Southwest's Big Day

Can anyone finance this?

District officials began demolition yesterday of Hogate's Restaurant on the Southwest waterfront, the first step of what will be a billion-dollar renovation of the area that will usher in a new neighborhood in a city-changing endeavor to connect DC to the river. Or, to the cynically inclined, it was a short-lived photo op for a project that has zero chance of starting soon.

Putting healthy skepticism aside, a completed project would be transformative, replacing careless architecture, mediocre food establishments and parking lots, all segregated by anti-pedestrian design, with an urban worthy mixed-use neighborhood featuring 14 acres of parks and "open space," 780,000 square feet of office and retail space, 3 new hotels, entertainment venues and 770 condos and apartments. Just picture throngs of happy pedestrians gazing over the marina while dropping Hamiltons like crazy at waterfront retailers. Add 3,000 new jobs and you have a minor stimulus plan in the works.

So just how close is the team, comprised of PN Hoffman, Madison Marquette, Struever Bros. Eccles & Rouse, McCormack Baron Salazar, ER Bacon Development, Triden Development, Paramount Development, Gotham Development and City Partners, to getting real progress? The ambitious project, first approved by the DC Council back in 2003, was never on fast-track. But despite the development team having been selected in September of 2006, the District's approval of $198m in revenue bonds supported by tax increment financing (TIF) in July of 2008, and ratification of the land agreement in December of 2008, numerous obstacles remain. District officials say that a master plan will be submitted in October, and though they acknowledge there has been no major headway on financing, actual construction is now estimated for a comfortably distant 2012. But in January of 2008 developer Monty Hoffman predicted that "District residents can see a shovel in the ground by 2010;" not a surprising miscalculation given, well, everything, but one that gives pause in relying on current estimates. PN Hoffman would not comment on the significance of the groundbreaking. It seems that for the near future it will remain simply a good spot to get cheap fish.

Washington DC real estate development news

Down the Rabbit Hole at National Park Seminary

With a mix of decaying and revamped historic buildings tucked among cookie-cutter suburban dreams, Maryland's National Park Seminary, an adventurous attempt at adaptive reuse, is surely the most unique new community regionally, if not nationally. The collaborative development team of The Alexander Company and EYA will sponsor a "ribbon cutting" today, highlighting the new construction and first stages of historic renovations ready for tenants, particularly the newly finished Ballroom condos.

A surreal, 32-acre conservation area is the setting for 280 new and rehabbed residences culled from an international showcase of homes - think Swiss mountain lodge next to Dutch windmill, astride American colonial. Shopping for a Japanese Pagoda? Yes, but you will have to wait, Alexander is still using it as office space.

The beltway-hugging Silver Spring site includes new townhomes, historic condominiums, rental apartments and historic single-family homes, formerly an elite girls finishing school and the United States Army quarters (an exemplar of mixed-use). The land extends to I-495 and a few new townhomes have back porch access to Rock Creek Park. The nearest metro, Forest Glen, is about a mile from the site, so residents working in DC will be stuck commuting up 16th street, the most direct route to downtown.

The Seminary has an interesting recent history as well: having identified the property as surplus, in 2001, the U.S. Army tried to raze the historic structures, but local preservationist Save Our Seminary banded together to prevent the historic loss. The federal government then turned the land over to Montgomery County, which selected Alexander as the developer in 2004 after a competitive RFP. Alexander, both the developer and architect, worked with EYA as a local partner for the new construction and hired Struever Bros. Eccles & Rouse as general contractor. The historic preservation is valued at over $150 million, which Alexander hopes to offset through sales of the new construction.

Dan Peters, Director of Communications for Alexander, highlighted the unique buying opportunity of historic units, "not one of the condos or apartments has the same floor plan...the site is the most unique residential development in the country." No argument here. The single-family historic homes designed to look like international dwellings and the hodgepodge designs of the condos are unexampled, one part World Fair, one part Alice in Wonderland. Interspersed are the mostly-standard townhomes of EYA - generally the epitome of architectural sameness at home in any suburban cul de sac, for one of the most eclectic juxtapositions outside of a museum.

Since sales began in January 2006, all but 4 of the 90 new EYA townhomes have sold and the 66 historic rental apartments are fully leased, though only 20 of the 50 historic condos, which began delivering in late 2007, are spoken for at present. Only two of the historic single-family homes have sold so far.

The one, two and three-bedroom EYA townhomes range from $400,000 to $900,000. The 90 new townhomes and courtyard homes feature Spanish Mission, English Tudor, and Arts & Crafts architectural styles.

With only 4 new townhomes left for sale, buyers may want to fix their gaze on the condos or the historic single-family homes. The condo, pictured at right, features stained glass throughout, a lofted bedroom and reportedly sold for nearly $1.5 million. The first phase of historic condos is just about entirely complete and the second phase, which will tackle historic buildings including the gymnasium, the stables, the servants quarters and carpenter's shop, is set to begin in spring of 2010. Peters indicated construction would take between 12 and 18 months to complete.

Peters notes that historic single-family homes will demand a knack for historic preservation to meet the county's standards. Though to date only two of the homes have sold, the developer was optimistic that sales of historic condos would pick up with the progression of construction - a benefit of selling a concept versus a finished product. But with an entire phase of construction remaining, buyers may still need an active imagination.

SW Waterfront Nets its First Casualty

Just weeks after the City Council's approval of a Land Disposition Agreement authorizing the Hoffman-Struever, LLC’s redevelopment of the Southwest Waterfront, progress, of a kind, is already being made. The first casualty of the development process appears to be the Virgo Fish House – a staple restaurant of the famed Maine Avenue Fish Market. Shrimp cocktail enthusiasts shouldn’t fret, however; while the restaurant’s current quarters are scheduled to be demolished in tandem with another abandoned property at the site, the remainder of the Washington landmark at 1100 Maine Avenue, SW, will be safe for the foreseeable future. "The blue building, which formerly operated as a crab house [will be razed],” says Nina Albert, a Project Manager with the Office of the Deputy Mayor for Planning and Economic Development. “That blue building will be replaced with a temporary Fish Cleaning Building, and...the building that Virgo’s is currently operating out of will be demolished. The intent of these small moves is to keep the Fish Market in safe and operable condition until the redevelopment occurs.” That redevelopment by the Hoffman-Struever development team – which is officially comprised of comprised of PN Hoffman, Struever Bros., Eccles & Rouse, McCormack Baron Salazar, ER Bacon, Gotham, City Partners, Triden and the recently added Paramount Development – isn’t expected to begin anytime before 2011, but it’s also worth noting that the Maine Avenue Fish Market was also targeted by 2008’s National Capital Framework Plan. The Plan – drafted by the National Capital Planning Commission - seeks to reintegrate Maine Avenue into the fabric of daily life in the District by refurbishing the Market’s home at the Overlook and linking it with an extension of 10th Street, SW.

Washington DC retail development news

PN Hoffman Talks Shop on SW Waterfront

WASHINGTON DC - With the City Council’s unanimous approval of the Hoffman-Streuver, LLC’s $1.5 billion redevelopment of the Southwest Waterfront in the bag this week, the question is no longer if the project will be built, but what and when. Given the broad scope of what has already been announced - 770 residential units, 3 new hotels, office space, entertainment venues, parks and a maritime-themed museum – just how does one go about turning 26 acres of the nationally prominent riverfront with overlapping jurisdictional oversight and zoning into a local waterfront destination? These are questions that have also nagged at PN Hoffman’s development team as they chart the course of the biggest development to hit the District since Nationals Park.

Shawn Seaman, Vice President and Project Manager of PN Hoffman, gave DCMud some insight on the developer's plans. “We have worked with our Master Planner, Ehrenkrantz, Eckstut and Kuhn, and studied hundreds of mixed-use and waterfront developments around the country and the world. Some of the best examples for dynamic and exciting waterfront projects were in Europe, and specifically Scandinavia – Oslo and Stockholm both have vibrant and well-used waterfronts,” says Seaman. “The design will embrace the “messiness” and vitality of a real working waterfront, allowing the market, the boat traffic, and the new mixed-use development to co-exist."

Additionally, Hoffman intends to make sure that the Southwest Waterfront becomes fully integrated into the fabric of District life, instead of serving as a new location for Constitution Avenue t-shirt vendors to hock their wares. “The project…is first and foremost an extension of the Southwest neighborhood. It will be the one of first waterfront neighborhoods in the District,” says Seaman.

That, however, is not to say Hoffman won’t be seeking out the revenue that come along tourism - the majority of the planned retail space will fall along Maine Avenue, within sight of the Waterfront’s (now) biggest tourist draw, the Maine Avenue Fish Market. Seaman says that PNH plans to “enhance” the market, in addition to adding “improved connections back to the Mall,” an understatement for an area that nearly requires a coyote to get you to and fro, and developers intend to make the development accessible to Washington weekenders as well as new residents with downtown jobs .

Those connections will take the form of “a pedestrian bridge or a grand staircase” connecting Metro-accessible Banneker Park to the foot of the Waterfront development. Furthermore, Hoffman intends to link their project to nearby Southeast with an extension of the Anacostia Riverwalk and is also exploring the possibility of infrastructural ties to the Tidal Basin and East Potomac Park. “Long range,” says Seaman, “the site would be an ideal stop on a Southeast/Southwest light rail line connecting Barrack’s Row, The Yards, the Baseball District, and Southwest Waterfront.”

Still, planning is still embryonic. And given that the project isn’t likely to begin construction until at least 2012 – not to mention the belt-tightening state of the economy – is seems reasonable to wonder where and when the first of Hoffman-Streuver’s cash will be spent. “The next two years will be focused on completing the design of the project, working with the community, and submitting for the PUD,” says Seaman. “We are confident that the capital market will have improved by the time we are ready to put a shovel in the ground.”

Council OK's Southwest Waterfront Agreement

In a vote last night, the DC City Council unanimously approved the agreement with development partner PN Hoffman to develop DC's Southwest Waterfront. The Land Disposition Agreement (LDA), signed by both the developer and District back in September, calls for an estimated $1.5 billion redevelopment of the Southwest Waterfront into one of Washington DC's most massive land projects, with 770 residential units, 3 hotels, vast commercial space, and a significant retail venue.

Officially titled the "Southwest Waterfront Disposition Emergency Approval Resolution," the agreement with Hoffman-Struever LLC codifies the recent land deal, and makes way for the next stage of development planning. And while the Council's approval permits the team to "commence entitlements and design in early 2009," it will likely be at least three years until real construction begins.

Entitled by the LDA to “master developer” status, Hoffman-Struever will now be allowed to name, design and develop the $1.8 billion (including $198 million in publicly financed assets) project with little government direction.

In statement released shortly after the passage of the resolution, Hoffman said, “Our collective concern for the success of this project is very real and we are pleased that all sides have come together. We can now focus on the matter at hand – moving this vision forward.” The development team attached to the project is officially comprised of PN Hoffman, Struever Bros., Eccles & Rouse, McCormack Baron Salazar, ER Bacon, Gotham, City Partners, Triden and the recently added Paramount Development. Acresh, another developer initially attached to the project, has since parted ways with the development team.

Washington DC real estate development news

DC Signs Agreement with SW Developer

Deputy Mayor Neil Albert and PN Hoffman CEO Monty Hoffman today signed a noteworthy Land Disposition Agreement (LDA) enabling Hoffman- Struever Waterfront LLC, the developer selected last January, to move forward with plans to bring 2 million square feet of mixed-use development to the Southwest Waterfront.

Entitled by the LDA to “master developer” status, Hoffman-Struever will now be allowed to name, design and develop the $1.8 billion (including $198 million in publicly financed assets) project with little government direction. Deputy Mayor Albert, via a press release issued by PN Hoffman, described the project as “a true public-private partnership.”

The same statement outlined the developer’s intentions to make the site a “world class mixed-use waterfront destination” with public parks, three hotels, a Maritime Center, commercial office space, retail outlets, and more than 700 housing units. Hoffman envisions the site as serving as the missing link between the Baseball District and "revitalized M Street corridor" and the National Mall. In all, the project will encompass 26 acres of land and another 25 of marina area.

Still, any construction at the site is years off. The LDA is essentially the developer's contract to purchase; the city will not be able to transfer the massive parcel to Hoffman-Struever until 2011, at the earliest. The City Council must still vote on the LDA, which will get its first vetting at hearings on October 6th before the Committee on Economic Development. The Mayor's office expects a vote on the subject by November. Ehrenkrantz, Eckstut & Kuhn was named the master architect in June of last year, officially making the team - officially comprised of PN Hoffman, Struever Bros. Eccles & Rouse, McCormack Baron Salazar, ER Bacon, Acresh, Gotham, City Partners and Triden - the most unpronouncable development team on the east coast.

District Approves SW Waterfront Bonds

The District Council today approved a financing project for the 23-acre Southwest Waterfront, providing $198 million in bonds for the waterfront project, a bill that Mayor Adrian Fenty is expected to sign. Under terms of the bill passed unanimously by the the DC Council, the District will issue revenue bonds supported by tax increment financing (TIF), payment in lieu of taxes (PILOT), and special assessments, for improvements that will begin after developers PN Hoffman and Struever Brothers, Eccles & Rouse finish the private portions of the redevelopment. The Southwest Waterfront Bond Financing Act of 2008 authorizes the Mayor to issue revenue bonds to fund site improvements, with $148m allocated specifically for "development costs" of the project. The remaining $50m is allocated to pay for financing costs incurred by the District. Any funds received in excess of $198 million will be transferred to the District's General Fund. 

According to the development team, the waterfront project is projected to generate more than $40m in annual tax revenues, with $13.3m contributed to the general fund annually after payment of the debt service. The land, when fully developed in 2017, is expected to support 2.4 million square feet of development, including 770 residential units, 700,000 s.f . of office space, nearly half a million s.f. of hotel space within three hotels, and 280,000 s.f. of retail. The more public amenities are expected to include new parks, four new piers, a half-mile promenade and bike trail, and renovation of the existing fish market.

Washington DC retail and real estate development news

DC Officially Awards SW Development Contract

Some day, there may be just be a reason to visit Southwest. Last week, Mayor Fenty awarded a contract to Hoffman-Struever Waterfront LLC, a partnership between PN Hoffman, Struever Bros. Eccles & Rouse, McCormack Baron Salazar, ER Bacon, Acresh, Gotham, City Partners and Triden. The multiplex LLC now officially holds the contract to turn 23 acres of land along the Washington Channel, into a riverside paradise. Back in September, 2006, Hoffman-Struever was officially selected as the master developer for the gargantuan project which allowed the team to establish an Exclusive Rights Agreement with the District. The Agreement was signed in April 2007. Now, the Land Disposition Agreement is being drafted - and although the contract has been awarded, the Mayor still needs to wait for the City Council to approve disposition to Hoffman-Struever and the nearly $200 million in Tax Increment Financing (TIF) and Payment-In-Lieu-of-Taxes (PILOT) financing. City officials hope to get the legislation approved by Spring of this year. The enormous project is projected to create more than 2 million s.f. of new development and provide 2,800 permanent jobs in the community, as well as about 3,000 construction jobs, expected to take a long, long time. The District will finance about $200 million of the developmental costs, accounting for roughly 18% of the projected expense; no matter (some say), once completed, the "world-class urban waterfront" is projected to create more than $32 million in tax revenue each year, compared to the $6 million that the land currently brings in. 

Ehrenkrantz Eckstut & Kuhn was selected as the Master Architect back in June 2007. The details of their plan include 767 new housing units - both rental and condos - about 400,000 s.f. of office space, 280,000 s.f. of retail space, a 360-room hotel, 150,000 s.f. of cultural space, and the renovation of the historic southwest fish market. Developers aspire to achieve LEED Silver certification for all nine buildings. Along with all of the new buildings proposed for the area, the development team is including heaps of landscaped open space into the deal, preparing to cultivate more than 14 acres of parks, a half-mile promenade and bike trails for southwest's newest residents. 

The piers will also get their fair share of upgrades. The development team hopes to pick architects for the vertical phases of construction in the summer of 2008. Hoffman-Struever's vision dissects the area into three separate "neighborhoods." The City Pier District, located in the northwest corner of the site, is proposed to be the retail center of the area, laying hold to most of the restaurants and the hotel, thereby being the most likely place to attract visitors (and tourists). Notable mini-developments within this area include a water-taxi service (which with our luck will be 'zoned' - $4 if you want to get in, $25 if you want to go all the way to the other side), and a pedestrian bridge connecting the site to the National Mall. 

Then there's the Esplanade District, which PN Hoffman describes as the center of the project where most of the residential will be sited, along with offices and some neighborhood-serving retail. Finally, the southeastern corner of the site will hold the Cultural Park District which will include a 5-acre "cultural park" and other amenities that will serve as the center of the "cultural zone;" classes will be held on-site courtesy of the Living Classrooms Foundation and the National Maritime Heritage Foundation. “Over the past two years we’ve studied waterfronts all over the world, reached out and forged working relationships and agreements with existing leaseholders, and conducted over 100 meetings with regulatory agencies and surrounding stake holders,” said Monty Hoffman, CEO of PN Hoffman. “This is just the beginning of the process to create a ‘world class’ waterfront. We will continue to work with the mayor’s office on making a waterfront that draws visitors from everywhere, but our first commitment is to the people of Washington, DC. The Potomac River is our greatest natural resource and first and foremost, this project will reconnect Washington with its waterfront. We look forward to working with the City Council to achieve passage of the Mayor's legislative proposal so that District residents can see a shovel in the ground by 2010.” You go Monty.

Washington D.C. retail and real estate development news

Master Planner Selected for Southwest Waterfront Project

It has been some time since we last heard word regarding the massive $800 million redevelopment plan for the Southwest Waterfront along the Washington Channel. Now home to middling touristy restaurants and asphalt lots, developer Hoffman-Struever Waterfront LLC (PN Hoffman and Struever Brothers, Eccles & Rouse) and the Anacostia Waterfront Corp. (AWC) are hoping to transform this prime real estate into a mixed-use maritime, commercial, residential and cultural destination by the year 2017. And now comes word that Hoffman-Struever and the AWC have selected New York-based Ehrenkrantz Eckstut & Kuhn Architects as the master planner for this project from a pool of 15 applicants. Ehrenkrantz was selected based on its past waterfront experience on Manhattan’s Battery Park City and Baltimore's Inner Harbor.

When completed, the Southwest Waterfront project is expected to contain up to 825 mixed-income housing units, 200,000 sf of cultural space (such as a museum, church and civic space), a 450-room hotel, 84,000 sf of office space, 317,000 sf of retail space, and 2,000 parking spaces. The project will also improve public access to the waterfront with 13-acre waterfront promenade, public piers, and public plazas. The fish market now on the site will be preserved and renovated. Other items on the drawing board include a possible aquarium, space for Cirque du Soleil, and a facility for the Living Classrooms Foundation.

DC Waterfront Redevelopment Plows Full Speed Ahead

The Anacostia Waterfront Corporation (AWC) has reached the final round of its Survivor competition and selected two teams out of five original bids for the next phase of the waterfront project. The two teams are, Madison/KSI Waterfront Partners and PN Hoffman, Streuver Brothers Eccles and Rouse. While neither team is known for its Brando impersonations, both are considered experienced in waterfront development. Keeping the real estate and development world in agonizing suspense, the AWC expects to make an announcement regarding the finalist in the Fall of 2006. The criteria used to select the two finalists included, qualifications and experience, vision, development approach, implementing strategy, financial framework, and, (apparently because of a pressing need for yet one more acronym) LSDBEs – Local Small & Disadvantaged Business Enterprises. The AWC expects to develop the 47 acres of land by selling exclusive rights to one of the firms which will create an area that enhances the community, provided business opportunities for small, local disadvantaged companies, and generates tax revenue for the city. Elia Kazan could not be reached for comment. (You youngsters out there can Google that one.)