Dreyfus Releases New Renderings of Center Leg Freeway

Earlier this week developers at Louis Dreyfus presented their plans to build 2.3 million s.f. in 6 buildings on top of I-395, a stretch known as the Center Leg Freeway, to the Zoning Commission. The developer has now released new renderings for their North Block plans, courtesy of Kevin Roche John Dinkeloo & Associates; so no more reading, just looking...enjoy.

Dreyfus Tees Up Center Leg Freeway

Building 3 city blocks on top of an active highway isn't easy. But developers at Louis Dreyfus think they have it just about figured out, and tonight they will make their pitch to the District of Columbia Zoning Commission that their designs to build 2.3 million s.f. in 6 buildings on top of I-395, a stretch known as the Center Leg Freeway, should be approved.

What began decades ago as a horribly misbegotten idea by the National Capitol Planning Commission (NCPC) to create an Inner Loop within the District, an idea that birthed the Southwest Express and tore down swaths of historic buildings, relegating southwest DC for decades to woeful cementitious architecture and federal dependency, may at last be partially healed. The urban planning of the 1940's and 1950's fortunately never realized its goal of extending another half mile north and west, but left a chasm known as the Center Leg that isolated a section of northwest. Dreyfus plans to cover that scar burrowed deep into the city, not only building a platform on which a neighborhood can reside, but doing so while keep the highway operational throughout construction.

Plans have been knocked around for years, but tonight will mark a milestone for its advancement. Dreyfus intends to roof the highway from E Street to Massachusetts, extending F and G Streets to a now-isolated Georgetown Law School. The most recent development plans developed over the past month up the number of buildings from 5 to 6, increase retail visibility, and contemplate additional residential density.

The local ANC gave unanimous approval to the revised concept after developers agreed to "a good faith effort" to raise ceiling heights of retail spaces in the hopes of attracting classier retail, replaced a canopy idea bridging two buildings (ala Tech World Plaza, shudder) with a new building, and agreed to factor in more than the 150 planned residences. "They've been very good at addressing all the issues we've brought up" said Rob Amos, a Commissioner with ANC 6C. "They've been an exemplary developer. We wish more developers were like this."

A Zoning Commission approval would greenlight the project for purchase of the air rights from the city, a deal that is expected to net the city $60m. Developers would then build a separate platform for each of the 3 new city blocks, 247,000 of new "ground," in sum, beginning work on the buildings as each platform is finished. The plan allots 3 buildings in the north block (up from 2), 2 in the center block, and 1 in the south block. Each of the office buildings will rise the usual 12 stories, and developers are contemplating where to put unspecified additional housing at the behest of the ANC, a move it hopes will keep the area from vacating at night. "We're looking forward to putting those 2 pieces back together again" said Amos of the Berlin-style east and west sides of the highway, but added that it would be 2012 at the earliest before the project begins construction.

Years of wrangling came together in 1966 when construction of the freeway got underway, culminating in $81m in spending, 7.5 miles of flourescent tube lighting, and the dislocation of enough neighborhoods to do a Beijing bureaucrat proud. The cosmetic surgery to remove the scar is expected to cost well above $400m and drag on for at least another 3 years. Connecticut's John Dinkeloo & Associates is designing the buildings, while New York's Skidmore, Owings & Merrill is serving as master planner.

Washington DC real estate development news

Capitol Hill: Razing Townhouses, Raising Money

Fifteen historic homes on Capitol Hill have been pulverized to make way for what appears to be a surface parking lot. The townhouses (pictured below last year) happened to sit where the Louis Dreyfus Property Group plans to build Capitol Place, a 380,000-s.f. mixed use development with 302 residential units and 20,000 s.f. of retail.

In April, DCMud reported that Dreyfus had applied for, and received, an extension of their zoning application, giving them more time to find financing for the mixed-use project. But construction crews from Aceco, based in Silver Spring, are now tearing down the last bits of the century-old homes, and unconfirmed reports suggest the site may be used as a surface parking lot to raise money for eventual construction. Dreyfus could not be reached for comment. While the zoning application for a PUD extension was approved, the raze permit for the old homes was issued in June 2008, a permit that came with a two-year time limit.

The block misses the Capitol Hill Historic District - a legislatively demarcated zone which ends at F Street, NE - by one block. The demolition was an unexpected move given a recent conversation DCMud had with the Developer. Just last month, Robert H. Braunohler, Regional Vice President for Louis Dreyfus Property Group, left the impression that movement was not imminent. "At this point we are actively trying to raise money to go forward with a project that will be part condo and part rental," said Braunohler, added that the project does not have "a firm construction schedule."

Capitol Place was designed by New York-based Cook + Fox Architects. For more pictures of the demolished buildings, so our last story on the project.

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Doomed Historic H Street Properties Hang On

A cluster of fifteen historic townhouses on Capitol Hill once set for demolition, then seemingly spared by the economy, has had its death warrant extended. The Historic Preservation Review Board signed a raze permit in June 2008 when the Louis Dreyfus Property Group received final zoning approval for Capitol Place, a 380,000-s.f. mixed use development with 302 residential units and 20,000 s.f. of retail. Almost two years later, however, the buildings still stand and the planned development is still just a plan as the zoning approval expires. This month, however, a two-year extension on the project's PUD (zoning) approval will go into effect, giving Louis Dreyfus more time to demolish and build.

Dreyfus's original timetable predicted demolition in fall 2008, construction within the following year-and-a-half, and delivery expected thirty-two months later. But in a recent conversation, Robert H. Braunohler, Regional Vice President for Louis Dreyfus Property Group, left the impression that movement on the project not imminent. "At this point we are actively trying to raise money to go forward with a project that will be part condo and part rental," said Braunohler, adding that the project does not have "a firm construction schedule." Thanks to the PUD extension, the developers will not need one for a while.

The townhouses, dating from as far back as the mid 19th Century, will be sacrificed as part of a deal that will allow development of the site in exchange for money to pay for historic structural survey that would potentially lead to the expansion of the Capitol Hill Historic District - an area covering from the project site to 16th Street. The block misses the Capitol Hill Historic District - a legislatively demarcated zone which ends at F Street, NE - by one block

Capitol Place, designed by New York-based Cook + Fox Architects, is in good - if not well-financed - company. The project will abut the H Street Overpass across from the recently foreclosed Senate Square Apartments, adjacent to Akridge's Burnham Place dream, and diagonal from another planned apartment building that has yet to start construction.

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DC's Development Pipeline

Ever since the Fenty administration took over development of the District's publicly-owned property, merging agencies and placing them under his direct supervision, it seems development of blighted blocks has been given a new urgency, even compared to that of the Williams administration - itself a great improvement over its predecessor. But despite weekly announcements from the Mayor and the Office of Planning and Economic Development, many of the projects still have to proceed through the District's infamously thick bureaucracy. But if China can cleanse its murky atmosphere in a few short months, there is cause for optimism that change is in the air here in Washington. DCMud has prepared a rundown of the largest projects now underway, properties in need of developers, and solicitations to look for in the future.

The projects listed below are still being refined. The numbers and square footage assigned to each are conceptual and are subject to change.

Projects With Developers

Southwest Waterfront by Hoffman Streuver will offer 539 market-rate units and 231 affordable units. The $1.5 billion project will also include 350 hotel rooms, 700,000 s.f. of office space and 280,000 s.f. of retail space. On July 15th, the DC Council approved a $198 million TIF/PILOT package to finance park and infrastructure improvements. Groundbreaking is not expected any time soon, with construction lasting at least 6 years.

Waterfront, the erroneously named project at 401 M Street, SW, will deliver 800 market-rate and 200 affordable residential units as well as 1.3 million s.f. of office space and 110,00 s.f. of retail space. Mayor Fenty joined SW Waterfront Associates (Forest City Wasington, Charles E. Smith Vornado) in November to demolish the former Waterside Mall. The $800 million project will sit atop the Waterfront -SEU Metro station.

Clark Realty was selected in February as Master Developer for Poplar Point on the east side of the Anacostia. The number of residential and hotel units they will deliver has not yet been determined, however 30% of all residential units will be affordable. The District and the National Park Services held a public scoping meeting last month for the Environmental Impact Statement of the $2.5 billion project.

Center Leg Freeway on Massachusetts Ave, NW between 2nd and 3rd Streets is being developed by Louis Dreyfus Properties into 100 market- rate and 50 affordable residential units. The $1.1. billion project will cap the exposed section of I-395, and include 2,100,000 s.f. office space and 67,000 s.f. retail space.

The McMillan Sand Filtration Site on North Capital Street and Michigan Avenue will be developed into 820 market-rate units, 351 affordable units, and a 100-room hotel by EYA. The $1 billion project will also deliver 700,000 s.f. of office space and $110,000 s.f. of retail space. The project has long been worked over, but don't make plans for moving in any time soon.

In May the District reached a deal with Hines Archstone to develop a 400-room "high-end" hotel and 100,000 s.f. of additional retail space on "Parcel B", a 53,000 s.f. plot of land that is part of the larger CityCenter DC, the development taking up residence on the old convention center site. The entire $850 million project downtown will deliver 539 market-rate units, 135 affordable units, 476,000 s.f. of office space, and 266,000 s.f. of retail space.

On June 26th, Marriot International, Cooper Carry Architects and EHT Traceries presented plans for the Convention Center Headquarters Hotel to the Historic Preservation Review Board. Located on the Corner of 9th Street and Massachusetts Avenue, NW, the $550 million project will deliver 1125 hotel rooms and 25,00 s.f. of retail space. Having been scaled back from its original 1400 bed facility, the project is well past its early schedule, of construction in 2007.

O Street Market at 7th Street and Georgia Avenue will be transformed into a mixed-use development that will include 550 market-rate and 80 affordable residential units by Roadside Development. The $329 million development will replace a current Giant supermarket with a new 71,000 s.f. store and include a 200 unit hotel and 87,000 s.f. of retail space. The District reached an agreement with the developer late last month to kickstart financing. Of the dozens of projects promising to revitalize the Shaw neighborhood, this may be the first large project to actually get underway.

Skyland Shopping Center on Good Hope Road at Naylor and Alabama Avenue, SE will be developed by Rappaport Companies and William C. Smith Companies into a $261 million development with 155 market-rate units and 66 affordable units as well as 230,000 s.f. of retail space. When? Even an estimate will be fine.

City Vista, which began sales in late 2005, will bring 441 condos with 138 affordable residential units to, as well as a separate apartment building, to 5th and K Streets, NW. The project will also include 130,000 s.f. of retail space and will cost $191 million. The first condominium building completed last October, the remaining condominium and the apartment building are nearly ready for occupancy.

Early this year, Fenty signed a Land Disposition Agreement with Broadcast Center One Partners LLC, (Ellis Development and Four Points, LLC) that will bring African-American-owned Radio One to the district. The $144 million Broadcast Center One at 7th and S Streets, NW will be a mixed-use project with 135 market-rate and 45 affordable residential units as well as 96,000 s.f. of office space and 22,000 s.f. of retail space. According to Fenty's office, "the deal also sets in motion the $22 million redevelopment of the Howard Theater, a long-shuttered landmark that was the hub of black Broadway." If it gets built; the timeline remains uncertain.

Mt. Carmel (Parcel 51B) on 3rd Street, NW between K and H Streets is being developed by MQW LLC (Quadrangle and the Wilkes Companies) into $130 million mixed-use project with 267 market-rate units, 67 affordable units and 90,000 s.f. office space.

Forest City Washington is responsible for the $120 million O Street SE Redevelopment by the SE Federal Center. It will deliver 354 market-rate units, 89 affordable units and 47,000 s.f. of retail space.

The Village at Dakota Crossing in Fort Lincoln by Ft. Lincoln New Town Corporation will include 327 market-rate and 30 affordable units. It will cost $110 million.

Mid City Urban and A&R Development will bring 216 market-rate and 54 affordable residential units as well as 70,000 s.f. of retail space to the area around the Rhode Island Avenue Metro station with their $105 million Rhode Island Station project. First attempted as a condo project, developers have bowed to the market and substituted apartment buildings - at least in theory, as the project has yet to break ground.

The $100 million Shops at Dakota Crossing on New York and South Dakota Avenue, NE will be developed by Ft. Lincoln New Town Corporation into 29,000 s.f. of office space and 461,000 s.f. of retail space.

Lowe Enterprises and Jack Sophie Development have long had intentions to develop Riggs Road and South Dakota Avenue, NE (Triangle Parcel) into 208 market-rate units, 52 affordable units and 23,223 s.f. of retail to the tune of $75 million. The fate of the project is uncertain, as higher construction costs, shrinking condo prices, and more conservative lending practices - especially in low-income neighborhoods, make such projects harder to justify.

Park Place on Georgia Avenue in Petworth will be developed by Donatelli Development into 161 market-rate units, 32 affordable units and 16,000 s.f of retail space and will cost $60 million. Purchased by Donatelli, along with partners Gragg & Associates, Canyon Capital Realty Advisors and Earvin 'Magic' Johnson, will be one of the few developers delivering new condos in 2009.

In February, the District made a Term Sheet with Parcel 42 Partners to develop 95 affordable housing units and 8,000 s.f. of retail space on Parcel 42, in Shaw at 7th and Rhode Island Avenue, NW for $28 million.

In December 2007, the District selected William C. Smtih Companies and the Jair Lynch Companies to develop the $700 million Northwest One New Community that will deliver 1,600 units of housing on former NCRC parcels as well as adjacent DC-controlled and private properties in Ward 6. Located between North Capitol Street, New York Avenue, New Jersey Avenue, and K Street, the site is in an area that has "long been plagued by high crime and poverty", but is surrounded by the up-and-coming NoMa and Mt.Vernon Triangle neighborhoods. The development team, which also includes Banneker Ventures and CPDC (affordable housing provider), will create apartments, townhouses, and condos for all income levels as well as over 40,000 s.f. of retail and 220,000 s.f. of office space. The development will also offer a 21,000 s.f. clinic.

And further down the road...

The District issued a solicitation in early June for Parcel 69 at 4th, 6th, and E Streets, SW. The $130 million development will be an office and hotel project along the Southwest freeway. Proposals are due by September 15th.

In May, Fenty issued an RFEI for the Hill East Waterfront on Capitol Hill East. The District seeks a developer to create 2,100 market-rate and 900 affordable units with 2,000,000 s.f office space and 67,000 s.f. of retail space. The District anticipates a price tag of $1.1 billion for the development of the 50 acres surrounding the former DC General Hospital. Proposals are due by October 31st.

Proposals were due June 3rd for Minnesota and Benning Road, NE Phase II. The $107 million development will include 60 market rate, 392 affordable units and 40,000 s.f. of retail. No developer has been selected.

It is high time the District announced developer for Fifth and I Street, NW. After proposals were submitted in March, the District widdled the teams down to the final four including BG, Buccini/Pollin, Potomac Investment Properties, and a group comprised of Holland Development, Donohoe Development, Spectrum Management, and Harris Development. The winning team, whenever they are announced, will create somewhere around 170 market-rate units, 30 affordable units, 100 hotel rooms and 50,000 s.f. of retail space.

Upcoming Solicitations

The District would like to see 1,469 market-rate and 440 affordable units in Lincoln Heights in Ward 7 at an estimated cost of $576 million.

Barry Farm/Park Chester/Wade Road in Ward 8 will likely include 110 market and 330 affordable housing units and will cost around $550 million. The project is an effort to revitalize low-income properties in the historic Anacostia area.

The issuance of the Park Morton solicitation at Park Road and Georgia Avenue, NW is "imminent" according to the Mayor's office and will cost $136 million with 499 market-rate and 150 affordable units. Axis

Razing the Stakes on Capitol Hill

The Louis Dreyfus Property Group has received final PUD approval for the razing of approximately fifteen adjacent historic townhouses on Capitol Hill to make way for Capitol Place, a 380,000-s.f. mixed use development with 302 condominiums and 20,000 s.f. of retail, designed by New York-based Cook + Fox Architects. The townhouses, dating from as far back as the mid 19th Century, will be sacrificed as part of a deal that will allow development of the site, but may also enhance protection of historic buildings on the rest of Capitol Hill. The buildings, located at G and Second Streets, NE, are currently being leased to area businesses, and may be demolished as early as this fall. The trade will include an $83,500 payment from the developer to the Capitol Hill Restoration Society, enough to pay for a professional survey of the area to delineate the merit of an expanded historic zone. The survey is the first step toward an extended Capitol Hill Historic District which, according to the PUD, would include properties located "within the twenty-six blocks comprised of 2nd to 15th Streets, N.E., and F to H Streets, N.E., not including the Site or properties within the H Street Overlay."

The block misses the Capitol Hill Historic District - a legislatively demarcated zone which ends at F Street, NE - by one block, and therefore does not go before the Historic Preservation Review Board (HPRB). As with all raze permits, the application went through the Historic Preservation Office (HPO), part of the Office of Planning, but was not held for the customary thirty day discussion and review period because it was part of an existing PUD. Ultimately, all razes are signed by David Maloney, DC's State Historic Preservation Officer, whether historic or not. Non-historic razes end at the HPO after they double check that the structure and site are not historic; applications for historic sites go on to the HPRB. 

With Maloney's signature, the fate of this block was sealed. In this case, even though the buildings are not in the historic district, Brendan Meyer, Preservation Specialist with the HPO, said the request was an unusual one to come through the office. “Typically we get 1950-1960 ranches out on the city fringes that are razed and subdivided, but something closer to the historic area would give us more pause. We would evaluate it and ask, ‘is it significant enough to do outreach to prevent the raze, or do we just say that it’s outside the historic district and let it go?’" Sean Cahill, Vice President of Development for Dreyfus agreed, “This is not your typical application,” he said. According to Meyer, the Capitol Hill Historic District is listed as historic for its architectural history and marked with a longer period of significance (1791-1945) than other areas like Mount Pleasant (1870-1949). Meyer said that in the case of the Capitol Hill Historic District “It’s not one person or event, but a collection of architecture that represents a broad and rich timeline of DC’s urban development. It helps us understand how DC grew and how it became a city.” That being said, he added that not every town house can be preserved. "They are perfectly nice and charming, but we have 8,000 others already established and we are protecting them. These townhouses are outside the district and there is nothing about them that makes them particularly special," Meyer said. According to Cahill, the neighborhood ANC is on board, as is Gary Peterson of the Capitol Hill Restoration Society (CHRS). “We went through a mediation process with the neighbors on Square 752 as well as the ANC and the adjoining ANC, so it was a very long process,” Cahill added. 

"I think most people are reasonably satisfied with where we ended up. I am a pretty ardent preservationist, so I hate to see old buildings taken down, but i think that the development will be a benefit to the city and we worked hard to design a project with the least negative impact for the remaining residents on the square," said Drury Tallant, Co-Chair of the Stanton Park Neighborhood Association Land Use Committee and square resident. "If it were in the historic district, the buildings that are being taken down would be contributing structures and they would not be allowed to demolish them. One of the things Dreyfus offered to the community was money to pay for historic structural survey that would potentially lead to the expansion of the Capitol Hill Historic District to cover from this square to 16th Street... In essence, it was a bargain the community made in order to pay for the survey that is a prerequisite for expanding the district. These buildings were sacrificed to get the funds," Tallant said. HPO's approval allows for demolition this fall; construction is anticipated within the following year-and-a-half, and delivery expected thirty-two months later. Located adjacent to the H Street Overpass, Capitol Place will be the closest residential and mixed-use site on H Street to the Union Station Metro. Though it will share a block with the historic two and three story row houses, it will also sit across from the 10-story Senate Square, as well as a new 11-story office building still under construction. Reduced 43,000 s.f. from its original size, the 10-12 story building has been in the PUD process for the last three years as the developer worked with architects, the Zoning Commission, and the neighborhood to come up with an appropriate, neighborhood-serving design. Other goodies for the neighbors include two micro-grant programs, the first of which will be $150,000 for which property owners of adjacent lots can apply to make repairs and improvements to the parts of their homes that are either within public space or viewed from public space. The second program will allow $80,000 for which property owners living on the construction square (752) can apply to make upgrades to their homes as approved by the CHRS. Finally, the developer will pay $20,000 to CHRS for administering the two grant programs. In addition to the grants, Dreyfus will also give $150,000 to H Street Main Street for the Clean and Safe Program.  The developer, which mainly works on “high quality, central business district and suburban office buildings” has properties in DC, suburban New York, and Paris.

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