District Announces Contenders for Downtown School Redevelopment

In their second announcement in as many weeks, the Office of the Deputy Mayor for Planning and Economic Planning has revealed the teams vying for redevelopment of a DC public school – this time for Thaddeus Stevens Elementary School at 1050 21^st Street, NW. The school was "the first modern school in the District built for African-American students,” is listed on the National Register of Historic Places and was the last DC public school to host a First Child when Amy Carter attended in the 1970's. Much like last week’s announcement of competitors for the Hine Junior High School site near Eastern Market, ODMPED says the proposals they’ve received include "various combinations of new housing, office space, hotels and neighborhood-serving retail" for the surrounding K Street/Foggy Bottom area.
The Stevens project has only seen three would-be development teams: Peebles Development LLC/The Walker Group; the Moddie Turay Company; and, lastly,the Neighborhood Development Company, in partnership with Equity Residential (which also has a bid in for the Eastern Market school) remain in contention. After initially soliciting the project in late 2008, the Deputy Mayor’s office has apparently knocked two-thirds of the responsive developers – including the Capitol Hill BID, Akridge and Donohoe Development – out of contention. 

"[The final] three teams have presented some interesting ideas and demonstrated the capacity to get the project done,” said newly minted City Administrator Neil Albert via press release.  The three teams and ODMPED reps will be on-hand to present their competing plans at a community meeting on June 11th. The forum will be held at the Francis-Stevens Education Campus at 2425 N Street, NW and begin at 6:30 pm.

Blighted Brightwood Apartments Born Again

Mayor Adrian Fenty and Ward 4 Councilmember Muriel Bowser made their second joint appearance of the week in Brightwood today, this time to announce the commencement of major renovation procedures at 6425 14^th Street, NW – a long empty, dilapidated apartment building formerly owned notorious DC landlord, Vincent Abell.

"After essentially two decades of inactivity, frustration and blight…the District of Columbia government finally seized control of the property [in 2008]," said Fenty. "Don’t forget, it had been owned by countless private sector landlords [and] slum lords…People who just had no interest at all in making this the type of fantastic residential apartment building that it was once was and that it will be again.”

To that effect, the District has teamed with Blue Skye Development to repurpose the now-gutted apartment complex for the Tewkesbury Condominiums - a 30,000 square foot, 26-unit condo building that will, according to the Office of the Deputy Mayor for Planning and Economic Development, be comprised of 51% affordable housing.

“We want to promote home ownership,” Deputy Mayor Neil Albert told DCmud of the decision to make the building a for-sale property for the first time in its fifty plus years of existence. “It was originally conceived as a condo project and we were able to get financing for it. Again, there’s a level of affordability that’s going into this building. It’s not a luxury condo building…It’s easier to get that financed than your mid-level and high-priced condos”

Purchased by the DC government early last year for $3 million, after filing suit against its owner for “numerous building code violations,” the total cost of the renovation will come in at $4.6 million. New amenities slated for the complex, as outlined by PGN Architects, include “a community room, roof deck, energy-efficient aluminum windows...as well as outdoor spaces directly behind the building.” With selective demolition already underway inside the complex, the development is scheduled to be open by March 2010 – a full year later than the District initially anticipated when they acquired the property.

“[These] haven’t been easy projects. The reason some of these projects have taken a long time is because there’s a lot of trouble and legal trouble that the city’s been dealing with,” said Muriel Bowser of the numerous concurrent, affordable housing initiatives under way in her ward. “But this administration has taken a ‘can do’ approach. Not 'we can’t,' not 'we won’t,' but that we’ll figure out how to get it done.”

Fenty and Bowser teamed-up earlier these week to oversee demolition at 3910 Georgia Avenue, NW, future site of the 130-unit Georgia Commons project, and for the opening of the Neighborhood Development Company's Residences at Georgia Avenue in March.

Tenley-Janney Loses Apartments, Gains Consensus

In a surprise announcement from Mayor Adrian Fenty at Janney Elementary this afternoon, the ongoing battle between the Tenleytown community and the Office of the Deputy Mayor for Planning and Economic Development over the mixed-use redevelopment of the Tenley-Friendship Library seems to have drawn to a close. The District announced today that it has split with developer LCOR Inc., which had previously been awarded rights to construct the library at the site, along with 174 rental apartments, by the Fenty administration this past July.

The District’s relationship with LCOR, however, went suspiciously unmentioned by Fenty or his staff during the duration of the press conference - an especially conspicuous omission, given that Deputy Mayor Neil Albert had previously reaffirmed his office's commitment to moving forward with the LCOR-led redevelopment as recently as January. Off-the-record sources from inside the District government confirmed that the change of direction at the Janney site had little to do the contentious war of words between the Tenleytown community’s reps on the DC City Council and ODMPED, but that instead, LCOR has been forced to the sidelines due the company’s inability to secure financing in the troubled credit market. For the District’s part, they’re leaving the door to mixed-use development open for the near future.

“There is the possibility that after the library is built, sometime in the future, there may be additional mixed-use on that site,” said Fenty, to a mixed reaction of both applause and boos – an illustration of just how divisive the residential component of the school/library redevelopment had become, even among Janney staff and parents.

With LCOR out of the picture (for now) and no residential units stacked atop of it, the library over the metro station will top out at a simple two stories and measure in at 22,000 square feet, based on designs by the Freelon Group. Forrester Construction has signed on as general contractor and the building will seek a LEED silver certification.

Whether today's deal is a bow to market forces or just public relations peacemaking (or both), ODMPED didn’t end the goodwill there; the schedule for construction of the new library and concurrent renovations to Janney Elementary, it was announced, has been significantly accelerated. Fenty pledged that the new library will be open by the end of 2010, while renovations to Janney, once scheduled to begin in 2014, “could begin as soon as December.” Both Fenty and Allen Y. Lew, Executive Director of Office of Public Education Facilities Modernization, agreed that an architect for the renovation will be selected by June; other details, including whether the school will remain open during construction, had yet to be confirmed. According to Lew, the renovation could take as little as thirteen months.

Prospects Announced for Park Morton

Following last summer's Request for Proposals, Deputy Mayor Neil Albert has announced the three development teams contending for the $170 million redevelopment of the Park Morton housing project in Northwest Washington. Per the specifications of the RFP, all three are vying to reinvent the troubled public housing complex with more than 500 new units of affordable and market-rate housing and 10,000 square foot park.

The teams named by Albert are the Park Morton Partners (Pennrose Properties, LLC, FM Atlantic, LLC, and Harrison Adaoha, LLC); another Park Morton Partners (Neighborhood Development Company and Community Builders, Inc.); and, lastly, Park View Partners (Landex Corp., Warrenton Group and Spectrum Management).

"We need a partner that [is] capable of more than just building housing,” said Albert in a prepared statement. “We are looking for someone who is committed to building a healthier, safer new community. This response, especially in light of the current economic conditions, speaks volumes about the value of this opportunity.”

The Park Morton project was greenlighted under the of the New Communities initiative – a District-led program to transform blighted public housing complexes into “mixed-use, mixed-income communities." Other such developments targeted for redevelopment by the Office of the Deputy Mayor for Planning and Economic Development (ODMPED) include the long-gestating Northwest One, Barry Farm and the Lincoln Heights/Richardson Dwellings in Northeast.

According ODMPED, the bidding development teams will make public presentations regarding this plans for Park Morton at an unscheduled time “later this spring.”

Awaiting the New Bruce Monroe

Several District agencies are currently in the midst of coordinating plans for the demolition and subsequent reconstruction of the recently closed Bruce Monroe Elementary School. The 36-year-old educational facility and recreation center, located at 3012 Georgia Avenue NW, closed its’ doors this past June along with several other neglected DC public schools after years of making do with shrinking budgets, overcrowding and/or deteriorating conditions.

In a Request for Proposals issued by the Office of the Deputy Mayor for Planning and Economic Development (ODMPED) this past autumn, the 121,000 square foot lot will be repurposed with a new school and, in the words of the Office of Planning, "a mixed-use development project which [is being] developed to fund the new school." Though the Mayor's office has yet to announce a development team, DC Public Schools’ Office of Public Facilities Management has been tasked with overseeing the school's development, while ODMPED and the DC Department of Small & Local Business Development share the responsibility of seeking a partner for the project’s mixed-use component.

ODMPED’s Communications Director, Sean Madigan, tells DCmud that there is no firm timeline for when the demolition may take place, but the Deputy Mayor Neil Albert’s office is currently in the process of securing the necessary paperwork in order to expedite the process once an announcement is made.

At present, the bulk of Bruce Monroe’s former student body and staff have been consolidated into nearby Park View Elementary at 3560 Warder Street NW - which itself will be closed once school bells start ringing at Bruce Monroe Elementary’s newest incarnation. According to ODMPED, Ward 1’s newest old school is currently scheduled to be “open in time for the fall of 2011.”

Barry Weighs in on Poplar Point

While the inevitable fallout from the Poplar Point decision continues, one of DC’s most controversial politicians has made it plain where the blame lies: Mayor Adrian Fenty. Councilman Marion Barry opined on the subject of the District’s split with developer Clark Realty Capital over the $2.5 billion Poplar Point redevelopment in Southeast – a project once slated to deliver a hundreds of new residential and hotel units to the neighborhood, along with a new stadium for the DC United.

This past Friday, the former mayor and current Ward 8 representative issued a statement condemning both Mayor Adrian Fenty and Deputy Mayor Neil Albert’s handling of the development process. The full text of the letter follows below, courtesy of The Washington Post [grammatical errors in the original].

January 30, 2009

Honorable Adrian Fenty
1350 Pennsylvania Avenue, NW
Washington, DC 20004

Dear Mayor Fenty;

This letter is to express my disappointment at the way you and your administration has handled the Poplar Point development. The announcement this afternoon terminating the partnership with Clark Realty is another staggering blow to a project that was already hindered by an unfocused approach. I told you over a year ago that your quick change in direction to put the project out as an RFP would stall the efforts to keep things moving in the right direction. I still believe that the original approach was the best option to rapidly plan and execute this critical development. The setback today demonstrates how your administration's decision making places the promise that is Poplar Point farther out of the reach of the residents of Ward 8.

For over three years the Advisory Neighborhood Commissions, heads of civic associations, ministers and other community persons have spent hundred of hours giving input in what we in Ward 8 wanted to see at Poplar Point. Moreover, I have personally met with Deputy Mayor Neil Albert at least a dozen times as it relates to the development of Poplar Point. Early on he discussed with me the attitude of Council as it related to the original approach to the project. I told him repeatedly, that the great majority of Councilmembers, for the sake of urgency and expediency, would support the sole source deposition if the community were in agreement with the plan, which they were.

It has always been understood that this would be a complicated process. The clear attitude was to support a direction that would allow planning and other preparations to keep pace with the mountain of federal requirements that have to be satisfied. This is no longer possible, at minimum a year has been added to the process.

I have never seen the Ward 8 community so unified behind a project such as Poplar Point. Now I will be forced to face my constituents and community leaders to tell them we are headed back to the drawing board. Over my concerns and those of the people, many of whom it took a long time to convince to support any project at Polar Point, you charged ahead without us. I am certain that this serious misstep will have a lasting negative effect on the public support for the project. In addition, it will be difficult to attract a quality developer to the project. Even so, I remain optimistic that your administration will move quickly to resolve this situation. Your next steps will be crucial in maintaining the promise made to the citizens of Ward 8.

I look forward to your response on this important matter.

Sincerely,

Marion Barry
Councilmember, Ward 8

Unpoplar Point - Clark and District Sever Ties

The District announced Friday that it is ending its agreement with Clark Realty to develop Poplar Point, the 110-acre parcel that fronts the Anacostia River. In an unusual late night announcement, Deputy Mayor Neil Albert said "Clark is a great local company that will continue to do excellent work in this city. But in this extremely challenging economic environment it is no longer practical for Clark to pursue the deal structure we currently have in place." The District announced on February 14, 2008, that Clark had been selected to lead the development team. Development had always been contingent upon several key factors, such as transfer of the land from the federal to the District government and a favorable environmental impact study. Several groups have since contested the project, noting the diversity of wildlife that exists on the site, and the desirability of converting it into a 70-acre park and mixed-use development. In an interview with DCMud last May, the Deputy Mayor said the project remained on track. "Poplar Point is off in the distance, but Clark, the main developer hasn’t had problems getting the money they need. There is such a strong interest in the development of the District that as long as that interest remains, these projects will stay on schedule." Development was never expected to be imminent, with most of the interested parties pegging construction over a 10 to 20 year timeframe, the announcement is a setback for the District, which began the official search for a development partner back in August of 2007. "The District will continue the planning process for Poplar Point and pursue avenues for site remediation and infrastructure development. In the near future, the District will issue a solicitation for vertical development partners for site. All development activities will continue to be contingent upon the outcomes of the environmental impact study process," said Albert.

Washington DC commercial property news

Deputy Mayor Forges Ahead on Janney-Tenley

The Tenley turf wars heated up this week, with the Fenty administration's renewed support of LCOR's redevelopment plan for the Tenley Library site. Two months after submitting a letter condemning the Janney Elementary/Tenely Library redevelopment's proposals, Washington DC City Councilmembers Mary Cheh and Kwame Brown have received a reply from Deputy Mayor Neil Albert. The letter obtained by DCmud outlines the Office of the Deputy Mayor for Planning and Economic Development's (ODMPED) stance on the project, while the same time dismissing the representatives' call to abandon the project's proposed residential component.

"As I am sure you are aware, the original rationale for this project is two-fold. First, it is part of a District-wide effort to capitalize on transit-oriented development. The site offers the District the rare opportunity to leverage a parcel across the street from a Metrorail station, bringing additional residents and workforce housing units to an underserved Wisconsin Avenue corridor,” states Albert in a letter dated January 12th. “Second, the money the District will receive in the form of a prepaid ground lease will be used to move the Janney School modernization up in the queue from Fiscal Year 2014…to Fiscal years 2009, 2010, and 2011.”

As a recap of the battle, the struggle involves the Deputy Mayor, who is interested in developing the metro-centered site and chose LCOR as project developer, DCPL (the public library), which wants to replace the library closed down three years ago, Janney parent groups, which don't want to cede an inch of existing outdoor space to an apartment building, DC Public Schools (DCPS), which will have to renovate the school system if a developer does not pony up, and a determined group of locals that have filibustered every large development in the area, and successfully thwarted the first developer for the site.Albert supports the residential tower atop the new library, reasoning that “a stand-alone library would eliminate any potential cost savings for the library, would make any future development on the site cost prohibitive and would require much more of…Janney Elementary[‘s] green space.” The latter is a reference to objections by the Janney School Improvement Team (SIT), which withdrew their support - along with Cheh and Brown – for the cession of existing green space to the development. But Albert counters that LCOR’s revised plans now result in “a net gain of 300 square feet of green space at the school” through conversion of pavement to turf. Though such plans have yet to be released publicly, the Deputy Mayor states that a “fully formed proposal” will be unveiled on February 10^th.

As previously noted, DCPS have had little say in the direction of the project, while DC Public Libraries (DCPL) have been privy to the bulk of the negotiations between ODMPED and LCOR . “Preliminary estimates show that [DCPL] will save approximately half of its construction budget under this mixed-use scenario for their new 20,000 square foot library. This amounts to approximately $5 million in cost savings,” says Albert - though when initally estimated by ODMPED, the library sported a projected cost of $16 million. This most certainly is not the last word on the project.

Washington DC commercial real estate

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

Developer Chosen for 5th & I

The District of Columbia announced this morning that it is partnering with developer Donohoe Companies to bring a high-end hotel, retail outlets and jazz club to the soon-to-be booming Mount Vernon Triangle. In a press conference held this morning, Washington DC Mayor Adrian Fenty laid out the changes that will soon be coming to the District- owned site at 5^th and I Streets NW and praised developments in the area as a whole.

"It's important that we move these projects fast, that we get them out to developers who know what to do with them and I think that...in less than a year we've demonstrated that we're not just holding onto these properties," said Fenty. "We're allowing them to be developed for the benefit of the community."

Those benefits will take the shape of a 475,000-square foot development, titled Arts at 5^th & I. The project will center around a new 260-room ME Hotel from luxury Spanish hotelier, Melia and also include - promoters say - a bicycle retailer, hardware store, book store/café and new outlet for the Zenith Art Gallery. Perhaps most exciting for local residents, who lobbied the city for more entertainment-oriented projects in the neighborhood during the 6 month bidding process, will be the addition of a new music venue in the form of the Boisdale Jazz Club – the first US location from the London-based chain of nightclubs.

A new apartment complex sporting 166 apartments will also be springing up on the site, with the developer pledging to a minimum of 50 affordable-housing units within the building. Rounding out the proposal is a 238-space underground parking garage. Groundbreaking is a projected 18 months away, following approval by the City Council.

Jad Donohoe of the Donohoe Companies outlined future plans for not only 5^th and I, but the rest of the Mount Vernon Triangle area as well. “We’re going to take this lot and then move up 5^th Street and take out those vacant properties,” he said. “[Donohoe is going to] redevelop that entire street and build on the investment that the city has already made in CityVista.”

The District’s selection of Donahue comes at the end of a 6 month bidding process that saw JBG, Buccini/Pollin, Potomac Investment Properties, and the winning Donohoe-managed joint proposal that included Holland Development, Spectrum Management, and Harris Development, all vying for a contract to build on the coveted Ward 6 parcel. With regards to how Donohoe’s joint proposal edged out the competition, Deputy Mayor Neil Albert said:

I took a look at their work and was very impressed with it. The community wanted entertainment as part of the development and they had a jazz club, which was well received…and then, they were going to pay us $7 million for this piece of land. They definitely had the best proposal. And that’s not just our rating, but community support was overwhelmingly in support of this proposal.

The 5 & I site was transferred into the city’s portfolio in October 2007 in the wake of the National Capital Revitalization Corp.’s (NCRC) dismantlement. DC's Office of the Deputy Mayor for Planning and Economic Development then issued a Request for Proposals (RFP) early this year. The District is negotiating subsidies for the project with Donohoe at present and hopes to generate approximately $85 million in tax revenue from the Arts at 5^th and I project.

Major Tweeking for Tewkesbury

The Office of the Deputy Mayor for Planning and Economic Development just announced that four developers have submitted proposals for the redevelopment of a vacant 1950s-built, 26-unit apartment building at 5425 14th Street NW in Brightwood.

Known as the Tewkesbury, the building has been cited for over 100 violations since it was vacated in 1980's. DC bought the property for $3 million from Vincent Abell, one of the 20 less-than-savory landlords sued in April for code violations on rental properties.

Blue Skye Development, LLC and The Educational Organization for United Latin Americans Spanish Center, Mi Casa, Inc., PML Real Estate, LLC, and 14th Street Partners, which includes UrbanMatters Development Partners LLC, Northern Real Estate Urban Ventures, and Emory Beacon of Light, Inc. responded to the District's May solicitation for the 30,000 s.f. property.

The District would like to see senior or, you guessed it, mixed-income housing for the site, but did not specify whether or not the units had to be condos or apartments. Over half of the units must be affordable.

“This property has been a blight on the neighborhood for more than 20 years,” Deputy Mayor Neil O. Albert said. “The response to our solicitation clearly shows that the development community -- just like the residents of Brightwood -- is eager to get this property back into productive use.”

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

From AWC to NCRC to DMPED, Fenty Lauds Change

Mayor Adrian Fenty, Deputy Mayor for Planning and Economic Development Neil Albert, and Councilmember Jack Evans (D-Ward 2) held a public ceremony this morning to celebrate the one year anniversary of the District's decision to disband and take control over the portfolios of the Anacostia Waterfront Corporation (AWC) and National Capital Revitalization Corporation (NCRC). In a tribute to their combined foresight, the Mayor lauded the District's "significant progress" on over two dozen key from the portfolios since the merge, and offered up morsels of imminent announcements. "There were a lot of properties in these two quasi-public entities and it was the decision of the Council of the District of Columbia to make sure that those properties moved a lot faster, that they got developed quicker, and most importantly, that people saw results and I can say that a year later there has been a flurry of consistent activity," Fenty said. With $60 billion in the citywide pipeline since 2001 and $13 billion in current economic development projects, the Office of the Deputy Mayor's portfolio now includes over 12,000 residential units - including 4,500 "affordable" units - 1,800 hotel rooms, 2 million s.f. of retail space, and 8 million s.f. of office space.

Looking back on their recent successes, the Mayor noted that on May 14th, the District issued a RFEI for a master developer for Hill East Waterfront, 50 acres around the former DC General Hospital site. On June 4th, the District issued a solicitation for a development partner for Parcel 69, a potential $130 million office/hotel project by the Southwest Freeway. Master land planning began at Boathouse Row in SE on July 11th. On Tuesday, the Council approved a $198 million TIF/PILOT package to fund park and infrastructure improvements for the $1.5 billion Southwest Waterfront redevelopment. Yesterday the District selected Argos Group to develop two properties on Capitol Hill, including the Old Engine House 10 into eight condominiums. And looking forward, Albert told DCMud the Strand Theatre project (5131 Nannie Helen Burroughs Avenue, NE), developed by Washington Metropolitan Community Development Corporation and Banneker Ventures, will break ground in the next two weeks. He added that his office will also announce a developer for 6425 14th Street, NW in the coming weeks, a 12,100-s.f. parcel of land in Brightwood. Sean Madigan, Director of Communications in the Office of the Deputy Mayor, predicts an announcement for 5th and I, as well as Minnesota-Benning Road, NE, in the next few weeks, and that the Park Morton development group will be announced "imminently." Evans, who had a hand in the creation of both the NCRC and the AWC, said the decision to create the organizations was correct at the time, as was the decision to consolidate them. "I was there for the creation of NCRC and AWC and at the time when we were looking at putting those semi-private entities in place, the District government wasn't functioning, and so the idea of having an NCRC was something like the Pennsylvania Avenue Development Corporation model to get economic development projects done in the city," Evans said. "Then we learned that the semi-private entities were not doing what they were supposed to and we rolled them back into the government and put them under the Deputy Mayor and as we said today, it seems the decision was absolutely the correct one, because now we have a unified government and we can now focus on these projects and get them done. What we did in the past made sense and what we did last year made sense and we are now celebrating the results of those actions," 

Evans concluded, as the development troika lauded each other's vision and accomplishments. Albert added that a major goal of the consolidation was to establish one point of accountability for economic development in DC, but also to save taxpayers money. "One of the reasons the Council and Mayor worked so hard to consolidate the agencies, was to make sure that there was a single point of accountability on all economic development projects here in the District. Citizens had been asking for it, and they got it with this merger. Also, this merger resulted in significant savings for the taxpayers - over $5 million in savings because of the consolidating," Albert said. Like a gloating parent, Fenty added, "I just love efficient government, we have too much waste - a lot of these quasi-public commissions and entities and boards, they just spend money wastefully and we're gonna put a stop to that too." 

Washington DC retail and commercial property news

District Picks Developer for Old Engine House 10

The Office of the Deputy Mayor for Planning and Economic Development announced yesterday that it selected the Argos Group to redevelop two Capitol Hill buildings including Old Engine House 10 into two buildings with four condo units each, half of which will be affordable.

Located in the northeast corner of Capitol Hill at 525 Ninth Street, NE and 1341 Maryland Avenue, NE, both buildings are just over 5,000 s.f., assessed at almost $1 million, and have stood vacant for years. The District issued a solicitation for developers in January, three teams responded.

Offers were evaluated based on experience, project feasibility, unit affordability, offer price, and Certified Business Enterprise participation. The developer, who has far exceeded the 30 percent affordable housing requirement, must also use green building design standards.

The Maryland Avenue building is 114 years old and was designated a historic landmark in January of this year. The Ninth Street property, built in 1932, was formerly a police station. Both were controlled by the former National Capital Revitalization Corporation until the agency was dissolved and it's properties transferred to the Deputy Mayor's Office.


Deputy Mayor Neil Albert said it is time for the buildings to become more aesthetically pleasing and put to better use. "These are great historic structures, but they've been neighborhood eye sores for far too long. Argos is a highly capable local developer that will put these properties back to productive use and make lasting improvements to these neighborhoods."

Argos' $3 million redevelopment project, within walking distance of the H Street corridor, will be designed by Architrave with construction by Hamel Builders.

Industry Insight: Neil Albert on DC Development

He may not get microphone time at every press conference or a pair of scissors at every ribbon cutting, but Neil Albert, Washington DC's Deputy Mayor for Planning and Economic Development, keeps busy as the man behind the curtain for development in DC. Despite a schedule kept full by the 10,000 new affordable housing units he has been charged with creating in his first four years, Albert made time to sit with DCMud to discuss the latest RFPs, affordable housing, and why he thinks DC can shed its monumental, federal skin and become an full-fledged international city. 

You went from working with the previous Mayor as Deputy Mayor for Children and Families to the Deputy Mayor for Planning and Economic Development. How did you get into development? 

Albert: I started in finance and headed a nonprofit in New York. I was interested in parlaying that expertise into development on a small scale. I had the opportunity to really get into development when I was Parks director; a large part of what I did was real estate development. We built a number of recreational facilities in the city, including the first LEED-certified facility in DC. I then became Deputy Mayor of Children Youth and Families because that portfolio was one of the ones that needed a little shaking up and focus and energy. The former mayor asked me to do it and I did it for a year. Then I went into the private sector and started a nonprofit working with DC schools in professional development and bricks and mortar actually building new schools. I’ve always had a real estate finance focus throughout my career. When the mayor-elect asked me to join his administration in this role, I thought it was a great opportunity to put what I’ve been doing together. What I do is not just about financial real estate development, but there is a human component to what we do. A major part is the New Communities portfolio, the human capital – HOPE VI-type developments. We’ll be removing a lot of traditional government subsidized housing to create more mixed income housing. Part of that is changing psyche, the mindsets; preparing them to be able to write a red check, go to work every day like everybody else.

Speaking of subsidized housing, the bar for the amount of subsidized housing private developers must provide is being raised from 20-30 percent. On what basis was that decision made? 

Albert: That decision was made before us. When the Anacostia Waterfront Corporation was dissolved, the Council adopted legislation that required the affordable housing component - that’s the majority of what my office works on. By default, it has become standard here. 

How does that play into some of the other new developments the city has issued RFPs for - in which the city asked for 30 percent but is not doing the workforce housing? It’s like the city is focusing on lower income development. 

Albert: The mayor made a real commitment to affordable housing when he was elected and we are committed to building over 10,000 units in the first four years at different AMI levels, so all RFPs have the 30 percent requirement and our language is pretty general because we want to make sure that we achieve affordable housing levels without paying unnecessarily for it. And so what drives affordable housing in mixed-income developments is having market-rate housing that can actually subsidize lower income housing without having to come to the District government for subsidies. We want true diversity in housing. Whether it’s Hill East, Poplar Point, 5th and I, including the affordable component is necessary to have the correct mix. 

These are perhaps not the best times for condo builders. How does that play into the marketability of a project during difficult times? Albert: I don’t know if it makes it more difficult. From our experience, in the last few years, the development community has embraced not necessarily the 30-30-30 mix, but at least the 30 percent affordable component. City Vista is an example, and I think that’s kind of what’s driving that project being sold. It came on line at a time when the condo markets were going in the wrong direction, so having twenty percent of the units as affordable provided some stability. The market on the affordable level was much greater than the market than on market-rate level. The results and feedback from the development community have been positive. Yes, people like to make as much profit as possible, but we have to balance their need for the highest return with the broader city policy and goals for providing affordable housing. 

You referenced City Vista and other projects that have an affordable housing element. Some developers have told us that they are having some difficulty finding qualified people and actually bringing them to the table, that this makes their job more difficult. Have you ever studied that?

Albert: I would say they need to try a little harder. We can do a better job as a government, having a central repository database, which we are working on. I know the city Council actually passed legislation that will require a sort of central registry for those interested in taking advantage of affordable housing projects. In some cases it’s about us doing a better job preparing applicants; it’s a huge education process that needs to go into preparing people for home ownership. You can’t just get up one day and decide to be a home owner. When you buy a condo, pay the fees, have to abide by the rules of the condo board or association - you have to have a down payment, some sort of reserve in case the AC breaks and it’s not the condo association’s responsibility - we can do a better job of preparing those in that income category to take advantage of these opportunities. In that case, yes, people have gone to the table and not closed. 

Where did the 10,000 unit figure come from? 

Albert: The 10,000 number came out of a housing task force in the Williams administration, and then-Councilmember Fenty introduced legislation that set up this Comprehensive Housing Strategy Task Force and they made a recommendation that the city needed to build 55,000 new units of housing over the next ten years to deal with the population increase, special needs housing, etc. And then they broke down some sub categories – 19,000 affordable, and for those affordable units, there were some smaller ranges that included special needs 2,500 units, etc. We wanted to make sure that we could achieve that in a ten year period, so we set a goal of 10,000 in first four years, so with about 2,500 a year we are well on our way to at least funding those projects. We’re not only calling for them, we are providing funding for them through the housing production trust fund and some of the other housing sources available. I am confident that we’re going to make that. 

In terms of your position, you have a huge hand in what happens in terms of development, and development seems very high on Fenty’s list given his appearances at development press conferences. How do you want DC to be perceived from a national standpoint, what are your development goals? 

Albert: We want to truly make a diverse city here, but my opinion is that we have the great opportunity of positioning this city as a great international city on par with Paris and London and Amsterdam. People talk about great cities and I see DC as one of those. We are not on the cusp of that yet, we have a little ways to go, but I think we’ve got the major elements coming together. We have a vibrant downtown, people want to be here, and every vacant office building is being gobbled up by big lobbying firms or law firms or national organizations that need to be near the seat of power. We’ve started to pay attention to our retail. We can now shop in DC, when I came here eight or nine years ago, you couldn’t do that. Now there are good restaurant choices, you have really great options springing up and also good entertainment options. The Washington Post did an article about how DC is no longer a daytime town, it’s becoming a nighttime destination, so you don’t just leave the office canyons and go home to the suburbs, you go to night clubs and restaurants in the central business district. 

What I think will put us on par with some of the mature cities that make a statement both locally and internationally is having kind of the right balance between cultural amenities, which we have a lot of in our museums, but also local cultural amenities like the Spy Museum and Madam Tussaud’s; cultural amenities not just downtown, but also in other neighborhoods. We have lots of theaters and shopping destinations, so that when tourists come, they are not just sleeping in hotels and visiting the Mall, but also getting into the neighborhoods and discovering them. So what I would like us to be known for is raising the bar to be a city on par with a lot of the other international cities. And right now, we kind of lay in the shadow of great U.S. cities, but we are still holding our own. 

How do you see your specific role and interaction with the private development community and with residents of the city - how do you mix the two? 

Albert: I see myself as convener of private sector and the natural community residents who sometimes have needs that complement each other and sometimes oppose each other. In many cases, my role is just to be the arbitrator. Getting the services from the private sector that the residents need, whether it is incentives or bringing offices to neighborhoods so people don’t have to jump into a car to get to work, but can hop one metro stop to another. I really see my role as a convener or facilitator of those communities. I am really concerned about the amount of new jobs we create in the District, I’m happy to say that even while the rest of country is going through a downturn, we are still seeing job growth in DC. Traditionally, you look at the government as the creator of jobs. In the District they still are, but the service industry is also creating new jobs in entertainment, restaurants, retail and the federal government is doing its role by positioning government agencies in the District – the DOT by the ballpark or the ATF building at New York Avenue. They put us in partnership with each other to keep the economy going. Our job is bringing the balance between the haves and the have-nots in DC, so we have the big law and lobby firms and the non-profits and the associations who are squeezed by real estate taxes right now, but that add to the flavor of DC. Instead of them having to relocate to suburbia, we step in and try to provide incentives to keep them here. We are trying to keep a vibrant balance of community within the city. The city has issued a number of development RFPs. When will we see some selections? Albert: 5th and I will be announced soon, and Minnesota- Benning, we are so excited about that project, but we won’t make a selection until August. The developers up for that are City Interest who owns the East River Shopping Center and Parkside, Donatelli Development, and Marshall Heights Community Development Organization which is partnering with Rick Walker who did the Home Depot and Brentwood Shopping Center by the Rhode Island Avenue Metro station. They are all competing for the 600,000 s.f. of developable space. 

And Tenleytown? 

Albert: Tenley is still outstanding; we’ll hopefully have a decision soon. 

Can we ask about MIZ (Mandatory Inclusionary Zoning, requiring most developers to build subsidized units)? Councilmember Graham has been vocal about moving it forward… 

Albert: Yes, the mayor is committed to MIZ, but he wants to do it in a way that doesn’t slow or stop the development of mixed-income housing. My job is to do it right. We are getting comments from a wide cross section of the city including the private sector, affordable housing providers, and advocates. We issued administrative regulations two months ago for comments. We are going to take those comments and reissue a draft of the regulations and put it out for final vetting and hopefully make a decision in the next sixty to ninety days. I also believe that the housing development community will embrace it because I think we’ll do it in a responsible way that’s non-punitive. Then, we’ve been looking across the country to see how this has worked. It’s a mixed bag but it’s going to happen. 

 Finally, developers have told us that they struggle with the amount of information that has to be provided with a PUD and with the amount of time it takes to get approval for projects in DC. What is your response to that? 

Albert: I totally agree. We are working on it; the Office of Planning will be sending suggestions about how to streamline the process in the entire District. The PUD shouldn’t take 18 months anywhere in the world, not to mention the DC area.