Design Details Released for DC's Highest Rent District in Chinatown

Developing the only unused and deteriorating corner at 7th and H Streets, NW in the heart of Gallery Place - Chinatown has long been on many minds. Finally, a design by Sacha Rosen of R2L:Architects, which combines the preservation of the six historic structures on site with contemporary new additions, has materialized and is moving through the approval process. Granted unanimous ANC2C consent last Wednesday, Rosen will introduce the design to the Historic Preservation Review Board on September 22nd. Of the design, Rosen said, "This is a very contemporary, but respectful treatment of [the site's] important historic fabric." 

Owned by McCaffery Interests and Douglas Development, the property includes the corner site (801 7th St, actually two buildings combined in the early 1900s), an adjacent structure to the east (675 H St), a rear carriage house, and two buildings on 7th Street to the north of the corner (807 and 809 7th St). The joint venturers obtained the last piece of the puzzle - 675 H St - at foreclosure this past February, for $9.1 million. Rosen explained there will be a new one-story addition on top of 675 H St, and a two-story addition on top of the rear carriage house, however nothing will rise above the existing four-story corner building except for a rooftop mechanical penthouse (set back on the new construction portion). Structurally unsound portions of 807 and 809 7th Street will be demolished and replaced with new four-story additions. New facades, set back from the historic real estate along 7th and H Streets, will be primarily glass; a glass elevator will also be contained within, rising up to a rooftop deck. A four-story atrium will enclose an existing exterior courtyard between 675 H St and the rear carriage house. The entire project will contain approximately 60,000 s.f., and Rosen said that the project's main objective, in addition to honoring the history of the intersection, is to "make the overall development as flexible as possible to accommodate an exciting mix of retail and office spaces." Owners are asking for some of the most expensive retail rents in the city at the site. R2L is also currently working on designs for the Wonder Bread building in Shaw. 

Washington D.C. retail and real estate development news

Douglas Picks Up Another Penn Quarter Site

Douglas Development has picked up another building, this time a club in the making. After letting many of its DC-area properties slide toward tax sale for lack of tax payments, Douglas has picked up the Equitable Building at 915 F Street, NW, a building that had been previously pushed as the Museum of Arts and Sciences (MoA&S), a place where nothing was as it seemed.

Douglas' plans for the building are unclear. Owners of the building, who paid $10m in a recent sale, gave in to Douglas' negotiating ability for a sale price of $5m. The building was planned for the MoA&S, which in fact would have been a large, 3-floor dance club serving alcohol late into the night.

Peter Andrulis, through The Equitable Place LLC, bought the property for $10 million in June of 2009, hoping to turn it into a hot spot for receptions, fund-raising events, and art shows (read: partying) in the Penn Quarter neighborhood.

There had been serious concern from residents that the business operating under the moniker "Museum" and purporting to act as an "educational" event space for curated art events, live performances, poetry readings, and the like, was a guise for a nightclub like Platinum to be reincarnated. The MoS&A was shut down after only a couple soft openings in late 2010, and prior to its planned 2011 New Year's Eve grand opening.

Washington D.C. Real Estate Development News

McCaffery and Douglas Pick Up Chinatown Corner Site

The last undeveloped corner in one of the most high-traffic areas of Washington has just been acquired by McCaffery Interests Inc. and Douglas Development, at 675 H Street N.W., encompassing the iconic corner building, long since boarded up, and the vacant lot behind it.

"This is the best intersection in metro D.C." said Juan Cameron, Managing Director of McCaffery, comparing it to Georgetown's Wisconsin Avenue and M Street hub. "It is a central location with a lot of pulse, narrow streets, tons of foot traffic, a heavy daytime population, tremendous residential presence, plus the energy of the Verizon Center. In our eyes, its the closest thing Washington has to Times Square."

Though "everyone has their ideas for how the property will take shape," said Cameron, in these early stages the venture is dubbed as a state of the art, mixed use development. "Step one is looking for a marquee tenant," said Cameron.

General partners for the venture Douglas Development and McCaffery Interests acquired the property yesterday at auction. The property had gone into foreclosure thirty days ago, after Yeni Wong of Riverdale International had been unable to secure financing for the building. This past month was the last of many times the building had fallen into foreclosure; in 2009, Wong was given a notice for this property as well as 801 7th Street for $13,491,471 plus attorney's fees. Wong bought the two properties in 2006 for $10 million dollars.

This isn't the just the first or second try at developing this corner. DRI, a Transwestern Company, had slated 675 H Street as a two-building project: one that would restore the corner space and rise nine stories over the arch, the other a Class A office building behind the main storefronts. The total project would have yielded 110,000 s.f. of office space and 50,000 s.f. of retail. McCaffrey owns Georgetown Centre, leased by Barnes & Noble, and Mazza Gallery, which it bought in 1997. Douglas owns pretty much everything else.

Update: Alex Cooper Auctioneers states that the lot was purchased for $9.1 million.

History, Secrecy, and Preservation in Downtown DC

Call it delicious irony. The U.S. Secret Service, the organization that has seemingly unchallengeable power to take over sites - land, buildings, streets - that it feels it needs to protect the POTUS, are finding it difficult to take over a single building for office space in downtown Washington DC. The building - the historic Webster School - has remained empty for a decade while the agency has been unable to afford renovation, despite its enormous budget and long term lease of the property.

DC residents boxed out of the botched 2009 presidential inauguration and suffering from an ever widening security perimeter around the President may be forgiven a bit of spite toward the enigmatic agency (not that we aren't happy idling in our car for 30 minutes in advance of a Vice Presidential motorcade, and don't even get us started on the Salahi debacle). But the Service says "financial constraints" prevent it from renovating the skeletal eyesore located across the street from the Old Convention Center site and has no plans in the works for the darkened building.

The school, built in 1882, was used to educate naturalized citizens and by DCPS for many years, but saw its last use in the '90s. The National Treasury Employees Union bought the building for $2m and sought to demolish it (claiming special merit for its needs) to make way for a new headquarters, a move thankfully checked by the Historic Preservation Review Board, which then landmarked the building. GSA subsequently exercised eminent domain on behalf of the Secret Service, which hoped to renovate the school as an adjunct facility to its headquarters next door amid rumors of a pending museum for the site. The Service, with an annual budget this year of $1,500,000,000, says it lacks appropriate funding but needs the space for its 7,000 worldwide employees (it won't give the number of employees in DC). "We have plans to make it usable space for Secret Service employees" says Robert Novy, a spokesperson for the Service, dismissing museum theories.

Legally protected from demolition, the building is also being protected from death by natural causes with a minor structural renovation. But with the hole-plugging came exterior scaffolding and plywood sidewalk canopy that has lasted for several years, annoying neighbors, and the Service says it has no immediate intentions, or even designs, to change that until it receives dedicated construction funds. In the interim, the building has been vacant since the Clinton years, a fact that may be noted by an administration that hopes to stanch charges of fiscal profligacy by cutting its inventory of vacant office space, not to mention ax-wielding Republicans that will begin arriving in town over the coming weeks.

So for the time being the corner of 10th and H will remain dark and fenced off, a less-than-inviting streetscape at night, unless the Secret Service can find a way to make money out of a public nuisance. Perhaps they should ask the Salahis.

Washington DC real estate development news

Corner of Ninth and Eye Street NW Gets Delicious Makeover

Chalk up the Penn Quarter neighborhood for another trendy, upscale restaurant and lounge. Yes, the entrepreneurial ambitions of David Von Storch and his Urban Adventures Company continue to spill out across the District, with the fourth VIDA on the way to U Street next year, and now a new signature restaurant will serve as a more elegant showcase for the many craft beers of Capitol City Brewing Company (also a Von Storch entity). Yesterday Von Storch's company signed a long-term lease to occupy the restaurant space at 901 Ninth St, NW, situated next to the Renaissance Hotel and directly across from the Washington Convention Center. Von Storch hopes to open the doors in mid to late April.

Taking the first portion of its street address, the new restaurant will be called simply 901. The freshly designed and soon to be renovated 7,500-s.f. space will carve out a "hip, sexy and laid-back atmosphere." Estimated at completion to total some five million in renovation efforts, Stoneking-von Storch Architects of Charlottesville, VA will serve as the architect of record, while Hallock Design Group of Miami, FL will assume the title of "project Interior Design firm." The property is owned by JBG Rosenfeld Retail.

“This vibrant corridor caters to residents and visitors alike and we think patrons will enjoy the creative design and relaxing venue as they settle in for lunch or dinner and unwind from their day," Von Storch explains confidently, "We’ve designed a wonderfully edgy, urban dining experience wrapped in its own unique style of elegance." 901 will hop on the small-plate bandwagon with a concept that is a modern combination of Spanish tapas style portions and an array of international flavors. Here are just a few of the crowd-pleasing finger foods expected on the inaugural menu: Ahi Tuna Tartar, Wagyu Beef Meatballs, a Thai Lettuce Wrap, and All American Bison Sliders. With his growing franchise of gyms, salons, and spas, as well as the brewery, Von Storch has proven himself highly successful at delivering creative urban spaces where the young and wealthy want to come to both work and play. Now he hopes those same professionals want to come eat his food.

Washington D.C. Real Estate Development News

Museum of Arts and Sciences Making Peace With Neighbors, To Throw Parties Soon

After strongly worded community opposition looked to stall new development at the former Platinum night club venue, tensions have calmed, construction is underway, and the property is set to officially become the Museum of Arts and Sciences (MoA&S) shortly. But this isn't exactly your mom's museum, as there will be no exhibits, simply empty space making room for the private events that will eventually fill its rooms. Bought by Peter Andrullis through The Equitable Place, LLC for $10 million in June of last year, developers hope 915 F Street will become to new hot spot for receptions, fund-raising events, and art shows (ahem, and partying, ahem) in the Penn Quarter neighborhood.

There had been serious concern from residents that the new business operating under the moniker "Museum" and purporting to act as an "educational" event space for curated art events, live performances, poetry readings, and the like, is all simply a guise for a nightclub like Platinum to be reincarnated. It's difficult to fault locals for having concerns, as the museum's plans call for three large dance floors (40' x 40', 34' x 20', 30' x 10') and the ability to serve alcohol to patrons (with up to 1,300 imbibers allowed) until 2am on weeknights and 3am on weekends. In an attempt to explain his new venture, owner Andrullis originally communicated his business as one that would cater to museum/party-goers aged 25-35 and earning upwards of $50,000, insinuating that income level largely determines a person's propensity for bad behavior.

Think this, but with dinosaur bones hanging from the ceilings.

And while the museum vs. night club debate will certainly linger, the project team, under new leadership, has weathered the storm of protest and worked to quell some fears about the excessive noise levels and raucous behavior that the site was previously known for. In a business overview initially given to neighbors, the team emphasized that the site will "not operate as Platinum did or as other area nightclubs do" and will shy away from events that "lessen management control" like "cash bar only" parties. The locals didn't buy it at first, and were well organized and forcefully vocal in their frustration at community meetings, but the parties have sinse approached middle ground.

At one point the venture was threatened when official letters of opposition from ANC6C, ANC2C, Downtown Neighborhood Association, and The Ventana/Mather studios were sent to Alcohol Beverage Regulatory Administration (ABRA). But the Andrullis family decided to take a back seat and allow local resident and hospitality expert Giles Beeker to lead, manage and control the development going forward. Employing a more effective community relations campaign, the MoA&S is now moving quickly forward with their business plan. Addressing the next door residents' security concerns, Beeker helped forge an in-depth security plan, laying out their strategy to maintain "neighborhood peace, quiet, safety and security" before, after, and during the Museum's events; the plan also includes specific policy and procedure to curb, if not entirely eliminate, lines of patrons waiting to enter the property. In coordination with the surrounding community and their legal representative Manny Mpras, Beeker also developed a Voluntary Agreement incorporating specifics of the security plan and other stipulations such as noise abatement and parking issues; the Agreement was recently approved essentially as-is by ABRA.

Renovations at the future Museum are moving along and inspections have begun. The third floor theater-like balcony has been stripped away so the interior sets up more like the multi-purpose facility developers promised and less like a nightclub. One of the most important renovation features, the soundproofing of several top floor, rear rooms was recently completed. The facade of the building is also getting a thorough makeover helping to erase the scars of the bullets from the shooting that shuttered the Platinum night club in 2008.

After rejecting the community protesters' initial request to deny and dismiss the Museum's ABRA application in late June, the MoA&S was required to submit more detailed business plans and security measures before moving forward with their liquor license application. All requested details were submitted in late July and a fact finding hearing was held in early September. The results of that meeting have not been made public, but the process appears to be moving more smoothly without the weight of community opposition. Developers initially hoped to open the venue on October 1st, but will certainly not have the proper licensing by then. Inspections are expected to continue as construction on the main floor winds down this fall, and work on the upper floors will continue into the new year even after doors are opened. The first experimental mash-up of art, science, and alcohol could happen very soon.

Washington D.C. Real Estate Development News

Douglas Buys Time for Waffles

Last night, Douglas Development's plans for the former Waffle Shop at 1000 F Street received a time extension, saving his "Up Against the Wall, LLC" from an expired zoning approval. Along with architect Shalom Baranes, Douglas received approval in April 2008 to relocate the historic eatery now just two blocks from Metro Center, and in its place construct a large office building. Since that time the art deco 1950s Waffle Shop closed and recently reopened as a tourist's delight, filled with "I heart DC" shirts and Obama memorabilia plates.

Douglas's planned 11-story building would bring 91,000 s.f. office space with 6,000 s.f. of ground-floor retail to an L-shaped amalgamation of lots. Plans also include the renovation and relocation of the two-story Waffle Shop now on the site - reassembled on another site. HPRB had initially granted Douglas's request to destroy the eatery, despite the dearth of retail downtown and the vacant storefronts downtown at the time, but later reneged on that offer thanks to community outcry. The developer committed to moving the shop to a new location intact within five years of the approval; two years, down three to go, an alternate location has yet to be publicly announced.

During their 2008 testimony at the Zoning Commission, the project team said it had been pursuing a project at the location for nearly nine years, finally convincing the property owner to sell in 2005 and closed in 2006. Douglas development's Paul Millstein described the importance of F Street and its continued renaissance to the firm, "we have a passion for F Street...this building represents much more than just a building to us."

Architect Shalom Baranes explained that his design was emphasizes the "verticality" of 10th and F Streets. The facade is planned to feature two surfaces - a "masonry curtain wall" and a "transparent, more prismatic form" to articulate the volume of the building. The property contained two historically contributing buildings, the Waffle Shop and 1000 F Street, which will be the corner structure of the development. The extension expires May 16, 2012.

Washington, DC real estate development news

Ashton at Judiciary Square

Sponsored Announcement

Ashton at Judiciary Square is the seductive intersection of Manhattan swank and DC power. Ashton, a contemporary upscale building, brings high-end rentals to downtown. A welcome new residential addition to Penn Quarter, the sleek 12-story glass building boasts 49 spacious apartments and a parking garage, with amenities to match: marbled foyer with inlaid tile, 24-hour concierge, nearly 10 foot ceilings, and a choice of interior styles. Ashton comes furnished or not, short-term (3 month) or long-term leases; panoramic skyline views are standard.

Top floor suites are luxury itself: 3 bedrooms, 2 baths, 2700 s.f., and views from far southeast to Rosslyn and everything in between. Beyond lush apartments, life at Ashton means a gourmet catering kitchen, hotel-style guest suites and an HDTV lounge for residents. Walking distance to Judiciary Square Metro and easy entry to I-395, the Ashton offers VIP access to DC and beyond.

Starting at $3,979, contact 877.289.3162 for information, or visit the Ashton website.

Judiciary Square Apartment Building Opens

The Judiciary Square corner of Washington DC's Penn Quarter now has one more residential building, and one less vacant lot. The Hanover Company, a private, Houston-based real estate firm, introduced its latest apartment building in Penn Quarter last week, adding a touch of high-end to the downtown rental market. The Ashton at Judiciary Square, at 750 3rd Street, NW, opened its doors as one of downtown's few upscale buildings, and with construction nearly complete, units will be ready for occupancy beginning this week. The 12-story glass building holds just 49 necessarily spacious apartments and a parking garage, with amenities to match: marbled foyer with inlaid tile, 24-hour concierge, NYC-worthy interior design, nearly 10 foot ceilings, and a choice of interior styles throughout the building. The rent will set you back a bit - $4332 per month to start (less if you factor in the standard one-month-free deal) - but the leasing team is already scheduling moving vans for its first occupants - "finance types, athletes, and government employees," apparently for those GS's with a higher than average per diem. The Ashton comes furnished or not, short-term (3 month) leases or long, and with views ranging from stunning Capitol dome to, well, a peek at much more local architecture. Occupants also get a separate suite for guests, though you won't need it if you take one of the top floor suites, with 3 bedrooms, 2 baths, 2700 s.f., and views from far southeast to Rosslyn and everything in between. All that at only $10,817 per month. And situated near the on-ramp to 395, you could make it to a Nationals game in 5 minutes flat, or just bug out of town in a hurry. Hanover hired WDG Architecture for the design, but reports performing the remainder in-house, from interior design to construction. The Ashton is the nationwide developer's first entrant in the DC Market, but it will soon follow up with the Crescent at Falls Church, scheduled to open next May. Hanover purchased the empty lot from Abdo Development in July of 2007 after Abdo cleared the land of a hotel in order to construct a condominium that never made it past the drawing board. That means the building was designed, planned, and built in just 25 months, something local developers should envy. Abdo retained the land next door, along with a plan for a large office building. The site is 3 blocks north of the Judiciary Square Metro.

Washington DC commercial real estate news

Judiciary Square Apartments Rising

One of Penn Quarter's last remaining vacant parcels will soon be occupied. Texas-based Hanover Company began construction in February on Ashton Judiciary Square, a 49-unit “luxury” apartment project at 750 3rd Street, NW. Designed by DC-based WDG Architecture and constructed by the developer, the new project is located next to the Mass Court Apartments, on the west side of I-395, three blocks north of the Judiciary Square Metro. Back in 2007, Abdo Development demolished the Best Western hotel on the site to build Penn Tower, a 90-unit condo project, but later abandoned the plans an

d sold the site to the current developer. The Hanover Company's $45 million project is slated for delivery in spring 2009. The Downtown BID cites this space as the last remaining parcel of developable space - other than the already-spoken for Convention Center. Why the downsize from 90 units to 49? The developer says it specializes in “premium multi-family units,” not condos. While pricing and exact square footage is not yet available, Stuart Rosenberg, a member of the developer's marketing team, told DCMud that “apartment footprints do tend to be spacious.” Minimum unit square footage in its other projects hovers around 1,000 s.f. The project's below-grade parking garage will offer the Downtown BID approximately 40 spaces upon completion. The developer is currently working on projects across the country in Boston, Philadelphia, Los Angeles, and Denver as well as the closer Crescent Falls Church in Virginia and Domain Brewer's Hill in Baltimore.

Washington DC commercial property news

Esocoff's Canterbury Tale

We expect brick facades on historic buildings, we hope for minimalist "urban-chic" exteriors in up-and-coming DC neighborhoods, but rarely do we see a fusion of historical brick and contemporary design. This combination is what Esocoff & Associates have planned for Douglas Development's "Canterbury" at 704 3rd Street, NW.

The team’s 130,000 s.f. office building (90,000 s.f. new construction, 40,000 adaptive re-use), approved by the Historic Preservation Review Board two weeks ago, combines a historic brick building (The Harrison) with a new structure that will be twice as tall as its predecessor, rising to ten stories. The new building will be what the architect describes as the “grandson” of the older building.

“Everyone wants their kids to be better than they were - smarter and better looking; our building is twice as tall as the older one and it is only appropriate,” said Philip Esocoff, Partner of Esocoff & Associates.

The biggest and most obvious challenge for the developer and architect was bringing old and new together, especially at the north end of the project which is both older and deeper than the southern end. After all, the north end dates back to the 1880’s, and the southern, to 1908. Their solution was to drill columns through the footprint of the old building in three locations, this would hold up the new building that is beside and canopies over the older one.

The existing structures were originally built as an apartment complex, but because developers at the time didn’t know what, exactly, an apartment building looked like, the result was what appeared to be a five-story townhouse. The age of the structure was enough to force the developer to get rid of partitions and brick core elements; fortunately, they were able to keep some cast iron column and exposed vaulted ceilings which will be included in the renovation.

Esocoff stressed the importance of learning from past structures and incorporating those lessons into new projects, citing the evolution of the fire escape from life safety devices, to recreational amenities for Tony and Maria in West Side Story, to “green features” that shade glass lowering energy use in 2008.

He applied this observation to his own project, “You’ll see some of the same angles as the historic building, and the same way the historic building had different ornamental devices, the new one will be contemporary, but match the older one in seriousness and thoughtfulness.”

The architect describes the goal of the project as more than simply to create another office, but to create a landmark. “We decided to make Noguchi-like lamps that you can see at the top, and one of the reasons we did it is because it will be seen for decades. When you look down 3rd Street from the Building Museum, and you're there learning about art, and see the larger version of our old building, you see what DC has to offer,” Esocoff said. Noguchi-inspired will be incorporated into the upper east portion as well as in the middle of the south view.Taking “green” features to another level, this project’s score will likely be first in its LEED class with green roofs, plantings on each level watered by rain water collected on the roof, and in-set windows to reduce energy use. If Esocoff had his way, the dirt from parking excavation would be used for brick for the façade. “Then the project would literally be made from and in the city” he said.

“I don’t know that that many people give this much thought to projects, maybe they just have more natural instincts, but projects should be meaningful.”

Construction on the project that Esocoff says will set a paradigm for building is anticipated to begin in November 2008, with delivery up to two years later. The developers will meet with the HPRB one more time before filing for building permits.