Mt. Vernon Triangle Office on Track for September Start

The Association of American Medical Colleges (AAMC) is readying for the construction of its new 285,000 s.f. headquarters on New York Avenue in Mount Vernon Triangle between 6th and 7th Streets, NW.

This past Friday, AAMC obtained the permit necessary to wrap fencing around 15 lots on square 451, in order to secure the site prior to demolition; a raze permit was also granted the same day for 628 New York Avenue NW, the hold-out property, finally sold to Douglas Development last month. Raze applications for 611, 617 K Street NW are pending.

After obtaining 628 New York Ave, however, Douglas sold the entire assemblage; it was reported by the Washington Business Journal that AAMC bought its new headquarters site for around $57 million, and Hines Interests LP has been selected as developer.

AAMC is moving from its current location at 2450 N Street, NW, and plans to occupy its new headquarters by spring 2014.

Washington D.C. real estate development news

CityCenter DC Site Under Construction

Preliminary work is underway on CityCenterDC, as construction crews arrived yesterday with earth movers and heavy equipment, installing fencing around the site in anticipation of a more public announcement and official groundbreaking in the coming days. The project's plan for nearly 700 units of housing, 185,000 s.f. of retail, 520,000 s.f. of office space have been gestating for years, and developers have been holding firm for nearly a year that this spring will mark the project's birth. Still, developers at Hines had declined in recent months to be any more specific about timelines, until announcing recently an April 4th commencement date.

But yesterday, construction crews began installing fences around the perimeter (even covering the sidewalks), with large earth movers and construction trailers bearing the Clark insignia beginning to cover the entire site. Get ready for a public ceremony soon.



Washington D.C. real estate development news

CityCenter on the Launch Pad

Two months away: So say developers of CityCenterDC, for now downtown Washington DC's largest surface parking lot, who are poised to announce an official start to their transformative mixed-use plan to develop nearly 700 units of housing, 185,000 s.f. of retail, 520,000 s.f. of office space, and central shopping plaza, to replace the site left vacant when the forgettable convention center was demolished in March of 2005. Officials say they are nearly set to announce a late April or early May start date to the project, despite any lack of signed tenants to date.The upcoming groundbreaking is in keeping with the April start date Hines officials promised DCMud in June of last year, though it represents a slippage from original intentions to start construction in early 2008 amid the financial crisis. Current tenants such as Bolt Bus have been given until the end of March to vacate the site. With a spring construction start, developers should wrap up construction by late 2013, just as the Convention Center Marriott is nearly finished next door, a pair of events that should have a profound impact on downtown and Mt. Vernon Square, already a bottleneck for traffic.

Filling the chasm downtown, the Hines-lead team, chosen by Mayor Anthony Williams, will rebuild 10th Street and add an east-west oriented pedestrian shopping plaza, hotel, apartments (458), condominiums (216), parking (1500+ spaces) and two office towers. The central retail plaza will be framed by stepped-down buildings to encourage a naturally lit shopping thoroughfare, in what Mayor Adrian Fenty predicted will be a "bustling area where people come after work to shop or eat or to hang out, a city center." The whole site is designed to achieve LEED Gold certification.Construction without an anchor tenant would be an important indicator of faith in the downtown commercial market, as DC's retail spaces show strong demand, financial markets stabilize and the Washington DC office market remains buoyed by an expanding federal presence. CityCenter's backers have been energetically courting large tenants to sign on prior to construction and have tantalized news purveyors that brand name leases are "in the works." Howard Riker, Vice President at Hines, told DCMud last June that the team was reworking some of the floorplans to make way for a major tenant, soon to be announced, and the team has been close to signing several tenants that could have anchored the project, a prospect that still might be close at hand, but there are "no signed leases to date" says Hines' Dawn Marcus. Larger office projects such as Monday Properties' 35-story office tower in Rosslyn have since broken ground sans lessee.

Gerry Widdicombe, Director of Economic Development for the Downtown Business Improvement District (BID) notes the difference 185,000 s.f. of retail will make for downtown. "This is really the capstone for downtown DC. We have about 5 million square feet [of buildable space] left on vacant lots or dilapidated office buildings...the old convention center site is about 2.5 million [s.f.] of that, 1.8 million is the air rights building, then we're almost built out." Widdicombe credits former city leaders with setting parameters of a strong residential presence rather than solely office space - despite the commercial's greater tax base value, and for fostering a vision of a retail center. "Everything's working pretty well. The thing we're lacking is retail, hopefully we'll have an Apple store, maybe a Bloomingdales, to get us over 500,000 s.f. of destination retail." He notes that when the BID formed downtown had 95 surface paking lots and 30 dilapidated buildings. "Now we've got 5."

Putting that concept to paper, and soon to ground, is the worldwide team of Foster + Partners, which created the master plan and is bookending the site with apartments (overseen by Archstone) and office towers, and Shalom Baranes, designing the interior condominiums and integrating the retail. Along with a new 10th Street and I Street, the plan introduces a new vertical pedestrian street ("9 1/2 St"), an east-west pedestrian promenade, and at their intersection an expansive public plaza encompassed by two-story retail spaces with street-level access. The dominance of retail is not lost on its designers and developers, who sloped rooflines downward to the plaza and raised ceiling heights, a major sacrifice in a height restricted city, while stacking an extra floor of retail and creating - if successful - a destination akin to the European fountain, albeit less historic. DC is a city without plazas, and the architects have their sites set on a remedy.

"The real focus of the project is the public realm and retail" says Robert Sponseller of Shalom Baranes, a design principal for the project. "If you take the architecture aside, DC has always lacked a critical mass of urban retail. We're stuck with low height, so our retail space is squeezed. Here the ceiling heights are 16-22 feet, with a 2nd level of retail around the public plaza area...these are literally modeled on the best European street designs of Barcelona and Berlin." Sponseller says the alleys, or "intimate pedestrian streets," in his words, are 24 feet in width beneath residences that stoop to 4 or 5 stories above the plaza. "The Foster plan is remarkable for its clarity and simplicity. There is great pedestrian access, its really an intense, mixed-use project" says Sponseller.

The northern tier of the lot will be filled by a public park on the western margin, a hotel north of I Street in the middle, still just conceptual and without a flag, and a lot on the east owned by Kingdon Gould that has no firm plans for development at this time. Gould obtained the land in a swap with the city, giving up real estate at the Convention Center Marriott to get the northeast parcel of CityCenter.

Hines is a Houston based, privately owned real estate investment firm with offices in 68 U.S. cities and 15 countries. Old convention center photo courtesy Wrecking Corporation of America.

Washington, DC real estate development news

Hines Affirms Spring Construction for City Center DC

Developers of downtown DC's last block of empty land are holding firm on their commitment to start building City Center DC, and confirmed in a statement released yesterday that construction could begin as early as April of next year. Colorado-based Archstone and Texas based Hines development plans for the 10 acre site were approved by the DC Council back in 2005, but have since stalled over financing and tenant prospects.

Hines representatives told DCMud in June they would begin redevelopment of the old Convention Center site in the "first quarter of 2011," but have yet to announce a major tenant to occupy any of the space. The project should reach "substantial completion between May and September 2013," said Howard Riker, Vice President at Hines Development. Despite the lack of commitment, The Washington Post reports that Hines issued a statement yesterday saying it still planned to begin construction by next spring. Plans call for several hundred thousand square feet of retail space, more than half a million square feet of office space, 458 rental apartments, 216 condos and a 400-bed “high-end” hotel with its own 100,000 square foot retail plaza, under a 99 year lease from the city.

Hines has already chosen a general contractor team of Clark Construction and Smoot Construction, and has begun subcontractor bidding. Construction will begin first along H Street, building parking first, then office, saving residential for the last component.

Foster and Partners of London and DC-based Shalom Baranes serve as co-architects on the work. Designed to achieve LEED Gold certification, "the design of the landscape, office and condominium buildings relates to the specific sun and wind patterns and the climate. The site and the buildings will also incorporate solar shading, harness rainwater and water conservation and planting" according to Foster's website.

Washington, DC real estate development news

CityCenter: On Track for Early 2011 Groundbreaking

As the financial downturn slowly releases its chokehold from DC development, increasingly large projects are beginning to set timelines, even without tenants. Underscoring that point is Archstone and Hines Interests’ redevelopment of the old Convention Center site, a plan has been mired in delays, with one groundbreaking schedule after another falling to the wayside. Developers are now claiming that the project will begin early next year. The multi-phase, mixed-use development will commandeer 10-acres of vacant downtown property to eventually realize 400,000 square feet of retail space, more than a million square feet of office space, 458 rental apartments, 216 condos and a 400-bed “high-end” hotel with its own 100,000 square foot retail plaza, under a 99 year lease from the city.

Howard Riker, Vice President at Hines Development, said the developers are "pretty much done with all of our plans and are within a couple weeks to be able to pull our building permits." Riker also indicated that the team had to rework a few elements of the office building design to "accommodate a major tenant prospect." He was unwilling to divulge any information about the prospective major tenant. Riker said the team has already chosen a general contractor team of Clark with Smoot Construction; subcontractor bidding will begin shortly. The first phase of construction is scheduled for the first quarter of 2011. "The idea is that we'd start construction on the entire site south of I Street at one time, dig a deep hole, build the parking" and then continue with the office and residential projects, explained Riker. The project should reach "substantial completion between May and September 2013" estimated Riker, adding that the office would deliver first, likely in the spring, with the residential following shortly thereafter over the summer. The first phase is estimated to cost $700 million and is is entirely privately financed, according to Riker. Foster and Partners of London and DC-based Shalom Baranes serve as co-architects on the massive endeavor. Designed to achieve LEED Gold certification, "the design of the landscape, office and condominium buildings relates to the specific sun and wind patterns and the climate. The site and the buildings will also incorporate solar shading, harness rainwater and water conservation and planting," according to Foster's website. The second phase (the northern quadrant) of the project includes a hotel on property owned by Kingdon Gould, which he obtained through a land swap with the District Government in 2007. Gould gave up land on the site of the future Convention Center Marriott to get the northeast parcel of CityCenter. Riker indicated the 350-400 room hotel project was still in the planning stage, but that the team could select an operator "hopefully later this year." Washington, DC real estate development news

Shaw Main Streets Development Woes

At the annual Shaw Main Streets (SMS) Development Forum Wednesday night, representatives from developers were invited to present the current status of their plans for major renovation and new construction in the area. The status, unsurprisingly, was "more of the same," leaving community members to resign themselves to continued hopeful waiting. SMS Executive Director, Alexander M. Padro, made excuses for several invited developers who were unable to attend. Quadrangle Development was a no-show because of the recently publicized litigation over their Marriott Marquis Convention Center Hotel deal, though Padro said Quadrangle indicated that financing is now secured. Banneker Ventures, slated to build The Jazz on Florida Avenue, declined to attend as their Land Disposition Agreement with WMATA has not been finalized. And Hines-Archstone, developers of the planned City Center cited scheduling issues. 1. Paul Millstein of Douglas Development, certainly does not sugarcoat anything. About the Wonder Bread Factory development Millstein said it was a "victim of the times...stuck in a trench" and "could be stuck for a while." As for Squares 450 and 451 on the 1100 block of 7th St, Millstein announced that though the original plan was to redevelop the site, the group will now remove window boards, put some lipstick on them, and lease them out for the time being. On the positive side, Douglas secured a NY-based restaurant, Carmine's, to fill the 18,000 square feet of their Penn Quarter property near the Clara Barton Condos and Wooly Mammoth Theater. As for their 7th and Florida Ave. project, Douglas is seeking tenants, but according to Millstein the group is being picky, refusing to go the "fast and ugly" way of cell phone stores or fast food. Neighbors gave a round of applause for that one. 2. Next came 1501 9th ST NW a smaller development by a small business, Inle Development. According to the property owner/developer, the space will be leased to a single tenant, Mandalay Restaurant and Cafe, a Burmese restaurant currently based in Silver Spring. Mandalay will have a ground floor restaurant with outdoor seating, a second floor bar and the remainder will be residential space for the restaurant owner and family members. The developer cited a few financing "hiccups" but estimated the project should break ground in three to four months, delivering late 2010. The project takes up a single lot and will likely be 50 ft in height. 3. On their Addison Square project Metropolitan Development had hoped to be into the ground by now, but it's looking more like summer 2010, at which point the 4-5 weeks of demolition will commence, followed directly by construction. The group received their final PUD two weeks ago, and a few changes mean the 54 units of affordable housing will be distributed among the 224 market-rate units, for a total of 278 rental units in the main building. The ground floor retail plans are largely unchanged with the group looking to have both a white table cloth restaurant as well as a faster, less formal restaurant. 4. Ellis Development Group and Four Points, erstwhile developers of Howard Theatre and Media Center One, formerly Broadcast Center One, said the financing for the projects, which have been repeatedly punted down the road, hit a "road bump," but the group expects the project to move forward, breaking ground on Media Center's 300,000 s. f. mixed-use development on 7th and S Streets NW before the new year. Construction will take approximately 24 months for Media Center to finish and, as the developer noted, they are one of the few lucky projects to actually have a tenant secured. Over at the Howard Theatre, demolition of the 1940s facade has already begun, ground breaking may still happen this year, and the developers are, of course, talking with prospective tenants. 5. Roadside Development's City Market at O finally has some legs and a timeline. In an agreement with several DC Council members, Roadside received a $2.5 million grant, enabling them to "put the architects back to work." The big day will be September 3, 2010, when the group starts work on stabilization of the historic market. The next big date is January 15, 2011, when the current Giant will close its doors and from which date Roadside will have 24 months to finish construction of the new Giant location. The takeaway from the evening, with projects stuck in trenches, hitting road bumps or just plain falling victim to the economic climate, was that Shaw developers seem to be in a regular war zone these days. With so many groups blaming the current "financial situation" for development and construction delays, we are beginning to wonder what they'll blame whenever the financial situation improves...

Washington DC commercial real estate

Shovel-Ready for 2010: CityCenter?

With the economy slowing real estate development (just a touch), developers are finding themselves on the defensive about projects in the planning stage. A skeptical public might think it a case of protesting too much, but promoters seem compelled to assuage public doubt while struggling to convince once-bitten investors. Case in point, the rumor mill was rife recently with reports that Archstone and Hines Interests’ redevelopment of the old Convention Center - the important and hugely visible CityCenter – was being taken off the table. Not so, says Ken Miller, a Senior Vice President at Archstone. In fact, despite issues with financing and retail partnering, according to Miller, DC might just be seeing the project sooner than cynics expect.

"We are within a year of breaking ground," said Miller. "We are continuously meeting and speaking with retailers that expressed interest."

And yet the project has missed several projected groundbreakings since the developers' first estimate of a groundbreaking by last January, and despite numerous assurances that the delay isn't affecting retail interest in CityCenter, no major retailers have been announced. The multi-phase, mixed-use development will commandeer 10-acres of vacant downtown property to eventually realize 400,000 square feet of retail space, more than a million square feet of office space, 670 residential units and a 400-room “high-end” hotel with its own 100,000 square foot retail plaza, under a 99 year lease from the city. It may sound a little on the ambitious side, but Archstone claims they have more than enough time – and resources – to see it through.

"At this point in time, we still have months to complete our construction documents and get our final permits and entitlements. We’re busy meeting with potential investors and banks that have expressed interest,” said Miller. “By year’s end, even though we’re in a challenging state with capital markets, we’ll be able to get the financing lined up and be able to break ground.”

The last time DCmud reported on the status of CityCenter last September, a Hines representative relayed that the project was “85% ready to go” and that the development team would seek a general contractor “in the next few weeks.” Though neither has yet transpired, there was recently one sign that wheels are again turning after a dour Spring; on April 28th, the development team met with potential contractors at a pre-bid "requirement conference."

The District Government swapped land in 2007 with Kingdon Gould, who gave up land on the site of the future Convention Center Marriott to get the northeast parcel of CityCenter from the District government (labeled 'District Parcel' in the rendering). Gould will be developing his land separately, but has also not committed in time or in scope, nor has the much discussed Convention Center Marriott broken ground yet.

DC's Development Pipeline

Ever since the Fenty administration took over development of the District's publicly-owned property, merging agencies and placing them under his direct supervision, it seems development of blighted blocks has been given a new urgency, even compared to that of the Williams administration - itself a great improvement over its predecessor. But despite weekly announcements from the Mayor and the Office of Planning and Economic Development, many of the projects still have to proceed through the District's infamously thick bureaucracy. But if China can cleanse its murky atmosphere in a few short months, there is cause for optimism that change is in the air here in Washington. DCMud has prepared a rundown of the largest projects now underway, properties in need of developers, and solicitations to look for in the future.

The projects listed below are still being refined. The numbers and square footage assigned to each are conceptual and are subject to change.

Projects With Developers

Southwest Waterfront by Hoffman Streuver will offer 539 market-rate units and 231 affordable units. The $1.5 billion project will also include 350 hotel rooms, 700,000 s.f. of office space and 280,000 s.f. of retail space. On July 15th, the DC Council approved a $198 million TIF/PILOT package to finance park and infrastructure improvements. Groundbreaking is not expected any time soon, with construction lasting at least 6 years.

Waterfront, the erroneously named project at 401 M Street, SW, will deliver 800 market-rate and 200 affordable residential units as well as 1.3 million s.f. of office space and 110,00 s.f. of retail space. Mayor Fenty joined SW Waterfront Associates (Forest City Wasington, Charles E. Smith Vornado) in November to demolish the former Waterside Mall. The $800 million project will sit atop the Waterfront -SEU Metro station.

Clark Realty was selected in February as Master Developer for Poplar Point on the east side of the Anacostia. The number of residential and hotel units they will deliver has not yet been determined, however 30% of all residential units will be affordable. The District and the National Park Services held a public scoping meeting last month for the Environmental Impact Statement of the $2.5 billion project.

Center Leg Freeway on Massachusetts Ave, NW between 2nd and 3rd Streets is being developed by Louis Dreyfus Properties into 100 market- rate and 50 affordable residential units. The $1.1. billion project will cap the exposed section of I-395, and include 2,100,000 s.f. office space and 67,000 s.f. retail space.

The McMillan Sand Filtration Site on North Capital Street and Michigan Avenue will be developed into 820 market-rate units, 351 affordable units, and a 100-room hotel by EYA. The $1 billion project will also deliver 700,000 s.f. of office space and $110,000 s.f. of retail space. The project has long been worked over, but don't make plans for moving in any time soon.

In May the District reached a deal with Hines Archstone to develop a 400-room "high-end" hotel and 100,000 s.f. of additional retail space on "Parcel B", a 53,000 s.f. plot of land that is part of the larger CityCenter DC, the development taking up residence on the old convention center site. The entire $850 million project downtown will deliver 539 market-rate units, 135 affordable units, 476,000 s.f. of office space, and 266,000 s.f. of retail space.

On June 26th, Marriot International, Cooper Carry Architects and EHT Traceries presented plans for the Convention Center Headquarters Hotel to the Historic Preservation Review Board. Located on the Corner of 9th Street and Massachusetts Avenue, NW, the $550 million project will deliver 1125 hotel rooms and 25,00 s.f. of retail space. Having been scaled back from its original 1400 bed facility, the project is well past its early schedule, of construction in 2007.

O Street Market at 7th Street and Georgia Avenue will be transformed into a mixed-use development that will include 550 market-rate and 80 affordable residential units by Roadside Development. The $329 million development will replace a current Giant supermarket with a new 71,000 s.f. store and include a 200 unit hotel and 87,000 s.f. of retail space. The District reached an agreement with the developer late last month to kickstart financing. Of the dozens of projects promising to revitalize the Shaw neighborhood, this may be the first large project to actually get underway.

Skyland Shopping Center on Good Hope Road at Naylor and Alabama Avenue, SE will be developed by Rappaport Companies and William C. Smith Companies into a $261 million development with 155 market-rate units and 66 affordable units as well as 230,000 s.f. of retail space. When? Even an estimate will be fine.

City Vista, which began sales in late 2005, will bring 441 condos with 138 affordable residential units to, as well as a separate apartment building, to 5th and K Streets, NW. The project will also include 130,000 s.f. of retail space and will cost $191 million. The first condominium building completed last October, the remaining condominium and the apartment building are nearly ready for occupancy.

Early this year, Fenty signed a Land Disposition Agreement with Broadcast Center One Partners LLC, (Ellis Development and Four Points, LLC) that will bring African-American-owned Radio One to the district. The $144 million Broadcast Center One at 7th and S Streets, NW will be a mixed-use project with 135 market-rate and 45 affordable residential units as well as 96,000 s.f. of office space and 22,000 s.f. of retail space. According to Fenty's office, "the deal also sets in motion the $22 million redevelopment of the Howard Theater, a long-shuttered landmark that was the hub of black Broadway." If it gets built; the timeline remains uncertain.

Mt. Carmel (Parcel 51B) on 3rd Street, NW between K and H Streets is being developed by MQW LLC (Quadrangle and the Wilkes Companies) into $130 million mixed-use project with 267 market-rate units, 67 affordable units and 90,000 s.f. office space.

Forest City Washington is responsible for the $120 million O Street SE Redevelopment by the SE Federal Center. It will deliver 354 market-rate units, 89 affordable units and 47,000 s.f. of retail space.

The Village at Dakota Crossing in Fort Lincoln by Ft. Lincoln New Town Corporation will include 327 market-rate and 30 affordable units. It will cost $110 million.

Mid City Urban and A&R Development will bring 216 market-rate and 54 affordable residential units as well as 70,000 s.f. of retail space to the area around the Rhode Island Avenue Metro station with their $105 million Rhode Island Station project. First attempted as a condo project, developers have bowed to the market and substituted apartment buildings - at least in theory, as the project has yet to break ground.

The $100 million Shops at Dakota Crossing on New York and South Dakota Avenue, NE will be developed by Ft. Lincoln New Town Corporation into 29,000 s.f. of office space and 461,000 s.f. of retail space.

Lowe Enterprises and Jack Sophie Development have long had intentions to develop Riggs Road and South Dakota Avenue, NE (Triangle Parcel) into 208 market-rate units, 52 affordable units and 23,223 s.f. of retail to the tune of $75 million. The fate of the project is uncertain, as higher construction costs, shrinking condo prices, and more conservative lending practices - especially in low-income neighborhoods, make such projects harder to justify.

Park Place on Georgia Avenue in Petworth will be developed by Donatelli Development into 161 market-rate units, 32 affordable units and 16,000 s.f of retail space and will cost $60 million. Purchased by Donatelli, along with partners Gragg & Associates, Canyon Capital Realty Advisors and Earvin 'Magic' Johnson, will be one of the few developers delivering new condos in 2009.

In February, the District made a Term Sheet with Parcel 42 Partners to develop 95 affordable housing units and 8,000 s.f. of retail space on Parcel 42, in Shaw at 7th and Rhode Island Avenue, NW for $28 million.

In December 2007, the District selected William C. Smtih Companies and the Jair Lynch Companies to develop the $700 million Northwest One New Community that will deliver 1,600 units of housing on former NCRC parcels as well as adjacent DC-controlled and private properties in Ward 6. Located between North Capitol Street, New York Avenue, New Jersey Avenue, and K Street, the site is in an area that has "long been plagued by high crime and poverty", but is surrounded by the up-and-coming NoMa and Mt.Vernon Triangle neighborhoods. The development team, which also includes Banneker Ventures and CPDC (affordable housing provider), will create apartments, townhouses, and condos for all income levels as well as over 40,000 s.f. of retail and 220,000 s.f. of office space. The development will also offer a 21,000 s.f. clinic.

And further down the road...

The District issued a solicitation in early June for Parcel 69 at 4th, 6th, and E Streets, SW. The $130 million development will be an office and hotel project along the Southwest freeway. Proposals are due by September 15th.

In May, Fenty issued an RFEI for the Hill East Waterfront on Capitol Hill East. The District seeks a developer to create 2,100 market-rate and 900 affordable units with 2,000,000 s.f office space and 67,000 s.f. of retail space. The District anticipates a price tag of $1.1 billion for the development of the 50 acres surrounding the former DC General Hospital. Proposals are due by October 31st.

Proposals were due June 3rd for Minnesota and Benning Road, NE Phase II. The $107 million development will include 60 market rate, 392 affordable units and 40,000 s.f. of retail. No developer has been selected.

It is high time the District announced developer for Fifth and I Street, NW. After proposals were submitted in March, the District widdled the teams down to the final four including BG, Buccini/Pollin, Potomac Investment Properties, and a group comprised of Holland Development, Donohoe Development, Spectrum Management, and Harris Development. The winning team, whenever they are announced, will create somewhere around 170 market-rate units, 30 affordable units, 100 hotel rooms and 50,000 s.f. of retail space.

Upcoming Solicitations

The District would like to see 1,469 market-rate and 440 affordable units in Lincoln Heights in Ward 7 at an estimated cost of $576 million.

Barry Farm/Park Chester/Wade Road in Ward 8 will likely include 110 market and 330 affordable housing units and will cost around $550 million. The project is an effort to revitalize low-income properties in the historic Anacostia area.

The issuance of the Park Morton solicitation at Park Road and Georgia Avenue, NW is "imminent" according to the Mayor's office and will cost $136 million with 499 market-rate and 150 affordable units. Axis

DC Announces New Convention Center Site Agreement

Mayor Adrian Fenty announced plans today for one of the last remaining parcels of land on the site of the old convention center. Under a new agreement, the city will allow development of a 400-room "high-end" hotel and 100,000 s.f. of additional retail space on the 53,000 s.f. plot of land now known simply as "Parcel B". This portion of the site had previously been reserved for construction of a library, but the District had not made any final decisions on the facility and did not want to further delay what is being designed as a "new city center."

(Dcmud's information on "Parcel B" is too new to have renderings - the rendering shown is of the southern parcel.)

Standing in a corner of the current Convention Center, overlooking the site of the old one, Fenty said the District reached a deal with developers Hines Archstone to lease the site for 99 years. The District had previously cemented a deal with Hines Archstone for the southern half of the site - a project estimated at $850 million that will add 350,000 s.f. of retail space, over 670 apartment and condominiums with at least 134 affordable units, and 465,000 s.f. of office space between New York Avenue, 11th, H, and 9th Streets NW.

“The one thing the District is missing that so many other large cities have is a bustling area where people come after work to shop or eat or to hang out, a city center.” Fenty said. In addition to the office, retail, and residential space, the project will include an additional 1.5 acres of public open space. There will be a park in the northwest corner as well as a central plaza between the residential buildings on the corner of 9^th and H streets.

The “B parcel", bound by New York, 9th, and what will be 10th Street, was originally considered as a potential site for a museum or library in order to attract more families. Today, however, Fenty said that while the District is still “working aggressively” with the Library Board, there is a significant amount of programming under the current plan to attract DC residents to the site."

As the master developer, Hines Archstone had the first right of refusal to lease the B parcel from the District if the city chose not to locate a library on the site.

“This area is surrounded by museums; the Newseum just opened a few blocks away, the Portrait Gallery, the Spy Museum…we want this place to provide a social atmosphere outside their homes where residents can come and sit without having to sit at a café or pay to eat or drink,” Fenty said.

Kingdon Gould III acquired a parcel on the Northeast corner of the site - the last site to reveal development plans - in a land swap that the city conducted to facilitate construction of the Marriott next to the new Convention Center. The Parking Management, Inc. president has his own plan for the site, but it must be "consistent with the entire site's master plan."

While retailers have not yet been announced, the developer has committed to devoting thirty percent of retail space to merchants with six or fewer stores in the United States, but will focus on a wide range of grocery stores, restaurants, fashion stores, and entertainment or performance venues. There are also plans for one larger retailer like Nordstroms or Macy’s; Fenty and the development teams will be meeting with companies in the coming weeks, but a final announcement is not likely for about six months.

The project will generate 3,000 development-related jobs and 2,500 direct permanent jobs. It will also generate a projected $32 million a year in annual direct tax revenues. According to developers, the District will receive more than $200 million in consideration for the land as part of the land lease including a minimum of $28.5 million in lease payments, $55 million to provide affordable housing on site, and $48 million in payments for new infrastructure. Two new streets, I and 10th, will be constructed through the site.

When asked about the likelihood of delivering the project in a timely manner given the not-so-exuberant state of the economy, Councilmember Jack Evans, D-Ward 2, said the District has not been affected by the economy and that this project’s success would be no different than that of other D.C. projects like the Nationals Stadium.

“The Southwest waterfront looks pretty good. Poplar Point is off in the distance, but Clark, the main developer hasn’t had problems getting the money they need. There is such a strong interest in the development of the District that as long as that interest remains, these projects will stay on schedule,” Evans said.

The first phase of the project, which includes the office, apartments, and condominiums, will begin in the second quarter of 2009, while the entire project will be completed by the end of 2011.

Evans added that this summer the city is planning to set up a large screen in the parking lot on-site to continually broadcast the Olympic Games. He said the city’s goal is to use the backdrop of the Chinatown arch to attract families and residents to the area.

“This is the most exciting property on the East Coast,” he said.

Old Convention Center Site, New Designs

Wondering what was going on at the old Convention Center site? We were too, so we asked around. Plans for the Old Washington Convention Center Site Redevelopment continue to move forward in the design phase, as Developer Hines Archstone, along with architects Foster and Partners (of London) and Shalom Baranes Associates square away more details on their 10.2 acre site, bound by New York Avenue and 9th, H, and 11th Streets.

The $850 million office, retail, and housing redevelopment deal is the largest undeveloped property south of Massachusetts Avenue, in what DC's administrators hope will be a thriving, mixed-use, pedestrian-friendly center.

Included in the plans are, at a minimum, 25o,000-s.f. of retail, two office buildings totaling 465,000-s.f., two apartment buildings, two condominium projects, and 1900 parking spaces in underground garages. Each of the Class "A" office buildings will rise 11 stories and offer - uniquely for DC - two levels of retail. The two buildings (see rendering below) will be connected through an enclosed glass bridge at the third story. Each is designed to include double height lobbies with stone walls and floors, and an exterior shaded curtainwall and an atrium on each will face each other.

The residential portion will be divided into two apartment buildings with 455 rental units, and two condo buildings with 215 for-sale units, 20% of which will be affordable housing. Each rental building will be eleven stories high with one level of retail, with a pool on the fifth floor of one. The exterior will be adorned with terra cotta precast panels and a curtain wall system. Residents will apparently have ample terraces and courtyards, with additional landscaping on the roof. Like the offices, the pair of apartment buildings will be joined on the second story with an enclosed pedestrian bridge.

Moving on to the condominiums, at ten and 11 stories in height, architects again envision two full floors of retail, joined on the third story by, yes, an open pedestrian walkway. The building will also feature two floors of retail and elaborate landscaping on the roof, terraces, and courtyards. Two new streets will be created to have the effect of shrinking the blocks and providing better pedestrian access for the retail, and the northwest corner of the parcel will feature most of the 1.5 acres designated as open public space. A central plaza will sit in the middle of the four residential buildings, with fountains and landscaping, connecting to the street with paved pedestrian alleyways.

This past November, the city traded a parcel on the northeast corner of the site to developer Kingdon Gould III for a piece of land close to the new convention center, on the site now planned for the much anticipated Marriott. What Gould will choose to do with this plot of land is still unclear, as is an additional 100,000-s.f. on the site is still controlled by the city, according to Sean Madigan of DC's Office of Planning. Originally, talk of putting in a new central library was on the table, a goal of former Mayor Anthony Williams, although the city is now considering new options: additional retail in the form of an anchor store, another mixed-use development, or an entertainment venue. The city has not ruled out the possibility renting or selling the land to a developer, a decision that will reportedly be made within the next two or three months.

Hines Archstone is hoping to receive the Gold or Platinum rating for LEED certification on the office buildings, while expecting a Silver rating for the residential buildings. The project as a whole was accepted into the LEED Neighborhood Development certification, a pilot program of the U.S. Green Building Council.

"This is a tremendous milestone for the city and the Hines Archstone-Smith team," said William B. Alsup III, senior vice president for Hines Interests. "With the closing of the legal documentation with the City and approval of the schematic design, we will continue to work collaboratively with the city and its agencies to complete the detailed plans and specifications and secure the necessary building permits to enable us to begin construction by this time next year."

"This project is going to be a true city center - our downtown retail anchor - befitting a world-class city," Mayor Adrian Fenty said in a press release recently. "We are creating a place, designed by one of the world's most pre-eminent architects, which will complete the recent transformation of our downtown." Space will be offered to both national and local retailers, with 30% set aside for those with six or fewer stores in the country. Over half of the 2,500 new permanent jobs created are required to be given to qualified DC residents.

Planning has been taking place for over four years at this point. After months of hearing community input, the Deputy Mayor's Office of Planning and Economic Development approved the master plan for the site in October 2006. The District and Hines Archstone closed on their deal in December, which included approval of schematic design, zoning, and financial details, and presented revised designs and plans on January 10. Developers are now putting the final touches on designs, and will begin bidding and permitting by November. They expect to break ground in January 2009, and after the downtown endures a 35 month construction period, we can all look forward to completion in July 2011.


"This long-awaited project will set new precedents and rival the best live, work, shop, and play urban mixed-use developments the nation has seen to-date," gushed Ken Miller, senior vice president of Archstone-Smith. "This development will further the transformation of our Nation's Capital into one of the most thriving, dynamic, and culturally rich cities in America."