Today in Pictures - Jefferson at 14W

 

Back in December of 2010, Perseus Realty and Jefferson Apartment Groups (JAG), an Akridge affiliate, broke ground on 14W, replacing the former Anthony Bowen YMCA with apartments and a new YMCA.  The project had languished for years before finally getting the cash infusion from JAG that finally got it going (despite a faux-groundbreaking), and is now reaching its final stage of construction.

The HOK and Dorsky Hodgson & Partners-designed project will feature 231 rental apartments, a brand new, state-of-the-art 44,000 s.f. YMCA, and over 12,000 s.f. of ground-floor retail. The new gym and apartments will deliver later this year.

Washington D.C. real estate development news

Long-Awaited Shaw Project Breaks Ground

Yesterday, the Jefferson at Market Place (formerly Kelsey Gardens, then Addison Square) project in Shaw broke ground after several delays including a halt due to lack of funding and a changing of hands from Metropolitan Development to Jefferson Apartment Group.

The subsidized housing project has a long history behind it: Executive Vice-President and partner with the Jefferson Apartment Group Greg Lamb said, “It’s a long time coming on the project. We entered the venture on this project at the end of 2011, where we took over the managing partner position. When we became involved, there wasn’t financing available, and the project had somewhat stalled.”

So Jefferson brought in Starwood Capital Group, its equity partner, and got construction on the mixed-use, 8-floor, 281-unit project.  Its 260,000 s.f. will include 13,000 s.f. of retail on the ground floor and 54 of the 281 units will be affordable housing units, while the rest remain market-rate.

The project is surrounded by other construction projects as Shaw bursts with new development, including the O Street Market, Progression Place (a large residential, office and retail project now well into construction), and the Wonder Bread building, plans for which are now being hashed out, as well as the Howard Theater. Another piece of the Market Place project was begun last spring when Capital City Real Estate purchased the land and began a small housing project.

What sets this complex apart is who will be residing in those affordable housing units: the former tenants of the affordable housing that was there, about six years ago, when this began.

“The neat story about this project is that the previous residents of Kelsey Gardens, which is the project that is being demolished, have the opportunity to move back into the complex after it is finished,” Lamb said. “Those tenants moved out back in 2007, so it’s rare that over a five or six year period that they’ll still come back.”

Those tenants have a representative group that has been working with Jefferson to ensure a smooth transition back.

Lamb said 35 to 40 of the new affordable housing units in the development will be occupied by former tenants of the building.

JAG paid $16.5m to control the site, keeping the permits obtained by Metropolitan, and took advantage of tax breaks previously authorized by the city.  "The city has helped and been a tremendous advocate on this project, providing some tax incentives on the project to make it work,” Lamb said.

The project is slated for completion in 24 months, with the first units becoming available for occupancy in 18 months.  “It’s been a great story with the coordination between the city, the developer and the tenants,” he said.

Washington D.C. real estate development news

Kelsey Gardens Construction Could Start by Next Quarter

In yet another vote of confidence for Shaw, Kelsey Gardens has now been purchased by the Jefferson Apartment Group, setting up the pins for yet another sizable construction project across from the CityMarket at O that could be under construction as soon as next quarter. The subsidized housing project has been vacant for several years, since the low-income, architecturally disappointing projects were closed down years ago in a bid for redevelopment. According to Bruce Levin of MAC Realty Advisors, which brokered the transaction, Jefferson paid $16,650,000 to purchase the entity that controls the site, keeping all entitlements in tact, meaning Jefferson can take over the PUD approval and existing demolition permits, allowing work to begin as early as Q1 of 2012. Metropolitan Development had purchased the austere collection of buildings in 2004 for $7m, and planned the project as Addison Square, wrangling $18 million from the city in tax abatements, as well as a zoning change to allow the density in the form of a Planned Unit Development - with the qualification that 54 of the 280 units be set aside for tenants making 60% of AMI. Jefferson settled on the purchase 2 weeks ago. Kelsey Gardens is just a few blocks south of Progression Place, a large residential project now well into construction and the Wonder Bread building, plans for which are now being hashed out, as well as the Howard Theater. A small slice of the Kelsey Project was cleaved from the site this spring when Capital City Real Estate bought a strip of land along P Street to build six 2-unit townhouses, for a total of 12- 2bed/2bath units, each around 1100 square feet. The CityMarket at O is also in the early phase of its construction. Lessard Architectural Group designed the project, which will include 14,700 s.f. of retail space along 7th. Jefferson Apartment Group also recently took over the lead role in developing the apartment project 14W, which is redeveloping the former Anthony Bowen YMCA. Washington D.C. real estate development news

Buildings Gone on Wilson Boulevard, Construction "By November"

Zom Inc., developer of USAA Real Estate's transit-oriented residential and retail project at 1900/1916 Wilson Boulevard, asserted in July that construction would be underway "this fall;" and today, Graham Hatcher, VP of construction for Zom again stood behind a November start date, adding that general contractors are bidding on the project this week.

Both buildings previously on site - Hollywood Video and an office - have been razed in anticipation of new construction; however, according to Arlington County Inspection Services, two building permits applied for by Zom, in July and September, are trudging through inspection and zoning reviews, with one permit ready to be picked up by the developer, revised and resubmitted, and the other awaiting review by zoning before it will be released back to the development team.

The design, by Torti Gallas and Partners, was approved by the County last year, with only a few minor changes taking place in the schematics since that time, explains Michael Parker, project manager and Torti Gallas architect.

For one, the residential entryway was relocated further down Clarendon Boulevard, where it could have 20' high ceilings, combating digs by Country reviewers that the initial entryway location (at the corner of Troy and Clarendon) was "cavelike." Additionally, Juliet balconies were added to 33 residential units along Troy, Clarendon and Wilson Boulevard to "add texture to the building." Lastly, a darker red brick was introduced to frame main elements of the building and residential bays along Wilson, a change that created more of a warehouse feel.

Parker also notes how the design came together after a relatively minor land acquisition, by USAA, of an approximately 20,000-s.f. surface parking lot owned by property neighbor NSTA. With the extra land on the eastern edge of the property, the building design could be reconfigured from an initial "pan-handle scheme" into the "W" formation shown above, allowing for two courtyards (versus one) and an extra dozen or so apartment units.

With 191 apartment units in all, the units range from a 450-s.f. studio to 1400-plus-s.f. 3-bedroom layout. The building is 230,000 s.f. above grade, and will rise 5 stories, as is allowed in the Rosslyn-Ballston Corridor plan which affects land along Wilson and Clarendon Boulevards, although the land was zoned to allowed for 16 stories. There is ample parking on site, 256 spaces will be included below grade (18 more than is required by the County).

As for retail to enliven the Corridor, 17,500 s.f. of street-front retail will be divided into several storefront spaces: one on the corner of Wilson Boulevard and Troy Street, one on the corner of Troy and Clarendon, and three further down Clarendon Boulevard; if any retail space has been claimed, Zom wasn't ready to announce it.

With County approval, owner USAA, who bought the property/project from Zom in 2010, will also be required to create a public park worth $100,000 on a triangle swath of land nearby.

Also located nearby in the Court House district, is the future Tellus, a planned 16-story, 254-unit apartment building, expected to break ground next spring; in order to move forward, developer Erkiletian partnered with Jefferson Apartment Group.

Arlington Virginia real estate development news

14W Breaks Ground

Nearly two weeks ago, Perseus remained mum on the status of the much anticipated Anthony Bowen YMCA redevelopment project at the intersection of 14th and W Streets in northwest Washington, promising only that they'd be ready to reveal "something" shortly. But before Perseus could say anything, let alone something, Jefferson Apartment Groups (JAG), an Akridge affiliate, revealed they had purchased the project from a Perseus entity for $7.5 million, and would join Perseus as partnering developer (talk about awkward) on the project. The sudden announcement signaled that the project, thought by many to be strapped for cash and indefinitely stalled, was and is back on track. And now today, more than two years after a faux-groundbreaking, developers will once again put a shovel in the ground; this time they really, really, actually, totally, seriously swear to start demolition and new construction.

Apparently, equity financing from Rockpoint Group, L.L.C. and a $53 million construction loan from Wells Fargo Bank was just what the doctor ordered. Upon completion, the HOK and Dorsky Hodgson & Partners-designed project will feature 231 rental apartments, a brand new, state-of-the-art 44,000 s.f. YMCA, and over 10,000 s.f. of ground-floor retail. The new gym and first apartments will deliver in the summer of 2012, with the project opening in its entirety later in the fall.

Washington D.C. Real Estate Development News

Jefferson Pointe at Market Place, to Erase Memory of Addison Square in Shaw

Near CityMarket at O in Shaw, Metropolitan Development's never-built "Addison Square" development is now officially moving forward as "Jefferson Pointe at Market Place" - same specs, new brand - due to the $16.6 million purchase of the fully entitled project by the Jefferson Apartment Group last month. As was the plan in 2004 when Metropolitan purchased the property for $7 million, the development - with architecture by Lessard Design - will include 280 apartments (54 subsidized), 230 below-grade parking spaces, and 13,400 s.f. of retail space along 7th. Construction could happen as early as spring of 2012, after demolition of the seven vacant brick buildings on site (along the 1500 block of 7th) that combined were once the housing project known as Kelsey Gardens. 

  Washington D.C. real estate development news