Fenty Gives DOES Staff Early Christmas/Goodbye Present

This morning Mayor Fenty and the Department of Employment Services (DOES) celebrate their brand new headquarters at 4058 Minnesota Ave NE with an official unveiling. Likely the government staff to have worked the hardest over this past year, it's fair to say they deserve some fancy new digs.

The five-story, Devrouax & Purnell-designed mixed-use building neighbors the Minnesota-Benning Metro Station, encouraging District employees to use mass transit, and offers over 200,000 s.f. of top-notch workspace, as well as 7,000 s.f. of ground-floor retail space and a four-story parking garage. The new headquarters is one of many efforts by the District and partnering developers towards revitalizing Ward 7; it is hoped the headquarters is eventually joined by the Linda Joy and Kenneth Jay Pollin Memorial Community Development and City's Interests' 15-acre Parkside Residential.

Washington D.C. Real Estate Development News

ANC Special Meeting: Residents to Voice Opinions on Minnesota Avenue Project

Want to see a developer chided by development-hungry residents? Over pedestrian safety? The ANC-7D meeting Friday evening is your chance. Last October, the District government chose Donatelli Development to develop a 5-acre parcel at Minnesota Avenue and Benning Road. The $108 million mixed-use project boasts 40,000 square feet of retail space, 375 affordable housing units and 60 market units. Representatives from local ANCs promise a thorough review of Donatelli's project presentation.

ANC-7D Chairperson Willette Seaward said that despite the city's award of the project and subsequent land disposition review, there was no "official" ANC support. Seaward said she believed Donatelli had met with residents only once after being awarded the RFP last October and failed to "engage the community."

The primary issues are traffic congestion and pedestrian safety at the intersection of Minnesota Ave. and Benning Road. Resident groups like the Coalition for Smarter Growth want public easement and right-of-way for a possible future street connection that would extend Minnesota Ave. along the Metro tracks and add an intersection to reduce congestion. Neighboring ANC7C04 Commissioner, Sylvia Brown was frustrated that prescribed changes in the Minnesota Avenue Great Streets plan, such as the Minn-Benn Phase 2 Benning bridge access road, were not implemented in Donatelli's plan.

Commissioner Seaward said residents are also concerned about not having enough market-rate housing necessary to attract high-end retail. Additionally, the community wants a binding benefit agreement to include public green space, internships and job training for residents or funds for local community centers. Commissioner Brown said the community wants to shed its reputation for being opposed to everything by working with the developer to find a solution.


According to Chris Donatelli, President and CEO of Donatelli Development, the project is not going through the PUD process, but they are working closely with the city on the plan since it is part of a public-private partnership. Donatelli cited the community spaces (think NGO offices) already included in the plan and modifications that added a for-sale component as examples of their collaboration. According to Donatelli, the July disposition hearing was the first time the developers were made aware of community concerns over right-of-way. At that time, DC Council Members asked the developer to consider including the right-of-way. Donatelli said they are meeting with DDOT and in the end are pretty flexible, "you always want to have community support."

We'll see what happens when Donatelli's team presents their project to the community this Friday the 31st at 6:30 in the 6D Police Station Community Room at 100-42nd St NE. It guarantees not to be a dull evening.

DC Council Ponders Major Land Disposition

The DC Council hosted a roundtable Wednesday evening to thoughtfully ponder Disposition Approval Resolutions of 5 major developments planned across the city and give residents a chance to air concerns. Officially held to determine whether the city-held land was "surplus" - in lay terms, unneeded and salable - and whether or not selling them would benefit the city and the surrounding community in real terms (jobs, quality of life, etc.). Below is an abbreviated (luckily for you) roundup of the evenings discussions:

1. Minnesota-Benning Phase 2 Redevelopment: As previously reported Donatelli Development and Blue Skye Development won the bid to develop low-income housing and retail space adjacent to the Minnesota Avenue metro station. Panel members described the property as blighted, vacant and underused. Cheryl Cort of the Coalition for Smarter Growth disagreed with statements that the space was underutilized and also argued for a public easement and right of way, requesting that a segment of the property not be developed in case of future transportation demands. Councilmember Kwame Brown (at-large) described development as a way to "bring the city together."

2. New Communities Northwest One: By far the most contentious property of the evening was the site of the former Temple Courts Apartments. Arguments against the land, now used as a parking lot as developers work through the tangles of DC government, included ANC Commissioner Keith Silver's, who submitted a thesis-sized objection, and community members' claims that during Phase1 the developer failed to meet hiring standards requiring that 51% of jobs be given to DC residents. Chris Smith, Jr., Chairman and CEO of William C. Smith & Company, who disclaimed involvement in Phase1, promised to make good on employment promises in Phase2. But some Council members wagged fingers at Smith for having failed to interact directly with local ANCs while assuring community members of Smith's strong standing in the development community. The only change was the decision to build each of 5 buildings in separate phases to improve financing; i.e. former residents will have a long wait until they can return to their new homes.

3. Strand Theatre- It was a big night for Ward 7, with 3 of the 5 projects coming to the ward. The panel, including developers and community members, voiced overwhelming support for the Strand Theatre revitalization and redevelopment project. Council members asked the necessary questions to afford political cover, but there was little contention over the project.

4. Eastern Avenue Property - We previously wrote about ODMPED's call for plans to redevelop properties located at 400-414 Eastern Avenue, NE and the 6100 block of Dix Street NE. The selected plan will offer 56 affordable for sale units - all be 3-bedroom townhouses, something the community supports enthusiastically. Mary Cheeks, a Ward 7 resident, stepped up to opine that "this property has sat vacant for too long...it is time to move forward..." Council members were particularly impressed by the approximately $3.5 million dollar investment that would yield so much housing. Councilman Brown remarked on the millions of dollars being discussed among the projects and remarked over the efficient use of city resources, "I like that," he said. Enough said.

5. Fourth/Sixth and E. Street, S.W.: We reported on the intial appointment of Potomac Investment Properties, City Partners and Adams Investment Group, to redevelop land currently occupied by a fire station and a parking lot. A 9-story building will replace that former fire stationa and house a cafe and work site for DC Central Kitchen, and possibly even a stationery store, wine store and coffee shop. The property is currently planned as a 99-year lease, largely due to the presence of the district's fire station. Council member Tommy Wells (Ward 6), concerned about financing, advised John Holmes of Adams Investment Group that the "stakes are raised" on the project. To paraphrase, "don't screw this up."

DC Reveals Management and Style Guidelines for City Property

Mayor Adrian Fenty yesterday unveiled the Office of Property Management's (OPM) first-ever District of Columbia Facilities Plan - a "comprehensive strategy" for managing and consolidating the DC government's 18 million square feet plus of property and 3.7 million square feet of privately leased space in a streamlined and cost efficient manner.

The OPM plan outlines measures that will reduce the city's amount of leased space by 13% (roughly 500,000 square feet) over the next year by relocating staff to shuttered DC public schools and consolidating warehouse operations. It also provides concrete timelines for the construction of new District-owned office space - including the currently underway Department of Employee Services at Benning Road and Minnesota Avenue, NE (pictured) and the recently announced MPD Property and Evidence Warehouse in Southwest. DC Public Schools and Libraries, however, will be unaffected by the Facilities Plan, as they are governed by their own distinct agencies.

The plan includes a provision requiring all DC-sponsored projects to meet a minimum LEED silver certification. OPM Director Robin-Eve Jasper did, however, point out that the plan is “Version 1.0” and will be subject to revision as new opportunities present themselves.

"A lot of things change about property – about the needs, about the market and other things - are very dynamic in real estate. We will be regularly updating this plan to address new things that come up,” said Jasper.

In addition to the master Facilities Plan, OPM also used the occasion to announce the release of its HOK Architects-authored (and phone book thick) Workplace Design Guidelines that, in the words of District reps, “standardizes the materials and furnishings that can be used in District office buildings” through bulk purchases and codified style standards.

“This will be a common brand making sure that efficiencies bring big cost savings,” said Fenty. Because, as we all know, the best way to attract DC’s best and brightest to local government is by forcing them to all use identical mauve swivel chairs in their mass produced cubicles. Oy.

First Project Underway at Minnesota-Benning

Mayor Fenty and officials from the Office of Property Management were on hand today to break ground on the new Department of Employee Services (DOES) headquarters - soon to be erected at 4058 Minnesota Avenue NE. This is the second such project in the immediate area, as just last month, Donatelli Development announced they would be developing a $108 million mixed-use project on an adjoining parcel.

The new 229,000 square foot DOES building will include a "one-stop employment and business center," a community meeting room, a local retail incubator and, of course, enough office space for roughly 500 employees. A green roof is also in the works.

Designed by DC-based architects Devrouax & Purnell, construction of the $48 million facility is being overseen by EEC of DC, Inc. and Forrester Construction (one of the few local development companies that say they are actually hiring at the moment). The new headquarters is expected to be completed in early 2011.

Fenty and company used the occasion to kill two birds with one microphone, as he also used the opportunity to announce the appointment of Joseph Walsh as the new Director of DOES. Walsh was poached by the District from his last post as Director of Policy and Planning in the Executive Office of Labor and Workforce Development under Massachusetts Governor Deval Patrick. Here’s to hoping Mr. Walsh likes this job more than his old forty-syllable job title once the paint dries on that new HQ.

Wizards Owner Bringing Magic Back to NE Housing Project

John Stranix, formerly of Clark Construction and now of Stranix Associates, is spearheading an effort - via the Pollin Memorial Development, LLC - to bring a 125-unit development to the ever-expanding Minnesota Avenue corridor in northeast Washington.

Named for the family of Washington Wizards owner, Verizon Center visionary, and generous District benefactor - Abe Pollin - the $18 million Pollin Memorial Community Development would transform a 450,000 square foot chunk of Ward 7 into "91 row dwellings, eight three-unit apartment buildings and five flats, amounting to a total of 125 residential units" - for a total of 193,688 square feet of new development. This would be the second such memorial public housing development in the District - Pollin previously opened Southeast's Linda Pollin Memorial Housing project in 1967.

Bounded by Hayes, Barnes, and Grant Streets, NE and Anacostia Avenue, the new Pollin complex would replace the 49-year-old Parkside Additions public housing project on the site with 83 homeownership units and 42 “rental replacement public housing units” – affordable housing targeting renters at or below 30% of the area media income. While the current Parkside project is described by the National Capital Planning Commission (NCPC) as “functionally obsolete,” the new affordable units would be reserved as a “one-for- one replacement” for current tenants.

The redevelopment of housing would be complemented by new internal streets and a new “intimately-scaled” neighborhood park that would fall at the end of what is now Cassell Place, NE. This would include a new playground and landscaped area with trees and benches – all of which would front on the row houses, in order to allow for easy child supervision.

The site is a composite of property belonging to 3 distinct entities – the District of Columbia, the District of Columbia Housing Authority (DCHA), and the National Parks Service (NPS). The developer courted the approval of all of those landowners back in 2006 and received approval for the project from NCPC last year.

Despite the multitude of parties with stakes in the site - current residents not least among them - the District posits that redevelopment is in the best interests of all involved including those of the greater Minnesota-Benning corridor. "Regarding the [area's] comprehensive plan, the development will further some of its major themes," said Matt Jesick, Development Review Specialist of the DC Office of Planning, in session before the District of Columbia Zoning Commission. "It will replace an older public housing development with newer affordable housing. It will compliment existing and proposed development in the neighborhood. It will preserve approximately 43 percent of the site as an undeveloped natural area and it will promote enhanced public safety and provide for diversity in the community." Enterprise Community Partners, who are financing part of the Wheeler Terrace public housing redevelopment in Southeast, have also issued a statement in support of the project.

Using designs by Torti Gallas & Partners, the project aims to begin construction in August 2009.

Donatelli Bringing 'Downtown' to Minnesota-Benning

Mayor Fenty today announced the District’s selection of Donatelli Development and Blue Skye Development as the developers of a 5-acre parcel at Minnesota Avenue and Benning Road, NE, adjacent to the Minnesota Avenue Metro station.

The $108 million mixed-use project will bring 40,000 square feet of retail space, 375 affordable housing units and 60 market units to the major hub of Ward 7. These developments will be coupled with “a 5,000 square foot retail incubator” reserved for local businesses and 2,500 square feet of “community space.” Architects Eric Colbert & Associates are designing the project.

“This area is what some are now calling ‘Downtown Ward 7,’” said Fenty. “That is because of the energy, the already existing activity level and also the great potential of Minnesota Avenue and Benning Road.” The intersection currently houses several strip malls, an auto parts store and a parking garage dedicated to Metro parking (pictured).

Once completed, the project will neighbor the new, already under-construction Department of Employee Services headquarters. Fenty went on to point out that several other developers have also expressed interest in remaining lots on all four corners of the busy intersection.

This announcement follows an RFP for the site issued last spring and a competing proposal from City Interests, LLC. Christopher Donatelli, President of Donatelli Development, said he expects construction on the by-right development to begin “as quick as possible,” with a probable start date sometime in the next 18 months. He went on to say that the project should be open for business “36 months from today” – meaning the first signs of a true downtown for Ward 7 should start to crop up in late 2011.

The project is being fast-tracked by the District, as it requires no subsidies from the local government and no changes in zoning. Donatelli is also taking advantage of federal lending programs targeted at affordable housing development that will allow them to move forward with the project during the current economic slowdown.

“As long as there is a need for affordable housing - and we know that there is - this project will be addressing the supply,” said Donatelli. Donatelli has substantial cred with the Mayor, after having transformed Columbia Heights from a similarly vacuous site to a thriving metro center. Blue Skye was chosen just last week for redevelopment the Tewkesbury, a blighted District-owned apartment building in Brightwood that will convert to condominiums. Lacey

DOES Seeks Approval For New Digs

DC's Department of Employment Services will go before the National Capitol Planning Commission Thursday for approval of their new five-story, mixed-use headquarters on the site adjacent to the Minnesota-Benning Metro Station. Part two of the larger Minnesota Benning Government Center development, the Deverouax & Purnell-designed 225,000 s.f. headquarters will bring 500 jobs, over 7,000 s.f. of retail space, and a four-story parking garage to the 9.2-acre site.

The government's goal in relocating the headquarters to the Benning-Minnesota Metro area was to make DOES' services more accessible to its clients while improving the developing neighborhood. According to Bill Rice, Spokesman for DC's Office of Property Management, "The new headquarters for the DC Department of Employment Services will make DOES services more centrally accessible for District residents and promote economic development in the Benning Road-Minnesota Avenue, NE, area east of the Anacostia in downtown Ward 7. It will bring new employees to the area, thereby promoting economic development and serving as a catalyst for the revitalization of downtown Ward 7."

The HQ project will not be alone by the Metro, however; Ward 7 and the Benning neighborhood have received quite a bit of development attention lately. In March, the District issued a solicitation for bidders for a five acre site adjacent to both the Metro and the DOES site; Parkside Residential LLC's senior and affordable housing project and Abe Pollin and the DC Housing Authority's 150-unit development are also in the works.

Part of the Government Centers Initiative that places civic buildings in less-developed neighborhoods, the job creating, development-promoting HQ project will complete its wholesome image by pursuing Silver LEED Certification. Located at the Northwest Corner of Minnesota Avenue and Benning Road, NE, the development will be funded by the sale of 500 C Street NW to the Newseum and general obligation bonds. It will replace current bus shelters and Metro parking and widen Minnesota Avenue.

If the final site and building plans secure NCPC approval, Rice said the District will begin the permit process with groundbreaking in September, he added that the government will not partner with another developer.

Phase three of this development thrill ride is currently on hold, but will eventually be a new office building for the Department of Homeland Security and will include 125,000 s.f. of office and retail space. Phase one was a parking garage.

The DC-based architects specialize in designing buildings for agencies and corporations and are responsible for the MCI Arena, the Convention Center, and the Pepco Headquarters.

Washington DC commercial real estate news

DC Kicks Off Minnesota Metro Development

Mayor Adrian Fenty announced yesterday that that the District has issued a solicitation of bidders for a five-acre lot adjacent to the Minnesota Avenue Metrorail station. The chosen team will have the opportunity to build up to 600,000-s.f., though the city has not specified the type of development, leaving open options for a mixed-use development of office, retail, and housing.


According to Sean Madigan of DC's Office of Planning, "We don't have a firm idea of what we're looking for, in terms of whether the development should be pure office building with street-level retail, or just have a retail focus, or housing focus. We really are looking to the development community to see what is really possible there." The site is adjacent to the future location of the Department of Employment Services' newly announced headquarters, a 230,000-s.f. building at the northwest corner of Minnesota Avenue and Benning Road NE, which will include ground-floor retail and and underground garage.

Potential bidders for the site are required to include a 20 percent equity partnership with
Local, Small and Disadvantage Business Enterprises. The chosen development partner must also show an effort to include Ward Seven contractors and businesses in their plans. The area is already under revitalization - it sits amidst about four million s.f. of new projects at Parkside and Ward Seven, and the city is pumping about $40 million into the neighborhood through the Great Streets Initiative. A new Benning Road Library may also be popping up soon in the neighborhood.

"It couldn't be better located," Madigan said. "The city sees this as a great site because it is located right there at the Metro, and is a really prominent corner at Minnesota and Benning. It really is the gateway into that part of Ward 7." Proposals are due by May 6th; the city hopes to narrow down their choices by the end of the summer.