectations, but DCMud attended, just in case something unexpected happened. Nothing did. That said, the fulfillment of promised retail for a community long underserved is certainly something to note and a welcome sign of progress for neighbors. The CVS is the first step in a line of promised retail on the Georgia Avenue Corridor. The lot in question is at the intersection of Georgia Avenue and New Hampshire Avenue NW, across from Donatelli's Park Place and diagonal from the Georgia Avenue Metro. The space sits just on the border of Wards 1 and 4 and will serve the communities there. The site once was home to a gas station that closed in the early 90's and the lot sat vacant until 2000 when a real estate developer proposed a plan for a 10-story residential tower. According to Robb LaKritz, the community and the city disliked the project so much that it eventually died. In 2007 LaKritz Adler purchased the property and began the long process of working with the community, where Principal and Managing Partner Robb LaKritz lives, to pursue the type of retail the area needed. There was one major obstacle the developer had to work through with the city - the soil of the former gas station was deemed contaminated by health officials. But with some finessing and consideration for the type of tenant the developer was pursuing, LaKritz Adler and city officials were able to obtain approval for development and secure CVS as the tenant. The 11,000 s.f. site is smaller than a typical CVS, which are usually 14,000 to 15,00 s.f. The Georgia Avenue CVS will also include a mezzanine to accommodate more space on a second floor. Construction, not yet begun, is expected to wrap up mid-2010. The project was made possible partly through a $2 million Georgia Avenue Great Streets Grant from the District, which spends approximately one-fifth of its $10 million budget for the area. The grant will be financed through TIF bonds, which make the District a development partner of sorts creating an added value for the lot in order to secure additional private financing. The TIF bond will be financed through the sales tax revenue generated by the new CVS and will expire after 25 years or when the taxes revenue fulfill the financial obligations. So, the Mayor shoveled some rocks as he lead Councilmembers Graham and Bowser with the cheer of "1-2-3, New CVS!" Get excited.

Washington DC commercial property news

Walter Reed Update...Kinda, Sorta

In a dramatic press conference this morning in a very mushy and vacant lot on Georgia Avenue, DC Mayor Adrian Fenty announced that the District is going to start working on a plan and that at some time in the future the District may or may not announce that plan, which involves land the District may or may not actually own at some point. So went the press conference on the District efforts to develop a reuse plan for the surplus 62.5 acres, not allotted to the GSA or Department of State, on southern half of the Walter Reed Army Medical Center (WRAMC). The WRAMC is expected to close in 2011. Though Fenty opened up the floor to press questions, a rare event at most such announcements, he might as well have had a magic ball on hand to give responses.

In accordance with the Base Closure Community Redevelopment and Homeless Assistance Act, the District of Columbia - which acts as the Local Redevelopment Authority at Walter Reed - is seeking notices of interest (NOI) for the surplus property. There will be a public meeting tonight at Fort Stevens Recreation Center at 7 PM and a workshop about the base closure planning process, a site tour, and land-use constraints on November 13, 2009 at the WRAMC.

Located between two major artery roads, Georgia Avenue and 16th Street, the property includes substantial frontage on Georgie Avenue and is a prime location for development. To give officials a little wiggle room, Fenty said the District's goal of securing the land is "not guaranteed, but it's looking good." Councilmember Muriel Bowser, Ward 4, said it would be"premature" to make any guesses about the future use of the land, but added that officials were looking to "integrate" the property back into the community, which has a need for green space, recreation, quality retail, parking and office space. "With 62 acres...that's a lot of possibility." Though officials were hesitant to give specific details, the press release from the Deputy Mayor for Planning and Economic Development suggested the final plans would call for mixed-use development.

The initiative to obtain the property from the federal government began in 2005 when the Defense Base Closure and Realignment (BRAC) Commission announced the closing of the Medical Center, itself a source of much controversy for it mismanagement of patient care. Since the 2005 announcement DC officials have been finessing members of Congress and the Defense Department to win their support for the District's plan to buy the property. Fenty was an early proponent when he was still a Ward 4 Council member. Fenty described the redevelopment as an "incredible opportunity" for the Brightwood neighborhood and the city, adding that the DC government would "work very closely with the community and our federal partners in the months ahead."

Yes, this deal involves a lot of property and yes, federal policies on land use and disposition are certainly tricky, but the Mayor could have just left such a vague announcement for a press release. We can only hope that over the next 12 months the "plan" for the reuse gets more specific than the magic-ball-like update we got today.

Mission Says "Maybe" to Park Morton

After Wednesday's press conference announcing the DC government's award of the enormous Park Morton contract to Landex Corp., Warrenton Group, and Spectrum Management, DCMud promptly reported the more surprising revelation by Councilman Jim Graham that the District would roll the controversial Central Union Mission site into the Park Morton project - a win for the Park View Partners (Landex, et. al.), who get more area to work with, for the Mission, which gets bought out of a neighborhood that has fought the project from the beginning, and for the neighborhood, which slams the door on an unwanted neighbor. The problem? Neither the Park Mortonians nor the District of Columbia ever quite finalized any such agreement with the Mission. While officials have been working closely with owners of the Mission to reach such an agreement for "some time," sources at the DC government say the Mission is continuing to pursue its own zoning approval to relocate to the site, as we reported earlier, but also to negotiate with other suitors. While things may fall into place, they're not there yet.

Washington DC commercial property news

Park Morton Gets a Two-For

Just over a year after DC announced the Request for Proposals (RFP) concerning the $130 million initiative to redevelop Columbia Height's Park Morton public housing complex, DC Mayor Adrian Fenty chose Park View Partners (Landex Corp., Warrenton Group and Spectrum Management) to move forward with their plan for 500 new units of affordable, work force and market-rate housing and a 10,000 s.f. park. The architect for the project is Wiencek and Associates. In a surprise move officials described as a"two-for," the Park Morton developers will also absorb the land on Georgia Avenue currently owned by the Central Union Mission to bring a wealth of mixed-use development to the Georgia Avenue Corridor. A ground breaking date was not announced. The Park View team won out over the narrowed down field of teams named in March including the Park Morton Partners (Pennrose Properties, LLC, FM Atlantic, LLC, and Harrison Adaoha, LLC) and the other Park Morton Partners (Neighborhood Development Company and Community Builders, Inc.). Deputy Mayor for Planning and Economic Development, Valerie Santos, praised Landex for it's experience in successfully completing redevelopment projects of distressed urban housing, including HOPE VI projects, in cities along the East Coast. The announcement about Central Union Mission came as a surprise, as the group recently went before the Board of Zoning Adjustment (BZA) and carried out a series of community meetings about their planned development at Georgia Avenue and Newton Place. According to Catherine Fennell, a consultant working as the Project Manager with the Warrenton Group, the Mission continued moving forward while the award for Landex was pending. But Fennell indicated the two groups have been working on their agreement and will make the purchase official now that the award for Park Morton was announced. The Park Morton project is one of four designated New Communities, an initiative begun by Former Mayor Anthony Williams. Others include Barry Farm, Northwest One, and Lincoln Heights/Richardson Dwellings, all of which, the Mayor today promised, would continue forward with a guarantee of "no displacement" for current residents.

Washington DC commercial real estate news

DC Seeks Developers for Georgia Avenue in Takoma

DC's Takoma neighborhood may be on the receiving end of new development, thanks to a Solicitation for Offers from the Deputy Mayor for Planning and Economic Development (DMPED). The solicitation is for the 15,000 s.f. parcel at 6925-6929 Georgia Avenue, NW, across from the Walter Reed Army Medical Center. The district seeks a group to plan, finance, build and operate a project that may include mixed-income housing, community-serving retail, and cultural amenities. Responses are due January 15, 2010 at 3PM.

Currently, the property is unimproved and zoned for R-5-B, with height limits set at 50 ft and maximum lot occupancy at 60%. In the solicitation documents (PDF), the District boasts of the property's location on Georgia Avenue, "ubiquitous mass transit" in the form of a "highly-trafficked arterial" road and its relatively short distance from the Takoma Park Metro, a little more than half a mile away.

Community preferences for the parcel include residential (apartments or condominiums), child care facilities, green space (particularly setbacks), LEED standards and appealing architecture. Big no-nos are commercial uses and clubs and liquor stores; probably strip-clubs and check-cashing stores too. Hint: the solicitation indicated that these preferences should be taken into strong consideration by developers.

Central Union Mission's Development Blues

The hotly contested Central Union Mission property on the corner of Georgia Avenue and Newton Street in northwest DC had its day at the DC Board of Zoning Adjustment (BZA) last Tuesday. Original plans to move the Christian men's residential facility (read: homeless shelter) from its dated digs in Logan Circle to Georgia Avenue met significant community resistance, leaving the Mission to scrap the homeless shelter idea and design a new building with mixed-use residential and office space instead. The BZA ultimately approved the new plans for a mixed-use project, on the condition that the Mission not modify its approved use. Having relented to community pressure over the proposed shelter and without any prospective buyers or development partners, the Mission worked with designers at Cox, Graae + Spack Architects to develop a more conformist project. The new plan calls for 37 residential units affordable to residents with incomes of 50% - 80% AMI (about $45,000 - $80,000). The building will include a small bay of ground floor retail on Georgia Ave., an additional 3,700 s.f. of office space, which may be reserved for Mission administrative uses, and 27 parking spaces in a below-grade garage. The community has vociferously opposed building a homeless shelter on the site. At a September ANC meeting, the Mission assured residents that the project would no longer include the shelter, but would rather provide low-income housing and retail/office space. ANC-1A08 Commissioner Cliff Valenti appeared at the BZA meeting to reiterate that the ANC's approval was conditioned on removal of the homeless shelter from the Mission plans. The ANC remains anxious over the property, despite the Mission's assurances, largely because the proposed alternate location for the shelter at Gales School (pictured, at right) near Union Station has now become a legal issue. Originally, the plan was for a land swap in which the city would gain the Georgia Avenue property and the Mission would get use of the school as a shelter. But the exchange was derailed by an America Civil Liberties Union law suit claiming an Establishment Clause violation - i.e. separation of church and state - because the property swap would result in a net gain of $12 million for the Mission, which requires homeless men to participate in religious services in return for room, board and counseling services. With the swap in doubt, the ANC demanded, and now received, a formal prohibition of the shelter. With their tenancy in Logan up and their Mass Ave location in doubt, it seems the Mission itself may now be in need of a home.

Washington DC commercial real estate news

Georgia Avenue School Demolished for Mixed-Use Project

Government officials chose the hottest day of the year to begin demolishing another public school, this one on Georgia Avenue. The 36-year-old Bruce Monroe Elementary School and recreation center, at 3012 Georgia Avenue, NW, was closed this June to make way for a mixed-use project including, most likely, an updated school, and yet another feather in the cap of Georgia Avenue.

According to ODMPED Communications Director Sean Madigan, the Mayor's office will issue an RFP "in the next few weeks" to select a developer to turn the 119,000-s.f. site into what "could include new housing and retail on the site as well as a new school." DC Public Schools’ Office of Public Facilities Management has been tasked with overseeing the school's development, while ODMPED and the DC Department of Small & Local Business Development share the responsibility of seeking a partner for the project’s mixed-use component.

The task of knocking down the existing school falls on General Contractor EEC of DC, which handled asbestos and PCB abatement, and The Berg Corporation, which will handle actual demolition. According to a source from Berg, 95% of the material (by weight) on the site will be recylced, a large portion of which is brick that will be ground and used for structural backfill. Demolition is expected to take about 10 weeks; the Mayor's office had initially predicted the school would be ready for the fall of 2011, but says that now seems unlikely.

Several shootings on the site in 2007 prompted Mayor Fenty to undertake additional neighborhood improvements and evaluate the state of the school. Most of Bruce Monroe’s former student body and staff have been removed into Park View Elementary at 3560 Warder Street, which will in turn close once Bruce Monroe is ready.

Washington DC real estate development