New Condo Report: The Argent

Argent Condos, 1280 East West Highway, Silver Spring, MD
The sales center at The Argent, Perseus Realty LLC's $37 million Silver Spring condo building, has opened its doors and DCmud was among the first to peruse some of its 96 for-sale units. The Argent is something of a curiosity in DC metro area because, as other similarly minded residential developments in the area have converted to rentals, The Argent is forging ahead in a condo market gone south. Home Properties' 1200 East West Highway building, directly across the street, is under construction and hoping to finish up early next year - advertising only rental units - while the Portico, once envisioned as a condo, is now leasing. Other projects in the area have simply failed to materialize.

Nonetheless, the developer is hoping to combat any possible sticker shock by dropping prices on units once scheduled to start in the low $400s. As of today, a 636 square foot studio is going for $247,900, while prices top out at $553,900 for 1435 square two-bedroom with den. The building’s sole three-bedroom unit, located on the second floor, is priced at $570,900, measuring in at 1426 square feet. Those prices increase by roughly $3,000 the higher you climb in the building’s nine-stories - but don’t hold your breath for amenities while you’re up there.

"There’s a rooftop terrace. It’s walking distance to the grocery store and all the different shops…Unfortunately, there’s no pool [and] no exercise room,” said one of the sales

representatives working the project. The JSA Inc.-designed development is rounded out by a plaza/sculpture garden, fronting on East West Highway, that was designed by local artist Mary Ann E. Mears. The building opened on May 22^nd.

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Argent Resurrects Condos in Silver Spring

A lot can change in two years. But since beginning construction in 2007 at 1200 Blair Mill Road in Silver Spring, Perseus Realty, LLC’s plan for the building nearing completion at the site, The Argent, seems to be much the same as it was pre-economic doldrums. Representatives of the developer have told DCmud that the project will “definitively be condos” – a first (and perhaps last) for metro area development in 2009.

The $37 million, JSA Inc.-designed building will boast 96 units - ranging from 600 square foot efficiencies to 1,430 square foot two-bedrooms – on nine stories. Part and parcel with the Argent’s "urban oasis" atmosphere are amenities including art deco flourishes, nine-foot ceilings, an “elegant rooftop patio,” a front desk receptionist and a 4,200 square foot public park on the grounds, featuring landscaping by Mahan Rykiel Associates and a sculpture from local artist Mary Ann E. Mears.

“We’re planning to open with decorated models by the end of May. There’s not a certain date, but that’s what we’re shooting for,” said Barbara Causey of the Mayhood Company.

The Argent and its development team are apparently not brushing off the state of the market entirely; initially priced in the $400,000s before construction, Causey says that Perseus is currently reevaluating their asking price for a piece of the development, and "expects [final prices] in three to four weeks."

In the meantime, Clark Construction is working diligently at the site in order to have the building up and running in time for what is sure to be a (not so) brisk summer sales season.

Silver Spring real estate development news

DC's First Green Hotel on the Way

Developers of the "1 Hotel" are finally knocking down the former Nigerian Embassy at 22^nd and M Streets, NW (pictured below, looking not much worse than it has for the last decade). Demolition is courtesy of the Starwood Capital Group and Perseus Realty, LLC to make way for what may become Washington DC's first truly green hotel. In 2010, the development duo intends open the District’s first - a 182 room project that’s being dubbed "Washington’s first green luxury hotel" and the east coast flagship for Starwood’s new "luxe-eco" endeavors.

Coming in at 188,000 square feet, the Chad Oppenheim-designed edifice will consist of three "11-story volumes connected by glass enclosed vertical gardens." Drawing upon Victorian-era botanical gardens for inspiration, the architect claims that this configuration will function as a “living machine” that will serve as a natural air and water purification system. In a natural move for such a verdant project, the hotel will seek LEED certification and feature an organic spa, along with a green roof (with lounge) in the heart of Washington’s West End. Additionally, the development team is seeking to boost their green street cred by allying themselves National Resources Defense Council - to whom they will donate one percent of the profits from DC 1. While the embassy will be missed by few, popular restaurant Asia Nora is also being demolished to make way for green hotel, but the hotel group has plans for an organic restaurant within to replace the loss to the food supply of the West End, a neighborhood that will now have one of the highest concentrations of hotels in the DC area.

The 1 Hotel & Residences brand is Starwood’s attempt at bridging the gap between two equally trendy, yet totally opposite poles: high-class living and environmentally sound building practices. The hoteliers, who bought the land in 2006, will have plenty of competition for elegance - once completed it will stand directly across from the Ritz-Carlton and within a block of several upscale hotels - which may make it a good test case to see if green pays.

Other 1 locations currently in the pipeline include Paris, France; Seattle, WA; Scottsdale, AZ; Mammoth Lakes, CA; and Ft. Lauderdale, FL with further expansions planned for Los Angeles and New York. Construction of the DC location is being overseen be Tompkins Builders and, once open, is sure to be the most Google unfriendly hotel in the metropolitan area.

Its Fun to Dig at the Y-M-C-A

Mayor Fenty, Councilmember Jim Graham, ANC chairman Dee Hunter and numerous YMCA officials today attended the groundbreaking of a new mixed-use development at 14^th and W Streets NW, the current site of the YMCA Anthony Bowen. The 263,000 square foot project is being developed by Perseus Realty LLC in conjunction with Capmark Investments LP and the minority owned DC-based FLGA Real Estate Group. The $97 million development, entitled 14W, will include the construction of 231 rental apartments (including 18 affordable), a new 46,000 square foot YMCA and 12,200 square feet of retail space. Designs for the project by Davis Carter Scott and Hellmuth, Obata & Kassabaum Inc. (HOK) encase the ground-level retail outlets in townhouse facades and place the residential quarters above the new YMCA. Future residents can look forward to amenities such as a billiard room, a 24-hour business center and concierge, catering kitchen, bar, rooftop garden and a 1-year membership to the YMCA. HPRB green-lighted the project in May when it approved the demolition of the existing buildings on the site.

The Mayor was adamant in his support of the development. “It’s the young people that we have at the front of our focus for this project,” said Fenty. “The projects, programs and lives that have been impacted by the YMCA are too numerous to mention…You have our commitment that whatever it is– from deferments to operations to transportation to the help of any other DC government agency – we will give it.”

The new $15 million YMCA is the fruit of more 2 years of active development on the part of the YMCA of Metropolitan Washington (YMCAMW). When completed, it will include a wellness center, child care facilities, office space, rooftop terrace, community meeting rooms and – as its centerpiece – a 25-meter indoor pool. Although the current facility has been vacated for demolition, its community services have been relocated to various “borrowed” spaces throughout the city.

The YMCA Anthony Bowen has a rich and storied history in the District. The organization was named for a Prince George’s County slave who relocated to Washington after purchasing his freedom; he then went on to co-found the nation’s first African-American YMCA in 1853. The current incarnation of the YMCA that bears his name first opened in 1912 and has stood at its present location since 1978 – a time when the U Street corridor ran rampant with violence and drugs.

“Anthony Bowen had a dream and it’s the centerpiece of that dream that’s become the reality for what we have here today…an unwavering belief that the evils of our past do not dictate the possibilities of our future,” said Angie L. Reese-Hawkins, CEO of the YMCAMW. “We’ve replaced the fear and distrust with families and…people who are committed to the community. This is what the nation’s capitol is all about.”

14W is being financed by the Royal Bank of Scotland (RBS). Clark Construction has been contracted for the development and is predicting a late 2010 completion.

Washington DC retail and real estate development news

Bowen YMCA Update

Five buildings in the 2200 block of 14^th Street (2203, 2205, 2207, 2209, 2211) were approved for demolition by the DC Historic Planning Board as part of the new Anthony Bowen YMCA and 14W project by DC-based developer Perseus Realty, LLC and YMCA of Metropolitan Washington. As DCMud reported in May of last year, at the project's completion, 1325 W Street will include a new YMCA facility (45,000 s.f.), 229 rental apartments, and 12,000 s.f. of retail space in a project that will border 14th and W Streets. Construction will begin at the 1325 W Street site in September with completion scheduled two years later in 2010.

According to Perseus, legislation was passed to close part of the alley between the townhouses and the existing YMCA, and Perseus has already received HPRB approval. The facades of the townhouses and the front forty feet of each structure will be preserved as historic structures.

“We are filing for certain permits, which takes a while and we are in the final stages of working drawings, so we’re positioning it to get started,” said Robert Cohen, President of Perseus Realty, LLC.

The project was designed by Hellmuth, Obata, & Kassabaum and Dorsky Hodgson & Partners, the developers have also hired Bozzuto to oversee leasing and management of the residential component.

"1" Hotel Sees the Green Light at End of Tunnel

Perseus Realty, LLC received a unanimous vote of approval from the Zoning Commission on Monday for their PUD of "1" Hotel, DC's first LEED certified hotel. They last met with the ZC at the end of February to hammer out more details on their project to be located at the corner of 22nd and M Streets in the West End neighborhood, across from the Ritz Carlton.

The 125,000 s.f. luxury hotel, pledged to be LEED Silver certified, will have between 148 and 170 rooms, depending on how many suites developers decide to create, on ten guest room levels. Perseus, along with Starwood Capital Group, purchased the land back in November 2006. The Nigerian Embassy and Asia Nora (see photo below) are currently on the site but will be demolished in order for construction to begin.

Starwood hopes to turn the "1" Hotel concept into the first global, luxury, green hotel brand. According to a source at Perseus, who asked not to be named until approval was completed, "In addition to the architecture, which is great, what makes this project special is more the concepts behind it and what it is trying to get accomplished. This is all new to DC. It is the first LEED certified hotel. It is definitely a work in progress, but we are all still really excited about it. This is a way for guests to act in an environmentally conscious way but still have everything they want and need."

The building will have an exterior layer of energy efficient glass to let in daylight during cold months and shield the rooms from heat during warmer weather. The guest rooms will have individual energy controls that will activate when a key card is put in place by the guest, in order to save on light and temperature control costs. The hotel will most likely use a greywater system, recycling "slightly dirty" water to use for heating.

Back in February, the ZC asked the developers for clarification on the "green walls" that are to run from floor to ceiling and divide the L-shaped building into three sections, as well as border the outside tea garden. The walls are made of a mix of plants that grow in both shade and light to give guests an outdoor-while-indoor experience. The walls also have a functional job, as they help to purify the air and get rid of pollutants. Perseus assured the commission the walls could be replaced in one-ft. squares, so that it will not eventually turn into a "brown wall."

Other issues resolved were clarification for an unnamed party in opposition about an abutting wall from the roof penthouse structure that came close to a property line, and the location of a garage entrance. Perseus is still going through the PUD process; their plans now go to the National Capital Planning Commission. NCPC will have 30 days to give their verdict. Developers have not yet released a construction time line.

Washington DC commercial real estate news

NOVO to Finish Design of Kalorama Condos

NOVO Properties is one step closer to converting two apartment buildings on the 1800 block of Vernon St., NW into condominiums. NOVO has planned to modernize and redevelop these almost century-old structures for some time now but the firm just recently received the go ahead from both the Board of Zoning Adjustment (BZA) and the Historic Planning Review Board (HPRB) as of October. According to sources inside the firm, the local ANC has jumped on board as well, despite the project's ill-standing with some members of the community.

The now-vacant buildings used to hold 25 rent-controlled apartment units housing a combined total of 29,000 s.f. of space. NOVO plans to add three new units to the current mix, in addition to adding a four-floor modern bridge structure to connect the pair of stand-alone properties. Although the exterior will remain mostly as-is, the interior is planned for dramatic improvements; Bonstra Haresign has taken the design reigns and the two firms are currently in the midst of deciding the overall architectural scheme.

The property was purchased from Perseus Realty for $4 million in June of this year; though some have questioned the firm's handling of the property disposition. Some disaffected residents claimed Perseus, after offering generous stipends from $1,000 to as high as $15,000 to induce tenants to vacate their homes, used heavy-handed tactics (waterboarding?) to get residents out of the building. Councilmember Jim Graham and Mayor Fenty have investigated, but the case has all but fallen out of the public eye.

That being said, NOVO declined to comment on the record. Spokespeople for the company, however, did mention that the projected ground breaking is anticipated within the next year. NOVO is the developer behind The Takoma condominiums in Takoma Park, MD, and owns a number of medium to large sized apartment buildings throughout the DC Metro area as well as a smattering of properties located in Charleston, SC, Chicago, IL and Philadelphia, PA. The project will be built by Eichberg Construction.

Washington DC commercial real estate news

YMCA, Perseus Ready to Move Forward on 1325 W Street Mixed-Use Project

After months of negotiation, it appears that the nonprofit YMCA of Metropolitan Washington DC is partnering with DC-based developer Perseus Realty LLC to redevelop the existing YMCA Anthony Bowen center at 1325 W Street NW in Shaw (the oldest YMCA in DC, dating back to the 1850s) into a $100 million mixed use complex that will include a new, larger YMCA facility (45,000 sf), over 200 apartments, and 12,000 sf of retail. The Washington Business Journal reports that under the arrangement, Perseus will build and finance the YMCA’s new facility, and in exchange receive the land for the apartment building and retail, which it will own and control. The YMCA will own and run the new facility. In preparation for this development, Perseus has already purchased five buildings along this block fronting 14th Street between W Street and Florida Avenue – these structures will be preserved for the retail portion of the project. The architects for this project are the DC office of Hellmuth, Obata & Kassabaum and Dorsky Hodgson & Partners. If all permits and approvals are received, Perseus hopes to break ground in late 2008, with completion expected toward the end of 2010.