Heated Discussion Ends In Trillium Site Approval

In a slip-of-the-tongue Thursday afternoon during the developer’s presentation at the Montgomery County Planning Board Meeting, Harris Teeter was named as the grocery store slated for the StonebridgeCarras residential and retail development at the Trillium Site in downtown Bethesda.


Residents speculated and hoped for various stores including a Harris Teeter and Whole Foods, but it had not been confirmed before today.

In a heated discussion, the StonebridgeCarras team proposing a 9-story, 360-unit apartment building for the recently purchased Trillium Site pushed back against a few key conditions placed on their proposal by Montgomery County Planning Commission staff: calculated vehicle trips and required gateway architecture.

The site, filling the block along Battery Lane between Woodmont and Wisconsin avenues, is designated as a gateway in the master plan, requiring special treatment to the building along both Wisconsin and Woodmont. Neither side disputes that fact, but they do disagree on how to indicate the gateway.

Staff wants special treatment to the corners of the building along the streets, and they argue the special treatment is in the center of the development. Developers say they intentionally created understated, stepped corners to meet the requirement and used different techniques in the center to draw the public into the public space.

The Board weighed both arguments and ultimately decided to allow the developers to keep their deign.

Staff received a handful of community comments that focused on the lost arts incubator space in the new plan,  but that feature was not added back into the development.

With the new plans approved, Stonebridge can continue moving toward development.

Bethesda, Maryland, real estate development news

Erkiletian to Deliver Apartments in Old Town

The Asher, a 206-unit multi-family residential project in Old Town Alexandria, is on track for delivery in spring of 2012, says Bill Denton, Vice President of Development for Erkiletian, the local suburban developer behind Alexandria's Halstead Towers and the Discovery building in downtown Silver Spring.

The project broke ground in November 2010 at 621 North Payne Street, the former site of a Security Storage Warehouse, two blocks from the Braddock Road Metro. The building which the developer hopes will secure LEED-Silver certification will feature terraces and a landscaped plaza, a business and fitness center, a sliver of retail, and 256 underground parking spaces.

Rust Orling Architecture and Hovnanian conceived the project, to which Erkiletian added 60 units and signed on Lessard Group for support.

Ribbon Cutting, Taste Testing Tonight, Harris Teeter Officially Open Tomorrow

NoMa finally gets its first grocery store with the impending inauguration of the 50,000 s.f. Harris Teeter store at 1201 First Street, NE, which officially opens its doors tomorrow. Its been two years since StonebridgeCarras announced Harris Teeter would occupy their anchor spot in Constitution Square, and tomorrow brings that promise to fruition. But why wait until tomorrow, when you can get free wine and a sneak peek tonight. Following a ribbon cutting this afternoon, as a sign of appreciation for the neighborhood support, the store will hold a "Taste of Teeter" from 5:30 pm - 8:00 pm, during which the general public may sample wines and products from the store. At eight, with several sampler glasses of red sloshed back and a solid buzz going, attendees will then be set free to do their grocery shopping until the store closes at midnight (Disclaimer: DCMud does not advocate boozing and buying).

The retail scene in NoMa has quickly become more and more crowded over the last several months. With Potbelly Sandwich Works, Georgetown Valet, and TD Bank all opening their doors this past fall, and Roti Mediterranean Grill, CVS, and 7-11 set to cut ribbons in the new year, there are a plethora of new places for The Flats 130 residents to spend their money. And more development is on the way. The first phase of Constitution Square, the 1.6 million SF of mixed-use space located at First and M Streets, has been so successful that just last month developers announced their plans to break ground in May on Phase II, set to feature 345,000 s.f. of office space and an additional 203 residential units. With 21 projects completed since 2001, two currently under construction, and 31 in the pipeline, the NoMa development torch is still burning strong.

Washington D.C. Real Estate Development News

Stonebridge to Start Phase 2 in NoMa

Real estate developer StonebridgeCarras and financier Walton Street Capital are betting on NoMa again, announcing they will start the next speculative phase of Constitution Square in May. Stonebridge is just now completing Two Constitution Square, which it also built without a tenant, a bet that paid off big when it sold the property in May for $305m to Northwestern Mutual, and now Sarah Krouse reports in the Washington Business Journal that the Bethesda-based developer will attempt an encore with another speculative phase. Principal Doug Firstenberg tells DCMud that next May his company will break ground simultaneously on a 200-unit apartment building and 345,000 s.f. of office space and, rounding out a good week, that Harris Teeter will open at Constitution Square on December 8th and that Equinox founder and chef Todd Grey will now open a sit down restaurant in the newly completed phase 1.

Firstenberg, who pre-leased 100% of Phase 1 to GSA and DOJ before trading the building, said Phase 2 will be "targeted to go after some of these large GSA bids that are out there." Stonebridge will again use SK&I Architects to design the residential space and HOK Architecture for the commercial portion. The residences are expected to be available by late 2012, the office space should be ready for the first tenants in early 2013. The third and final phase of the 7-acre site, still in conception, will add 470,000 s.f of office space.

Firstenberg says the restaurant, to open in March along with the hotel, will be "NoMa's first upscale, sit down restaurant," good news for residents at the Flats 130 where 60 of 440 units have leased since its opening October 1st, and where significant retail leases have already been signed. Stonebridge is expected to flip the office building once lease-up is complete. "We're not long term owners in the project" said Firstenberg.

Washington DC real estate development news

Constitution Square Signs Retailers

NoMa's Constitution Square is filling in nicely. After securing Harris Teeter last year to occupy 50,000 s.f., StonebridgeCarras, Constitution Square's developer, announced the signing of five more retail leases today. A diverse group of tenants will occupy an additional 17,000 s.f., coming online to serve the 5,000 new employees headed for NoMa this year, as well as residents of the 750 apartments set to finish later in the year. TD Bank will be NoMa’s first full-service banking facility with a 5,200 s.f. space. Feeding hungry workers will be Potbelly's and Constitution Café. Keeping them awake will be the responsibility of Tynan Coffee & Tea, which already operates in Columbia Heights. And adding a bit of starch, Georgetown Valet drycleaners are beefing up with yet another store added to its many throughout the District. All retailers are expected to open later this year. Accordingly, Harris Teeter is poised to begin interior upfit of its SK&I Architects-designed store, making it the first grocery store in NoMa. The chain is currently seeking a general contractor to build the interior and should make a selection by the end of February. Clark Construction, the General Contractor for the entire Constitution Square project, is scheduled to finish the exterior and the core of the 50,000 s.f. space in time to turn it over to Harris Teeter for interior construction in late March or early April. According to Glen Thomson of Harris Teeter, the store at the corner of First and M Streets, NE, might open as early as November. The grocery chain signed a 20-year lease for the site with Stonebridge in 2009. The District is providing a tax incentive to assist with the cost of providing 150 parking spaces for the Harris Teeter store, as it did with the DC USA Center in Columbia Heights. The two-phase Constitution Square project kicked off in April of 2008 and will eventually include a 206-room Hilton hotel, 440 apartments, and 340,000 s.f. of office space. 

Washington, DC real estate and development news

Jenkins Row Condominiums

Jenkins Row, 1391 Pennsylvania Ave., SE, Washington DC
Jenkins Row was originally designed as an apartment building, converting after the start of construction, and both finishes and amenities reflect the original intent (more amenities, less expensive finishes). Contracting problems forced the delay of construction, and many of the original buyers to back out. The 247-unit wood-framed building finally delivered in September of 2007, with prices starting from $250,000 for a studio and from $378,000 for one bedroom, prices that ultimately went down considerably.

Located adjacent to the Potomac Avenue Metro, two metro stops from the Capitol Hill Office Buildings, Jenkins Row features a fitness center, front desk receptionist, underground parking, and encircled central courtyard with water fountains. In 2008 a Harris Teeter opened on the first floor. The project was built by JPI of Texas, which later disbanded its DC operations, and designed by SK&I Architectural Design Group. The building was designed to look less massive than it is, with varying architectural styles on the facade.

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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.

Harris Teeter To Open First DC Store

Harris Teeter, the North Carolina-based grocer whose very name seems to augur up-and-coming real estate development the way Whole Foods once did, will open their first Washington DC store Wednesday morning in Adams Morgan. The chain will open in the Citadel building at the intersection of 17th Street and Kalorama, between Meridian Hill Park and the Adams Morgan strip, in what has hitherto been a relatively residential section of the District.

The 37,000 s.f. building, owned by DC-based Douglas Development, was an old roller rink built in 1947, and had been vacant prior to the occupancy by HT. The Honorable Adrian Fenty will be on hand at the 10:00am ceremony to honor the city's newest taxpayer; the first of three Harris Teeters to eventually stock the District's shelves. Jenkins Row, JPI's new 247-unit condominium at 1390 Pennsylvania Ave., SE, has long been marketing the bourgeoise market, which was slated to occupy the first floor of the building in mid 2007, but has yet to open its doors. And just two weeks ago, the Mayor was at the mike at Constitution Square to announce that a lease for a 50,000 square foot version would open in NoMa in early 2011.

But meeting deadlines may not be HT's forte; the Adams Morgan store was originally scheduled to open in the fall of 2006, but issues such as delivery through the narrow and one-way streets that surround the building held the project at bay for some time. Jennifer Panetta, Director of Communications for HT, would only say that the delay stemmed from the company "trying to be a good neighbor," saying that specific requests took "alot of development."

But the grocer will make up for lost hours, shoppers will be able to obtain their Angus Reserve or choose from the "extensive selection of seafood" from 7am to 11pm. Which, coincidentally, beats Whole Foods.

NoMa Development Breaks Ground, Part VII

On Monday, at 10:30am, Mayor Adrian M. Fenty and assorted camera-seekers will join developer StonebridgeCarras at 2nd and N Streets, NE, to break ground at for the first phase of Constitution Square. The developer will officially kick off its 1.6 million square foot project (pictured) at the ceremony, a mixed-use building that will include 440 apartments, a 200-room Hilton Hotel, a 50,000 s.f. Harris Teeter grocery store and massive office space - 589,000 in Two Constitution, and 350,000 in One Constitution. The project is the first major mixed-use project to break ground in the NoMA neighborhood.

StonebridgeCarras, with Chicago-based partner Walton Street Capital, had announced several major leases over just the past few weeks, including the Department of Justice lease of 88% of the office space of Two Constitution Square, and the 20-year lease of Harris Teeter, which hopes to open in late 2010. The project sits adjacent to the New York Ave. Metro station; the residential portion will be designed by Bethesda's SK&I Architectural Group. HOK Architecture is designing the office space; the project is being ambitiously designed to achieve a LEED Gold certification by the U.S. Green Building Council.