NoMa's Capitol Square Hotel to Break Ground This Summer

 Phase One of JBG's long-delayed Capitol Square mixed-use megadevelopment is finally set to break ground, with future phases scheduled for completion over approximately the next five years.

"The first phase of our Capitol Square project, a 200-room Hyatt Place hotel, is scheduled to start construction this summer and be complete by the end of 2013," said a source at JBG.  "The office, residential, and retail will follow in future phases."

Capitol Square will go up on the triangular wedge of land bounded by New York Avenue, First Street, and North Capitol Street, currently the site of the defunct New York Avenue Car Wash, nightclub Mirrors, a Covenant House youth shelter, and an older office building, also named Capitol Square (a name so catchy they had to use it twice).  Phase one, represented by the aforementioned hotel, will be located on the west end of the site, adjacent to where Covenant House is currently located.  The massive new office-residential-hotel-retail project will eventually bring over 2 million square feet of leasable space to NoMa, including 85,000 square feet of ground floor retail space.  Capitol Square is one of four properties in the District being developed under the umbrella of JBG Urban, a multibillion-dollar joint venture between JBG and real estate investment management firm MacFarlane Partners.

The project represents a major step in the continuing revitalization of NoMa which, despite all the hype, is still very much a work in progress.  While various real estate brochures and promotional literature like to cite the area's sizeable daytime population (NoMa BID estimates 40,000), this number glosses over the fact that after the proverbial closing time whistle, NoMa still becomes eerily quiet, though this and many other projects in the works will do much to amend that reality.

The area's bottleneck entrance from the north will presumably be alleviated by street improvements that are part of the Capitol Square project, as well as MRP's upcoming Washington Gateway project at nearby New York and Florida Avenues, which promises a "European plaza experience," featuring widened sidewalks, promenades, and sidewalk cafes.  NoMa has come a long way from when the term "neighborhood" could barely be applied to the area, but for now it remains a work in progress.

Washington, D.C. real estate development news

New Parks Plan for NoMa

NoMa BID released its new Public Realm Vision Plan Friday night for the growing community of residents, shops and offices. The vision includes three parks and a "modern, monumental gateway."

With 1,200 apartments already leased and 2,200 more under construction, there are plenty of residents looking for space to relax, play, and interact. The vision offers ways to create the space they need.

"To me, neighborhoods are about ... the interaction of people both with the environment and with each other outside their own private places," said NoMa BID President Robin-Eve Jasper. "So parks are just a critical part of that. And we have disaggregated what a park is around the concept of what jobs do people hire parks to do."

With that in mind, the Public Real Vision Vision Plan was borne. According to a Friday press release from NoMa BID, the vision focuses on four sites:

1. The Plaza: A public gathering space at First and L Streets, NE
2. The Tracks: A recreation and train-watching venue between the railroad tracks and Second Street, NE at K Street, NE
3. A casual neighborhood park at Florida Avenue and N Street, NE
4. The Gateway: To enliven and add color to the intersection of New York and Florida Avenues and First Street, NE, the plan envisions large, colorful obelisk-type structures greeting residents and visitors on their way to and from NoMa and Washington, D.C.

The vision plan is a preliminary look at what could be created in NoMa, but details have not been worked out. According to the press release, Councilman Tommy Wells introduced legislation that could created funding for the parks.

The press release states that property owners with land next to the proposed sites "have been approached, and many are considering ways they can incorporate the NoMa parks ideas into their own future developments." Translation: NoMa has potential for traditional neighborhood amenities, but its going to take a village.

Washington, D.C., real estate development news

Former Metro Ice Warehouse To Be Replaced By Residential

The former Metro Ice warehouse at 50 Florida Avenue, NE is set to begin a long-rumored conversion to a residential building, according to a PUD application filed recently by B&B Realty Investments. "The building we expect will have somewhere in the range of 185 to 200 units," said David Bralove, Principal at B&B. "Along with 15,000 square feet of ground floor retail. As to whether it will be condos or rentals, we don't know yet. Right now we're hoping to get on the board's July schedule - they don't have hearings in August - which would put us on track for final PUD approval in early 2013."

Drawings from architect Devrouax + Purnell depict a nine-story, v-shaped building, with a twelve-foot-high granite base and limestone veneer, its facade dominated by glass panels and juliet balconies. Inside, there will be three unit types; efficiencies, one bedrooms, and two bedrooms, ranging from 450 to 945 square feet. Plans also include 72 below-grade parking spaces and a large green roof.

B&B purchased the 62,000-square-foot ice warehouse in early 2011 for a rumored price of a little less than $10 million. The lot, which is just under an acre, is presently zoned for commercial use only, but developers have applied to have the zoning amended to C-3-B, over protests from some locals.

Washington D.C. real estate development news

Columbus Circle Upgrade Takes Shape

Columbus Circle, the front yard of Union Station, is finally getting a much-needed rehabilitation thanks to the District Department of Transportation, Union Station Redevelopment Corp. and the National Park Service.

The problems with the current arrangement of Columbus Circle, built in 1912, four years after Union Station was completed, are well known.

Pedestrians alighting from Union Station and its accompanying Metro stop, supposedly the grand entrance to the District, are met with ugly Jersey barriers placed after 9-11, forced to walk across the crumbling fountains, brickwork, pavers and impromptu dirt paths where the grass has gone untended, then cross several lanes of traffic consisting of taxicabs, tour buses and the occasional D.C. Duck.

Navigating around Columbus Circle on Massachusetts Ave. was no picnic either for motorists. Bone-shaking potholes along the Circle made a cab ride from Union Station an often-unpleasant introduction to tourists visiting the nation's Capital.

Worse, pedestrians, mostly well-dressed young Capitol Hill staffers, would often emerge from the chin-high hedgerows at the edge of the Circle and dart across Mass. Ave seemingly at random. At night it was even worse, as battered and rusting Washington Globe streetlights cast long shadows across the Circle, making the traverse from Capitol Hill to Union Station a sketchy encounter at best.

The key to Columbus Circle's restoration is rerouting of traffic, with the removal of a central service lane that cuts the Columbus plaza and fountain off from Massachusetts Ave. The service lane will be filled in with brick and pavers, and pedestrian access widened in certain spots and narrowed in others, encouraging walkers to stay off the grass and not take shortcuts. The new Columbus Circle will eliminate the bottleneck at the east end as cabs and passenger cars merged from the hairpin turn of the service lane onto Mass Ave. Now there will be simply a conventional four way intersection on the west end. Drivers on Mass. Ave, which is increasingly becoming a high-speed artery with 20,000 cars traveling on it a day in both directions, will be able to take advantage of wider lanes as well.

The shrubs at the edge of Columbus Plaza will be removed, and pedestrian islands along the north and south sides of Massachusetts Ave. will be widened. Lighting along Mass. Ave, First Street NE and Columbus Plaza will also be improved, including new lighting for the fountains and flag posts. The National Park Service will also repair the often-dormant Columbus Fountain and its smaller twin sisters at either end of the Plaza with new piping and pumps.

Finally, a new line of security bollards guarding the entrance to Union Station will replace the temporary Jersey barriers.

The rehab by Parsons Transportation Group (which performed the architecture and engineering for Union Station's bike station) and Capitol Paving is more than seven years in the making. But like restoration to Union Station itself, with a hodgepodge of agencies, including Amtrak, Metro, the U.S. Commission of Fine Arts and the National Capital Planning Commission all claiming turf, the process was painfully slow. The initial plans came together in 2004 but work only started last September and won't be complete until February 2013 at a cost of $7.8 million.

Washington D.C. real estate development news

Washington Gateway Finally Breaking Ground?

MRP Realty edged closer to a groundbreaking of the $360 million Washington Gateway in NoMa, as crews this week began disassembling commercial billboards occupying the three-acre site at the intersection of New York Avenue and Florida Avenue, NE.

While some real estate insiders said construction would start shortly, Julie Chase, a spokeswoman on behalf of MRP Realty, said in an e-mail not to read too much into the action on the site as MRP is still in the permitting process. "Yes, the billboards are coming down, but that does not mean they are starting any construction," she said.

The two billboards on the site, both facing the railroad tracks, the Metro Red Line and inbound New York Avenue drivers, have been a familiar sight for road and rail commuters, but now it appears they could finally be replaced by construction cranes and equipment.

The million-square-foot project, designed by SK&; I Architectural Design Group and Gensler and to be built by Davis Construction, will be completed in three phases. The first step will be SK&I's 11-story apartment building with 400 units and 5,200 s.f. of retail.

The initial phase will be followed by two Gensler-designed 11-story office buildings, one with 200,000 s.f. and the other with 400,000 s.f., along with 10,000 s.f. of retail. Gensler is the designer of PNC Place at 800 17th Street NW, and SK& I recently designed Wisconsin Place in Friendship Heights.

All told, the 170-foot high (by some ways of measuring), triangle-shaped project with green space in the middle will have about 15,000 s.f. of retail facing Florida Avenue, NE, which will get its own facelift with new sidewalks, street lighting and landscaping.

The anticipated construction of Washington Gateway comes as the District is in the middle of a $36.5 million rehab of the nearby New York Avenue bridge which will run through September 2013, thanks to federal American Recovery and Reinvestment Act stimulus funding. The bridge reconstruction, which began in March 2011 is about 40 percent complete, according to contractor Fort Myer Construction Company. Already, on the northwestern side of New York Avenue, NoMa West, by Mill Creek Residential Trust, is nearly a year in towards constructing more than 600 residential units, having broken ground in March 2011 and is expected to be complete by spring of 2014.

Washington D.C. real estate development news

Archstone's "First + M" Apartments Doubles NoMa Housing Stock

Walk by Archstone's First + M apartments in NoMa at night, and you’d be forgiven for thinking they’re done and ready for move-in. While the building is still surrounded by some scaffolding and a few traffic barriers, the sleek mixed-use complex, with its distinctive wavy concrete panels and vaguely fortress-like glass towers, looks very much like a present ready to be unwrapped. “Construction is on or slightly ahead of schedule,” says Peter Jakel, Communications Director at Archstone. "We're currently on schedule for preleasing in March, for first move-ins in May."

Next up? An adjacent 435-unit building, tentatively titled “First + M II,” at 35 M Street NE.

First + M (the first), which was designed by Davis Carter Scott and broke ground in June of 2010, features 469 units – 192 one bedrooms, 206 two bedrooms, and 71 three bedrooms – as well as 2500 square feet of ground floor retail. The finished building will also offer tenants a long list of amenities, including a communal chef's kitchen that opens onto an outdoor dining area, a 5000-square-foot 24-hour gym, a massive green courtyard, a “Rooftop Resort” that features a heated lap pool and sun deck, an internet cafe, a theater, two soundproof music studios, a bike workshop, and, yes – a pet spa. This list, along with the overall dearth of housing in NoMa – the 496 units in First + M will boost NoMa's housing stock by a full 50% - should ensure the project's rapid success.

This is just the latest development in NoMa's swift rise from federal office hinterland to arguably the District's buzziest real estate hotspot. Even today, walking north from Union Station or east from Shaw and into the heart of NoMa is a bit like stumbling across a stand of sunflowers in the middle of a desert. Wasn't this a parking lot just last month?

According to the NoMa BID, the neighborhood's resident population is expected to double in the next two to three years, and projects in the planning stages – a total of 9 million square feet of office space, 860,000 square feet of retail space, and another 6500 residential units - will more than double NoMa's available square footage.

Doug Carter, founding principal at Davis Carter Scott, has been

quoted in these pages as saying he wanted the First + M building to be “a little more forward looking,” and it is. Emphasis on “a little.” Standing at the intersection of First and M Streets, one might experience a temporary wave of vertigo, so identical are the recently-completed buildings and the almost-completed First + M project. Conventional mixed-use structures – ground-floor retail, underground parking, residential units up top – are no doubt efficient, and good for the community, but NoMa might be approaching the “too much of a good thing” saturation point. The blossoming of NoMa is a very good thing for the District, and a checkerboard neighborhood of monolithic glass towers is, without question, preferable to a desolate expanse of surface parking lots and abandoned warehouses – but then, these aren’t the only two choices, are they? Building a neighborhood essentially from scratch is a rare and precious opportunity. Why recreate Ballston?

Washington, D.C. real estate development news

Celebrating NoMa

The NoMa BID annual meeting tonight will bring together residents, decision makers and business leaders to celebrate progress and unveil new plans for the coming year including a new approach to parks.

So just how are things going? "Fabulously. Things are amazing," says NoMa BID President Robin-Eve Jasper.

According to the Broker Roadshow Book released this month, the BID has $4 billion in assessed value this year with another $1 billion under construction. There were 380,000 s.f. of private sector space leased in the last year. Twenty restaurants and shops opened in the last three years. New residents signed leases for 1,200 apartments, and another 2,200 units are under construction.

First + M

"I think we reached a point where people are feeling confident about the neighborhood," Jasper said. "It’s building on itself now."

NoMa BID reports a 17 percent increase in average household income since 2010. Jasper said that increase helps coax stores and restaurants to come into the area.

More residents soon will call NoMa home as Archstone's First + M apartments prepare to welcome tenants. The leasing office opened this week, and Jasper said the first residents are expected in June.

With all of those new residents, the neighborhood will need parks. Jasper said a "public realm vision" will be unveiled at the annual meeting. Without giving away all the secrets, she did say that the vision considers how people use parks to create the most useful spaces.

Construction also continues in NoMa. Two new projects are neck-and-neck in the race for being next in the ground: JBG Companies' Hyatt Place Hotel at the planned Capital Square site and MRP Realty's residential building at the planned Washington Gateway site.

Capital Square

JBG says it plans to break ground on the 200-room hotel this summer. It will be completed next year.







A spokeswoman for MRP said permits are still in progress, but the project is on track to start work this summer.

Several projects started construction in the past year, including Trammell Crow's Sentinel Square office project and Stonebridge's third building at Constitution Square.

And there still is more to come in the already booming area that exceeded initial expectations.

Jasper said that initial estimates were about $1 billion investment and 15,000 jobs, but says that today there are 45,000 jobs just in the NoMa BID. "All the right pieces were there, the right people to push to make things happen," she said, adding that the plans were not too restrictive or directive with planning and regulation. "And it enabled the private sector to come in and do what it does best."

"The vision that I have, for what it’s worth, is that in the next few years you start to feel this gravity and cohesion in the neighborhood generally where...there’s a vibrant commercial spine in the area of 1st street, and there’s a great feeling and sense of community in all of the adjacent neighborhoods," she said. "And if you go several streets out -- to all the row houses and apartment buildings --that people feel they’re all part of it. That this whole part of town becomes an area that has its own gravity."

Washington, D.C., real estate development news

NoMa's 'Three Constitution Square' Underway

Add another project to the list for the NoMa BID: breaking ground yesterday morning was

StonebridgeCarras' 345,000-s.f. office building "Three Constitution Square" with 13,000 s.f. of ground floor retail. Like the developer's previous Constitution Square ventures, the building is being built completely on spec, neither office or retail space has been leased, confirms Doug Firstenberg, a founding principal of Stonebridge. The 12-story building, designed by HOK, will be complete by summer of 2013 with delivery to tenants possible the following fall, said Firstenberg, adding a simple endorsement: "It'll be a great building." Three Constitution Square at 175 N St, NE, is part of Phase II in the overall Constitution Square development, bounded by N Street to the north, M Street to the south, First Street to the west, and the red-line metro track to the east. 

Three Constitution Square will be adjacent to the Department of Justice and the New York Avenue metro stop, and across the street from the ATF.  Completed in the first phase of Constitution Square: two office buildings with ground floor retail occupied by GSA and DOJ, a Hilton Garden Inn, and "Flats 130," a 440-unit apartment with ground floor Harris Teeter. The other half of the second phase, underway now, is an apartment-and-retail building, which broke ground this spring. The third and final phase, also an office-and-retail building, is yet to come. StonebridgeCarras built phase 1 entirely on spec, but leased the entirety to GSA before selling it off. 

Washington D.C. real estate development news

Builders Break Ground on New Northwest One Residence in NoMa

Yesterday, developers broke ground on the first residential project Northwest One New Community at 2 M Street, NE, a 12-story, 314-unit residential building in NoMa. Led by developer William C. Smith + Co. along with The Warrenton Group, opening of the $92 million building is expected in late 2013.

Nearly a third of the units will be designated for low-income tenants, with 59 units set aside for former the Temple Court residents (30% of AMI), demolished to make way for this project, and 34 units available for those making 60% of AMI, with retail on the first floor.

Construction was initially expected to be underway in March, but was delayed due to lack of funding. Northwest One was approved by the City Council in 2005, began gearing up in 2008 and the new Walker-Jones School, followed by the first residential component, the SeVerna, which broke ground last summer. 2 M Street was designed by Eric Colbert & Associates.

There will be 4,100 s.f. of ground floor retail and an 8,000 s.f. courtyard above two levels of underground parking, offering between 184 and 192 spots. The 290,000 s.f. building will be concrete, "clad with masonry, decorative metals and soaring full height windows," according to WCS. 2 M Street is estimated to be taking $82 million of the total $700 million needed for NW1, which includes in all: 1,600 units of mixed-income housing, and 220,000 s.f. of commercial/retail space.

NW1 is one of five projects being realized by the New Communities Initiative, a public-private partnership to develop areas that exhibit "high rates of poverty and unemployment, as well as blight and deterioration of the housing stock." The other four projects are Barry Farm (Ward 8), Lincoln Heights (Ward 7), Richardson Dwellings (Ward 7), and Park Morton (Ward 1). WCS Construction is building the residence.

Washington D.C. real estate development news

MRP to Begin Phase One of Washington Gateway in NoMa

MRP Realty will soon move forward with a long- awaited three-phase, 1-million-sf mixed-use project on 3 acres in northern NoMa. Matthew Robinson, Senior VP of MRP, says the $360-million project known as Washington Gateway will break ground before the end of the year, with the first phase residential and retail. The project has been planned since at least 2006, with several near starts over the past 5 years.

At the intersection of Florida and New York Avenue, NE, the Washington Gateway development team will seek financing on a rolling basis. As for now, the team is focused solely on phase one: 400 units of residential in an 11-story building with 5,200 sf of retail.

In terms of getting the first phase off the ground, all seems to be in line for MRP. An equity partner is in place, construction loans are in the works, construction (sheeting/shoring/excavation) permits have been applied for, and a building permit will be filed at the end of September, according to Robinson. One year into construction, MRP plans to start phase two, which will consist entirely of office space. Further down the road, phase three will consist of office space and a retail component.

Nearly 1 million square feet of built area in all, the three-building project consists of approximately 350,000 sf of residential, 600,000 sf of office, and 12,200 sf of retail. The original plan called for significantly less residential space - 260 units versus 400 - with the space going to a 181-room hotel - a component that was scratched due to changing market needs as perceived by the development team.

Robinson says that getting rid of the hotel component, "makes the residential building better. The additional space allows for greater residential amenities [in the form of] increased shared spaces, [including] an extensive 3,700 square foot club room, and two-story fitness center." A rooftop pool and lounge area will offer "Capitol dome views," adds Robinson.

The 11-story residential building was designed by SK&I, and will be built under general contractor Davis Construction. Construction, if underway before the end of the year, should be complete within the next two years. The two 11-story office buildings, to be included in phase two and three, were designed by Gensler. And although the same height, the grade on site varies by about 40', confirms Robinson, creating a height variation optical illusion.

The overall design of the whole Washington Gateway project is a hollowed-out glassy triangle (labeled number 3 on the map to the left), offering an inner triangle of public space, accessible by an opening on Florida Avenue. All retail will front Florida Ave; retail tenants are being pursued, though phase one will be built on spec. Retail will most likely include "neighborhood serving retail," says Robinson, including sidewalk cafes.

Also a part of the development will be a widening, and repaving of the sidewalks along both Florida and New York Avenues. New trees and street furnishings will be added, and landscape architecture design will be the work of Oculus.

"It's exciting right now in NoMa," says Robinson. Washington Gateway will be followed by Camden Property Trust's 60 L Street, NE (1 & II), located just east of the new NPR headquarters currently under construction. Camden's 60 L Street will become NoMa's largest residential building, with 730 units, if it goes through as planned.

Mill Creek Residential's NoMa West, the largest single-phase residential project in NoMa to date includes 603 apartments with a single retail store. Located north of the FedEx building (just north of Washington Gateway) the Mill Creek project broke ground in March, and aims to finish in the spring of 2014.

Several other projects with substantial residential and office space are planned for the NoMa BID, including the Bristol Group's NoMa Station (II - IV), a follow-up to One NoMa Station (400,000 sf office, and 5,000 sf retail) next door at 131 M Street. NoMa Station II-IV is a massive mixed use project to front 1st Street between M and L Streets, NE, made up of: 700,000 sf office, 50,000 sf retail, and 700 residential units.

8/30 correction: 350,000 s.f. of residential, not 290,000 s.f.

Washington D.C. real estate development news

Northwest One's Site 2 on its Way Up

In less than one month, according to the office of Victor Hoskins, the Deputy Mayor for Planning and Economic Development, construction will "officially" begin on another piece of the District's $700-million-dollar Northwest One New Community at 2 M Street, NE, known as "Site 2 (of Phase 1)", where a 12-story, 314-unit residential-and-retail building will go up.

With all permits in place, and pre-construction activity having begun on site last month, the official groundbreaking, by general contractor WCS Construction, is slated for September 12th.

Construction was initially expected to be underway in March, and when questioned about stalled District developments at a WDCAR event in mid-July, Hoskins pointed to NW1 as an example of an active site. "We are currently bringing the community to that location," said Hoskins, of the project's footprint around North Capitol Street in Ward 6, both in and west of NoMa.

NW1, approved by Council in 2005, began gearing up in 2008 and the new Walker-Jones School was the first completed component, followed by the first residential component, the SeVerna, which broke ground last summer.

According to Jose Sousa at DMPED, the "slowing of debt markets" was the cause of the delay, which affected both the development team, led by William C. Smith + Co. along with The Warrenton Group, and the District. The group, Sousa explained, "adapted by securing FHA mortgage insurance from HUD." Final confirmation and approval of the HUD transaction is imminent, said Sousa.

With construction expected to last 28 months, the 314-unit apartment building, designed by Eric Colbert & Associates, should be complete at the end of 2013.

Of the 314 units, 221 will be rented at market rate, 59 units will be set aside for former Temple Court residents (30% of AMI), and 34 units will be available for those making 60% of AMI.

There will be 4,100 s.f. of ground floor retail and an 8,000 s.f. courtyard above two levels of underground parking, offering between 184 and 192 spots. The 290,000 s.f. building will be concrete, "clad with masonry, decorative metals and soaring full height windows," according to WCS.

2 M Street is estimated to be taking $82 million of the total $700 million needed for NW1, which includes in all: 1,600 units of mixed-income housing, 40,000 s.f. of retail, and 220,000 s.f. of commercial office space.

NW1 is one of five projects being realized by the New Communities Initiative, a public-private partnership that aims to develop areas that exhibit "high rates of poverty and unemployment, as well as blight and deterioration of the housing stock." The other four projects are Barry Farm (Ward 8), Lincoln Heights (Ward 7), Richardson Dwellings (Ward 7), and Park Morton (Ward 1). 

Washington DC retail and commercial real estate news

Take a Chance on Me: Skanska Mulls Speculative Offices for NoMa

For a world of runaway debt, careening stock markets, sinking credit ratings and overall financial gloom, the Washington D.C. commercial real estate market is a surprisingly bullish place. One such believer is Skanska, fresh off success with a speculative office project in Penn Quarter, and mulling an encore for its NoMa project that it purchased last January.

With a potential for 680,000 s.f. of development, the site would be Skanska's largest DC area project to date, by far. But the developer is in a building mood, having now leased out 90% of its speculative downtown office project at 10th & G before the doors even open, and with "sincerely strong" interest in its Wilson Boulevard office project. With that tailwind, Skanska is putting the final touches on a design for a two-phase office project that could be moving dirt by next summer. With Davis Carter Scott at work designing 300,000 s.f. of office space for phase 1, the developer "is going full bore on all pre-development activity at this time," says Skanska Executive Vice President Rob Ward.

Not that Skanska would be the first polyanna to build without an anchor tenant already signed on, some of the largest office projects to date have kicked off without a financial savior, such as Monday Properties' 35 story office tower in Rosslyn and the CityCenter DC, both of which are well into construction without a single name to hang in the lobby.

And not that Skanska isn't working on a lead tenant; project supervisors have interviewed commercial brokers and expect to announce a leasing team next week. Still, Ward says the building is "100% funded" from internal capital, and the company can make the decision to build - or not - based on market conditions next spring when planning has run its course. "Its automatically a go if we get tenants, but we'll make that call by the middle of next year."

On the books so far is a large office project for phase 1, which Ward says will be a LEED Platinum design within the existing zoning envelope. Ward notes that while current zoning allows for 680,000 s.f. of development, "we'll be very careful how we build out to maximize light rather than the building footprint." While the retail component is not large - somewhere around 15,000 s.f. - Ward foresees a neighborhood enhancer rather than just a building-serving retail space; "a nice location for a good restaurant and bar."

Skanska's record bodes well for a spec project, and the NoMa numbers are still sound, with the vacancy rate just 9% within the NoMa BID according to Delta Associates.

At 10th & G Streets, Skanska is celebrating a 90% lease up of the office building - its first in the United States - that will complete next month after starting off sans tenant. Only about 16,000 of the 165,000 s.f. office building remain unclaimed, and the 4,000 s.f. ground floor retail space has been leased to Comma, which will serve 3 squares a day. 3 major tenants account for most of the leasing activity that is expected to earn LEED Gold certification.

Skanska bought the NoMa property at First and M Streets, NE, last January for $41 million from an affiliate of the Polinger Company. The site was designated as phases II and III of Capital Plaza, though Skanska will rename the project. Skanska is a Swedish-born company with offices in the United States, including Washington D.C.

Washington D.C. real estate development news

No Mo' for East NoMa This Year?

Charles "Sandy" Wilkes founded The Wilkes Company over three decades ago and began investing in NoMa - North of Massachusetts Ave - shortly thereafter, acquiring property as early as 1985, when Reagan was in office, Mandela wasn't free, and Back to the Future was the highest grossing film in the U.S.  That investment may soon pay dividends, as Wilkes plots a course to finally develop the block of property at 3rd and M Streets, NE, in Noma's long underdeveloped eastern branch. While signs of construction have been evident at the site for several months, Wilkes is holding back on development until the moment is right. That moment may well depend on Douglas Development and its development of Uline Arena; restoration of the historic 60-year-old Uline/Washington Coliseum, according to Douglas, depends on finding a marquee tenant, which they are actively seeking. Despite other real estate projects in the Northeast area rolling forward - Valor Development's 49-unit condo at 3rd and L, slated to begin in spring of 2012; the AvalonBay's 215-unit apartment project at 3rd and I; and Guy Steuart's Giant project at 3rd and H - Wilkes seems to be keeping an eye on what may be the city's most unique entertainment venue just across the street. 

 In addition to the combined Uline and Ice House project by Douglas and 300 M St NE, there are two other substantial planned projects on the boards for East NoMa proper: Union Place II, a 500-unit apartment with 30,000 s.f. of retail by The Cohen Companies, now in the design phase and looking to break ground in first quarter 2012, according to TCC's executive vice president, Eric Siegel; and the long-way-off Burnham Place project, a massive, billion-dollar build by Akridge.

300 M Street has long been idle and is being used for parking in the interim; the reason for the long wait time, according to Wilkes, is that he is "taking the time to determine the right mix of uses [at the site] and determine the right timing." The market is a big factor, specifically the uncertainty of the market for office space in the immediate area, and the unknown effect of substantial commercial density being added to west NoMa. Wilkes is familiar with the market, as well as the ongoing changes in NoMa: along with being an owner of substantial property for over 25 years, he invested in the construction of the New York Avenue Metro stop, and serves as vice chairman of the NoMa BID (a map with the boundaries of NoMa is found below). 

Although the specifics may change given Wilkes' earlier statement, an original design for 300 M, conceptualized by D.C.-and-New York-based Beyer Blinder Belle , incorporated retail, loft-style residences, and office space catering to a large organization: a non-profit HQ, government agency or trade association. One thing is clear about the future use of the site,"It will require zoning relief," explains Wilkes. The Ward 6 location is zoned C-M-1, low bulk commercial and light manufacturing uses, with a maximum height of 3 stories or 40'. Wilkes asserts that the zoning process will take some time, and that ground breaking at the site is not imminent. Wilkes also claims that east NoMa will eventually develop as more of a nod to New York's SoHo and Tribeca than anywhere else in DC, and "patience" is required, but that patience is wearing thin for some. For now, it seems Wilkes' project will sit on the sideline for the rest of the year, as west NoMa continues to witness the highest concentration of construction in Washington D.C. With over $3 billion of private investment shuttled into the whole of NoMa since 2005, 15.7 million s.f. of the neighborhood has been developed, and with 16.8 million more square feet to go, more patience may be a necessary asset. 

Washington D.C. real estate development news

Constitution Square Breaks Ground on Phase 2

StonebridgeCarras broke ground this week on their second phase of Constitution Square, queuing up another residential element in Noma's largest development. The construction will add 203 rental units to the mixed-use endeavor on Noma's northern edge, with another office phase to follow by July. StonebridgeCarras principal Doug Firstenberg says the 203 unit apartment building, designed by SK&I Architects, will be geared toward smaller, highly amenitized units to capture the segment of the market that has performed best next door at Flats 130, which Firstenberg says has been leasing more than 30 units per month and is now 45% occupied.

Stonebridge just now completed Two Constitution Square, which it also built without a tenant, and though Firstenberg initially banked on another large federal tenant, focus has now shifted to private tenants with the expected slowing of the expansion of the federal government and with it federal leasing.

Washington D.C. real estate development news

Hilton Garden - NoMa's 2nd Hotel Opens Late April

The Hilton Garden Inn will open April 22nd in NoMa, the second hotel in the burgeoning neighborhood, offering the area's only sit-down dining room, named Watershed (see menu in the link), headed by well-known D.C. chef, Todd Gray of Equinox.

This is especially good news for residents of The Flats 130 (of which 31% of 400 apartments are leased) Loree Grand at Union Place (of which 77 % of 212 apartments are leased) and Senate Square Towers (of which 95% of 432 units are leased).

As part of the first phase of Constitution Square, StonebridgeCarras was among the most bullish developers in NoMa. Their projects include the recently opened, 50,000 s.f. Harris Teeter in One Constitution Square at the corner of 1st and M Streets N.E., The grocery chain signed a 20-year lease for the site with Stonebridge in 2009. Constitution Square will also house 440 apartments, 905,000 s.f. of office space, and an additional 30,000 s.f. of retail. StonebridgeCarras broke ground on the hotel in 2008.


SK&I Architects designed the core and shell of the hotel, while Texas-based Paradigm Design helmed design of the interior (see renderings) for the 13-story, 204 room hotel which offers a fitness center, indoor pool, jacuzzi, free wi-fi, and adjustable beds. Lisa Haude, President of Paradigm, said the hotel is, "very clean, contemporary, and simple." The lobby showcases wood paneling and a floating glass staircase, with an aqua-blue, beige, taupe and ivory color scheme with wood accents. Todd Gray's Watershed offers and intimate bar area with a casual, open dining room with communal bar height and standard tables and booths as well as patio seating.

Washington, D.C. Real Estate Development News

Largest Residential Development in Years Breaks Ground in NoMa

One of the largest single-phase residential developments in the city's recent history broke ground in NoMa this week. Mill Creek Residential Trust LLC will build NoMa West, three five-story buildings on a 4.3 acre site that will add 603 predominantly market rate apartments to the burgeoning neighborhood. The Preston Partnership LLC is responsible for the design, and R.D. Jones & Associates will do interior work.

Formerly owned by Trammell Crow Residential, which had promised work was "imminent" at several points in the past, the land was transferred by two former principal partners who left Trammell Crow to join the Dallas-based firm. Financing was orchestrated through Berkshire Income Realty and PNC Bank. The site was purchased in 2007, at which point the developers adjusted the 2005 PUD to what amounts to the current plans.

"We are lucky to have weathered the storm that has halted so many development projects in the area and around the country," said Sam Simone, Managing Director of Mill Creek Residential Trust LLC. "We're also lucky to be developing in a city that's been as protected from the economic downturn as Washington, D.C."

Positioned at Eckington Place immediately behind the FedEx shipping center, within the NoMa BID, Q Street will run through the development (see map), allowing for the creation of a pedestrian thoroughfare between the three buildings, which "actually look like six, because we wanted to break up the elevation," said Simone.

Building 100 (for now, until it's renamed) offers warehouse loft designs while Building 200 features more glass and a modern feel. Building 300 is parsed in two parts: one offers traditional rowhouse architecture while the other riffs on the modern design of Building 200. Amenities for the complex include two pools, two club rooms, a media theater room, a small park, and e-lounge, not to mention a paltry 1250 s.f. of retail - downsized from the initial plan for 15,000 s.f. unveiled back in 2006. Simone anticipates the project will span three years to complete.

Development has been a musical chairs game, with owner CSX having selected Fairfield Residential to build the project in 2004, before handing off to Trammell Crow, with each successive developer intending to begin construction in the short term.

Washington, D.C. real estate development news

Neighborhood Report: NoMa

So named for its location north of Massachusetts Avenue, NoMa is a neighborhood that's beginning to assert an identity, if still gangly in its adolescence. But developers and restaurateurs have faith the area will take shape. Here's what's happening:

Gillian Clark's Kitchen on K: Clark's new restaurant, inspired by her now-gone Colorado Kitchen is between four and eight weeks away from permitting. A bigger space and proximity to the Metro means Clark, now the chef at Silver Spring's General Store, plans on daytime and late night hours. In a nod to its progenitor, the menu will showcase French technique via comfort food favorites, as well as donuts during brunch her customers keep asking about. Opening dates? "Ideally spring, but there is no such thing as ideal."

Work in Progress, Todd Gray's Watershed: A few blocks from Clark's spot, Equinox chef Todd Gray and wife Ellen are opening Watershed in NoMa's Hilton Garden Inn. In addition to the raw bar, patio, restaurant and lounge, the Grays will also focus on cooking up morning meals. "D.C. has a real need for power breakfast spots," said Todd. Perhaps Clark and Gray will draw business from Charlie Palmer, the reigning champion of the genre. Watershed will be the sole restaurant in the hotel, which is slated to open in April.

On Skanska's NoMa Development: Sara Krouse of Washington Business Journal reported on the Skanska deal earlier this week, which Executive Vice President Rob Ward says is slated to become office buildings, hotels and potentially residential space. The 63,790 square foot property is located at 1st and M Streets N.E.

NoMa Living: The Loree Grand, which will house Clark's restaurant, was the first new residential projects in the area in over a century. Of the 212 residential units, 66% have been leased. Archstone also has a residential project underway, 469 apartments set for completion in late 2012.

Constitution Square: Of the 440 residential units in The Flats 130, 90 have already been leased since its opening late last year, with 19 new leases just in January. Also set to open in the area is Roti as well as the largest location of The Perfect Pita, which has leased space across from The Courtyard Marriott.

90K: Of the space that's primarily for offices, 50% has been leased. The 412,000 square foot office building also houses retail, which has yet to be claimed. Built by Clark Construction, designed by SmithGroup, the building is the newest office building by Trammel Crow Company.
111 K Street: Sales of J Street's corporate condo (pictured, right), initially fast, have stalled as buyers such as Sierra Club and YWCA have backed out.

50 Florida Avenue: This former Metro Ice warehouse just sold as a redevelopment project to B & B Realty Investments. "We are in the middle of contemplating what we want this space to become," said Rick Brown, a Principal of B&B. "We had a three to five year plan but recent growth in the area has prompted us to reconsider."

Washington DC real estate development news