Today in Pictures - Progression Place

Progression Place - one of Shaw's most notable development projects, is set for occupancy later this year. Developers began work in 2010 on the 320,000 square foot, $150 million development, with 100,000 s.f. of office space, a 205-unit residential apartment building, and 20,000 square feet of street-level retail. The project was designed by architects Eric Colbert & Associates and Devrouax + Purnell, and built by Davis Construction.

Ellis Development, The Jarvis Company, and Four Points combined forces to build the project above the Shaw Metro station. The United Negro College Fund has purchased a stake in the building to be the main office resident.

Washington D.C. real estate development news

Shaw Developers Celebrate Step Forward with Progression Place

One of Shaw's chief development projects, slowed by lost tenants and missed start dates, is finally having its day as developers celebrate a "groundbreaking" Monday for a project that began in late 2010. Developers of Progression Place began work last December on the 320,000 square foot, $150 million development, with 100,000 square feet office space, a 205-unit residential apartment building, 20,000 square feet of street-level retail, but on Monday its developers will fete themselves and the sale of an office condo to anchor occupant United Negro College Fund (UNCF). UNCF officially purchased half the project's office space on December 24th, but developers were already doing site work on the vacant lot in anticipation of the settlement and Eagle Bank's $13m loan made possible by the sale, which was in turn made possible by the city's $3.6m financing subsidy for UNCF. Ellis Development, The Jarvis Company, and Four Points combined forces to build a project that would be hard to overestimate in importance as a beacon for Shaw's development, adding housing, jobs and retail in an area that had little investment in any of those markets. Progression Place is adjacent to the Howard Theater, also being developed by Ellis, and will build in parking for the historic theater and add a rebuilt Metro entrance. UNCF's office condo and the "7th Flats" will both be ready for occupancy in mid 2012. With a new library in place just to the south, and the Convention Center Marriott already underway, the O Street Market remains the largest holdout that could tie together development along the 7th Street corridor. Design is being handled jointly by architects Eric Colbert & Associates and Devrouax and Purnell, and built by Davis Construction and Gilford Corporation. The public ceremony will be held at the Lincoln Theater at 11am on Monday. 

Washington DC real estate development news

Ellis Ready to Build Broadcast Center One

Ellis Development Group will reportedly break ground on both of its Shaw projects in the same week in August; the Howard Theater and the newly-dubbed Renaissance Project, the quiescent project formerly known as Broadcast Center One. The developer, along with partners Jarvis Company, LLC and Four Points, faced a major setback earlier this year when Radio One decided not to relocate to the area (hence the new name). But the District stepped in and enticed the United Negro College Fund (UNCF) to fill a large portion of the mixed use project, purchasing an office condominium and ensuring its place in the community for years in the future. Just this week the team received news that the District Council approved $3.6 million for the UNCF, guaranteeing their relocation to Shaw at the northeast intersection of 7th and S Streets, NW, above the Shaw Metro.

The subsidy will come through real estate tax abatement over 10 years, starting in fiscal year 2012, and relocation assistance through a grant of $710,000.

With the loss of Radio One, the developers slimmed down the project to include 94,000 s.f. of office space with anywhere from 180 to 200 residential rental units. The change drops 25,000 s.f. of retail space and reduces the amount of office space by about 10,000 s.f.

Alexander Padro, the Executive Director of Shaw Main Streets, said the project should deliver in phases, office space first. UNCF is expected to occupy in May 2012. Total project costs are estimated at $144 million.

Washington, DC real estate development news

Loss of Anchor Means Back to Basics for Shaw Development

After the recent revelation that Radio One will no longer relocate to the District, Ellis Development Group, Jarvis Company, LLC and Four Points, the developers of the planned Media Center One project in DC's Shaw neighborhood, are modifying their plans and seeking official permission to extend their development timeline. The current approved Planned Unit Development is coming up on its two-year deadline, the requested two-year extension would give the developers time to regroup after recent setbacks.

The loss of Radio One for Media Center's 300,000 s. f. mixed-use development on 7th and S Streets, NW, forced the developers to revert to their "original" plan, a less grandiose proposal planned before Radio One swooped in and then bowed out. According to "Chip" Ellis of Ellis Development, the "new" plan is for 94,000 s.f. of office space with anywhere from 180 to 200 residential units. The units will be rentals "at this time," said Ellis. The change drops 25,000 s.f. of retail space and reduces the amount of office space by about 10,000 s.f. Construction could begin this July, though after years of delays and extended construction time lines, color us skeptical.

The United Negro College Fund will (likely) occupy the majority of the office space, but the development team is working to secure additional tenants, according to Ellis.
In January the Mayor's office proposed $3.8 million in tax breaks to assist the UNCF and entice their move to the District from Virginia. The District Council is set to review the proposal this week. In 2008, DC approved $23 million in subsidies for Media Center One, including $6 million in TIF financing which is now up in the air given the changed project, the massive budget shortfall facing the city and competing development plans elsewhere.

The moves come despite the developers' assertions in late September at the Shaw Main Streets (SMS) Development Forum that Media Center One would move forward and break ground before the new year (2010). On a rather bitter note, the developers had noted that they were one of the few "lucky" projects to actually have a tenant secured. Ouch.

Washington, DC real estate development news

Broadcast Center One Gets the Signal from DC

The DC Zoning Commission approved the application this Monday for Broadcast Center One, a 300,000 s. f. mixed-use development on 7th and S Streets NW, a long-sought ruling that is expected to add impetus to the regeneration of the Shaw neighborhood.

In tandem with the Planned Unit Development zoning application, developers Four Points LLC and Ellis Enterprises also submitted a Land Disposition Agreement to the office of the Deputy Mayor for Planning and Economic Development last Friday for review by the DC City Council. A hearing is anticipated by mid-November.

"We are happy to report that we have concluded land transfer and subsidy negotiations," said Steven Cassell, project manager at Four Points LLC. "Radio One has both accepted a subsidy offer from the city and signed a letter of intent," Cassell added, referring to Radio One, the country's seventh largest radio broadcasting company which will be moving back to DC and into the new digs once the Broadcast Center project is completed. The $128 million development has been in the pipeline for over two years, but if all goes well at the hearing next month construction would begin soon. "Our objective is to be in the ground and digging by February," declared Roy Ellis, CEO of Ellis Enterprises.

The Broadcast Center One complex, with over 21,000 s. f. of retail space, 180 residential units for rent and 103,000 s.f. of office space, will be a blessing to many including the Shaw district at large. "Whenever you bring a company into a neighborhood, you've got real economic opportunity. It's the best thing since sliced bread," added Ellis who, amongst others, sees this development as having a drastic revitalization effect on the local Shaw community.

None will be happier about the deal's approval than Cathy Hughes, founder of Radio One. "Radio One was built with the good will and support of the citizens of DC. I cried for six months when we had to leave," said Hughes. The old Radio One headquarters, located on Nebraska Avenue, had lived out its lease almost ten years ago. Since then, Ms Hughes has awaited the day her company could return to its roots in the District.

Construction of Broadcast Center One will require a convergence of the minds for project managers from five separate companies: joint developers Four Points LLC and Ellis Enterprises, Jarvis Company who is acting as an equity investor in the project, Devrouax & Purnell who will be designing the office building and Eric Colbert & Associates, the architect behind the Broadcast Center residences. The targeted completion date for the project is in the second quarter of 2010.