New Apartments for Hill East in 2013, Two Blocks from RFK

The recently formed joint venture - between Tritec Development and JBG - has just begun construction on its 141-unit apartment, Kennedy Row, at 1729 East Capitol Street in Hill East, just two blocks from RFK Stadium.

Construction on the 42,629-s.f. site, under general contractor Clark Builders Group, will take approximately 18 months, and the first apartments will deliver in April of 2013. Kennedy Row will be managed by JBG's residential property management arm (we're told the Kennedy Row website is coming next month).

Early this fall, the partnership - a $40 million effort brokered by Colliers - was formed, enabling the project to break ground late last month, just after a building permit was issued for the project, and just before the PUD was set to expire, this month.

The 4.5-story, red-brick apartment designed by architect Polleo Group, is located at 1705-1729 East Capitol Street, SE, right across the street from Eastern High School - which received a $70-million renovation last year - five blocks from the Stadium Armory Metro, and two blocks from RFK Stadium. There will be 113 parking spaces in an underground parking garage.

Well in advance of construction, demolition of the aged structures previously on the site commenced a year-and-a-half ago, and the south side of East Capitol Street between 17th and 18th has been waiting on development since that time. A representative involved with the project said that the timing of the project's start has been purely a market-driven decision.

In December 2007, The Merion Group/Tritec acquired the property for $6.2 million from Comstock East Capitol LLC, which paid $9 million the previous year.

The consolidated Planned Unit Development (by Comstock, with renderings by PGN Architects seen at left) was approved around the time Merion/Tritec took over (late in 2007), and the project was granted a time extension by the Zoning Commission in 2009.

Originally - four years ago - the project looked to become condos, however, developers confirmed that the aim is now apartments.

As for the rest of the Hill East area, the Washington Post reminded readers a month ago that the 67-acre area south of RFK known as Reservation 13 "has been eyed for an ambitious redevelopment for the better part of a decade," and reported that speculation surrounding the area's potential continues, noting the option for: "a new [Redskins] headquarters and training facility near RFK Stadium in anticipation of building a new stadium there when the FedEx Field lease ends in 2027." Meanwhile, D.C. United looks to a short-term lease at RFK, as the soccer team's management continues to try and sort out its future, and appears to be sticking to its guns in declaring that RFK is not a long-term solution.

Washington D.C. real estate development news

Capitol Riverfront's Harris Teeter Beginning Work this Week

Forest City will begin work this week on Parcel D of its Yards development, including a new apartment building and Harris Teeter. Having secured its last required permit on Friday, according to Ted Skirbunt of the Capitol Riverfront BID, Forest City can now begin its 225-unit apartment with a 50,000-s.f. Harris Teeter, 30,000-s.f. Vida fitness center, and 10,000 s.f. of additional retail space.

Gary McManus, a spokesperson for Forest City, acknowledged that initial work is now beginning, larger scale construction is a month away. "While there may be some site mobilization prior to the holidays, the actual excavation won’t begin to any great degree until January... Excavation is likely to be completed by late April/early May."

With construction underway soon, Harris Teeter could still open in 2013, but according to McManus, Forest City is waiting to confirm a project completion / opening date until next spring, after excavation is done and when more signed retail tenants can be announced.

The design by Shalom Baranes Architects is for two buildings that will be expressed as three, with two residential towers (one above the Harris Teeter running along most of 4th Street, shown above), and one shorter retail building located on the corner with a look separate from the residential portion of the project. The retail building includes 30,000 s.f. ground-floor retail topped by the Vida health club (seen at right).

Washington D.C. real estate development news

Next Steps for New South Capitol Street Bridge

The District's forthcoming purchase of land needed in order to construct a new South Capitol Street/Frederick Douglass Bridge across the Anacostia has been aided by the dedication of $68 million in federal funds, with the next phase of development beginning by the end of the year.

Land acquisition followed by preliminary engineering for the bridge portion of the $806-million South Capitol Street Corridor project will be underway within the next month or two, confirmed the District Dept. of Transportation's program manager for the Anacostia Waterfront Initiative, James T. (Tom) Ryburn. The extension is part of the National Capital Planning Commission's vision to make South Capitol Street a "civic gateway," replacing the worn bridge with 6 traffic lanes and a bike path.






The Final Environmental Impact Statement (FEIS), which selected a low-arched bridge design, was approved this summer (the picture at right is a stereotype). Ryburn cautioned that current designs are preliminary. "Everything is conceptual at this stage – there’s still a lot of design to be done."

The team plans to submit the initial financial plan in early 2012. Though it's been estimated that a budget of $806 million is required for the project, DDOT will be refining the cost figures in the preliminary engineering phase. And although federal funds will help with land acquisition, construction is currently unfunded, and the start date is entirely dependent on funding, as "[DDOT] Director Bellamy said on NBC," added Ryburn. "If we had the money, [there could be a new bridge in] six or seven years."

(Click to enlarge the plan to renovate the entire South Capitol Street Corridor)

Washington D.C. real estate development news

Anacostia Riverwalk Trail Gets a New Extension

The goal of a 20-mile trail to line both sides of the Anacostia River is getting one step closer. Forest City, which is the middle of a developing much of the Capitol Riverfront waterfront and sponsored the trail, will hold a ceremony tomorrow to unveil its latest section: a 611 foot pedestrian bridge connecting Diamond Teague Park and the Park at the Yards. The new bridge will surmount the DC Water facility now dividing the two parks, furthering the pedestrian path that will eventually parallel the Anacostia River and wrap around Buzzards Point, connecting northeast D.C., the southwest waterfront, and the tidal basin. (photo below credit to Capitol Riverfront BID)

The bridge - an arched pier with wood (ipe) planking and steel cabled rails - was designed by Paul Friedberg of MPFP LLC, a New York landscape architecture and urban planning firm that designed the neighboring park and Capitol Riverfront's first footbridge (pictured at right).

The new bridge will rise up to 18 feet above the average waterline to allow service boats to access the O Street pumping station, which pumps water to the Blue Plains treatment facility. The incandescently lit pier will offer interpretive graphics talking about the use of water and history of DC water.

Diamond Teague Park, just below Nationals Stadium, now becomes the western terminus of bike trail. Michael Stevens, Executive Director for the Capitol Riverfront Business Improvement District, says the next westward expansion depends on development of the Florida Rock development site, which is still in the planning stages. Stevens predicts that by 2013 the trail could connect the baseball stadium to Minnesota Benning.

Riverfront Area South of the Ballpark: Out With the Old, Nothing New Until 2013

Just south of the Nationals stadium, one of the last remnants of the area's industrial past will soon fall, making way for 1.1 million s.f. of residential, office, retail and public access to the riverfront. Despite the progress, the wait time for new apartments, condos, restaurants, shops and water features continues to increase, with construction likely pushed back to 2013, at least.

The development team behind the long imagined mixed-use RiverFront on the Anacostia, located along the unit block of Potomac Avenue, SE, in the Capitol Riverfront area, asserts that the project is moving forward, albeit slowly due to the decision to deliver a residential building in the first phase, and not office space, as the PUD currently allows.

David deVilliers, president of Florida Rock Properties, the project developer and wholly owned subsidiary of land owner Patriot Transportation Holding Inc., confirmed that the first phase switch - announced this summer - is still being pursued, and that an informal process is currently ongoing in order to prepare a formal filing with the Office of Zoning to rezone the PUD in the "next 30 to 60 days."

deVilliers said he hopes Zoning will be "quick" to approve the request, but he is realistic about the time required to pursue the market-driven change. After approval, if granted, construction drawings will take approximately 9 months, followed by the several-month-long permitting process, resulting in construction likely to begin in 2013.

Meanwhile, the defunct concrete plant - Florida Rock - currently on site will be razed in the coming months. Activity at the plant wound down in mid-September, and a raze permit was issued last week, allowing demolition to begin, to be followed by environmental remediation.

In the year-long interim, the site could be used for something, but just what remains to be seen. Ted Skirbunt with the Capitol Riverfront BID acknowledged that while there probably won’t be any use before next summer, the BID has, and continues, to discuss potential uses with MRP and FRP.

Coinciding with the July announcement of the rezoning pursuit, was disclosure that local Midatlantic Realty Partners LLC, (MRP), founded by Fred Rothmeijer, came on board to partner with Florida Rock Properties on the stalled development, bringing with it $4.5 million in capital. Due to previous difficulty securing financing for the project - conception of which dates back to the '90s - the PUD was given a two-year time extension in 2009.

deVillers added that the partnership with MRP, under the leadership of Rothmiejer, is going well and the team is "fully engaged" in the project and committed to moving forward with the rezoning process, soon.

Washington D.C. real estate development news

Forest City to Begin Construction of 225 Apartments, Harris Teeter in Southeast

With a building permit to construct the next component of the Yards in hand, Forest City says construction of the Harris Teeter and new apartment building is less than two months away. Permits were issued a month ago, and Forest City's Gary McManus confirms that "[e]xcavation [at Parcel D] will commence within the next 60 days... construction will be underway on that site prior to the end of this year."

Currently, Forest City is focused on phase one (of three) of its 42-acre Yards development in Southeast, D.C. With the first-phase Riverfront Park and Foundry Lofts already completed, and the Boilermaker Shops underway, the developer now turns to construction of Parcel D: a 225-unit apartment with a 50,000-s.f. Harris Teeter, 30,000-s.f. Vida fitness center, and 30,000-s.f. of additional retail space.

Parcel D's site runs along the east side of 4th Street, between Tingey and M Street. The project, under general contractor Skanska, aims for late 2013 completion.

Designed by Shalom Baranes, the site includes two buildings that will appear as having three distinct components: two residential towers (one above the Harris Teeter on 4th Street), and a shorter retail and fitness center building on the southernmost section of the lot (as seen above).

Directly across from Parcel D's retail building is the 2-story Boilermaker Shops (Parcel K) which includes 34,500 s.f. of retail with 12,000 s.f. of office space above, expected to deliver in the fall of 2012.

Rounding out phase one of the development are parcels E and N, both still in the design phase.

Along with Forest City's summer announcement that the Harris Teeter was a done deal at Parcel D, the developer revealed that two concepts - one being an artisan brew pub - will be crafted by the Neighborhood Restaurant Group for the Boilermaker Shops. NRG's concepts will share a roof with Buzz Bakery, Huey's 24/7 Diner, Austin Grill Express, brb (be right burger) and Willie’s Brew & ‘cue by Xavier Cervera, who is also remaking the Hawk 'n' Dove on Capitol Hill, and opening a pizzeria with raw bar in Southeast's Canal Park.

Also nearing completion in Southeast is a one-mile stretch of river-walk trail linking Yards Park and Diamond Teague Park & Piers. According to Ted Skirbunt with the Capitol Riverfront BID, the completion - next month - of this connection will create enhanced public access and enjoyment of the Southeast riverfront.

Washington D.C. real estate development news

CSX Assessing Southeast Tunnel

Last night, a public scoping meeting was held in conjunction with the commencement of a District Department of Transportation (DDOT) and Federal Highway Administration (FHWA) Environmental Assessment (EA) of the CSX Transportation Virginia Avenue Tunnel project, a nearly $160-million rehabilitation of the tunnel between 2nd and 11th Streets in Southeast under a section of Virginia Avenue. Starting now, people will be able to officially lodge their comments/questions/concerns about the project, up until October 14th. Further down the line, another meeting will be held to reveal more specifics of the project, and to consider alternatives based on information gathered from impact statements and studies. 

 The project's immediate concern, the EA process - to access any potential impacts of the project - is in compliance with the National Environmental Policy Act (NEPA), and could take approximately one year to complete. If all goes well, the 4-to-6-year improvement project, announced in 2009, will unearth and re-construct the now buried, century-old freight line; proposed improvements have been stated as being done "to address current infrastructure needs as well as community and safety concerns" and allow for double-stack intermodal container freight trains. This past May, CSX committed to an additional $160 million investment - nearly the amount needed to get the Virginia Avenue Tunnel project off (or more literally, into) the ground - bumping up CSX's total investment in the greater National Gateway initiative to around $575 million. The entire National Gateway project is an $850-million public-private partnership being done to improve freight transportation between the Mid-Atlantic ports and the Midwest and Gulf of Mexico - a massive project which got its land legs a year earlier, in May of 2008. 

Washington D.C. 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

The Foundry Lofts at the Yards, Opening Soon

The Foundry Lofts, one residential component of The Yards development by Forest City in Southeast, began pre-leasing on August 1st the 170 apartment units that comprise the redeveloped Foundry building, with 10,000 s.f. of ground floor retail. There are three floors of one- and two-bedroom apartments, and 33 two-level penthouses. One-bedroom units will be in the lower $2000/month range, two-bedrooms "from $2,700" and penthouses "from $3,400," with unobstructed views of the Anacostia and beyond. The first apartments will deliver in mid October and the penthouses two months later. The residences will comprise just a few of the 2800 units completed to date in the Capitol Riverfront Business Improvement District, but will be conspicuous as the nucleus of the retail pavilion, overlooking the parks and surrounded by the new retail center. Retailers already leased at The Lofts include Potbelly's and Kruba Thai and Sushi. 

Washington D.C. real estate development news

Joint Venture to Kick Start Florida Rock on the Anacostia

Florida-based Patriot Transportation Holding Inc. and DC-based Midatlantic Realty Partners LLC (MRP) today revealed that a joint venture between the two will help develop the Florida Rock property near the Nationals Stadium. The combination will bring the necessary capital - $4.5 million from MRP - to the stalled RiverFront on the Anacostia mixed-use project envisioned as 1.1 million s.f. along Potomac Avenue in Southeast, a project that has been planned but idle for years, nominally run by Patriot's wholly-owned subsidiary Florida Rock Properties Inc. (FRP). A spokesperson for Patriot confirmed that there will be an immediate, transformed approach to the four-phase riverfront development project due to "market changes." The first phase will no longer be office space, as was approved by the District as part of the development's Master Plan, but will instead be apartments. The joint venture will again undergo rezoning before beginning construction on phase 1, projected to commence in the spring of 2013, with lease up from fall of 2014 through summer of 2015. Rezoning was previously requested for the industrial area that has for many years contained an active concrete plant on site. In 2008, FRP asserted that it was hoping to break ground on the river front project in May of this year, but was delayed, also due to unforeseen "market changes."Patriot confirmed that FRP will have a 70-percent stake in phase one of the project; phase two through four remain undetermined. More information will be disclosed after Patriot's third-quarter-earnings meeting, the first week of August. 

Washington D.C. retail and commercial real estate news

Old Trash-Transfer Structure to be Thrown Out of Southeast

An old Department of Public Works (DPW) trash-transfer site at 900 New Jersey Avenue SE currently stands in the way of plans to reconnect I Street SE between 1st and 2nd Streets, and nicely square off the parcels to the north and south. But it won't stand for long; a raze application was filed on June 13th by the property owner, the D.C. Housing Authority (DCHA), and according to David Maloney, D.C.’s Historic Preservation Officer, “We will clear the raze application, it’s not a historic building; it’s a pretty typical industrial building from the 1940s, and we are not asking them to try to salvage any of it.”

Demolition of the structure will allow DCHA to sell the bit of land that currently overlaps the future I Street and protrudes into the land to the north, at 880 New Jersey Avenue, owned by William C. Smith + Co. (WSC). The belief is that DCHA will sell this small section to WSC, which will fill out the Square 737 site for WSC. However, DCHA will likely retain the majority of the property at 900 New Jersey Avenue, and develop it into additional Arthur Capper Hope VI housing.

"We hope that it's gone by the end of the year," says Michael Stevens, Executive Director of the Capital Riverfront BID, which will allow "I Street [to become] a major east-west connector."

Post demolition, land purchase, and the I Street connection, WCS will be able to begin phase one of its 1.1 million s.f. mixed-use project planned for the northern site, which it purchased from the Washington Post in 1999. Phase one will be a 13-story, 430-unit apartment complex.

Stevens adds that, "[WSC] intends to break ground in March of 2012, if everything goes according to plan with the trash transfer site."  The two-story, brick-concrete-and-steel structure was built in 1948 and is one of many designed by the municipal architect for the District, as was standard practice from the 1910s through the ‘50s.

The site is currently being used solely for the storage of Department of Public Works' vehicles.; trash-transfer operations and administrative offices have both already been relocated to Northeast, where the vehicles will also be headed. The old transfer site will likely need environmental remediation before construction is to begin, as it has dealt with waste for over a century. Previous to the current, 63-year-old structure, was a more rudimentary trash operation in place on the site at the turn of the 20th century.

The site is in a prime location, two blocks north of the Navy Yards Metro and east of Canal Park (now in development), and is part of the steady, ongoing transformation of the Southeast neighborhood into a vibrant live-work-play area.

"We'll see the trash transfer site and the [Florida Rock] concrete plant disappear, two of the last vestiges of our industrial history," says Stevens. "These sites will be put back to productive use. The Florida Rock site is already entitled as a major mixed-use project with office, hotel, residential and retail, but we don't know when they're going to pull the trigger on that."

Washington D.C. real estate development news

Stonebridge, District Kick Off Conversion of Washington Star Printing Plant Tomorrow

The District government and developers will commemorate the start of conversion of the old Washington Star printing plant tomorrow, turning the featureless, carton-like exterior in the shadow of the Southwest Express into a more modern structure designed by Hickok Cole. In a redevelopment plan the city inked with StonebridgeCarras in July of last year, the Washington DC government will pay to transform the building then rent it back from the developer for a 20 year period. Tuesday's ceremony will market "the official beginning of redevelopment," according to a press release.
The District government began leasing the property in 2007, but failed to use the building, then purchased the property last year for $85.2m, though it has not occupied the space. Actual construction began on the property last month. The revised building has been designed to earn a LEED Silver certification, incorporate the largest green roof owned by the District of Columbia, and provide space for a public gallery to "showcase the vast art collection of the DC Commission on the Arts and Humanities."

The city will continue to own the land in a lease-leaseback arrangement with StonebridgeCarras. The city will lease the property to the developer, which will finance construction of the renovation, then lease it back to the city for $8.4m per year to be used as office space for several District agencies. The property will revert to the District at the end of the 20-year agreement. The District government will build a data center and is seeking an occupant for the 50,000 s.f. of available space.

Washington DC real estate development news

Canal Park Underway Next Week

Work on southeast DC's grand Canal Park will get underway next week, as general contractors begin the construction of the 3-block urban park that will be a centerpiece for the ballpark (Capitol Riverfront) neighborhood "by February 15th." District of Columbia officials and representatives Canal Park Development Association had anticipated an earlier start date and 2011 completion date, and held a kick-off party last August, but "financing issues" have delayed construction, until now. The 3 acres of landscaping will offer "a stunning urban park on the site of the historic Washington Canal" with a variety of water features, a large pavilion/restaurant (LEED Gold or Platinum certified) designed by Studios Architecture and two smaller pavilions, 2 large fountains, wintertime ice skating rink, rain garden, multiple lawn spaces, an electric car charging station, and bicycle racks. The park will also collect and recycle its own rainwater and that from the neighborhood and nearby buildings, filtering through its rain garden for use in fountains and ice rink. Last summer the CPDA selected Davis Construction to build out and Blake Dickson Real Estate to locate a restaurateur for the park's pavilion. Philadelphia-based OLIN is the landscape architect. Chris VanArsdale, Executive Director of CPDA, says the financing and permitting issues of yore have been worked out, allowing CPDA to issue a work order to Davis next week with construction immediately thereafter and completion expected next spring. The District is ponying up $13.5m of the estimated $28m development tab. William C. Smith & Co., one of the early developers in the area, is providing in-kind support and an undisclosed amount of financial assistance. VanArsdale says that the difficulty in obtaining approval was caused by financing using the new markets tax credits. The federal government owns the land in arrangement that gives control to the District, which in turn has a 20-year agreement with the Canal Park Development Association to develop and manage the land. The canal that once ran across the site connected the Anacostia to Tiber Creek (now buried under Constitution Avenue), which ran to the C&O canal.

Washington DC real estate development news

Library From the Future Set to Land in Southeast

At first look, it's fair to wonder if the ghost of an argyle-sweater-totting Payne Stewart or a checker-clad circus clown helped design the soon-to-be-built Francis Gregory Library at 3660 Alabama Avenue SE. But like the progressively designed Washington Highlands Library, London-based David Adjaye is responsible for the ultramodern architecture that is slowly giving a hip new face to the District's libraries. Construction for the two-story, 22,500 s.f. building is set to get under way within the next two weeks, becoming Adjaye's second attempt to pass a glass box off as public library, after his "Idea Store" in Whitechapel, England put his atypical architectural acumen on the style map.

When designing the Washington Highlands Library, the size of the plot gave architects ample room to play with. Houses in the surrounding neighborhoods and on-site land elevation changes dictated many of the design decisions, but in the case of the Gregory Francis Library, architects were still expected to provide space for the same program requirements, and gifted much less area to perform on. This forced planners to push the building to the edges of the lot, leaving little room for landscaping or parking. Fortunately the site is surrounded on three sides by tree-filled parkland, so Adjaye and his design team were inspired to create a pavilion-like structure, blurring the boundary between outside and in. The glass walls are endowed with a checkerboard pattern, alternating squares of translucent glass and mirror to provide the ability to see in and out, while also reflecting the surrounding nature. This theme of open sight lines extends to the interior, as colored, transparent glass boxes help delineate program elements within, such as the children or teen sections of the library. Other interior boxes take on a wood grain finish to evoke the natural setting just steps outside the library walls.

A large overhanging canopy extends above the main glass structure to further conjure the image and feeling of a pavilion, and provide shade and protection from rain, snow, and ice. The roof is equipped with a louver system, enabling staff to adjust fan blades to allow more or less natural sunlight to penetrate through the ceiling, depending on the preferred temperature and time of year, much like the roof of the Verizon Center. Given the incredible amount of precipitation dumped on the Metro area last winter, engineers were forced to tweak the angle of the roof to make sure accumulated snow and ice loads could slide safely off. Thick, insulated, high performance glass forms the main structure of the building, coated with "low e" to reduce soar gain. Impressively, architects say the limited temperature transfer is comparable to a brick building.

Developers had hoped to incorporate walkways and design elements that more directly connect the library with the elementary school to the west and the park to the east, but the design team received little cooperation from either entity. What little room there is between the library walls and the property lines is landscaped to mirror the checkerboard pattern of the building frontage, hexagon cement pavers alternating with grass planters.

Although there was some complaint that these designs had been stealthily rushed through the ANC and community forum process without adequate public announcement, Zoning eventually approved building plans, and the Southeast is now set to receive a truly unique public building, set to open next summer at a cost of $13.5 million. Appreciated or not, Adjaye's postmodernist architectural vision will not end with the conclusion of the District Library's construction and renovation projects, as his firm is one of several firms involved in bringing another unusual design to life with the building of the Smithsonian's new Museum of African American Culture.

Washington DC real estate development news

DC Redesigns Empty Printing Plant Near Ballpark

The District has finally come up with a plan for a long-vacant building in southeast DC that once served as the printing plant for the Washington Star, turning a physical and fiscal black-eye into what District officials say will be "a bold move" to improve the neighborhood. The District government began leasing the property in 2007, a controversial arrangement when the city failed to use the building. DC purchased the property outright last year for $85.2m in the hopes of converting its liability into productive space and has now partnered with development giant StonebridgeCarras. The five-story building at 225 Virginia Avenue remains the largest empty building near the Nationals Stadium.


Scotching plans to add on to the five-story building, the city will now renovate the interior and redesign the exterior to add "a lot glass that will allow natural sunlight to filter through the building," according to Jason Yuckenberg of the Department of Real Estate Services for the District. The revamp will also earn a LEED Silver certification, incorporate the largest green roof owned by the District government, and provide space for a public gallery to "showcase the vast art collection of the DC Commission on the Arts and Humanities."

The city will continue to own the land in a lease-leaseback arrangement with StonebridgeCarras. Details on how the city selected StonebridgeCarras were not immediately available, but according to Yuckenberg, the city "approached a number of people in the community about working with us on this project." StonebridgeCarras principal Doug Firstenberg tells DCMud the city's first RFP for the building went nowhere, after which the developer came up with the current lease plan financed through a private placement bond issue. Ultimately what they wanted was to own the building through creative financing" says Firstenberg.

Under a signed agreement, DC will lease the property to the developer, which will finance construction of the renovations, then lease it back to the city for $8.4m per year to be used as office space for several District agencies. The property will revert to the District at the end of the 20-year agreement. The District intends to build a data center and is seeking an occupant for the 50,000 s.f. of available space, stipulating that the data center tenant, a typically heavy energy consumer, "not adversely affect the LEED certification process" according to Yuckenberg.

The current structure, which has "virtually no windows, and is really drab and dreary," acknowledges Yuckenberg, is surrounded by ongoing improvements to the Capitol Riverfront neighborhood, including EYA's Capitol Quarter housing project and adjacent Canal Park, which is expected to break ground within the next few weeks. The street will get its own revamp when CSX scrapes off Virginia Avenue to add capacity to the train line below it. Construction is expected to begin in November; the District has already begun interior demolition to make way for construction. The development team will include architects from DC's Hickok Cole, Davis Construction as a general contractor, and Rand Construction for the interiors. Firstenberg expects full occupancy by June of 2012.

The property was originally intended to be a 1^st District Police substation and evidence warehouse for the Metropolitan Police Department (MPD), which has since moved elsewhere. After two years of paying $6.5 million in annual rent (nearly $550,000 a month), the District raised the ante by purchasing the site. Washington DC officials say the move will "save District taxpayers more than $60 million over the previous arrangement."

The District recently issued a Request for Offers (RFO) to sublease the 50,000-s.f. data center, responses to which are due by July 30, 2010; the city will sponsor a site visit for the space tomorrow.

Washington DC real estate development news

Cohen Proposes Southeast Development

Though much has been made of the development plans in the Southeast ballpark area, another part of Near Southeast is finally getting some attention, not without drama. This week, the National Capital Planning Commission (NCPC) will review the Cohen Companies' plans to permanently close several unimproved streets that fall within the original L'Enfant city and are technically federal property, but that are now effectively segregated from all other life forms by the Southwest Expressway and Anacostia River. The intersection of 14th Street, M Street and Virginia Avenue in SE could get the addition of 815,000 s.f. of hotel, retail, office and commercial space, if the District and the Developer manage to jump some technical hurdles before a June 1, 2010 deadline. A little background: MIF Realty had a 99-year assignment agreement (lease) with the District for the Southwest Gangplank Marina. In June 1999, the Cohen Companies, under the name CASCO Marina LLC, sought to take over the leasehold from MIF, a contract between the two companies required that the lease transfer take place prior to November 22, 1999 or the contract would be automatically terminated. Enter the District. The District's Redevelopment Land Agency (RLA) stepped into the lease transfer, requesting several hearings and ultimately ruling that MIF was in default on the property for not having properly addressed damage and disposed of insurance proceeds. RLA would overlook the default in exchange for a re-negotiated lease for the marina upon the transfer to CASCO. The RLA officially handed down this decision on November 22, 1999 at which point MIF contested the default claims and simultaneously allowed the contract between CASCO and MIF to end. CASCO proceeded to sue the District for interference in the transaction and for $25 million in punitive damages. 

 After several suits and appeals, the District and CASCO eventually entered into a settlement agreement. The District will transfer the Southeast property, valued at $8 million, to the developers and ensure District support of the street closings and necessary zoning changes to allow a development with a 6.0 floor to area ratio density. In exchange for the land and support, the Cohen Companies will release its claim to a leasehold to the Gangplank Marina. The whole process has a ticking clock; if the land exchange, zoning and street closure approvals are not finalized by the June 1, 2010 deadline referenced above, then the Cohen Companies can withdraw from the agreement and could once again pursue a lawsuit against the District over the Southwest property and related punitive damages. The District Council in March approved the land transfer and density elements. The bill was then signed by the Mayor in April and will receive Congressional review. According to the NCPC staff report, the agreement should be law by May 27, 2010. NCPC will review the matter Thursday and submit its opinion to the Council for consideration, the Council will vote on the street closures bill this month. The street closures bill would exempt the developers from several requirements, such as paying rent on the closed street and from having to provide affordable housing to offset the increase in commercial space. NCPC's Staff Report finds fault with several elements of the plan, in both the agreement between the District and the developer and with the actual design. NCPC staff notes that the streets in question are part of the original L'Enfant Plan, and therefore owned by the federal government. But NCPC cannot actually administer the necessary bureaucratic smack down to resolve the conflict between District and the feds about the rights to transfer titles. NCPC's Staff Report also notes that the plan for bridges connecting the proposed buildings would block viewsheds (see image at left for the lovely view from the property line). Now, that's a familiar complaint...think streetcars. The staff recommended an approval of the initial design, but suggest the obstructing elements be kindly removed. The NCPC will take up the issue this Thursday. 

  Update: To clarify, the NCPC's stance on the viewsheds and vistas within the L'Enfant plan reflect the opinion of the District's own Historic Preservation Review Board (HPRB). In January the HPRB recommended that "any encroachment on L'Enfant views and vistas be completely avoided or minimized to the maximum extent feasible." 

Washington, DC real estate development news

20 M Street SE Secures Booz Allen Hamilton Lease

The underdog southeast ballpark neighborhood has something to boast about today: 20 M Street, SE secured a lease for nearly 30,000 s.f. from Booz Allen Hamilton, bringing building occupancy up to 70%. While other potential projects sit as big gaping holes, Lerner Enterprises and WDG Architect's 20 M Street has scored a series of victories in snagging leases from the General Services Administration, Bureau of Land Management (BLM) and now from a coveted private entity. Both the BLM and Booz Allen Hamilton will move into the neighborhood this year; Booz Allen Hamilton will be the cool kids on the top floor.

The 10-story, 190,000-s.f. office building contains four levels of below-grade parking, 10,971 s.f. of retail space and was the first LEED Gold certified building for core and shell in the District. The building sits across from the Navy Yard Metro and a block away from Nationals Park. Hmm, who wants to bet how many season tickets Booz goes in for this year?


Washington, D.C. real estate development news

Congressman on a Wire

The federal government and the circus will be one step closer after today's Zoning Commission hearing, which will consider an application for a Trapeze School on land currently owned by the General Services Administration. The zoning text amendment would allow TSNY (Trapeze School of New York) a trapeze and performing arts facility on 55,300 s.f. of land east of the ball park and southeast of the U.S. Department of Transportation building.

Pending approval the "trapeze school and aerial performing arts center" will have access to the land as a matter of right until December 2014. The school is currently in a temporary location at the site of the Old Washington Convention Center at 9th and H St, NW. Perhaps Congress might consider doing one of the schools "team-building workshops." The Zoning Commission hearing is scheduled for tonight at 6:30 PM in the Office of Zoning hearing room at 441 4th Street and is open to the public, so swing by.

photo by Rich Riggins

Ballpark: Build It and They Will Come, They Might Even Stay

It's a good thing that the Nationals' standing as perhaps baseball's worst team ever will likely have no effect the residences of the surrounding neighborhood. The Capitol Riverfront Business Improvement District (BID) has issued its second quarter residential statistics for 2009, showing how desirable the area is to reside in, and it looks like the cliched Costner-ism of "build it and they will come" is working...for some more than others. EYA's Capitol Quarter townhome development appears to be the leader of the pack of with "88 of 113 (market rate) units sold" - though sales began in the fall of 2006. With prices starting at $630,000, EYA can be content with its position as the only new single-family home project in the area, and their only competition in the area are the dreaded c-word – condominiums – and its Capitol Quarter has generated a slew of favorable media coverage for its tre trendy green construction practices and subsequent “LEED for Homes” certification. Proof positive that condos are indeed still on the sluggish side, Texas-based developer JPI’s pair of Capitol Riverfront condos. Or at least they were considered as condos before the Big Crash - The Axiom at Capitol Yards, The Jefferson at Capitol Yards and Faison's Onyx on First (pictured) – are now all renting as apartments. But according to the BID, the buildings have achieved 60% occupancy of their collective 960 units. That leaves approximately 384 empty units on the market, despite the fact the first completed building, The Jefferson opened its doors one year ago this month. It’s presumably that same dearth of buyers that made JPI go rental with their third area building, 909 at Capitol Yards; so far with less success than its predecessors. According to the BID report, only “25% of the 237 units” at 909 – but the project began renting only in the spring of this year. The developer has been trying to court the young, urbanista demographic for the building by advertising amenities like yoga studios, communal Nintendo Wiis and a residents-only bar/pub. JPI's tentative plans for a fifth and final 415-unit apartment building at 23 Eye Street still remain on the table, at least officially. Valhal Corporation’s Capitol Hill Tower Condo-op is still trudging along with "80% of 344 units sold." That would seem an admirable rate of occupancy had the building not opened early in 2006, with sales almost a year before that. Not mentioned in the BID stats is the Cohen Companies' Velocity condo project, the 200 unit condo nearing completion, but for which sales are reportedly not, well, high velocity. Nonetheless, the BID reports that, in total, there are now “an estimated 1,863 residents living in the Capitol Riverfront , with over 2,000 residents expected by the end of the year.” You could be one of the lucky 137 by year's end. Ghost town or boom town? You be the judge. 

UPDATE: Says Ted Skirbunt, Director of Research & Information Systems at the BID: "JPI’s buildings were always going to be rental from the beginning. The only building thus far to convert from condos to rental apartments is the Onyx."

Washington DC commercial retail and real estate news