Getting Serious at Howard Town Center

After years of vying for the opportunity and negotiating the development, Castlerock Partners LLC finally has plans to break ground on the 2.2 acre Howard Town Center come Fall 2010. Along with development partners AVCO Interests LLC, Hardie Industries Inc and, of course, Howard University, Castlerock secured the site a year ago. The team is still working through the design phases with architects Devrouax and Purnell. Opting not to pursue a PUD, the team added Tompkins Builders as the general contractor in November, a sign the time for waffling is through.

Tim Kissler, CEO of Castlerock, told DCMud that the design phase moves forward as the team shops around for retail tenants. "First priority is a grocery store. Once that is set, we move on to other spaces and prospects," said Kissler. The grocery store was a prerequisite of the RFP and upwards of 45,000 s.f. has been tossed around as the size. Kissler added "leasing interest is strong, despite the slow economy." The rest of the retail space could total 78,000 s.f. with the University looking to support small local businesses in some of the space.

The developer has yet to commit to firm figures on the actual breakdown of residential units, but most recently has suggested there would be 420 units with the required minimum of 8% set aside as affordable, much to the disappointment of the surrounding community.

DC real estate and development news.

Howard Issues RFP for Bond Bread Building

Howard University has issued a Request For Proposals (RFP) for real estate developers to submit bids for a "first-class, mixed-use development" at 2112-2146 Georgia Avenue. Part of the 2.2 acre site at the corner of V St. and Georgia Avenue, the Howard Town Center, was offered to Howard by the District of Columbia just two weeks ago in an exchange designed to facilitate Howard's residential development, and the University obviously plans to waste little time in moving forward with development of the neighborhood.

The project is the site of the Bond Bread Building, a property long contested by its one-time tenant, which lost a legal battle for control of the land. According to the RFP, the development "must include rental apartments, retail (including grocery store) and parking," and is strongly suggested to be LEED certified. Though the site has a maximum floor area ratio (or FAR, which limits the amount of floor space in relation to the size of the lot it is built upon) of 6.0 and a height of 90 feet, but also falls within the districts "Duke plan" (for developing Shaw and U Street), which encourages greater height and FAR allowances. The project is expected to have 300 rental units that will comply with D.C.'s formula for market rate and affordable housing. A mandatory pre-bid conference will be held at Howard on May 15th to discuss the project, the terms of which require that the real estate developer enter into a long-term ground lease with the University and undertake all development obligations. Bids are due by June 10.

Howard Town Center to Finally Take Place of Bond Bread Building

One of the District's oldest property struggles may soon see resolution, ending a dispute that began with a promise by Mayor Walter Washington, DC's first elected mayor. Last week, current Mayor Adrian Fenty signed an agreement saying the District will at long last swap land with Howard University, a deal that will give Howard the property it has eyed since beginning its LeDroit Park Initiative for redevelopment more than a decade ago.

This exchange means Howard will receive the former Bond Bread Building at 2146 Georgia Avenue, NW. The lot provides redevelopment space for the long-planned Howard Town Center: 300+ residence units, 70,000+ s.f. of commercial property, a supermarket, and parking. The District will receive in exchange, the site at Florida and Sherman Avenues, and will solicit bids for a mixed-use project to include at least 300 housing units (30 percent affordable). Both Howard University and the District have wanted to complete this seemingly simple exchange but had been foiled by a legal conundrum dating back to Mayor Washington's promise to the Peoples Involvement Corporation (PIC), a 30-year tenant in the Bond Bread Building.

PIC, a federally funded nonprofit focused on community development, was founded in 1968, the year after DC Mayor-Commissioner Walter Washington took office. Washington, who became the first Mayor of the District under home rule, supported PIC, and verbally promised the organization that if it retained tenancy for two decades and made improvements to the property, the District would turn over its ownership of the Bond Bread Building. But, as any first year law student will attest, exchanges of lands do not meet the Statute of Frauds if not in writing.

In relying on the District's promise, PIC renovated the crusty digs, somewhat, and occupied the building for the requisite term. When the District announced its intention to swap the Bond Bread Building with a property belonging to Howard University, the PIC learned that it risked losing what it had seen as a multi-decade investment. The organization sought and received from Mayor Washington a written statement from the former mayor confirming his verbal promise to give away the site. In 2003, to protect its interests, PIC filed a lawsuit with the D.C. Superior Court against the District.

If PIC won its suit, Howard University stood to lose its planned project. The university had already hired Trammell Crow Company’s subsidiary, High Street Residential, and alumna Michelle Hagans to develop the property. The Howard Town Center project had received press coverage from the Washington Business Journal and other local publications as part of its plan to transform the neighborhoods surrounding the university. But Hagans, High Street, the architects, the construction firm, and planned lessees such as Fresh Grocer were now all put on indefinite (or potentially permanent) hold as they waited for the Bread Building dispute to rise.

And rise it did, doubling in size; the District decide to instigate its own suit, and it sued PIC to establish itself as the rightful owner of the property. Legally, Washington’s verbal property promise did not pass muster with the courts. In what would make a picture-perfect law school exam over tenancy rights and verbal promises for land subsequently written, PIC lost both cases, concluding that a Mayor's verbal promises could not be relied upon (duh).

In 2006, the D.C. Council considered the issue, first in a bill sponsored by Councilmember Jack Evans that would have halted the swap, but finally approving the exchange of the Bond Bread Building with Howard University’s 63,400-s.f. property at Sherman and Florida Avenues.

As DCMud reported in June 2007, legislation sponsored by D.C. Councilmember Jim Graham was supposed to get Town Center construction moving that year, with possible completion projected for 2010. Now, almost halfway through 2008, it looks like Howard Town Center may soon get out of its jam and into the Bread Building. The Mayor has said he intends to issue the solicitation for a development partner later this year.

Howard Town Center to Move Forward Slowly, but Surely

Redeveloping almost an entire city block at Georgia and V streets, Dallas-based High Street Residential, a wholly owned subsidiary of Trammell Crow Company, is planning Howard Town Center, a mixed-use project that will include 70,000 s.f. first-floor retail that may include a Fresh Grocer, 322 market-rate apartments, and a parking garage that will hold approximately 500 spaces at its completion. Designed by Michael Marshall and Gensler and co-developed by Michele Hagans, the $75 million project was announced by developers in April 2003, but has been on hold ever since.

According to Ed Morgan, a Principal at Trammell Crow, developers have been awaiting a final land swap of the city’s Bond Bread Building for the university’s land at Sherman and Florida Avenues. The end may, however, be in sight. Morgan said applications for permits are expected to be submitted in the spring of next year.

While Morgan did not comment on the lawsuit, the Washington Business Journal’s coverage of the suit reported that People’s Involvement Corp., a community development company filed a lawsuit against the city stating that the Bond Bread Building had been promised to the company in the 70’s. That same building was a key component of the aforementioned land swap. A D.C. Superior Court judge ruled in favor of the city in September of 2005, PIC responded with an appeal. In December 2006, D.C. Councilmember Jim Graham introduced legislation to finally begin the construction of the Howard Town Center in 2007.

If permits are obtained in a timely matter, Morgan said the project could be completed as early as 2010.