Once Uncertain Rosslyn Office Tower Reaches Milestone

Judging by the 1812 N. Moore construction livecams, the historically massive Monday Properties Rosslyn project is about to hit ground level - a significant milestone for any big project, much less The Tallest Office Tower in D.C. Area History - that almost wasn't.

When project backer Lehman Brothers went belly up in the wake of the financial crisis, some wondered if the 580,000-square-foot 35-story property at 1812 N. Moore would run out of funds, raising the specter of a skeletal, half-finished tower marring the Rosslyn skyline (or worse yet, a gaping pit in the middle of downtown).

Those doubts (groundless in retrospect, as Monday says it always had completion funds on hand) were put to rest when Goldman Sachs stepped in last month and bought out Lehman's stake in the 1.2 billion dollar portfolio, and the project has remained on schedule for a late 2013 delivery date.

As of today, below-grade construction is nearing completion, and the project should break above grade in a matter of weeks, if not days. “The crane is scheduled to jump up next month,” said Tim Helmig, Executive VP and Chief Development Officer at Monday. He also noted, with evident pride, that their construction crane when fully extended

to its maximum of 451 feet, will be the tallest in area history.

1812 is only one part of a massive ten building, three million square foot portfolio that altogether comprises over a third of the entire Rosslyn office submarket of Arlington, making Monday/Goldman the Microsoft of florescent-lit Starbucks-and-Dockers NOVA anomie.

Construction on 1812 was started on spec – a risky proposition in a down economy and a soft-ish market. But Monday assures DCMud it's in active negotiations with three clients to collectively lease out the entire tower. Questions about these three mega-tenant's identities were met with amusement but then expected silence. At present, 1812 is LEED Gold certified for Neighborhood Development, and anticipates being LEED Platinum certified for Core and Shell when delivered in 2013, keeping it on track to be the first LEED Platinum certified office building in Virginia, as certified by the USGBC.

Central Place, the competing project from JBG and Beyer Blinder Belle right across N. Moore Street, hasn't broken ground yet, but its developers offer assurances as to its progression. JBG spokesman Charles Maier told DCMud that is JBG is finalizing permits for the project and doesn't anticipate any obstacles to a 2012 start date.

Arlington, VA real estate development news

Region's Tallest Building Breaks Ground in Rosslyn

Monday Properties' 35-story, 390 foot office building will break ground on Thursday in Rosslyn, setting the stage for what will be the region's tallest building when completed, at least for a while. Developers will hold a public ceremony for the 580,000 s.f. building that will rise above the Rosslyn Metro station.


The superlative for "tallest" is a contested one, with JBG noting their that their 31-story Central Place tower will also rise 390 feet, nearly the tallest allowable by the FAA along the Reagan National flight path, which caps at 500 feet above sea level. The buildings also both straddle N. Moore at nearly equal 80-foot elevations; nearly, but not exactly. Officials at Monday assure DCMud that their site sits a few feet higher in elevation, giving theirs the edge. In any event, with JBG's project in check, Monday's claim to size will not be in dispute when the building completes in late 2013. Nor will Monday's second first: the first LEED platinum certified office building completed in Virginia, if all goes as planned. Bragging rights for both should allow for equally high leasing rates, and despite a lack of tenants, Monday chose to approach one of the region's lowest commercial vacancy rates by self-financing $30m of the $300m project, something JBG officials must be eying with intensity. Monday says it is confident that that this will attract financial suitors, but that they are prepared to move forward with or without a financial partner, and promise an anchor tenant announcement within 10 months.

Arlington approved the project in December of 2007, but it has been on hold for nearly 3 years as developers sought financing and the right market. Davis Carter Scott designed the skyscraper that Clark will build, with Gensler assisting on interior layouts.

Congressman Jim Moran will join other speakers at the groundbreaking ceremony this Thursday at 11am, true construction will be underway by the end of the month.

Rosslyn Virginia real estate development news

Rosslyn's Artisphere Opens

While the "opening of the Artisphere" might sound science fictional, Rosslynites know by now that it puts Rosslyn on the map of arts destinations. The 53,000-square-foot "showcase for the arts," opening October 10th, will include an exhibition gallery, a Black Box theater for the Washington Shakespeare Company, ballroom, Wi-Fi cafe, four performance venues, and three art galeries, all converted from the building the once housed the Newseum.

Arlington chose The Lukmire Partnership and Clark Construction to renovate the interior, while keeping most of the exterior, in a design that is intended to achieve LEED certification for interior space, designation pending. Arlington officials set the October 10th date more than a year ago, and managed to stick the landing with regular events beginning immediately after the official pomp. "Artisphere" was the winning entry in a public contest that included "Planet 9," "Artopolis," "the Orb," "the Artseum," and DCMud's own rejected entries of "Rossdome" and "SphARTlington." Humph.

Officials promise a veritably transcendental arts forum with non-stop programming that will redefine art in the community. "Its an entirely unique model in the region and country in terms of diversity and amount of programming. I do think we are creating a new model for regional appeal and global programming," said Norma Kaplan, Division Chief for Arlington Cultural Affairs, which operates the Artisphere. "An important component is bringing in artists from around the world that will open up the door to new kinds of work and new connections." Kaplan promises "20 to 25 events" per week. Jim Byers, Marketing Director for Arlington Cultural Affairs, adds that between the impromptu, regular, and occasional big name performances, the building will be a consistent place of inspiration. "The usual experience is a big name that may draw you to a cultural center sporadically. While some of the programs will indeed be big names, our idea is to constantly engage the public and have them hang out there regularly at the wi-fi cafe or go to the art store, a much more holistic experience than seeing a few big stars per year."

The building is owned by Monday Properties with a 20-year lease to Arlington. Monday is also the owner of the land at nearby 1812 N. Moore Street in Rosslyn, where it recently announced it would begin construction on what will be Rosslyn's tallest building when complete.

Arlington Virginia real estate development news

Rosslyn's Humbled Towers

Commuters exiting the Rosslyn Metro might have noticed construction vehicles and material at Monday Properties' 1812 North Moore Street, raising hopes of a new, LEED Platinum building in the center of Rosslyn. Alas, signs of future construction they are not. Likewise the friendly polka dots and convenient lunch tables on the site of neighboring Central Place by JBG offer, if nothing more, a place to sit and dream of the immense office building that will one day fill the space. The two sites offer hopes for the DC area's tallest buildings. Rosslyn, however, will have to wait for the distinction.

Now-defunct Westfield Realty sold 1812 North Moore Street's $31.5 million parcel to Monday Properties in 2006 after the former’s drawn-out bid to revamp the site met a slow death. Monday initially had much more success with their attempts to put the project into turnaround. Their Davis Carter Scott-designed tower boasts 600,000 square feet of commercial office space, 12,000 square feet for retail and a Metro terminal attached to the facility. Additionally, they were on track to becoming the first LEED Platinum-certified building in the area. But since that time, little has happened. Nor will it any time soon. Arlington's December, 2007 approval for the project was originally set to expire in December 2010, but a July 2009 statute made approval for the Monday project, and others, valid through July 2014.

What about the harbingers of construction seen on site? The materials belong to Dominion Power, which is working on the substation on the adjoining lot. According to the site manager for the Dominion construction team, Clark Construction, the general contractor, will not begin any sort of construction on 1812 until August, at the soonest. But Peter Berk, Executive Director for the project at Cushman & Wakefield said in an email, "the building is not going forward on a speculative basis (without some kind of pre-lease), at least not at this time due to the capital markets." Thanks anyway Dominion Power guy.

Across the street, JBG's equally reluctant Central Place project sits largely untouched with McDonald's bags but no construction debris. The 31-story, 535,000 s.f. building planned for the site will include 12,000 s.f. of ground floor retail in a 390-ft. glass curtain-wall mammoth. To top it all off, a 10,000 s.f. rooftop observation deck with distant views will open to the public.

Andrew VanHorn, a Vice President at JBG, admitted the widely circulated rumor that "office financing is difficult to come by lately." Before any construction can begin, Central Place will need prospective tenants and secure financing; the team will likely need upwards of 50 percent of the building leased before a shovel hits the ground. But it "depends on the credibility of the tenant" said VanHorn. A big catch, like an established law firm, might squeak by under the halfway marker, but in the end it is "really about what the bank is going to require."

Meanwhile, JBG partnered with the Rosslyn BID to create a "Central Space" in the area where the lobby of the future building will sit. Tables and a small rain garden now create a getaway for area workers to lunch. JBG "looked at the site, and though it wasn't going to be there long, it was a waste to have it fenced-up with weeds growing" explained VanHorn. The developer sees this small community area as the viable use for the site for the next 12 to 18 months at the outset.

The two bold, competing projects have each been humbled by the new economic reality. For now.

Rosslyn, Arlington Virginia real estate development news

Arlington's Rossdome of Art

Arlington planners have less than a year left on their self-imposed deadline to transform the former Newseum into Rosslyn's cultural center, and want you to come up with a name for it.

Transformation of the former Newseum site is scheduled for completion by the catchy date of 10/10/2010 (easier still to remember if the deadline is missed), by which time the 53,000-square-foot "showcase for the arts" will include an exhibition gallery, a "black box" theater for the Washington Shakespeare Company, IMAX screen, ballroom for cultural dances and lessons, and restaurant and retail space. Arlington is seeking LEED Silver certification for the project. The space has been unoccupied since 2002, when the Newseum moved to Pennsylvania Avenue in Washington DC (hard to imagine George Stephanopoulos broadcasting with the Rosslyn streetscape as a background).

The building, an ill-fitting dome on top of post-modernist prefab - fed of course by overhead walkways - was originally conceived by Ralph Appelbaum Associates. Arlington has entrusted The Lukmire Partnership with the renovation that will retain most of its original exterior but feature a fully-renovated interior space. But first, of course, the building needs a name, and the county is seeking public input on the new moniker. Interested parties are encouraged to vote online for the best new name - but freethinkers need not bother, the county has limited the vote to 3 choices.

Arlington has a 20-year lease on the property at 1101 Wilson Boulevard from Monday Properties, which owns the corner, and has plans on the boards for the nearby 1812 North Moore Street project, a 35-story tower that vie for the title of the region's tallest building.

Arlington, Virginia real estate development news

New Tenants for New Developments

Less than a week after Deputy Mayor Neil Albert assured the development community that prominent organizations would "still [be] leasing space here in the District," his words appear to be ringing true. Several developers behind major projects in both Washington and Northern Virginia have announced freshly inked deals this week, despite the tubercular state of real estate market.

Forest City's sprawling Southeast Waterfront development, The Yards, went public on Monday with news of two new tenants for the project's retail component - the Boilermaker Shops at 200 Tingey Street SE. Delaware-based brewery, Dogfish Head, has signed on to open a brewpub in the converted nautical manufacturing facility, as Forest City also nears an agreement with an as-of-yet unnamed jazz club for the site. Once completed in 2010, the Boilermaker Shops will boast 45,000 square feet of retail and up to five in-house restaurants.

Forest City’s slate at the Yards also includes a commercial office building at 401 M Street SE – which, according to the Washington Business Journal, will soon be home to the District’s third Harris Teeter grocery store. Also on the brown bag front, there is talk of a Whole Foods Market for the William C. Smith & Co.’s neighboring Square 737 project.

Over in the District’s second development hotspot, NoMa, another project nearing completion is also rapidly running out of vacancies. J Street Development’s 90,000 square foot condo complex at 111 K Street NE now has confirmed three not-for-profit organizations as soon-to-be tenants: the Sierra Club, the National Association of Student Personnel Administrators and, most recently, YWCA USA – the latter of whom will occupy the building’s entire 11^th floor. According to sources at the NoMa BID, the Gensler-designed building is now 60% leased and will deliver on-time in 2010.

Meanwhile, projects across the river in Arlington are working towards deals with even the most cash-strapped of clients – like the Arlington County government. The Monday Properties-controlled site at 1101 Wilson Boulevard (the pre-2002 home of the Newseum) is being pursued by the County Board as the possible site of a new Cultural Center – as part of a sweetheart deal the developer cut with the Arlington officials late year to facilitate the much beleaguered development of their project at 1812 North Moore Street.

County authorities estimate that it would take $4 million to convert the 53,826 square foot facility into a viable cultural venue. However, Monday won’t be seeing one cent from the County until next year’s numbers start to become clearer. “I will only recommend proceeding with the center once the County’s 2010 budget is clear, and only if a viable center can be developed with no new general tax revenues,” said County Manager Ron Carlee in a prepared statement.

If the County passes on the deal, the space will be given back to Monday “in exchange for approximately $10 million for the value of the public benefits.” At present, the terms of the deal would allow the County to occupy the space rent-free for the first 10 years of a 15 year lease. The Rosslyn Business District has already contributed $1 million towards construction costs associated with retrofitting the former museum.

Rosslyn's Severe Case of Tower Envy

The Rosslyn skyline will be changing significantly in the coming years as two new mixed-used projects shoot skyward. Interestingly, both have at one time hyped themselves as the metro area's tallest developments, JBG's Central Place and Monday Properties' 1812 North Moore Street have both been cleared to exceed the 300 foot height limit usually imposed by Arlington County, both will be runners-up for the region's tallest after the Washington Monument. There's just one problem: with the dual towers of Central Place already under construction and North Moore breaking ground in October, neither side wants to relinquish their bragging rights to the title of tallest.

This has been a long time coming for 1812 North Moore. Now-defunct Westfield Realty sold the $31.5 million parcel to Monday Properties in 2006 after the former’s long-gestating bid to revamp the site went nowhere (not so) fast. Monday, however, have had much more success with their attempts to put the project into turnaround. Their Davis Carter Scott-designed tower boasts 600,000 square feet of commercial office space, 12,000 square feet for retail and a Metro terminal attached to the facility. Additionally, they’re on track to become the first LEED Platinum-certified building in the State of Virginia – a measure that has earned them accolades from the Rosslyn Renaissance (RR) Urban Design Committee (UDC) and the Radnor/Fort Myer Heights Civic Association (RAFOM) and will make them one of the most energy efficient buildings in the country.

But once the plans went public, it wasn't long before creative math came into play. Originally, both Central Place and North Moore were billing themselves with a height of 470 feet – including sea level. Eventually, the dueling parties seemed to realize that adding a hundred plus feet of land elevation to a building’s proposed height was tad on the disingenuous side. (After all, Denver’s Republic Plaza would be the tallest building in the world if it included the city’s 5,280 foot elevation in its’ official measurements.) And that’s where things get confusing.

Currently, Monday Properties says that their proposed 30-story complex on North Moore will come in at 390 feet – and that the Central Place will top out a whopping 60 feet below them. But in December of last year, the Arlington County Planning Commission made Monday shave a story off their blueprints, so as not to obstruct the view from Central Place’s observation deck – the one that was supposed to look down on North Moore. (Further complicating matters is the fact The Washington Post reported North Moore’s post-Planning Board height at a diminutive 370 feet.)

Unsurprisingly, JBG is singing a different tune. Their website states that the taller of their two towers will measure in at 31-stories - 390 feet. According to Thomas Miller of the Arlington County Planning Division – the county body with access to blueprints to both sites - the he-said she-said bit is all for naught.

“Both buildings are 390 feet,” he said Thursday afternoon, “Although, the highest [North Moore] offices actually fall below the observation deck level [of Central Place].”


He also confirmed that the two buildings only have a 3 foot difference in base elevation, but did not specify which. So depending on your point of the view (or the address on your lease), the second highest point in the Washington area is soon to be either Central Place’s glass-enclosed 31st floor tourist draw or the luminescent glass pyramid that will cap North Moore.

All in all, this only serves as a lesson in the strategic power of PR. Both buildings are to offer hundreds of thousands of feet office and retail space that represent a dramatic expansion of Rosslyn’s commercial prospects. Given that the two sites are separated by roughly only 200 yards, the competition for luring prominent DC businesses into these new NoVa nerve centers was bound to be stiff. While 1812 North Moore has yet to commit to a delivery date, Central Place is scheduled to be completed in 2011. Only then will we see who really comes out on top.