Archstone Ponders More Residential for National Gateway

Of all the large-scale projects in development at the National Gateway, Archstone-Smith's "luxury residential towers" in Potomac Yard has been the least talked about - despite the 1.5 million square feet of LEED certified office space currently going up in the same neighborhood. Now the developer is seeking an "extension of time to...submit a building permit for two land bays and park concept design plan" from the Arlington County Board at their April 25^th meeting.Archstone acquired a large swath of the Meridian Group’s National Gateway project for an undisclosed sum in May 2007 with the intent of bringing 691 residential units to the site. But Archstone has yet to move soil in their 135,402 square foot parcel bounded by Jefferson Davis Highway, Potomac Avenue and Crystal Drive, nor has an architect been formally linked to what is being called the “Archstone National Gateway,” though permitting records indicate that they have taken on Tishman Speyer as a development partner. 

"We’re still in the drawing stage, but we should have something by the end of the month as far designs and proposals go," said Joshua Custer, Archstone-Smith's Marketing Coordinator. In all, planners hope for an eventual 1500 residential units with the recently opened 386-unit Camden apartments and 479-unit Eclipse condominiums, which began sales in 2005 and still have nearly 100 condos left to go. Ouch.

As for other adjoining pieces of the National Gateway pie, Camden Property Trust has already delivered there, while another nearby parcel was sold off to Marriott International for development under their Renaissance and Residence Inn brands is already well into construction.

For Meridian’s part, they are well on their way to realizing the 1.5 million square feet of office and 200,000 square feet of restaurants and retail included in Phase I of their National Gateway. That project is set to deliver this coming November.

Washington DC real estate news

Camden USA Buys a Piece of NoMa Pie

Last week, Camden USA purchased 60 L St., NE, a 71,000 s.f. site, joining the laundry list of developers vying to join the NoMa development surge. This location has become a hot potato, belonging to three different companies in the last three months. As we previously reported, 60 L St. belonged to J Street Development and was called “First Place”; it was then sold to Tishman Real Estate Services. While Tishman won’t comment on the quick turnaround of land ownership, the lot was then sold to Camden USA, a Houston-based company with projects throughout the Mid-Atlantic and lower half of the United States, which plans to turn the site into a two-building, 700 residential unit project designed by WDG Architecture. Located between Tishman Speyer’s remaining property on L Street and J Street Development’s Property on North Capital St., Camden’s “luxury” apartment high-rises will begin the first phase of construction in mid 2008. Ginger Ackiss, Vice President of Camden’s Real Estate Investments in the DC area, said the first phase will include 315 “luxury” apartments rather than condominiums, followed by 375 units in the second phase. While the project is still in the permit process, Camden is happy to have its foot in the door. Ackiss said, “We wanted to get into NoMa because of all of the development going on there, we see the area transforming and we would like to be in that mix.” According to Ackiss, the DC and Dallas-based architect, experienced in residential properties including the Potomac Promenade Condominiums on the National Harbor, will begin the design process next month.

Hertz Building on New York Ave. is Plowed Under

The Hertz building at 11th Street and New York Avenue in downtown Washington DC has finally yielded to development. The unsightly, 2-story building that housed the local Hertz car rental was for years about the only active business in the vicinity, but had recently become overwhelmed by the nearby development surrounding the old Convention Center. The property sold in 2004 to Tishman Speyer for $21m, but Hertz's lease continued until recently, and Hertz closed the office in May. Demolition began this month to make way for an 11-story, 173,000 s.f. office tower to match development underway on all sides of the project. Upon completion in Spring 2008 the building will offer about 10,000 s.f. of street-level retail and 10 stories of office space. No tenants have yet been announced for the project.