West End Hotel Construction Begins

OTO Development has begun work on the Hilton Garden Inn at 22nd and M Streets, in DC's West End neighborhood.  The project had been on hold for years as a previous team sought to put a fashionable "1 Hotel" on the site, but failed to get the project off the ground.  Turner Construction, the general contractor on the project, began site work last week.

OTO, based in Spartanburg, SC, is one of the three developers partnering to build the West End Hilton, along with newly-formed partnership including Starwood Capital Group and Perseus Realty, LLC, a partnership that brought the financing needed to start construction.  Shalom Baranes of Georgetown is architectural firm designing the terracotta and brick, 10-story, 237-room hotel, which will feature a second-floor, landscaped courtyard, meeting rooms, a rooftop garden and pool and a green roof.

West End Hilton Garden Inn, Washington, DC

The 15,600 s.f. lot at the corner of 22nd and M has been dormant since 2008 when the site's original developer demolished the Nigerian Embassy to make way for a boutique hotel.  Starwood then planned a luxury hotel but failed to secure financing for the concept.



In 2011, developers sought permission to modify the site plans and instead of a boutique eco-luxury creation, they announced plans for a Hilton Garden Inn (a brand categorized as upscale mid-priced) with 237 rooms, along with Shalom Baranes and OTO Development as a third development partner.  Although neighbors complained about the "fanny pack crowd that would frequent the hotel, the choice proved easier to finance.

The hotel will also feature a ground-floor restaurant and bar with indoor-outdoor seating opening onto the street on the corner of 22nd and M, and is the beginning of Hilton's play into more urban areas.

Washington D.C. real estate development news

West End Hotel Ready to Start Construction

The future Hilton Garden Inn in DC's West End

In a deal that marks a step forward for a hotel project at 22nd and M - on hold for four years - developers are set to close Wednesday on construction financing for the project, OTO Development CEO Corry Oakes told DCMud.

If the deal closes today and construction moves forward in a few weeks as developers expect, deep-rooted weeds on the prominent corner in DC's West End neighborhood may soon be gone, salving neighbors' ire.

"We're very excited about moving this long-awaited project forward and becoming part of the community," Oakes said.  He said contractors would break ground on the Hilton Garden Inn, planned for 2201 M Street, within weeks.

Turner Construction will be the general contractor on the project, Oakes said.  OTO, based in Spartanburg, SC, is one of the three developers partnering to build the West End Hilton Garden Inn, a partnership which also includes Starwood Capital Group and Perseus Realty, LLC.  Also Wednesday, the three partners were due to close on a deal consummating their joint venture agreement.

Shalom Baranes of Georgetown is architectural firm designing the terracotta and brick, 10-story, 237-room hotel, which will feature a second-floor, landscaped courtyard, meeting rooms, a rooftop garden and pool and a green roof, according to a project architect.

The corner of 2nd and M has been an empty lot for years

The 15,600 square-foot lot at the corner of 22nd and M hasn't seen action since 2008 when the site's original development team demolished the Nigerian Embassy to make way for a boutique hotel. Developers later abandoned plans for a Starwood "eco-luxury hotel", billed as a "1 Hotel", when they couldn't secure financing for the structure.  They settled on the Hilton Garden Inn brand instead, but by the time developers applied to revise their permits, many neighbors and West End leaders had already gotten excited about the "1 Hotel" concept.    

"During the zoning hearings, I was not shy about my disappointment that the concept switched from the 1 Hotel to the Hilton Garden Inn, as I felt the West End really didn't need more hotels and at least the 1 Hotel was interesting, both as a destination concept and architecturally," West End ANC2A commissioner Rebecca Coder wrote in an email to DCMud Monday. "However, at this juncture the neighborhood simply wants the corner activated."

Developers abandoned plans for this "eco-luxury" hotel

In the project's beginning, developers included Starwood and Perseus with Oppenheim as the architect.  Original plans for the site called for a 150-room, 23-suite hotel, under the Starwood Capital "global eco-luxury" hotel brand "1 Hotel", featuring an organic day spa among other features built to LEED standards.

Years passed.  The lot sat empty, but D.C. wasn't the only place so-called "eco-luxury" hotels, envisioned to cater to a niche market of über-wealthy lovers of greenness and light, weren't sprouting.  According to HotelChatter.com, Starwood's plans for a 1 Hotel in Seattle were withering too, along with the economy. Starwood started excavations for a 1 Hotel in Seattle, but later re-filled the hole and the lot reverted to a parking lot when it couldn't secure financing for the project, according to the Seattle Times.

Then, sometime between the nadir of the financial crisis and the birth of Occupy Wall Street, developers decided to change course on plans for 22nd and M after Perseus contacted more than 40 lenders, all of whom declined to finance the West End 1 Hotel project.

In 2011, developers sought permission to modify the site plans and instead of a boutique eco-luxury creation, they announced plans for a Hilton Garden Inn (a brand categorized as upscale mid-priced) with 237 rooms.  The new incarnation now included Shalom Baranes as the architect, and OTO Development, a hotel development company based in Spartanburg, South Carolina, as a third development partner.  Changes included a redesign of the exterior façades, an increase in the number of rooms and a three-foot reduction in height to 107 feet, and 53 parking spaces in a valet-operated garage.  There were neighbors who balked.

Plans for the Hilton Garden Inn at 22nd and M, West End, DC

"Some neighbors have already said they fear the new hotel will attract "the fanny-pack crowd" to the West End neighborhood," the neighborhood group West End Friends wrote on their web site last year after an ANC2A meeting when developers presented their new plans.

But if hotel site plan changes sparked West End fears of fanny packs, site developers and project architects maintain there is no need to fret about that.  "This is very much upscale for the Hilton Garden Inn brand," lead project architect Patrick Burkhart said.

Burkhart said the hotel would feature a second-floor, landscaped terrace with outdoor seating areas, and a lobby with a fireplace, monumental staircase, and a water feature with plants cascading from the second-level terrace.  The hotel will also feature a ground-floor restaurant and bar with indoor-outdoor seating opening onto the street on the corner of 22nd and M. Burkhart said the hotel marks a move by the Hilton Garden Inn brand into more urban areas, including D.C. where he said it would be the District's third.

West End Hilton Garden Inn, Washington, DC

With a new hotel, the corner will see more activity in years to come.  Demand is up for hotel rooms in the District.  According to Jan Freitag,  Senior Vice President with STR Global, a hotel industry benchmarking and consulting company based in Hendersonville, TN, data shows 10.5 million rooms were sold in the first five months of this year in the Washington, D.C. market, 1.5 percent more than last year.  "More people are coming to DC."

At least some of those people may soon be destined for 22nd and M.  Lucky for the West End, even fanny packs can be luxurious too.

Long-Awaited Shaw Project Breaks Ground

Yesterday, the Jefferson at Market Place (formerly Kelsey Gardens, then Addison Square) project in Shaw broke ground after several delays including a halt due to lack of funding and a changing of hands from Metropolitan Development to Jefferson Apartment Group.

The subsidized housing project has a long history behind it: Executive Vice-President and partner with the Jefferson Apartment Group Greg Lamb said, “It’s a long time coming on the project. We entered the venture on this project at the end of 2011, where we took over the managing partner position. When we became involved, there wasn’t financing available, and the project had somewhat stalled.”

So Jefferson brought in Starwood Capital Group, its equity partner, and got construction on the mixed-use, 8-floor, 281-unit project.  Its 260,000 s.f. will include 13,000 s.f. of retail on the ground floor and 54 of the 281 units will be affordable housing units, while the rest remain market-rate.

The project is surrounded by other construction projects as Shaw bursts with new development, including the O Street Market, Progression Place (a large residential, office and retail project now well into construction), and the Wonder Bread building, plans for which are now being hashed out, as well as the Howard Theater. Another piece of the Market Place project was begun last spring when Capital City Real Estate purchased the land and began a small housing project.

What sets this complex apart is who will be residing in those affordable housing units: the former tenants of the affordable housing that was there, about six years ago, when this began.

“The neat story about this project is that the previous residents of Kelsey Gardens, which is the project that is being demolished, have the opportunity to move back into the complex after it is finished,” Lamb said. “Those tenants moved out back in 2007, so it’s rare that over a five or six year period that they’ll still come back.”

Those tenants have a representative group that has been working with Jefferson to ensure a smooth transition back.

Lamb said 35 to 40 of the new affordable housing units in the development will be occupied by former tenants of the building.

JAG paid $16.5m to control the site, keeping the permits obtained by Metropolitan, and took advantage of tax breaks previously authorized by the city.  "The city has helped and been a tremendous advocate on this project, providing some tax incentives on the project to make it work,” Lamb said.

The project is slated for completion in 24 months, with the first units becoming available for occupancy in 18 months.  “It’s been a great story with the coordination between the city, the developer and the tenants,” he said.

Washington D.C. real estate development news

West End Hilton Garden Inn Seeks Modifications This Week

This Thursday, the joint venture between Perseus Realty, Starwood Capital, and OTO Development, "PerStar M Street LLC," will visit the Zoning Commission with its request to modify the PUD zoning application for its West End hotel site, a now-empty parcel at 2201 M Street once occupied by the Nigerian Embassy. The 15,600-s.f. area is currently visualized by developers as a Hilton Garden Inn, a vision that replaces an earlier, sustainable, "eco-luxury" 1 Hotel.

The change in brand, from a 1 Hotel to a Garden Inn, comes with several zoning changes: a redesign of the exterior façades; an increase in the number of rooms, from 170 to 238; a minor increase in density, from 122,235 g.s.f to 124,564 g.s.f. (7.84 to 7.99 FAR); a small reduction in height by 3' to approximately 107'; and 11 additional parking spaces (increased from 42 to 53) in a valet-operated garage.

The Hilton Garden Inn, although not "eco-luxury," aims to become LEED-Silver certified; the Garden Inn is being designed by Shalom Baranes, who replaced the architect of the 1 Hotel, Oppenheim.

The neighborhood ANC was disappointed in the change from the 1 Hotel to a new plan and new flag; ANC 2A Chair, Rebecca Coder, emailed the following: "While the West End didn't need another hotel, the fact that the 1 was a unique concept made it palatable." Coder added that the ANC is hopeful that the concerns articulated by residents, related to the design and desire for unique retail, will be considered by developers.

The current version of the PUD, which accommodates the scrapped 1 Hotel plan for the site, was approved in June of 2008, and the buildings at 22nd and M Streets, NW – the Nigerian Embassy and Asia Nora – were razed in February of 2009 in anticipation of the project's start, which never happened.

In March of 2010, the PUD application was given a two-year time extension, due to "difficulties with financing based upon changes in economic and market conditions beyond the applicant's control;" a report by the Office of Planning in support of the time extension stated that Perseus Realty contacted 40-plus lenders unwilling to provide financing, citing the general decline in the hotel market and the negative growth in revenue generated by existing hotel rooms.

The construction extension requires that a building permit application be filed by June of 2012, however, from that time, a full year is given before construction must be underway – "no later than June 27th, 2013" – which means that although Robert Cohen, president of Perseus, said in August that the development team's goal is to begin construction in June of 2012, there is no pressure from the District to begin next year, and still another hurdle awaits – construction financing.

The Office of Zoning explained that the upcoming hearing, on Thursday the 27th, to review zoning request, may or may not result in proposed action by the Zoning Commission: "It’s possible that the Commission could take proposed action at the end of the hearing and then it would be referred to NCPC for a 30-day comment period before final action could be taken. If they don’t take proposed action at the end of the hearing, then the next step would be for it to be placed on one of the scheduled meeting agendas for decision."

In August, Neil Jacobs, president of SH Group, Starwood's luxury hotel brand management company, stated the reason for the brand change was that, "With a 1 Hotel we were limited in the number of rooms we could get onto the site. We didn't want to compromise the brand, and commercially [the Garden Inn] is a better choice."

OTO Development came on as a partner after the decision was made, in the fall of 2010, to desert the 1 Hotel in favor of a more affordable Garden Inn.

The Hilton Garden Inn will contain a 5,000-s.f. restaurant offering seasonal sidewalk seating, and if all goes well with the upcoming PUD change process, and ability to secure construction financing, developers aim to deliver the hotel and restaurant by the summer of 2014.

Washington D.C. real estate development news

Hilton Garden Inn Aiming for Next Summer at One Hotel Site

The West End has been waiting on 1 Hotel for several years. In a way, the wait is over, according to Robert Cohen, President of Perseus Realty LLC, half of the site's development team along with the Starwood Group, who said, "There is no more 1 Hotel [for this site]." Instead, there will be a 238-room Hilton Garden Inn with a 5,000 s.f. restaurant, and construction is expected to begin in June of 2012.

New design, Hilton Garden Inn:
Previous design, 1 Hotel:
Perseus Realty is currently applying for an amended PUD with the Zoning Commission, using the above (first rendering) working design by local architecture firm Shalom Baranes. "It's a first class design," explained Cohen. "It'll be the nicest Hilton Garden Inn in the country." Shalom Baranes principal Patrick Burkhart is in charge of the new Hilton Garden design, the 1 Hotel design was done by Chad Oppenheim of Oppenheim.

"Due to the climate in the last two or three years, we felt that a Hilton Garden Inn is a better use for the site. Nothing more than that," said Neil Jacobs, president of SH Group, Starwood's luxury hotel brand management company, formed in 2009. "With a 1 Hotel we were limited in the number of rooms we could get onto the site. We didn't want to compromise the brand, and commercially [the Hilton] is a better choice."

The 1 Hotel brand is alive and well, confirms Jacobs, who notes the construction of a new 1 Hotel currently underway on 6th Avenue in New York.

The Starwood and Perseus investment at M and 22nd Streets, NW is the site of the former Nigerian Embassy and Asia Nora - both razed in 2008. A restaurateur, yet to be selected for the 5000 s.f. space, will be largely dependent on qualities that are interactive and community focused, according to Cohen.

8/11 addition: previous project and design commentary, Former Swanky 1Hotel...

Washington D.C. real estate development news

West End Hotel, Waiting for 2

It may be up to three years before Starwood Capital Group moves forward on with a hotel at 22nd and M in the District's West End. The project that was to have been developed by Perseus Realty has been on hold for several years, having been slated for the city's first eco-luxury, LEED-certified 1 Hotel, a brand that would have offered 150 rooms, 23 suites, an organic day spa, fitness center and restaurants.

"My sense is they are waiting for the financial markets to thaw out a little more," said ANC2A Commissioner Rebecca Coder. "From the neighborhood perspective...there would be a preference for multi-family housing, but we're open to the hotel that's approved as well." Coder said she knew of other developers having approached Starwood about purchasing the land to develop as part of Eastbanc's redevelopment of the post office, library fire station, but the offer was declined.

In phone calls yesterday, both Starwood Capital and Perseus would not comment on the development. But sources say the hotelier has been talking with other operators about possibilities for the site. When asked, Perseus said the company is still the developer for the project.

The two formed an agreement in 2007 to build the hotel. The site was the former location of the Nigerian Embassy and Asia Nora, both demolished in 2008 - no architectural loss - to make way for 1. The project never got off the ground. Last year, Starwood abandoned the 1 Hotel concept, and has since considered other brands. Starwood and Perseus had hoped to decide upon a direction by the end of 2010.

But locals are unhappy that the choice site has become a weed garden. "We are talking to people to decide what to do with the land in the interim, something that may generate money," said Coder. She mentioned the possibility of parking, but the PUD may prevent the developer from such a plan for temporary use. "It's really long time for the neighborhood to put up with an empty lot."

Washington, D.C. real estate development news

W Hotel Debuts in DC July 8

Washington DC's first W Hotel will open to the public on July 8th, the first local opening for the hip hotelier. The international pop luxury chain, operated by Starwood Capital Group, takes the place of the Hotel Washington, once a grande dame of DC hotels but that had become faded and tired before selling in 2006, first for $120 million and then to Istithmar Hotels for $150 million, then closing for renovation in 2007 and selling yet again to Nakheel Hotels. Both Istithmar and Nakheel are partly owned by the government of Dubai.

Starwood will provide 317 rooms and suites, stretched out from the original 400 rooms, retaining the famed 11th-floor rooftop terrace that overlooks Tim Geithner's office, not to mention the White House, in a decidedly more upscale setting - the word "swanky" being all but ubiquitous in reviews of the hotel chain. In keeping with its "category buster" profile, the hotel was re-designed by architect Dianna Wong, a Los Angeleno, who kept many of the original architectural elements while adding such must-haves as a DJ and "digital fireplace," for an appearance that will be "sophisticated and sleek but never trendy."

The hotel renovation, which took 18 months to complete, entailed a complete gut and overhaul, and the new owners "gutted it to the girders," according to Barbara Martin, Director of the Patton Group, a public relations firm. Some original elements of the building such as chandaliers, check-in desks, and archways were taken out, restored and returned to the building, but the rest will be new. The POV (point of view) Lounge on the top floor will operate year-round, with drop-down screens and raised awnings for yet better views of the executive office.

Opening within the hotel will be J&G Steakhouse. Rates available on the W's website start at $289 per night single-occupancy. The hotel was built in 1888 as department store and renovated in 1917 to become the fabled Hotel Washington. The July 8th event will be open to the public.

Bottom rendering courtesy Dianna Wong.

Update: It should also be noted that BBG-BBGM was the architect of record for the redesign of the hotel. BBG-BBGM has designed numerous hotels both locally and internationally, and designed the W Hotel in New York City.

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.

"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.

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