Back to Drawing Boards for Italian Embassy Owners

Earlier this year Valor Development LLC purchased the former Italian Embassy at 2700 16th St. NW for $7.5 million in what will be a second attempt at condo development on the site. Partnering with Potomac Construction Group, Valor intends to renovate the embassy into condominiums, add a three-story wing on the north side of the building (also to house condo units), and construct a nine-story apartment building at the rear of the site. Earlier this month developers' plans and the architectural diagrams provided by Trout Design Studio went before the Historic Preservation Review Board (HPRB). While the HPRB found the conceptual site plan and rehabilitation of the landmark satisfactory, members of the Board directed the applicants to "restudy the architectural treatment of the north wing, and restudy the height, massing and architectural treatment of the new apartment tower, and return for further review when appropriate."

The first phase of the "Flats at IL Palazzo" will be the restoration of the landmark's facade and the conversion of the interior into condominium units "blending the character and charm of the historic building with the sophistication, class, and modern finishes that one expects in this premium location," according Valor's online description. The interior restructuring and transformation will preclude several significant interior spaces: the ballroom, library, dining room, and other smaller spaces will be preserved with some opportunity for public use and visitation. The second phase will include the north wing addition and the construction of the apartment tower, but those elements remain unapproved by HPRB.

Plan rejected in 2006.

Another development team in 2006 was close to moving forward with similar development plans for the ex-embassy, when HPRB designated the property an historic landmark just before construction was to begin, in part because the new tower would have eaten into part of the historic structure. HPRB asked the city to revoke the building permits for the 79-unit Il Palazzo condominium, a decision the developer litigated and lost. This go-round developers have moved the proposed apartment tower from near the front to the northwest corner of the site, far-removed from the 16th Street frontage and centered around a second courtyard. While the overall efforts seem to respect the historic nature of the property, and rearrange the site plan in accordance with HPRB's public wishes, the Board still found the three-story addition "capricious and discordant with the rest of the proposal" and the apartment tower's design to be "busy and composed of too many elements." Developers and designers have been advised to rethink their designs and try again soon. Although this is sure to delay Phase II, developers are still planning to deliver Phase I to the marketplace in summer of 2011.

The last project was spun by Spaulding & Slye, Colliers & Castleton Holdings, lender O’Connor North American Property Partners LP was forced to foreclose on the property, and enabling Valor to swoop in and purchase the site.

Washington DC real estate development news

Archstone Breaks Ground on Gaithersburg Apartments

Development plans approved for the heart of Gaithersburg back in 2008 by the Montgomery County Planning Board are finally coming to fruition as just last week Archstone broke ground on their "Westchester at Olde Towne" project. The mixed-use development will replace several old buildings with a 389-unit (194 one-bedrooms and 195 two-bedrooms), transit-oriented apartment community, rising four stories, spanning 6.49 acres, and featuring 15,000 s.f. of ground-floor, street-front retail. The architectural design is courtesy of the Preston Partnership, and takes its cues from historic Gaithersburg structures like the old Gaithersburg School and the Thomas Cannery building.

Situated just south of the intersection of North Summit and East Diamond Avenue and opposite the Gaithersburg MARC Rail Station, the infill project will not only offer an abundance of new apartments and retail opportunities, but also includes impressive amenities like a "beach-entry lagoon-style pool" and a "re-oxygenating fitness center." Future resident dog and cat owners will be in for a special treat as plans call for an in-house pet salon. The development site will also be spruced up by three internal courtyards, one of which will have open access to the public during the daytime.

“Gaithersburg is located in the center of the Montgomery County Technology Corridor, the heart of biotechnology research in the United States,” said Neil Brown, Archstone’s chief development officer, in a press release. "We are excited to begin construction on another landmark project that we believe will create significant long-term value for the City of Gaithersburg, for our future residents and for our shareholders," he added. The commencement of construction was largely made possible by a recently finalized $89.9 million FHA insured Section 221(d)4 loan through CWCapital.

Gaithersburg, MD Real Estate Development News

First Piece of Arboretum Place Puzzle: The Flats

On Wednesday Clark Realty Capital broke ground on the first phase of Arboretum Place. Amidst the late morning downpour, developers plunged shovels into the muddied earth at at 1600 Maryland Avenue, NE, signifying the start to the first phase of construction, set to yield 257 "high-end apartments." The initial phase has been dubbed "The Flats at Atlas District," and developers expect the residences along with 5,000 s.f. of ground-floor retail to deliver in two years time. Originally expected to initiate construction back in 2009, the market downturn put a significant dent in developer's optimism. But HUD's 221(d) financing program and now Wednesday's ceremony has brought some relief to those who've worked on the project. "We are thrilled to have finally broken ground on The Flats and become part of the exciting Atlas District community," said Project Manager Tracey Thomm at the groundbreaking, explaining that "Without the involvement of HUD, none of this would have been possible."

The proposed multifamily luxury apartment community that will eventually total some 674,757 s.f. and 430 units, is located on a ray of the newly improved "Starburst" intersection (still way less delightful than an actual Starburst), directly across the street from Hechinger Mall; some apartments will have views of the Capitol. According to the developer, the long-awaited complex will bring "high-quality housing to an area that has not benefited from new residential development in many years." In addition to the growing number of retail options in the Atlas District, future residents will plenty of amenities right outside their door - a pool, a business center, a gym, indoor half basketball court, entertainment space, and landscaped gardens complete with fireplace and "meditation courtyard" are all in the works.

Georgia based Preston Partnership brained the architectural aesthetic that fuses sharp angles and a modern facade of dark red brick, cement, and large glassy bays, conveying both a sense of sophistication and an industrial-tinged simplicity. The interiors are equally classy, the renderings of the common spaces inviting the eye to superimpose an image of a lady-wooing 007 onto the leather ottomans. Another Clark subsidiary - Clark Builders Group is charged with making the architectural drawings a reality, and will begin work just in time for the winter months.

Washington D.C. Real Estate Development News

Clark Breaks Ground on Arboretum Place

The Maryland Avenue ray of the officially completed and freshly paved Starburst Intersection has a brand new mixed-use, multi-family development in its future. Like most developments, Arboretum Place, a planned apartment community at 1600 Maryland Avenue, NE, has been continuously delayed by financing complications, originally hoping to break ground in early 2009. But Clark Realty spokeswoman Joy Lutes has confirmed that construction on the project broke ground earlier this month, making the ratio

of hipsters to construction workers in the Atlas District a bit more even.

This will be the first major residential project to get underway in the H Street
vicinity. "We are excited to undertake this project in an area of the city that has continued to experience growth even during the economic downturn and be able to contribute to this historic and vibrant neighborhood," says Clark Development Executive Tracey Thomm.

Originally billed as a 430-unit condo/apartment project, only a smaller initial phase is officially in the works. For the first phase, the $36 million development will deliver 257 apartments, a 250 space parking garage, and 5,000 s.f. ground-floor retail. Units will be offered in a variety of types and sizes: studios as well as one and two bedrooms. According to the developer, the project will bring "high-quality housing to an area that has not benefited from new residential development in many years." Respecting the eclectic and independent nature of the Atlas District, developers say they intend to link up local businesses with the new retail spaces. Clark Realty will also serve as general contractor as the development team aims to deliver the first residencies in the spring of 2012.

Georgia based Preston Partnership provided architectural designs that call for sharp angles and a busy, modern facade of dark red brick, cement, and large glassy bays. The liberal use of glass will offer extensive sight lines into the large central courtyard. Aside from supplying enjoyable outdoor public space, the courtyard helps to disrupt the massing of the buildings, allowing interesting interplays of space, and also blending the development more smoothly with the character of the surrounding residential neighborhoods. Like most residential developments these days, developers have qualified the project with the "luxury" tag, meaning a pool, a business center, a gym, indoor half basketball court, entertainment space, and landscaped gardens complete with fireplace and "meditation courtyard" are all included.

Although H Street currently offers a growing plethora of chic boutiques, trendy bars, and hip restaurants, the area still retains some grittiness: an overabundance of suspect take-out Chinese food spots, liquor stores, and boarded store-fronts. Adding to the aesthetic blight of the area is the scarred H Street, ripped up and littered with orange cones and Jersey barriers while it awaits the ever-delayed streetcars. The only other major residential development on the strip, The Rappaport Companies' large mixed-use redevelopment project running on the south side of H Street between 8th and 10th has been in the works for over three years now, but won't be moving forward soon. Arboretum Place may serve as a beacon of hope, like the Atlas District, a dark horse neighborhood that might challenge 14th & U (or Midcity, if the branding sticks) for the title of most artsy alternative 'hood.

Washington D.C. Real Estate Development News

Colonnade Auctions Condos this Saturday

The Colonnade at Kentlands of Gaithersburg will send to auction 40 of its remaining homes this Saturday, helping to wrap up an under-performing real estate portfolio that the Florida-based developer acquired in 2005, a decision they must still regret. With about 70 units in the 307-unit building still unsold, El-Ad is putting 40 of those condos on the block, having recently shut down its sales office, with minimum bidding prices starting at $169,000. Back in February, El-Ad put the remaining 40 units of its only other local project, the Fitz of Rockville, on the auction block, ending nearly 5 years of sales there. Both the Fitz and Colonnade at Kentlands were developed by Archstone-Smith and built by Donohoe Construction. The Colonnade was designed by the Preston Partnership for its originally intended use as an apartment building, uber- amenitized with a party room, computer room, theater, study, swimming pool, sauna, fitness center, cyber cafe and billiard room. The 10-building compound, with 6-story parking garage, was completed by Archstone in December of 2005 and sold to El-Ad shortly thereafter.

Montgomery County commercial real estate digest 

JBG Adds More Office to Mega Rockville Development

If the JBG Companies keeps at this pace, they may want to consider renaming it "JBGville." The prolific DC area developer received approval from the Montgomery County Planning Board last week to pursue a second phase of development at their Fishers Place at Twinbrook Metro - an office park that has already delivered four office buildings to Rockville’s Twinbrook area - but that is merely prologue to the Disney-sized, mixed-use complex going up across the street: Twinbrook Station, or "2.2 million square feet on the redline," as the developer calls it.

The first approved addition for Fishers Place, at 12709 Twinbrook Parkway, will be a four-story, 72,330 square foot, run-of-the-mill office building built in two phases designed around a central courtyard with underground parking. The second and final office addition, at 5615 Fishers Lane, will include 111,000 square feet of office and a micro-retail space, intended for federal tenants, as it "designed to conform to the GSA Force Protection guidelines.”

"The existing buildings in Fishers Place are occupied primarily by government tenants (NIH/FDA), as well as with biosciences-related private sector companies. Potential tenants have expressed interest in the two newly approved buildings, but we’re not in a position to comment further at this time," said Matt Blocher, a Senior Vice President at JBG. "[But the] two buildings most recently approved will complete that campus."

At a community hearing held concerning the dual buildings last July, the County failed to receive a single complaint from neighboring residents. That normally would be considered neighborly relations by the developer (or dumb luck), but for the fact that there aren’t that many neighbors to complain.

That’s because, once completed by 2017, Fishers Place will join the sprawl of JBG’s greater Twinbrook Station across the parkway – a redevelopment project in partnership with the Washington Metropolitan Area Transit Authority (WMATA) that will see 26 acres of Twinbrook Metro parking lots transformed into 325,000 square feet of office space, 220,000 square feet of retail and 1,595 apartments and condominiums, 15% of which will be affordable housing. After breaking ground in November of 2007, the project last year earned a LEED gold certification by the US Green Building Council’s Neighborhood Development program. Last time we heard of this much development going up around a subway line, it was called Tokyo.

"The first phase, which is currently under construction, will have 279 apartments and approximately 15,500 square feet of retail ready to open by early to mid-2010," said Blocher.

Among the laundry list of contributors to the JBG/WMATA “smart growth” co-development are the architects Torti Gallas and Partners, DNC, David M. Schwarz, Grimm + Parker, The Preston Partnership, EDAW, Johnson Bernat Associates, Wells + Associates, and MV+A with construction by Harkins Builders. If Rockville Pike is unofficially known as “the world’s longest strip mall,” it looks like Twinbrook Parkway might soon claim the moniker of “world’s largest lump sum community.” Leisure World better watch its back.

909 at Capitol Yards Opens

While the Washington Post may be increasingly skeptical about the viability of Southeast's Capitol Riverfront as either a residential or commercial neighborhood, it is certainly a strategy that developer JPI has bet heavily on. Next month, the developer will open the doors on the 909 at Capitol Yards project - their 421-unit "boutique-hotel themed" apartment building and third entry under their greater Capitol Yards development. According to the Capitol Riverfront BID, tours of the WDG-designed complex have already begun for prospective residents and move-ins are scheduled to begin late this month. JPI is apparently targeting that hard to pin down 18-35 demographic the project with an advertising campaign that boasts of amenities like a two-story bar and lounge, yoga rooms, a “pub room” with shuffleboard (?!) and Nintendo Wiis, an in-house movie theater, a rooftop swimming pool for hosting “raucous barbeques,” and a Twitter ticker in every elevator tracking losses in the housing market (no, not really). Should you feel the need for something more “classic and traditional” or an apartment with a little “industrial style,” JPI is directing inquisitive renters in the market around the Ballpark to the first two buildings completed under their Capitol Yards banner: the Jefferson and Axiom. Their marketing whizzes have even gone so far as to whip up a “personality quiz” to help choose from among their properties (sample response: "Call up your fav five and hit Banana Cafe for pitchers of Caipirinhas"). Though JPI still has one project in the pipeline– a 419-unit apartment building with 15,000 square feet of retail at 23 Eye Street – completion of Capitol Yards could be viewed largely as the developer’s curtain call the DC area. The Texas-based company had once targeted DC, along with New York City, as hot spots for condo development. However, after completing projects like The Byron and Jenkins Row – the latter of which is still selling four years on – the market’s prospects seem now much dimmer than they did just a few years ago and JPI has yet to announce any new plans for follow-up developments. Correction: 909 at Capitol Yards was designed by the Preston Partnership, not WDG Architecture. WDG designed two other neighboring JPI projects, the Jefferson and Axiom at Capitol Yards.

Washington DC retail and commercial real estate news

Crystal City, Aster is Born

After almost four years in the development pipeline, the project known to some as the North Tract Apartments, were approved by the Arlington County Planning Commission way back in July of 2005, are under construction, this time as The Aster at Crystal City.

Located at 305 10th Street South, the site was initially under the control of Archstone-Smith, which sought to construct two 5-story buildings with a total of 184 "luxury apartment homes" - including some with third-level mezzanines. In 006, however, the site and accompanying plans were sold off to Atlanta-based developer York Residential under the guise of North Track Apartments, LLC, but the project sat for some time thereafter.

DCmud is now happy to report that construction is bristling along on the once dormant project and it's sporting its new Aster moniker. York is currently projecting a third quarter 2009 completion for the first building and a fourth quarter finish for the second. Once finished off, the Aster will come in at 228,000 square feet, include 15 affordable-priced apartments and meet the LEED standard for green certification (albeit the lowest one possible, with 24 points). Additionally, in keeping with the framework plan established by the Crystal City Planning Task Force, the County will take advantage of the development’s close proximity to Long Bridge Park (once known as North Tract Park) to establish a pedestrian/biker-friendly linkage between the two.

Initially, Archstone had intended to pass two units off to retailers to serve the needs of park patrons. There’s no word on if that deal still stands, but perhaps Monument Realty's neighboring Monument View project - only made possible due to a June land swap between the developer and the County - will acquiesce if York does not.  Designs for the project were prepared by the Preston Partnership. ONCORE Construction is serving a general contractor.

Washington DC restaurant and retail news

Clark to Add Residential to Lonely Atlas District

Metro area developer Clark Realty is moving forward with their planned Arboretum Place project - a 430-unit condo/apartment development at the tail-end of the H Street corridor - aka the Atlas District.

Described by the developer as a "multifamily luxury apartment community," the project will sit on a 5-acre vacant lot located at 1600 Maryland Avenue, NE. A firm timeline for the project has yet to be established, but Clark’s publicity contact at PR firm Tomb & Associates, Joy Lutes, tells DCMud that "Clark's intention is to move forward with the project and break ground after the first quarter." Designs for Arboretum Place are being handled by the Preston Partnership.

In furtherance of the project’s “luxury” qualifier, the developer plans to outfit the community with a pool, a business center, a gym, entertainment space and gardens – amenities competitive with other H Street developments like Senate Square and, eventually, Clark hopes to attract local retailers, though it is incorporating only about 5,000 s.f. of retail space on the site. In a neighborhood best known for outlets like “Fish Sandwiches” and “Alex Carry Out,” it will likely be a welcome and necessary change.

But nothing on H Street happens quickly: note the talk of development at places such as Capitol Place (on hold), the District's H Street Corridor Revitalization Plan, the H Street trolley line (always pending), and the District's Starbust reorganization plan for the nightmare intersection at Maryland Ave / H Street / Benning Road, to name just a few of the ambitious projects that have garnered far more time and money in outreach and planning than actual construction. Maybe next real estate boom.

Washington DC retail and real estate development news