Kennedy Street Woes

What could make a neighbor wistful about a large subsidized housing project that is planned for the site of a once historic building? A giant, trash-filled, oozing hole in the ground where the building once stood. One year after plans were released, Washington Communities Inc. (WCI) demolished a dilapidated, historic apartment building (pictured below) at 809 Kennedy Street in January to make way for a District-subsidized housing project. Shortly after demolition, neighbors notified authorities about a smelly, gray, leaking liquid left over after the building came down. The Department of Consumer and Regulatory Affairs (DCRA) investigated the property, gave the owner opportunity to respond, and is now fixing the problem with District contractors. District officials intend to file upwards of $10,000 in fines and costs for the muck-filled carcass that it was left to clean when the site was seemingly abandoned.

Michael Rupert, Communications Manager for DCRA, said his team is currently on site cleaning the mess left behind by the contractors, New System Demolition and Excavation, and will probably be busy for at least another three days. New System tore down the building, but quit before removing any of the debris when the property owners allegedly failed to pay for the demolition and cleanup. Since January, debris of brick, wire and metal have filled in the empty foundation. When the snow melted and rain came, the foundation filled with run-off, hence the ungodly smell filling the street.

Sadly, the owner tore down the 2-story, 16-unit apartment building, with some architectural significance, partially because DCRA required the demolition in response to complaints about derelict living conditions in the former housing project. The former landlord - owner of what the Washington Post called "one of the most troubled buildings in the city," and that has now left a rotting cesspool in its place - plans a 70-unit affordable housing project on site. Subsidized, presumably, with tax dollars. According to DC tax assessment records, WCI President, Richard Deeds has owned the property since May 2002. DCRA will recoup costs by placing a lien on the property, which will either be paid in any sale of the property or levied against next year's taxes, according to Rupert. Until the contractors complete draining the stagnant water and removing debris, the actual total cost is unclear.

WCI previously bought out the building's tenants following complaints of below-freezing temperatures from residents, critiques from the DC Council and a lack of funds of DCRA. Kind of makes you pine for the handsome building the city let them tear down without, it seems, much of a plan.

Washington, DC real estate development news

WCI Files for Chapter 11 Bankruptcy

It seems not even development giants can dodge the vicissitudes of the market. Bonita-Springs, Florida-based luxury home and tower developer, WCI, announced Monday that they have filed for Chapter 11 bankruptcy and will petition to restructure their debt and capital. They followed that announcement yesterday with news that Chief Judge Keven J. Carey of the U.S. Bankruptcy Court, "approved a package of relief designed to facilitate and ensure the continued and uninterrupted operation of WCI's business." 

WCI's closest project is The Club on Quincy (pictured, at left) at 3901 N. Fairfax Boulevard in Arlington. The project has been on hold, but is planned as a approximately 125-unit, 12 story condo building one block from Quincy Park, on the site of the parking lot of the Arlington Funeral Home in Ballston. A representative for the company said that project will remain on hold until the "market improves."

The company cites the poor shape of the market as the reason for their financial troubles; WCI accumulated a number of unsold properties because of both purchase cancellations and defaults on existing sales. Under Chapter 11, WCI will be able to reorganize their finances and come up with a plan to keep their business running and pay off their debts and blocks other companies and individuals from collecting debts owed by the company.

WCI maintains that they are "absolutely not" going out of business and will use their granted $50 million in cash collateral to meet "immediate obligations to suppliers." According to their press release, "The company said Realtors, brokers and customers will see no interruption in these (brokerage, foreclosure, and rental management) services."

Sitrick and Company, known for its work in "sensitive situations", is doing PR for the WCI while they work through their bankruptcy. WCI's website optimistically cites Delta Airlines, Macy's, and 7-Eleven as other companies that made it through Chapter 11 situations.

Arlington, Virginia commercial real estate news

Club (ing) on Quincy

WCI Communities and WDG Architecture have just started the design and development phase for a mixed-use project, the Club on Quincy, two blocks from Ballston Commons at 3901 N. Fairfax Drive in Arlington. The project, bounded by N. Fairfax, N. Pollard, 10th and N. Quincy Streets, was approved this past November and will serve as the newest addition to the heavily developed Ballston area.

WDG's design plans call for the construction of 162,000-s.f., 120-unit condominium building standing 12 stories high with roughly 2,700 s.f. of ground floor retail space. According to Tamera Reed at WDG, Club will also provide three levels of underground parking housing 232 parking spaces for its residents. But the pair of acronymic firms didn't stop there; in an attempt to push the meaning of 'mixed-use,' the firms will not only include the typical ground floor retail amenities, but also add an 11,000-s.f. black box theatre and a 13,000-s.f. funeral home to the ground level. (Talk about one stop shopping…)

In order to clear the way for the project, WCI will have to demolish the currently standing Arlington Funeral Home, and build the project on its footprint and its neighboring parking lot. Construction is scheduled to commence in the third quarter of this year.

And in case you’re wondering what a “black box” theater is, New York City's notorious Roundabout Theatre Company says: "By definition, it is a neutral environment. Its walls are painted black so each theatre production and design team can transform the space utterly in their own ways to suit the needs of each show. There is no raised stage or even designated ‘acting’ area. Black box theatres are perfect for ‘workshops, rehearsals, readings, and experimental productions. They’re incubators, a tabula rasa—or blank slate—onto which can be written each new testament to theatre artists’ imaginations"

Thank God for google

Club at Quincy Project Expands to Neighboring Funeral Home Lot

Florida-based WCI Communities, which originally planned to build its new 12-story mixed-use condominium building completely in the parking lot of the Arlington Funeral Home property on North Fairfax Drive, has now announced that it hopes to expand this development to cover the existing funeral home building land as well. The Club at Quincy project, located in Virginia Square at 3901 N. Fairfax Drive, will now be a 124-unit condo complex, with WCI first demolishing the funeral home then building the condo building and a new funeral home on the site. The condo units are expected to average 1,200-1,300 sf. Pricing has not yet been set. With the additional space now afforded by this expansion, WCI plans to also include 3,440 sf of ground-floor retail and a 75-seat community theater to the complex, as well as a landscaped deck with a pool and spa. The project is being designed by WDG Architecture. WCI is still going through the approval process, but hopes to start construction by early 2008.