Infill Lot Added Back to List of Planned Development for H Street

With plenty of attention lately on several big development projects planned for the H Street corridor, a small chunk of land on the south side of the 1100 block of H Street is easily skipped over, but the 5,456-s.f. lot sandwiched between Family Dollar and Me & My Supermarket is also being revitalized as new retail-and-residential space. 

Last fall, the Office of the Deputy Mayor for Planning and Economic Development (DMPED) announced it had partnered with Wall Development in a $3.5-million effort to develop a mixed-use building on H Street, however, the approval of the land disposition agreement for the project by the D.C. Council didn't occur until this past July and the project timeline slipped about 6 to 7 months, explained Stan Wall, president of Wall Development. Now, with approval, Wall is gearing up again to deliver a 5-story, 16,000-s.f. residential building with 2,000-s.f. of ground floor retail, spanning 1113-1117 H Street, NE, by the summer of 2013. Constructed as a matter-of-right, the building will offer 16 one-bedroom residential units (registered as condominium, but could end up for sale or as rentals depending on market at delivery) with four set aside as "affordable," and is currently in the design phase; Wall presented the latest design for the project, by Square 134 Architects, to ANC6A last night. A general contractor has not been selected, as construction is still eight months away, but Wall hopes to have construction drawings complete by the first of next year, to have permits squared away by April, and to commence construction in June. If all goes well, the building will be ready for occupancy by August of 2013. Design and construction will have a sustainable focus and Wall plans to apply for LEED certification upon project completion. 

Washington D.C. real estate development news

New York Ave: Site of DC's First Walmart?

The Walmart coming to Georgia Avenue, NW, may have been the first of the four forthcoming Walmarts with a lease, but the Walmart headed to the planned retail center "The Point @ The Arboretum" on New York Avenue, NE, now looks more likely to be the first Walmart in Washington DC to get built. Because the New York Avenue site is part of a Large Tract real estate development approved by the Office of Planning at the end of August, the entitlement process has passed DC's review – and risk of revision. This summer, Ward 5 Councilmember Harry Thomas Jr. expected the project to be underway by late fall of this year, however, the several-month-long permit approval process has not yet begun. Designed by Brown Craig Turner, and being developed by Rick Walker/WV Urban Development LLC, – the inaugural store location may depend on whether the Car Barn on Georgia Avenue is deemed historic by the HPRB next week, and if the Walmart construction timeline will be affected.

A construction timeline for The Point project has also been difficult to pin down. The businesses currently on site have been vacated, and Rick Walker stated that the development team has begun preparing plans in order to file for raze/building permits that will accommodate Walmart. Lowe's has also been interested in the site, but has not yet committed to a lease, and just yesterday, news came that Lowe's was deserting the 25th Street Station development in Baltimore, also by WV Urban Development, a $65-million project that also includes a Walmart, still on board. The back-out comes with bigger news of the closure of tens of Lowe's stores nationwide. The 14.8-acre New York Ave. site, a blunt-nosed triangle located north of Montana Avenue, and between New York Avenue and Bladensburg Road, will eventually hold 364,900 s.f. of buildings: three 1-story retail buildings, one 3-story retail building, two bank pads, the 126,200-s.f. Walmart, and either a 126,000-s.f. Lowe's or other big-box retailer. 

The site lacks good karma, however, having been the site of the ill-fated Abdo-Broadway housing complex abandoned last year. With permits still needed for The Point project, the Georgia Avenue Car Barn Walmart is further along in the process. Although a building permit (the most time consuming to secure) was issued to developer Foulger-Pratt on Monday, developers need a raze permit and a potential historic landmark status could stymie that process. Meanwhile, at least one big-box, discount retailer, Ross, is headed to Northeast, at the Hechinger Mall complex on Benning Road. Ross, taking over an existing retail location, will beat both Walmarts by a long stretch, as it opens next week. 

Washington D.C. retail and real estate development news

Eyes on East of the Anacostia

Of late, eyes have been drawn and ears perked to new
public and private sector development, business forays and enhancement efforts east of the Anacostia River. Today, the Washington DC Economic Partnership (WDCEP) together with the District is leading a restaurant site tour, encouraging investment in three areas east of the river: the Minnesota Avenue orange-line Metro stop (site of new DOES headquarters), the intersection of Branch and Pennsylvania Avenue, SE (site of Penn Branch Shopping Center), and the Capitol Heights blue-line Metro stop (site of the Hope VI Capitol Gateway project). "The District is working with WDCEP to highlight opportunities for restaurateurs and retailers in Ward 7 and Ward 8. The locations [on the tour today] are just a handful of opportunities that we’ll be focusing on as part of our overall efforts to expand restaurant and retail options in these two wards," said Jose Sousa, communications director for the Office of the Deputy Mayor for Planning & Economic Development. In all, there is around 35,000 s.f. of retail space to be leased; the vast majority being at the Capitol Gateway Marketplace (27,000 s.f.) in the Deanwood neighborhood.

Washington D.C. real estate development news

Giant Steps for New Supermarket on H Street

Nearly as promised, Steuart Investment will officially break ground, tomorrow, July 19th, on its Giant-anchored mixed-use development at 3rd and H Streets in Northeast, after having secured the necessary permits one day before Steuart hoped to break ground - July 1st - on the Torti Gallas and Partners designed 286,500 s.f. of retail and residential.

In less than two years, the corner will offer 215 rental apartments, and an alternative big-box, grocery-shopping experience to Murry's down the street at 6th, which has some telling reviews on Yelp.

The new 42,000 s.f. Giant will take up the majority of the first floor in the six story building, with the remaining bulk, floors two through six, being residential. The ground floor will also offer a small, corner retail bay with 22' ceilings, as well as a lobby.

Giant and Steuart Investment shook hands on the deal in November of last year, when other suitors for the lease - Yes! Organic Market, Trader Joe's, and Harris Teeter - were passed over. Clark Builders Group will take six months to dig down (and construct the foundation to grade) before building up, as two floors of underground parking with 270 spaces - 125 for shoppers and 145 for residents - is planned for the site.
When Guy Steuart, director of Steuart Investment, originally submitted plans for a PUD to the District, around 2005, he hoped to build an 8-story structure with three floors of parking, but the plan was deemed too dense, and height and parking were both trimmed. Of construction on the site, Steuart explained, "The mess will be gone by and large in 18 months... the Giant plans to open in the spring of 2013."

Of the design, shown at left (before height was shaved two stories), Sarah Alexander of Torti Gallas explained, "[The goal was] to integrate [it] into the historic fabric of H Street through breaking the building down into three different facades, the main red brick facade takes on more of a contemporary loft aesthetic, the eastern blond brick portion has large glassy bays which help create a rhythm in keeping with the scale of H Street, with setbacks at the upper level, and finally the small townhouse facade on 3rd Street steps down to the adjacent townhouses to the north."

Councilmember Tommy Wells (Ward 6), who is expected to attend the ground breaking, has previously expressed his approval that the development is a four-block walk to-and-from Union Station Metro, and will be located near a Streetcar stop, when the transit project is completed, hopefully in late 2012.

Joining Wells, tomorrow, should be Mayor Vincent Gray, Giant's vice president of sales Shane Sampson, and Steuart.


Washington D.C. real estate development news

Douglas Secures Hecht's Warehouse at Auction

With Patriot Equities having defaulted on more than $44 million for its property known as "Hecht's Warehouse", noteholder Douglas Development picked up title to the property this afternoon as the sole bidder of the auction it held through Alex Cooper Auctioneers. Douglas gained control of the title with an unrivaled bid of $20 million (a hair above the "outstanding debt in excess of $19,999,000") for the entirety of the four-parcel property spanning New York Avenue in Northeast: 1401-1403, 1545 New York Avenue NE, and 2001 16th Street, NE. Meaning, Douglas is no longer the noteholder, but the property owner, and potential developer, of the site.

The City Paper reported last week that Douglas Development had bought the promissory note for the Hecht's Warehouse property from U.S. Bank in March of this year, after Penn.-based Patriot Equities was unable to keep up with a $66 million loan, and the Bank nearly went into foreclosure last year.

Patriot Equities had purchased the Hecht's Warehouse property in 2007 for $78 million and planned a development called Patriot Yards, a warehouse facility that boasted "loading accessibility which is virtually unmatched in the District." At the time of purchase, Abdo was thrilled to have future development in the Northeast neighborhood, with the hopes it would encourage investors for its own 17-acre Arbor Place project, which never happened, nor has development of New York Avenue taken hold.

As reported by the Post on Monday, Norman Jemal of Douglas asserted that his company "is considering a warehouse distribution space at the site or possibly apartments with streetfront retail."

Washington D.C. real estate development news

Sometimes You Feel Like a Nut-Shaped Park

A media release announcing “Mr. Peanut Goes to Washington!” was nutty enough to work. Like those saddled with an anxiety invoking peanut allergy, not everyone will be able to stomach a peanut park, or the blatant corporate sponsorship, but D.C. residents will soon have a new park as a result.

Children in Lincoln Heights might think they've swallowed a bad sandwich, if they happen to spot Mr. Peanut’s Nutmobile (think Oscar Mayer Weinermobile, but a peanut) zipping around the Northeast neighborhood today.

Joining Mr. Peanut in Northeast were Mayor Gray and Congresswoman Norton; the crew was not hashing out the sticky details of a subsidized peanut butter bill, but instead showing support for a collaboration by Planters and The Corps Network to gift Washington D.C. with a peanut-shaped urban park, and tree-planting event.

D.C. is one of three communities nationwide to receive a peanut-shaped park, and also one stop for the Nutmobile on its 16-city 2011 tour. Notable chunks: the supersized vehicle runs on biodiesel and features smooth interior flooring made from wood yanked from a 170-year-old barn.

Located at 50th and Nannie Helen Burroughs Avenue, this new “Planters Grove” peanut-shaped park was designed by New York-based landscape architect Ken Smith and will be surrounded by a greater area of tree canopy once the community-planted fruit and nut trees (39), and serviceberry trees (37) mature.

The focal point of the park, the peanut, is lined by free-standing porch columns that accentuate the delicious hour-glass shape.

Azaleas will border the columns, not only giving a nubby peanut-shell perimeter to the park, but will “note the beginning of America’s urban environmental movement, which began when Lady Bird Johnson responded to the plea of local eight-year-old John Hatcher for azalea bushes for his housing development.”

How many people will run after the Nutmobile, mistakenly thinking that Mr. Peanut is (as he should be) hawking PB&J, as the newest member of D.C.'s growing fleet of food trucks?

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

A House Goes Missing in Northeast

It’s not uncommon to revisit a place from the past, in hopes of a stroll down memory lane, and find instead that favorite haunts have turned over, and familiar buildings have been torn down. It is less common, however, to visit your home and find it torn down. This is what happened to Rafat Azzam and his property at 1053 44th Street, NE, in the Deanwood neighborhood of Washington, D.C. Azzam bought the property from CitiMortage Inc. on April 29th, 2010 for $32,000 (plus additional settlement costs near $1000). It was razed in early October of 2010 by Rightway Development Inc., a Virginia- based construction, demolition and development services company, which was hired by property-management company, Safeguard Properties LLC, a Delaware LLC, which was hired by CitiMortage Inc. 

Prior to Azzam’s purchase, previous owners defaulted on their mortgage and on October 17th, 2008, and CitiMortage purchased the property on April 7th, 2009 at a public auction run by Alex Cooper Auctioneers, with a bid of $256,122.12. According to the D.C. Recorder of Deeds, Azzam's purchase on April 29, 2010 was “filed out of order,” on August 19th, 2010. The deed was refiled and processed on December 27th, 2010. Between this time – August and December – the house was razed. Rightway Development had applied for a raze permit a year earlier, in October of 2009, and the permit was issued by the D.C. Permit Operations Division on August 20th, 2010 – a day after the original "misfiled" deed. Rightway razed the property less than two months after obtaining a permit, in early October of 2010. Azzam visited his property on October 21st, 2010 when he was “shocked” to find it missing; in its place a chain link fence bearing Rightway Development signage. Azzam moved to D.C. from Egypt in order to pursue a degree in Mechanical Engineering, and had sold his property in Egypt “for approximately four percent of its value” in order to buy a house in D.C. to live in while he completed his education, as states the legal document filed with the Superior Court of the District of Columbia on February 22nd, 2011. Azzam maintains that he was waiting on permits to renovate the house before moving in. He also claims to have had $15,000 to $20,000 in personal property in the house at the time it was razed. Azzam is suing Rightway Development, Safeguard Properties, and CitiMortage for $1.3 million in damages and personal property compensation. 

Washington D.C. commercial real estate news

Cartoonish Mixed-Use Comes to Northeast Neighborhood

Over the course of the summer neighbors will come to know the plans for a largely vacant site at 4800 Nannie Helen Burroughs Ave NE, as the planned development goes before the District Council and Zoning Commission for review of the proposed project. In late May, the Commission "set down" the planned unit development (PUD) for public review, and on June 16th, the District Council invites neighbors and concerned community members to voice support or opposition for the site. If all goes swimmingly, a new five-story, 70-unit building of entirely affordable housing will be the future of the site, bordered to the north by Hayes Street, NE.

The development team under the name Northern Real Estate Urban Ventures, LLC seeks to bring 92,000 s.f. of mixed-use space to the Northeast lot. Neighboring structures include a church, single family homes and scattered retail. The new development will include 8,100 s.f. of commercial space on the ground floor and 40 surface parking spaces. The 70 units of housing include 23 public housing replacement units.

Public benefits are still being negotiated and currently include the standard promise of affordable units, green building practices and a First Source agreement. At the Zoning Commission hearing, several commissioners expressed concern over the "cartoonish" design and made it clear they would expect greater detail to be provided prior to the public hearing this summer. More details will become available after the upcoming reviews this summer.

Washington, DC real estate development news

DC Scouts $1.2 Billion in New Development for Rhode Island Avenue

"Think of Rhode Island Avenue NE as a 'diamond' - a largely un-mined yet valuable investment opportunity."

So begins the Office of the Deputy Mayor for Planning and Economic Development's (ODMPED) Draft Rhode Island Avenue NE Economic Development Plan. Focusing on corridor's three-mile stretch through Northeast Washington, the report recommends "over $1.2 billion in new investments in housing, retail, office and public art" over the next 16 years for the surrounding communities of Brentwood, Brookland, Eckington, Edgewood, Langdon and Woodridge.

Developed under the auspices of the Mayor's Great Streets Initiative with contributions from everyone from the three local ANC 5 commissions to WMATA to the DC Commission on the Arts and Humanities, among many, many others, the "diamond" draft hopes to realize more than 3,000 new residential units, almost 600,000 square feet of office space and over 500,000 square feet of retail along Rhode Island Avenue by 2025 – the earliest of which could deliver by 2011. In doing so, they hope to lure residents and shoppers back from surrounding counties, in order “to capture a portion of the $1 billion in retail sales revenues (and jobs) lost each year to other jurisdictions.”

As such, the plan highlights several promising projects already in the pipeline for the corridor, though delayed “until further change in the economic market”: Mid-City Urban and A&R Development’s mixed-use, 274-unit Rhode Island Station project; the H Street CDC’s 170-unit Rhode Island Avenue Gateway; and, lastly, Republic Land’s 257-unit Brookland Square development (pictured). In total, ODMPED states there are “as many as 14 residential development projects planned or proposed…[that could] include over 13,000 residential units combined.”

Beyond merely underlining Rhode Island Avenue’s Grade-A potential for mixed-use development, the draft plan also delves into suggestions for sustainable building practices, public art installations, small business development, job creation, safety improvements and smart growth transit options – the latter of which includes a proposal for new MARC station at Eastern Avenue and Wells Street on the Prince George’s County border near Mount Rainier (though previously suggested alternatives, like a Rhode Island Avenue street car line, rapid bus transit service, or extension of Metro’s Yellow Line are no longer being considered at this time.)

As the “diamond” draft is broken down into four distinct sub-areas - 3rd to 12th Streets NE, 12th to 18th Streets NE, 18th Street to South Dakota Avenue, NE and South Dakota to Eastern Avenue, NE – residents are encouraged to peruse the recommendations made for their specific neighborhoods and submit comments to Great Streets Coordinator, Derrick Woody. ODMPED will hold an open forum to discuss the plan during the week of September 7th “to formally receive any other comments on the plan before it is finalized.”

This is the second such draft plan released by the Deputy's Mayor's office in as many months; in early May, they posted their proposed plans for redeveloping the Florida Avenue Market into "vibrant, mixed-use neighborhood."

H Street Country Club Now Open

After many a stop and start, the Atlas District's H Street corridor will finally see the long-awaited H Street Country Club open tonight. Brought to fruition by DC developer/restaurateur/man-about-town Joe Englert (who also counts the Rock and Roll Hotel, The Red & The Black and Palace of Wonders among his stable of popular destinations for area nightlife) and co-owners Ricardo Vegara and Blair Zervos, the 6800 square foot, 300-seat restaurant at 1335 H Street, NE, will offer up "Mexican cuisine with both southern and northern accents," (we don't know the difference either) along with beers, margaritas and tequilas of the same pedigree from along their 40-foot, tartan-covered bar.

The real crux of the HSCC’s appeal, however, is the in-house entertainment. Just as the nearby Palace of Wonders specializes in turn-of-the-century Fortean curiosities, the HSCC is will highlighting the best and rest of American pastimes with pool tables, shuffleboard, skeeball and, yes, mini-golf. The club’s second story hosts a 9-hole putt-putt course, designed by Arlington-based artist Lee T. Wheeler, which affords customers the chance to “shoot through the corridors of U Street, around the Washington Monument, and past towering K Street Lawyers” for a whopping seven bucks a pop. Baby back that, Chiles.

Washington DC real estate development news

DC’s Newest Development District is…the Florida Avenue Market?

Just around the corner from the ongoing revitalization effort that is NoMa, the Office of Planning (OP) is setting its sights on a similarly minded redevelopment initiative: transforming DC’s wholesaler haven, the Florida Avenue Market, into a “vibrant, mixed-use neighborhood that protects the look and feel of the historic retail markets” while also bring new residential, retail and office projects to the Northeast site.

With the aid of CORE Architecture and Design, EHT Traceries, Inc. and Economic Research Associates, OP released their findings on just how to achieve that seemingly insurmountable task (the surrounding area includes two of the District’s most notorious neighborhoods: Trinidad and Ivy City) late last month in the Florida Avenue Market Small Area Plan. The report details an impressive list of obstacles in the way of redevelopment – even for a city with as many impressive redevelopment challenges as Washington.

Though the crime rate in the surrounding communities goes unmentioned, here’s what OP sees as its primary concerns. Firstly, current zoning statutes prohibit residential development in the industrial zone - a problem that two nearby developments, the Washington Gateway and the Gateway Market and Residences, have been able to circumvent through the PUD process. Secondly, the Market area is comprised of 120 lots with 68 different owners – a ratio that will make acquisition by the city a costly, confusing and time consuming proposition. Lastly, of those lots, many are, in the words of OP, “underdeveloped” or vacant, which gives potential developers little or nothing to work with.

However, OP hopes to relieve that burden somewhat with their framework for potential redevelopment. Taking into account the site’s historic significance (the Center Market first opened in 1802; the flagship Union Terminal Market in 1928), current conditions and infrastructure, current economic and real estate analyses, and community input – “achieved through a series of community planning sessions, property ownership workshops, and through an Advisory Committee” that included City Councilmembers Tommy Wells and Harry Thomas, Jr., the ANCs 5 and 6, Gallaudet University, and Apollo Development – OP has arrived at a preferred mix of commercial and residential uses for the market area (pictured). In an ideal scenario, the Florida Avenue Market will become a new destination by linking NoMa, the New York/Florida Avenue Metro and the neighboring Gallaudet campus into cohesive, walkable and, yes, friendly, whole.

To that effect, the plan outlines extensive overhauls for each prime thoroughfare in the Market area - including the to-be-reopened 3^rd Street – with rehabilitated historic buildings, public parks, new signage and linkage to the Metropolitan Branch Trail. All of this would be done according to “Deaf Design Space principles,” in order to make the area welcoming for Gallaudet’s 1500 strong student population. Sound like a challenge? It will be, but OP hopes to relieve some of the burden from developers by encouraging a 20% tax credit towards the renovation of historic buildings on site.

Presumably to fill in the many remaining question marks (and gear up for an oncoming onslaught of RFPs), OP will be hosting a “Mayoral Hearing” concerning the Market on May 18, 2009 from 6:30 PM - 8:30 PM at Gallaudet’s Merrill Learning Center Building . The meeting will be open to the public - with questions and comments on the Area Plan encouraged. OP’s two-part plan for the Market can be read in its entirety here.

Benning Station Yanked by DC

The much vaunted Benning Station project has lost its main tenant and developer in a recent twist that leaves its future in doubt.

Having long envisioned the Benning Road corridor in Ward 7 as one of the keystones of redevelopment in eastern Washington, DC, city planners aimed to realize their goals by not only attracting new retailers and residents to the long struggling area, but local government agencies – and the traffic that comes with them - as well. To the end, the Fenty administration has masterminded mixed-use projects, like the $108 "Downtown Ward 7" project at Minnesota Avenue and Benning Road, NE that will include large residential and retail components neighboring the new, currently under construction headquarters of the Department of Employee Services. But another project in the same vein may be in danger of falling through. And now community advocates are laying the blame at the feet of those that promoted it – namely the Office of Property Management and the Office of the Deputy Mayor for Planning and Economic Development.

Developer (and Fenty confidant) Ben Soto and DBT Development's $55 million, Bonstra Haresign-designed project was supposed to bring a new, 132,500 square foot headquarters for DC’s Child and Family Services Agency (CFSA) to 4414 Benning Road, NE – along with 21,000 square feet of much needed ground floor retail and a future phase that would include sixty-two residential units. Then, last month, the developer told the local ANC that he could possibly be pulling out of the project, just as news came down from OPM Director Robin-Eve Jasper that CFSA would not be relocating to Ward 7 after all.

“[The] reason the CFSA lease was being pulled was that they had found a ready-to-move in space… in Ward 5, specifically NoMa,” says Sylvia Brown of the ANC 7C04. “The DC City Council passed legislation two weeks ago giving developers in that area a $50 million tax break for the next two years. When you look at the fact that Ben Soto has designed the Benning Station project for CSFA with no additional monies requested and he’s not asking for any tax subsidies, that move to NoMa contradicts what the city says about needing a ready-to-move-in space.”

The news not only raised suspicions of community advocates, but was also an unexpected surprise. Soto himself had reportedly spent $11 million of “pre-development investment” funds to ensure the CSFA’s occupancy. Furthermore, according to the Ward 7 Citizens Coalition, the Benning Station project had already received numerous letters of interest from potential retailers, including CVS, TGIFriday’s and “other neighborhood serving retail” and has been tailored specifically to meet needs of the CFSA – making occupancy by another tenant unlikely, even as the project nears the end of the District-led approval process.

“Just this morning, it was before the Board of Zoning because it needs to have some zoning variations and it’s gotten the approval of the Advisory Neighborhood Commission, as well as the Department of Transportation,” said Brown. “This is a project that had acquiesced to the CSFA’s needs for an additional 50,000 square feet. How can you…negotiate that additional space to meet your particular needs and then pull out at the last minute?”

Director Jasper will be on hand to answer that question herself, when she attends a public forum concerning the future of Benning Station this evening, Wednesday, April 22^nd, at the Kenilworth Recreation Center at 4300 Anacostia Avenue, NE. The meeting will begin at 7 PM.

Washington D.C. retail and development news

Fenty Takes Out Trash in Deanwood

Deanwood's trash transfer facility/recycling center was demolished this week as Washington, DC Mayor Fenty announced the District’s intent to redevelop the site as mixed-income housing. The raze of the 32,000 square foot, one-story building located at 5201 Hayes Street, NE officially kicks off the Office of the Deputy Mayor for Planning and Economic Development’s (ODMPED) search for a development team for the property, which they say can accommodate "up to 232 units of housing."

"Today’s demolition is a big step forward for one of our most important projects in our New Communities Initiative. The development of new housing in the Lincoln Heights/Richardson Dwellings neighborhood is a top priority of my administration’s plan to revitalize the Deanwood community in Ward 7," said Fenty via press release. The RFP is available online and proposals for the project are due on July 6^th by 4 PM.

The trash processing facility was purchased by the District in December 2008 and stands just blocks from a previously solicited ODMPED project at 4427 Hayes Street, NE. That development, also branded as part of Fenty’s New Communities initiative, is set to include 26 new residential units and 9 “replacement housing units” for area residents displaced by renovations at the Lincoln Heights/Richardson Dwellings complex. The Mayor announced on March 27^th that Blue Skye Development has been selected to head up that project.

DC Kicks Off Minnesota Metro Development

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


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

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

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

DC Zoning Approves Abdo’s Newly Named "Arbor Place" New York Avenue Project

Abdo Development’s massive plan to develop 17 acres of auto lots and underutilized space at the intersection of New York Avenue, Bladensburg Road, and Montana Avenue NE took a significant step forward in mid-February, when the DC Zoning Commission gave its stamp of approval to the company’s $1.1 billion residential mixed-use planned unit development proposal.

Abdo (with partner Broadway Management), envisions building at new town center called "Arbor Place" (so named after the nearby National Arboretum), which will include eight 11-story residential towers (some possibly with rooftop swimming pools) containing approximately 3,600 residential units (mainly condos, with some rentals possible), plus 130,000 sf of retail facing new York Avenue, a grocery store, and the 42,000-sf "Arbor Club" health club/day car center open to public membership - all surrounding a three-acre park. Pricing is expected to be in the $450 to $475 per sf range, with about eight percent of the housing reserved as affordable housing. Abdo is currently working with WMATA to get a bus stop at the development, but will also provide a shuttle to the nearby Rhode Island metro station.

The developer plans to finish acquiring all the land by June 2007, with demolition starting in mid-2008. If all goes on schedule, the residential buildings will be ready for occupancy in late 2010.

Note: We know, we know - you all want pictures and designs. As soon as we get our hands on some, we will be sure to put them up!

Two New Hotels to Join Development of New York Avenue NE

Once described many years ago by a local alternative paper as "The Devil's Bowling Alley" for its long stretch of dilapidated auto lots and boarded-up buildings, things are beginning to look up for New York Avenue NE. The latest news is that the joint venture of Rocks Engineering Co. and SharCon Hotel Management & Development Co. is moving forward on its development of side-by-side hotels next to the National Arboretum at the southeast intersection of New York Avenue and Bladensburg Road in the Ivy City neighborhood. The hotels will both be five-story structures, with one being a 126-room Fairfield Inn & Suites and the other a 125-unit Holiday Inn Express Hotel & Suites. The hotels take the place of the old, now-demolished Travelodge Hotel (pictured, officially at 1917 Bladensburg Rd NE). Both hotels are expected to be ready for occupancy in early 2008.

The developers are banking on not only the 80,000 vehicles that pass the intersection each day, but also the other major developments planned for New York Avenue NE. The projects (as have been reported in past dcmud postings) include: Abdo Development's $1 billion mixed-use "Gateway" redevelopment project of 17 acres on the north side of the Bladensburg intersection into almost 4,000 residential units, green space, and a grocery (delivery after 2009); MRP Realty’s "Washington Gateway" project, a $350 million, 150-room hotel and 250-unit residential tower development to be located along New York and Florida Avenues NE (2010 occupancy); and New Town Development LLC’s $1 billion redevelopment of the 24-acre Florida Avenue Market, located between New York and Florida Avenues NE, into 1,700 residential units and 330,000 sf of retail, restaurant, and merchandising space.

Washington Gateway Project Ready to Get Going

In late December, the DC Zoning Commission approved MRP Realty’s plan for its Washington Gateway project, a $350 million development to be located in the NoMa section of Washington, just north of the New York Avenue metro station along New York and Florida Avenues NE. The 1 million-sf, mixed-use project (pictured) is expected to feature two office towers, plus a T-shaped structure, with one side containing a 150-room hotel and the other side a 250-unit residential tower (with 8% reserved for affordable housing). MRP (created in 2005 by former Trammel Crow executives) will also reconfigure the walking areas along New York and Florida Avenues to improve pedestrian access and safety, and also include new plantings and shops along these routes. The architect for the office towers will be Gensler, with SK&I handing the residential and hotel tower. Land and streetscaping will be designed by Occulus. MRP expects to break ground in late 2007, with completion scheduled for early 2010.