Today in Pictures - Union Market

Union Market - formerly known as the Capital City Market - is readying for its debut as D.C.'s newest culinary destination. Edens and developer J Street are redeveloping the historic site to create a "best-in class, year-round, indoor food market." More than 40 local vendors may set-up shop in the new Union Market, say its promoters.

Various plans were considered for the site before settling on the Edens plan. Union Market will celebrate its reopening June 3 with Sunday Supper in conjunction with the James Beard Foundation. The site has been the intended target of a much larger redevelopment project, but remedial work is now underway on the site for its conversion to a restaurant haven. Below are recent photos of the undeveloped site.
















Washington D.C. real estate development news

Capital City Market to Get Pop-Up Restaurants?

For several years now, DC's Capital City/Florida Avenue Market area has had its generous, but fully stocked, 27 acres ogled by big developers and investors - MRP Realty, Sang Oh Development, J Street, Edens & Avant, to name a few - without any action post-PUD approval or, in one case, even District support.

Yet a new role to be assumed by Richard Brandenburg, well-known D.C.-area foodie and formerly of the ThinkFoodGroup, signals that some real development could be happening in the market area, and soon. Brandenburg has been hired by Edens & Avant, a large national property developer and owner, as its director of culinary strategy - a newly created position. As reported by the Washington Post - Brandenburg's job will center on restaurants and the Capital City Market. Sources familiar with the project now say Brandenburg is planning pop-up restaurants as a short term way to enliven the space.

Eventually, Brandenburg sees the potentially valuable commercial land as a "wholesale-retail center with multiple restaurants, a culinary school, even a USDA hub." But Edens & Avant's long-term goals for its property - based on Brandenburg's ambitions - might be a while in the making.

Edens & Avant controls approximately 140,000 square feet (3.2 acres) of land on the eastern edge of the market along 6th Street, NE, through a joint venture with J Street Development. The property slated for new culinary inputs borders Gallaudet and co-mingles 3.8 acres owned by the university. With low overhead and no real commitment, pop-up restaurants have been touted as a venue offering restaurateurs the freedom to experiment with concepts, without a large up front financial commitment. It's also a way to get money coming in quickly, as an intrepid chef, or property owner, and is a growing trend in big cities nationwide.

There have been many plans for redevelopment of the market over the past decade, including a small area plan by the Office of Planning in 2009, but the market has been a real estate quagmire: 120 lots, with 108 owned by 68 different entities, many still operational. No word yet on whether Edens & Avant and J Street are looking to roll up their shirt sleeves and try to acquire more market property.

Edens & Avant is "temporarily holding off on discussing [Brandenburg's] full position" until he is officially on board, says a press release, along with its vision for its market property, though a media contact noted that Brandenburg will have a broad role that will impact the entire Edens & Avante portfolio of 125 properties along the East Coast.

The Capital City/Florida Avenue Market is the current incarnation of the Union Terminal Market, opened in 1928 to replace D.C.'s Center Market, first opened in 1802, which was razed to make way for the National Archives.

Washington D.C. real estate development news

Neighborhood Report: NoMa

So named for its location north of Massachusetts Avenue, NoMa is a neighborhood that's beginning to assert an identity, if still gangly in its adolescence. But developers and restaurateurs have faith the area will take shape. Here's what's happening:

Gillian Clark's Kitchen on K: Clark's new restaurant, inspired by her now-gone Colorado Kitchen is between four and eight weeks away from permitting. A bigger space and proximity to the Metro means Clark, now the chef at Silver Spring's General Store, plans on daytime and late night hours. In a nod to its progenitor, the menu will showcase French technique via comfort food favorites, as well as donuts during brunch her customers keep asking about. Opening dates? "Ideally spring, but there is no such thing as ideal."

Work in Progress, Todd Gray's Watershed: A few blocks from Clark's spot, Equinox chef Todd Gray and wife Ellen are opening Watershed in NoMa's Hilton Garden Inn. In addition to the raw bar, patio, restaurant and lounge, the Grays will also focus on cooking up morning meals. "D.C. has a real need for power breakfast spots," said Todd. Perhaps Clark and Gray will draw business from Charlie Palmer, the reigning champion of the genre. Watershed will be the sole restaurant in the hotel, which is slated to open in April.

On Skanska's NoMa Development: Sara Krouse of Washington Business Journal reported on the Skanska deal earlier this week, which Executive Vice President Rob Ward says is slated to become office buildings, hotels and potentially residential space. The 63,790 square foot property is located at 1st and M Streets N.E.

NoMa Living: The Loree Grand, which will house Clark's restaurant, was the first new residential projects in the area in over a century. Of the 212 residential units, 66% have been leased. Archstone also has a residential project underway, 469 apartments set for completion in late 2012.

Constitution Square: Of the 440 residential units in The Flats 130, 90 have already been leased since its opening late last year, with 19 new leases just in January. Also set to open in the area is Roti as well as the largest location of The Perfect Pita, which has leased space across from The Courtyard Marriott.

90K: Of the space that's primarily for offices, 50% has been leased. The 412,000 square foot office building also houses retail, which has yet to be claimed. Built by Clark Construction, designed by SmithGroup, the building is the newest office building by Trammel Crow Company.
111 K Street: Sales of J Street's corporate condo (pictured, right), initially fast, have stalled as buyers such as Sierra Club and YWCA have backed out.

50 Florida Avenue: This former Metro Ice warehouse just sold as a redevelopment project to B & B Realty Investments. "We are in the middle of contemplating what we want this space to become," said Rick Brown, a Principal of B&B. "We had a three to five year plan but recent growth in the area has prompted us to reconsider."

Washington DC real estate development news

Office Condos Beat the Trend in NoMa

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

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

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

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

NPR Announces New Home in Noma

Today, Mayor Adrian Fenty announced the newest resident of NoMa, NPR, which is now making preparations to dispose of its old site. The District's favorite nonprofit will add to the list of NoMa's growing family, XM Satellite Radio, CNN, the Department of Education and the Bureau of Alcohol Tobacco and Firearms. According to the NoMa Business Improvement District (BID), an organization created by the City Council to support development in NoMa, private developers have invested over $1 billion and broke ground on over three million s.f. of space within the area north of Massachusetts Avenue since the initiative began.

J Street Development, which had other plans for the site at 1111 North Capitol Street, NE, before deciding to sell to NPR, will develop the 10 story, 400,000-s.f. office building and the massive, 60,000-s.f. newsroom bullpen inside. The building will take the place of the old Chesapeake and Potomac Telephone Companies warehouse, which is currently leased by the Smithsonian. Shalom Baranes Associates will design NPR's new global headquarters with space for more than 20,000 s.f. of retail while maintaining a number of facades from CPT's historic building. To begin the move, NPR will begin marketing their old digs at 635 Massachusetts Avenue for sale within the next two weeks. The organization will then leaseback the property until their move-in date, expected by the end of 2011.

"There are businesses within this city's boundaries that are important to the fabric of our communities. NPR is one of those businesses. We started working months ago to find NPR a new headquarters...This project will be an impetus for many things to come over the years," announced Fenty proudly.

"The new headquarters will be the physical manifestation of our broader thinking about NPR for the future...This translates to a setting that offers our staff the most creative, collaborative and interactive atmosphere to do their best work," boasted Ken Stern, CEO of NPR. With this openness in mind, Stern then discussed the vast amounts of public space that the development will include in the new campus, to be used for live broadcasts, lectures and for the community at-large.

Studley represented NPR in the deal, searching for a place that was close to the metro to serve commuting NPR employees, while at the same time attempting to remain within the District. According to Vernon Knarr of Studley, "For NPR to move outside of DC would have been a big change."

As part of the development, the city will help fund the project with a dual phase, 20-year tax abatement which translates to roughly $40 million dollars, a factor that Deputy Mayor for Planning and Economic Development Neil Albert said was "critical to the economics of this deal." Alongside those tax abatements will come a slew of streetscape improvements to make the project "feasible and aesthetically pleasing," added Fenty.

NPR was founded in 1970, and opened up shop on M Street, only to move to Penn quarter more than a decade later, in what many called a pioneering move. Stern likened their current move to that same pioneering mentality from the '80s.

Camden USA Buys a Piece of NoMa Pie

Last week, Camden USA purchased 60 L St., NE, a 71,000 s.f. site, joining the laundry list of developers vying to join the NoMa development surge. This location has become a hot potato, belonging to three different companies in the last three months. As we previously reported, 60 L St. belonged to J Street Development and was called “First Place”; it was then sold to Tishman Real Estate Services. While Tishman won’t comment on the quick turnaround of land ownership, the lot was then sold to Camden USA, a Houston-based company with projects throughout the Mid-Atlantic and lower half of the United States, which plans to turn the site into a two-building, 700 residential unit project designed by WDG Architecture. Located between Tishman Speyer’s remaining property on L Street and J Street Development’s Property on North Capital St., Camden’s “luxury” apartment high-rises will begin the first phase of construction in mid 2008. Ginger Ackiss, Vice President of Camden’s Real Estate Investments in the DC area, said the first phase will include 315 “luxury” apartments rather than condominiums, followed by 375 units in the second phase. While the project is still in the permit process, Camden is happy to have its foot in the door. Ackiss said, “We wanted to get into NoMa because of all of the development going on there, we see the area transforming and we would like to be in that mix.” According to Ackiss, the DC and Dallas-based architect, experienced in residential properties including the Potomac Promenade Condominiums on the National Harbor, will begin the design process next month.