No School, All Play at New Bruce Monroe Park

Although reading, writing, and arithmetic may be on the agenda for future visitors to Bruce Monroe Park, for now it is just 24-7 recess at 3012 Georgia Avenue, site of the the former school, redevelopment candidate and now park. The DC government held a press conference last August to vaunt demolition of the PCB and asbestos-ridden school, and to announce that the city would issue an RFP "in the next few weeks" for redevelopment of the site. But the District's solicitation failed to materialize, and city has since spent $2m beautifying the site before releasing a new RFP last week.

Last week, Consys, Inc. finished phase one of construction at Bruce Monroe Park, and the site is now open to the public. Two basketball courts, a tennis court, a small parking lot, and a playground complete the landscaped park, almost entirely enclosed by wrought iron fencing. There is no timetable or specifics yet nailed down, but a small
community building is expected to follow. Originally only funded with $500,000, it looked as if the project would come up short of complete. But the community expressed their disapproval as the two basketball courts and tennis court sat idly, waiting for the necessary hoops, posts, and netting required for proper usage until Ward One Councilman Jim Graham secured an additional $1.5 million in funding for the temporary park, which has since undergone a vast improvement in just a few short weeks.

Meanwhile, the Office of the Deputy Mayor for Planning and Economic Development (DMPED) has asked for redevelopment proposals for the site. Development teams would not be limited to strictly educational uses, as DMPED has asked that proposals feature both a mixed-use (half school, half commercial) option and an entirely commercial plan. The RFP does stipulate that property sales generated from a potentially all-commercial venture would have to be reinvested in the renovation and modernization of the off-site school where former Bruce Monroe students are now housed.

A significant conglomerate of involved parents had previously voiced opposition to the prospects of updating the current Bruce Monroe, and it was assumed that option had been unofficially taken off the table. But as made clear by the new RFP, the possibility remains alive. All proposals must be received by 3PM on October 14th.

Much is in the works for the long-planned makeover of the Georgia Avenue thoroughfare, including several nearby affordable apartment projects, but very little construction has gotten under way. So it remains undetermined whether the priority here is a quality educational facility, or a proposal with the greatest likelihood of immediate construction and hurried completion.

Washington DC real estate development news

14th Street YMCA: Short on the Dough

Despite the mini-boom taking hold on the 14th Street corridor - View 14, Room & Board, JBG's large condo project, and a surfeit of new retail - not all projects are having an easy time of digging up money. In addition to UDR's iced over plans up the hill for the Nehemiah Center, the latest financing casualty is the redevelopment of the Anthony Bowen YMCA into a large apartment building. The planned mixed use development at 14th and W Streets has not disturbed any earth since the project "broke ground" in September 2008, nor does it look like it will make any progress soon. The 231-unit project was planned by Perseus Realty LLC in conjunction with Capmark Investments LP and the minority owned DC-based FLGA Real Estate Group. In 2008, the team optimistically estimated a 2010 finish date; now an optimistic view would be a 2010 start date.

Brian DeBose, spokesperson for Councilmember Jim Graham, whose ward the project sits in, told DCMud, "The project is stalled. There is no financing and there has not been a breakthrough." In short, DeBose surmised, "Nothing is going on."

DeBose added that the District does not have the money to provide a TIF or any seed money to help bolster the stalled development, even if the will was there. To be fair, the District has already done its share during more flush times, including the District Council's 2008 decision to grant a hefty 20 years of tax abatement and $1 million in forgone sales taxes on construction materials for the project's development.

Clark Construction is the general contractor, if it comes to that, for the planned 236,000-s.f. apartment building with 18 affordable units. The project is also supposed to include a new 46,000-s.f. YMCA and 12,200 s.f. of retail space. Designs for the project are by Davis Carter Scott and HOK. The Anthony Bowen YMCA was named for a Prince George’s County slave who relocated to Washington after purchasing his freedom. Bowen went on to co-found the nation’s first African-American YMCA in 1853. Developers for the project were either unwilling to comment or did not return phone calls requesting additional information.

Washington, DC real estate and development news

Mission Says "Maybe" to Park Morton

After Wednesday's press conference announcing the DC government's award of the enormous Park Morton contract to Landex Corp., Warrenton Group, and Spectrum Management, DCMud promptly reported the more surprising revelation by Councilman Jim Graham that the District would roll the controversial Central Union Mission site into the Park Morton project - a win for the Park View Partners (Landex, et. al.), who get more area to work with, for the Mission, which gets bought out of a neighborhood that has fought the project from the beginning, and for the neighborhood, which slams the door on an unwanted neighbor. The problem? Neither the Park Mortonians nor the District of Columbia ever quite finalized any such agreement with the Mission. While officials have been working closely with owners of the Mission to reach such an agreement for "some time," sources at the DC government say the Mission is continuing to pursue its own zoning approval to relocate to the site, as we reported earlier, but also to negotiate with other suitors. While things may fall into place, they're not there yet.

Washington DC commercial property news

District Officials Decry Condos, Celebrate Affordable Housing in Columbia Heights

A cadre of District officials, including Mayor Adrian Fenty and Congresswoman Eleanor Holmes Norton, gathered in Columbia Heights today for the re-opening of the 230-unit Hubbard Place affordable housing complex (formerly the Cavalier Apartments) at 3500 14^th Street, NW. Spearheaded by the Somerset Development Company and the 3500 14^th Street Tenants Association, the $52 million renovation has not only reinvigorated a Washington building recently added to the National Register of Historic Places, but has secured - and ensured the longevity - of a once notorious Section 8 public housing project as well.

"Just a few short years ago, fire marshals had to stand on each floor to assure the safety of the residents. It was dangerous to walk in the halls or ride the elevators…This building has been made safe again for the residents who live here…But this time with a twist,” said Somerset principal Nancy Hooff. “It has affordable rents [and] it’s near public transportation and shopping. Smart growth, indeed.”

According to the Office of the Deputy Mayor for Planning and Economic Development, residents of Hubbard Place can look forward to updated amenities that include “new elevators, the creation of new community spaces and a computer lab, secure access, new kitchens and baths, windows, roof and all new common areas.” The city block-straddling development also includes a new home for the Latin American Youth Center, which provides educational and vocational services to area youth, as well as two new businesses: the Black Lion Deli and George’s Shoe Repair. In the view of Eleanor Holmes Norton, the dramatic shift in Hubbard Place's fortunes can be attributed directly to tireless efforts of the building’s residents.

“There is no way in which the city and the federal government could have done a thing with Hubbard [Place], if there had not been a determined band of residents who said, ‘We’re not going to let this place go’…I’m just pleased to see something that I can point to that [the US Department of Housing and Urban Development] has done these days,” said the congresswoman, not quite jokingly.

The local government, however, did play a prominent role in gathering the formidable sum required for the large-scale renovation procedures, as overseen by the architects of Kann Partners and the project’s general contractor, Hamel Builders. Out of the development’s $52 million budget, the Department of Housing and Community Development provided $8.5 million for the acquisition of the property, with the District of Columbia Housing Authority pitching in an additional $4.6 million for historic preservation. The building upgrades were funded primarily through $26 million in tax exempt bonds issued by the District of the Columbia Housing Finance Agency. It’s a role that District officials, like Ward 1 Councilmember Jim Graham, were eager to hang their hat on.

“We have enough condos,” said Graham. “We can build condos where there once vacant lots surrounded by hurricane fences. But we are going to keep our diversity and we’re going to keep our low-income housing. We’re going to build new low-income housing…We’re going to do all this because we care.”

Hubbard Place is the second such affordable housing renovation opened by the city in as many weeks. Last week, Mayor Fenty presided over the grand re-opening of Jubilee Housing, Inc.’s Ontario Court project at 2525 Ontario Road, NW, in nearby Adams Morgan. New condos are being built in Washington DC.

Northeast DC Icon Gets a Little Help

Mayor Fenty was on hand today to announce that the District has finally settled on a developer and would move ahead with redevelopment of the long-abandoned Strand Theater in Deanwood. The project is now in the hands the Washington Community Development Corporation (WCDC) and Banneker Ventures LLC - organizations that plan on transforming the 80-year-old former movie theater into the new home of an 18,000-s.f. restaurant and 18,000 square feet of “affordable” office space. The remaining 16,000 square feet within the Strand will be “dedicated for community and cultural uses,” according to a press release issued by the Mayor’s office.

“There will be more energy back on this corner for the neighbors who live in the Ward 7 community, east of the river in general and for the entire city,” said Fenty from the sidewalk of 5131 Nannie Helen Burroughs Avenue, NE. Fenty and WCDC head Rev. Steve Young, also leader of the Holy Christian Missionary Baptist Church for All People located across the street, went on to promise that 30 - 40 new, permanent jobs will created as a result of the revitalization effort.

Curiously enough, this marks the second time the District has named the WCDC and Banneker as developers in charge of the Strand. The first came this past July, when Deputy Mayor Neil Albert told DC Mud that the project would “break ground in the next two weeks.” Sean Madigan, the Mayor’s press contact, today told DC Mud the District was forced to hold off a bit, while the rest of the details concerning the theater were hammered out.

Banneker has had a dream year lobbying District officials, having secured from District work on the Strand, and having been named Master Planners for the Park Morton redevelopment, and as a developer of the $700 million Northwest One development. WMATA added to the company's portfolio by naming Banneker the lead developer in June for its Florida Avenue project, and Banneker has its own plans in place for 814 Thayer, a 52-unit condominium in Silver Spring's central business district. WMATA Board member and DC Councilmember Jim Graham reportedly pushed for the developer's inclusion in the project; WMATA said it chose the developer based on its "experience," noting the technical difficulty of building a project on top of an existing Metro tunnel, though Banneker has no previous experience building above a Metro tunnel. Or, apparently, above much else. Park Morton, 814 Thayer, and the WMATA project have yet to break ground, and Northwest One has only recently done so, leaving the conversion of several small apartment buildings into condominiums as its only achievements. Banneker's website touts its appointment to several of the above projects, as well as its "tremendous breadth of experience and professionalism." Calls to Banneker’s metro area offices went unanswered.

As it stands today, Green Door Advisors and Blue Skye Construction will handle the build-out of the heavily dilapidated building, located at the intersection of Burroughs Avenue and Division Avenue NE. The Strand Theater is currently on the DC Preservation League’s list of Most Endangered Places in the District. Hopefully, that will be changing as the Strand moves on to a bigger and better future.

Washington DC commercial real estate news

Graham Calls for Investigation of ADUs

Councilmember Jim Graham (D-Ward One) asked yesterday for an investigation of illegal renting of affordable housing in at least two condominiums in Ward One. Graham believes both the Rhapsody Condominium at 2120 Vermont Avenue, NW and the Tivoli Townhomes Condominium at 1340 Monroe Street, NW are illegally renting lower priced units.

"I call on the Department of Housing and Community Development to investigate. I am concerned that evidence given to me suggest fraud. This is a very serious charge and requires a thorough investigation by the Mayor and the Council," Graham said.

Wilson Reynolds, Director of Constituent Services for Graham said this exploitation of affordable housing is an abuse of pre-delivery agreements between the District and developers. "The standardization and enforcement for affordable housing has not been what it needs to be. We have constituents that are telling us that they are finding affordable units being advertised at market rate. We have people taking advantage of something for which an awful lot of work was done and concessions were made. This has deep implications because the city has given things in return to allow developers to reach extra floor area ratios or other variances in exchange for creating units that were supposed to be affordable," Reynolds added.

Reynolds said the purpose of the investigation is to find out who is at fault; Graham is not specifically pointing fingers at the developers or the unit owners. Reynolds said it will be a multi-step process and will include the Department of Housing and Community Development, that has a history of dealing with affordable housing. Other involved agencies will likely include the DC Office of the Deputy Mayor, the Office of Zoning, and Consumer and Regulatory Affairs.

Under DC law, those who buy affordable units cannot rent it for five years. The District government offers developers additional square footage and other such incentives in return for affordable units.

"The idea is they're supposed to live in it for five years. There are variations, you may be able to rent it or sell it, you have the right of ownership, but because of the ADU covenant, there may be qualifiers in it. One example is that after five years, you can rent it but to someone who doesn't exceed the income level that you had when you purchased it," Reynolds said.

"Affordable housing is precious in our city, and we must do all we can to preserve it," Graham said.

Lincoln Theatre's Development Debut

This morning, Mayor Adrian Fenty held a press conference to raise the curtain on the city's plan to save and develop U Street's historic Lincoln Theatre. The project will entail development of the parking lot behind the historic D.C. theater, with some of the resulting profits being earmarked to save the beleaguered venue. The 88 year old District-owned theater had received much press as of late, issuing warnings of closure unless it receives funding sufficient to cover its operating expense shortfall.

The Deputy Mayor's Office for Planning and Economic Development has now issued a Request for Proposals (RFP) for developers interested in the space, located in back of 1215 U Street NW. We're guessing that few people will miss the 40 surface parking spaces; the Mayor opined that, when developed, the lot could hold a 90,000-s.f. building, possibly occupied by a hotel, offices, or residences.

Among the requirements for any potential developer: the stipulation that at least 30 percent of any housing units be set aside as affordable housing, as would be obligatory in any DC-owned property. Also, projects must include "at least 7,500 square feet of flexible event space, including a restaurant-quality kitchen, which would be managed by the theater management."

Ward 1 Councilmember Jim Graham, also in attendance, expressed his obvious excitement that the project has begun “moving and shaking.” He and Mayor Fenty both emphasized the importance of the lot’s development to the continued economic growth of the U Street area —and its benefit to Lincoln Theatre. As Mayor Fenty put it, “This is and was black Broadway” - and he wants to keep it that way - and by combining affordable housing, some needed development on U Street, and saving the theatre all in one act, we're guessing he'll get a standing ovation.

Washington DC commercial property news

Lower Georgia Housing Project Approved

The DC Council today voted unanimously to give the final affirmation to Park Morton, the mixed-use, mixed housing development on lower Georgia Avenue that will replace 174 units of well worn public housing with 477 units of "moderate density" newer housing, both subsidized and market.

Park Morton had been originally sponsored by Councilmember Jim Graham back in 2006, and the Council had approved an additional $3m for the project only last December, going only a small way toward the estimated $157m the project will cost. A host of contributors has already been selected to realize the city's vision, including DC-based development firm Banneker Ventures, nationally renowned environmental consulting firm Circlepoint, and design firms PGN Architects and WDG Architecture.

The project, sitting on the east side of Georgia Avenue and the south side of Park Road, had been noted by the District in several studies as encompassing "severe poverty" lacking basic amenities, though the project's planners did not include a retail element, relying instead on the slow accretion of retail on Georgia Avenue to service the new homeowners. But don't call your real estate agent just yet, development is not likely to start until at least late this year, and take an estimated nine years to complete.