Corcoran Sells Randall School

Yesterday, the Corcoran College of Art and Design announced the sale of the former Randall School for $6.5 million to Telesis Corporation and CACB Holdins LLC. Don and Mera Rubell, owners of CACB, will convert the school at 65 I Street, SW, into a contemporary art museum, hotel and private residence (s?). Corcoran originally purchased the Randall School in November 2006 for $6.2 million to build another College campus, but the bankruptcy of Lehman Brothers forced Monument Realty, Corcoran's then development partner, to "default" in September 2008, according to a Corcoran spokesman. The sale means Corcoran will begin the search again for another location in the District for extending the College's campus.

According to a press release from Corcoran, the new owners, the Rubell Family, are hoteliers and collectors of contemporary art. The southwest museum will serve as a satellite of the Rubell's Miami museum. Corcoran estimates the purchase and sales agreement for the school will take 12 to 18 months for government review and approval.

Corcoran's previous designs by Shalom Baranes Architects included two nine-story residential towers with 420 units of housing and 100,000 s.f. of college facilities. Last month Kristin Guiter, Manager of Media Relations for Corcoran, told DCMud "the Corcoran has entered into negotiations with a potential development partner" and was seeking a PUD extension, which the ANC approved. Today Guiter said that after almost a year and a half of looking for a development partner, it became clear it just would not be "financially feasible." Guiter indicated the College put the property on the market a few months ago and are now working on a partnership with the Rubells where Corcoran will likely still be involved in programming for the planned museum.

In January, ANC 6D Commissioner David Sobelsohn told DCMud "we in the community are anxious to get this project underway. We're very concerned that this building has been sitting vacant and empty all this time." It looks like the community will get something at Randall, just not what it was expecting.

Monument's Southwest Condo Reboots After Lehman Brothers

In a market lean on financing and glutted with faltering projects, Monument Realty announced Monday that their Potomac Place Tower in DC's southwest will move forward with renovation and sales, having secured the support of a new lender. Potomac Place Tower, a 396-unit condominium at 800 4^th Street in Southwest Washington, DC, has been stalled since Lehman Brothers, the primary lender, filed for bankruptcy last September. Designed by Cloethiel Woodard Smith and built in 1959, Potomac Place Tower and Monument Realty were saved from sharing the same fate as another southwest renovation and (failed) condo conversion, The View, which recently sold at foreclosure.

Monument obtained the project as the Capitol Park Apartments in 2001, the aesthetically challenged building was registered as historic landmark in 2003, and in 2005 residents elected to convert it to condominiums; sales began back in March, 2006. Monument employed architect Jane Nelson to renovate and redesign the interiors. According to Natasha Stancill, Director of Marketing at Monument Realty, the owner stopped settling units early last fall, but did continue to sign contracts through the spring with purchasers who were willing to wait out the unresolved financing problems. With the recent announcement, Monument expects to have units available for settlement in the next 30 to 45 days.

In a press release, Monument advertised that Potomac Place Tower has units in the $200,000 range available for occupancy in the next 30 days, including studio, one bedroom, one bedroom with den, and two bedroom units. Records show that Monument sold 132 of the units in the North Tower, with an average price of $241,000. According to Stancill, the North tower renovation is complete and 17 units will be available for settlement in the next 30 days, while the remaining 35 units of the North tower should be ready for settlement come the 1st quarter of 2010. The South tower project is not complete; half of the 200 units there should be ready for settlement in the next 30 days, with the remaining 100 ready before the end of the year.

DC's land records reveal that on January 26, 2009 Lehman assigned Potomac Place to SwedBank AB's New York branch. In a statement, Michael J. Darby, founding Principal of Monument Realty, said that Monument worked with the lender (SwedBank) to resolve a "very complicated situation" and was "pleased to be in a position to pay contractors and vendors and to bring the project back to market." You can bet the vendors and contractors are very pleased too.

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LEED Gold for Monument's 55M, Southeast

Monument Realty has been awarded an environmental gold medal; Gold LEED status, that is, on its Half Street, SE office building. Coming on the heels of recent set backs including the Watergate foreclosure and auction and the bankruptcy of financing partner Lehman brothers, the news had to be a welcome respite from the negative media glare accompanying the Watergate auction.

The Gold status, the second highest rating in the system, was awarded by the U.S. Green Building Council (USGBC) and came as a surprise to the developer, which had expected only the Silver certification. "[t]o be awarded Gold is a true testament to the hard work that all the team members put into this project,” said Michael Darby, Principal of Monument Realty.

55 M Street, a Class A commercial office building in the heart of the Capitol Riverfront neighborhood - and the official pedestrian entrance to the ballpark - features 275,000 s.f. of office space and 13,000 s.f. of ground floor retail directly above the newly expanded Navy Yard Metro station. Architect Davis, Carter, Scott included environmentally conscious design features such as a green roof and an LID (Low Impact Development) streetscape concept that captures rainwater to irrigate street trees and plantings and reduces storm water run-off. Monument has yet to begin work on the residential portion of the block, for which Lehman was a partner, and has no immediate plans to add to the residential stock of the neighborhood.