DC Makes Way for Northwest One

Mayor Adrian Fenty called a press conference in NoMa today to the showcase the demolition of the Temple Courts housing project – an abandoned housing complex that stands at the future site of the William C. Smith & Co. and Jair Lynch Development Partners’ mixed-use Northwest One project. The housing project was purchased by the District in 2007, after years of concerns about the poor educational and medical conditions for residents, as well as an escalating crime rate.

“To most people, this is the site of housing that has long been of condition that is unfit and unsuitable for residents of the District of Columbia, our own neighbors,” said Fenty. “Northwest One [will be]…the first place where you’ll have new communities with all different levels of housing and all different income levels – mixed with great retail, great community centers and great schools.”

The Northwest One project will bring $700 million worth of new development to a five-block chunk of the NoMa corridor – an initiative that will include the construction of 1600 new residential units, 200,000 square feet of office space, 40,000 square feet of ground-level retail and a one-acre public park. The District has pledged that nearly 25% of the on-site housing (570 units) will be reserved as affordable – an amount that Executive Director of the District of Columbia Housing Authority, Michael Kelly, assured the public would be “one-for-one replacement” of all affordable housing lost in demolition. The 172 families initially displaced by the closing of Temple Court were relocated at city expense and will be offered new units in the completed Northwest One complex.

“Today, we're celebrating the demolition of what is –without any kind of exaggeration – a symbol of isolation and socio-economic despair,” said Kelly. “In its place…will be a vibrant mixed-income neighborhood. A neighborhood that will have the lawyer next to the school teacher next to the welfare recipient – and from the outside you can’t tell who’s who.”

Fenty said that he expects a groundbreaking ceremony to be scheduled for early 2010 with construction expected to wrap up the following year. The Temple Court site is the second component of Northwest One currently in some phase of development – the $47 million Walker Jones complex (which includes a 100,000 square foot elementary and middle school) is currently under construction and is scheduled to be open by next August, just in time for the 2009-2010 school year.

Washington DC retail and commercial real estate news

Skyland Readying for Take-Off

Despite years of false starts and a finicky housing market (to put it delicately), the long in-development Skyland Town Center in southeast Washington D.C. is now pacing itself for a 2012 delivery. Well, maybe. Described by the 5-member development team - which includes the Rappaport Companies, William C. Smith & Co., Harrison Malone Development LLC, the Marshall Heights Community Development Organization (MHCDO) and the Washington East Foundation - as a "prominent living, shopping and gathering place," the $285 million Skyland project aims to deliver more than 700,000 square feet of mixed-use development, mostly in the form of new housing. Located at the intersection Alabama Avenue & Good Hope Road SE - across from the present location of the Good Hope Marketplace, the Skyland Town Center will boast 280,000 square feet of retail space and 460,000 square feet of residential housing. Of the roughly 475 residential units included in the project, 20% of the units will be available to families earning 80% of the Area Median Income (AMI) or less, 10% will be reserved for residents making 120% AMI. Torti Gallas & Partners also designed 21 single-family townhomes and three above-ground parking garages to serve the development.

Skyland replaces undeveloped land on the back of the site, and a small, dated mix of retail along the front of the property. Pre-development work on the project began in 2002 under the watch of former Mayor Anthony Williams and the National Capital Revitalization Corporation, which served as developer until the project was handed off to the present team in 2007. According to Steve Green of William C. Smith & Co., though the developers have made progress, the current economic climate makes a firm start date difficult to pin down.

And because nobody is planning to start a residential construction project in 2009 - and 2010 isn't looking much better - developers at Skyland are not inclined to rush. “Given the current market conditions, [a timeline] is particularly difficult to predict,” said Green, “but our best estimate…is that we would close on the property and begin demolition in the fall of 2010 and completion of the first phase would be 24 months later in the fall of 2012.”

William C. Smith & Co. expect to file a PUD for the Skyland Town Center on or around November 15^th. The DC City Council has already approved $40 million worth of Tax Increment Financing for the project. Washington DC based WCS Construction will build the project.

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