Sheridan Station Celebrates Opening, Now Nearly Half Built

Ribbons were cut today at Sheridan Station, a $100-million effort by the D.C. Housing Authority and William C. Smith & Co. to redevelop 11 acres in Ward 8 that once held the public housing complex Sheridan Terrace, torn down in 1997.

The ceremony this afternoon marked the completion of Phase I (of three), which delivered 114 apartment units (with gym, business center, etc.) to Barry Farm/Anacostia, confirms Carol Chatham, spokesperson for William C. Smith + Co.

Construction on the first phase of the project began in May of 2010. Now complete, the apartment building, designed by SK&I, is in the queue for LEED-Platinum certification (the highest certification possible from the U.S. Green Building Council), due to incorporation of rooftop solar panels that will generate energy to cover 30 percent of the building's needs, a rainwater collection cistern, LED lights, and low-VOC materials - among other green building tactics.

Expected to be in attendance today were the appropriate local and federal government representatives on behalf of DCHA, the U.S. Dept. of Housing and Urban Development, and DMPED - all celebrating the ability to fund the project, which includes the use of a $20-million HOPE VI HUD grant and ARRA funds.

Phase two - 80 for-sale townhomes - is under construction now; 22 of these townhomes are currently for sale and will deliver in February of next year. Chatham added that three are under contract now. The third and final phase is still in development, a start date has not been specified.

The 11 acres of Sheridan Station are jointly owned by DCHA and William C. Smith & Co. As lead developer, Smith partnered with Union Temple CDC and Jackson Investment Co. to form Sheridan Terrace Redevelopment, LLC.

Washington D.C. real estate development news

Marion Barry: Don't Build in Ward 8

Ward 8 has the lowest home ownership levels in the city, by far, and Councilman Marion Barry has a solution: Stop building rental property. Barry has proposed a bill that would prohibit construction permits for new apartment buildings within his ward.

In a press release this afternoon, Barry bemoaned the "few opportunities for residents to become homeowners," noting that only 24% of ward 8 residents live in their own home. Barry notes that families in Ward 8 are "driven by a philosophy to just survive, rather than to invest in their future. " By stopping the illicit flow of the "over saturation" of new apartment units into the ward, Barry reasons that families will be better able to purchase homes.

The legislation submitted by Barry does not directly address the connection between the supply of rental housing and the affordability of home ownership, but states the over-construction of new housing "has lead to few opportunities for residents to become homeowners." Taking away rental options, according to the press release, will force renters to purchase. "Renters are paying anywhere from $1,500-$1,800 per month for housing. At the end of twenty years, what do they have to show for it, nothing, not a cent of equity value," said Barry.

Washington D.C. real estate development news

Say Yes! to Organic East of the River

For the first time, the Fairlawn neighborhood, just on the boundaries of Ward 8 and Ward 7 and a few blocks from the Historic Anacostia neighborhood, will have access to fresh, organic products like its brethren on the other side of the Anacostia River. Yes! Organic's newest store will open in August, occupying all 7,500 s.f. of ground floor retail in Chapman Development's new affordable housing project, The Grays, at 2323 Pennsylvania Avenue, SE.

The Grays brings 118 units of subsidized rental apartments to those making at or below 60% area median income; so far, 45 units have been leased. Renters pay $1,155 for a one-bedroom, $1,386 for a two-bedroom. Computecture Incorporated designed the building, which sits on a plot formerly home to an unsightly strip of used car lots and a tattoo parlor.

The site is the 7th Yes! to open in the District. The District provided $7.5 million in construction loans and $1.9 million in affordable housing tax credits to the developer, and an additional $900,000 grant to get a Yes! store through the Supermarket Tax Credit and Great Streets Program. The new project will create 27 jobs over the next four months.

Chapman was also previously responsible for the Lotus Square Apartments on Kenilworth Avenue, NE. Chapman recently announced that he and Gary Cha, owner of several Yes! Organic Market stores, would be partnering to open five more stores in other District neighborhoods. Mayor Adrian Fenty called the new store just the latest addition in Cha's "Yes! Organic empire" (making up, perhaps, from has gaffe when he announced at the 2008 groundbreaking ceremony that the store would a Harris Teeter.)

Washington, DC real estate development news!

Sheridan Station Breaks Ground

Today, Anacostia's Sheridan Station development kicks off with a ground breaking for the first phase of the HOPE VI residential project. The 344 mixed-income housing units are funded in part thanks to a $20 million HOPE VI competitive grant that the District of Columbia Housing Authority (DCHA) received from the US Department of Housing and Urban Development in 2008. Sheridan Station’s 11 acres in Anacostia are owned jointly by the DC Housing Authority and William C. Smith & Co. Though the project was initially set to begin construction in January of this year, DCHA only recently closed on financing. Phase 1 of the 344-unit Sheridan Station, formerly Sheridan Terrace, will revolve around an initial 114 units of public housing and 69 Low Income Housing Tax Credits (LIHTC) units. The 114 units will deliver in the form of a 104 unit multi-family building and 10 single-family rental units. At least 25 of the public housing units available in Phase 1 will be reserved for current Barry Farm residents. Phases 2 and 3 of the redevelopment will begin once all units in Phase 1 are filled, but the entire project is expected to be complete by 2015. The multifamily building is registered with the US Green Building Counsel for LEED Certification Gold. Green features include a 100 KW solar photovoltaic array which provides 30% of the buildings core energy, a vegetative green roof, and an 8000 gallon rainwater retention cistern underneath the slab of the building. The building will also have a health and wellness center which will provide general family practice care for the neighborhood, provided by Core Health. Construction on the first phase is expected to be complete in December 2011. When all three phases are complete, the 344 units will be almost double the amount of the original Sheridan Terrace - a troubled project that was torn down in 1997. As with the original Sheridan Terrace, the new-and-improved Sheridan Station will contain 183 public housing rental units. An additional 161 units will go up for sale; 117 of these will be sold at market rate and another 44 will be sold as affordable units. As lead developer, Smith partnered with Union Temple CDC and Jackson Investment Co. to form Sheridan Terrace Redevelopment LLC. Sheridan Station will comprise a small piece of the Barry Farm/Park Chester/Wade Road redevelopment planned for Ward 8. The project was designed by Bethesda's SK&I Architects, which furnished the seven different building designs that will include landscaped green space and a pedestrian trail.

Washington, DC real estate development news

Anacostia's First Green Condos

A ribbon cutting today in Anacostia marked the opening of Ward 8's first "green" condos in what was once an abandoned eyesore in the community. The new Fendall Heights condos, at the corner of Fendall and V Streets, SE, adds 29 newly renovated units just blocks from the also newly renovated Frederick Douglas House. The affordable housing project, restricted to first time home buyers, was developed through a joint venture with ARCH Development, a non-profit community development organization, Fendall Partners, and $170,000 in pre-development support from the District Department of Housing and Community Development.

Through a grant from the U.S. Department of Energy (DOE) the development team funded the installation of a living green roof to control surface run-off and reduce heat absorption for structure. Other green features include energy saving double-pane windows, pipes made of recycled plastic instead of copper and 100% energy efficient furnaces. Inscapestudio designed the reconfiguration of the building and the green elements.

The gutting and interior renovation began just about two years ago and the units should be complete by the end of June, according to Anthony R. Bolling, a spokesman for the developer. In addition to the 22 2-bedroom units an 9 1-bedroom units, Fendall Heights provides 3,000 s.f. of community space for artists studios. Condos will start at $125,000. When originally envisioned, some of the condos were intended to be reserved for artists, though none have been set aside. Bolling is confident that the units will nonetheless appeal to artists, not to mention a welcome relief for neighbors who have watched the building "sitting vacant and deteriorating for decades."

ARCH, as a non-profit developer, supported the community and the project through its Training Center. District residents, as part of ARCH's Training program, were trained in construction techniques and gained on-site experience throughout the conversion of Fendall Heights.

Washington, DC real estate development news

Foreclosure Issued on Site of $4 Million District Investment

The fate of a Ward 8 development project promising 31 affordable rowhouses - thanks to a little help from the District - is now in question. In July of 2008 the District Department of Housing and Community Development (DHCD) provided $4 million in funds for the project from the Housing Production Trust Fund. However, earlier this month, lender KBank issued a notice of foreclosure to Stanton View Development for the property at Stanton and Elvans Roads, SE. In the mere year and a half since the District's infusion of cash, the developer has had its registration with Department of Consumer and Regulatory Affairs (DCRA) revoked and most recently was issued a foreclosure notice on December 11th. Stanton View Development, LLC a subsidiary of Capitol Homes and Communities, LLC received the District loan in return for promised affordable ownership units at 80% AMI, which would be reserved as affordable for low to moderate income residents for 40 years. The DHCD funds made up almost 1/3 of the estimated $11.6 million project costs. The developer originally purchased the 4.5 acre site at 3000-3028 Stanton RD SE in 2007 for $3.2 million. The developer could not be reached \for comment, and the number listed on the developer's project website was disconnected. Capitol Homes and Communities has also had its registration revoked by DCRA. 

UPDATE: DHCD spokesperson, Angelita Colon-Francia, responded to DCMud's request for information on the $4million investment in Stanton View's townhome project, saying "DHCD is committed to protecting the city's investment and we're monitoring the actions of Stanton View Development." Colon-Francia added that DHCD is monitoring the steps the developer is taking to prevent foreclosure and that the developer provided the agency with a copy of a "commitment of funds from Capital Bank to settle the outstanding loan with KBank." According to Colon-Francia, Stanton View is set to close the loan with Capital Bank and settle the loan with KBank by January 5th. Should the developer fail to settle the foreclosure with KBank by the 5th, DHCD is "prepared to take actions to protect the City's investment no later than January 11th," said Colon-Francia. 

Washington DC retail and commercial real estate news

District Looking for Takers on 7 Properties in Ward 8

Today, the District Department of Housing and Community Development (DHCD) announced a solicitation for offers for seven properties in Ward 8, with one in southeast and six in southwest Washington DC. The solicitation seeks offers for the development of single and multifamily housing units, including affordable units. Five of the seven District-owned properties sit on the same street.

All offers must include designs that meet the Green Communities Standard, 2008. Additionally the developers must make at least 30 percent of the properties affordable for people at 60 percent AMI.

A pre-bid meeting will be held at the Department’s offices at 1800 Martin Luther King, Jr. Blvd (corner of Good Hope Road), Wednesday, January 27, 2010, at 2 pm. The deadline for submitting proposals will be February 15, 2010 at 3 pm.

Metro Set to Demolish DC Village

Metro (WMATA) is preparing to raze DC Village, a 16-acre Ward 8 homeless shelter shuttered in 2007, to make room for new construction of the SW bus depot. Metro paid $6.45 million in July for the future home of up to 114 buses serving the greater DC area, with the potential to expand service for up to 250 buses. The garage will replace the seldom-missed bus depot near the Nationals' ballpark, sold to Akridge and Monument Realty in 2008 and demolished to make way for a multi-use (but unbuilt) project. The raze application is the first sign of forward motion since the formal groundbreaking in September.

According to Ron Holzer, spokesperson for WMATA, the demolition company, Sabre Demolition, will be paid $1.89 million for their services. Holzer added he expects the first raze permit approval in mid to late January with demolition by February. The District is still seeking applications for contractors to provide design and construction services for a Bus Maintenance Facility for the site through December 23, 2009. Holzer said once Metro award the contract the actual construction could commence in the Fall of 2010.

Delivering on Promises in Ward 8

A previously stalled residential project in Ward 8's Barry Farm community is one step closer to realization. The 99-unit Matthews Memorial Terrace was scheduled to begin construction earlier this year, but economic constraints delayed the promised affordable housing. Now, however, the developers are seeking general contractors and hope to begin construction in the new year. The planned development would bring four stories of affordable rental units to Martin Luther King Jr. Blvd. next to the Matthews Memorial Baptist Church, which owns the property (and runs a surprisingly hip website). Developer Community Builders (TCB) along with the Church received final zoning approval for the PGN Architects-designed project in May 2009. The construction would mean jobs and new housing for part of DC hardest hit by the current downturn.

The 79,000 s.f. of affordable housing will provide 32 units of senior housing (1 bedrooms, 1 bedrooms plus den and 2 bedrooms), 34 units of multi-family and individual public housing (most of which will likely go to residents displaced by the Barry Farm redevelopment), and 33 units of affordable housing for individuals and families earning less than 60% AMI. Of the four stories, one will be below grade. Donna Freeman from Matthews Memorial Baptist Church indicated the site currently contains a few structures which will be demolished prior to the new construction. Contractor bids for the residential project, valued at $8.5 million, are due December 14th.

The residential project will sit next to a planned community building also developed by the Church, which received approval in the same zoning process in May. The community building will include a space on the ground floor for public meetings, a second floor dining room and restaurant and non-profit uses on the third floor. The community building is not part of the current bidding process.

Washington, D.C. real estate development news.

Sheridan Terrace Redevelopment Brings Hope to Ward 8

Big changes are in the works in Washington DC's Ward 8 beginning this winter. Phase 1 of the highly anticipated Sheridan Terrace public housing redevelopment is slated to begin construction in January or February 2010 - depending on when the D.C. Housing Authority finally closes on financing for the project.

Located east of Sheridan Road and bounded by Howard Road, Sayles Place, Stanton Road, and Pomeroy Road, Sheridan Terrace’s 11 acres in Anacostia are owned jointly by the DC wHousing Authority and William C. Smith & Co. As lead developer, Smith partnered with Union Temple CDC and Jackson Investment Co. to form Sheridan Terrace Redevelopment LLC. Sheridan Terrace will comprise a small piece of the Barry Farm/Park Chester/Wade Road redevelopment planned for Ward 8. Smith will also work with the Housing Authority on a master plan for these surrounding communities. The project was designed by Bethesda's SK&I Architects, which furnished the seven different building designs that will include landscaped greenspace and a pedestrian trail.

  

Phase 1 of the 344-unit Sheridan Terrace construction will revolve around an initial 122 units. One hundred and fourteen Phase 1 units will be allotted as low-income rentals and eight will be available for home ownership. Look for a completed Phase 1 in August of 2011. Phases 2 and 3 of the redevelopment will begin once all units in Phase 1 are filled, but the entire project is expected to be complete by 2015. When all three phases of Sheridan Terrace development are entirely completed, the 344 units will be almost double the amount of the original Sheridan Terrace - a troubled project that was torn down in 1997. As with the original, the new-and-improved Sheridan Terrace will contain 183 public housing rental units. An additional 161 units will go up for sale; 117 of these will be sold at market rate and another 44 will be sold as affordable units. Units will consist of a mix of townhouses, "manor houses" (i.e. three-bedrooms), and apartments with anywhere from one to three bedrooms. At the completion of the project, Sheridan Terrace Redevelopment LLC will be reimbursed with a Low Income Housing Tax Credit equal to the cost incurred for the development of 73 of the low income housing units. Housing Authority Project Manager Kerry Smyser estimates the cost of the entire redevelopment at $21,477,853 - although this number has been on the rise ever since the DC Housing Authority won a nearly $6 million Hope VI Grant for the project back in March of 2008. As a requirement of the Hope VI Grant, former residents will have first dibs on public housing units offered in this reincarnation. But as Ward 8 Commissioner William Ellis explains, luring old tenants back may not be easy. “The Sheridan Terrace community was really displaced” by the 1997 razing of the dilapidated, crime-ridden housing project. "It’s been a long time since many people from the original Sheridan Terrace have actually even lived in the neighborhood.” The city has taken steps to avoid repeat circumstances by ensuring that at least 25 of the public housing units available in Phase 1 will be reserved for current Barry Farm residents—another Ward 8 redevelopment project on the horizon. Other changes in the Ward 8 community, like the new Savoy Elementary School and planned renovations of neighborhood parks and recreation centers, are going a long way in reassuring Ward 8 residents that the newly developed Sheridan Terrace will play a positive part in changing the landscape of their community. “Now,” says Commissioner Ellis hopefully, “if we could just get some more restaurants.”

Washington DC commercial real estate

Metro Breaks Ground in Ward 8 Bus Garage

On Wednesday, Metro ceremoniously broke ground on a new $95 million bus garage in Southwest DC. The garage will replace the seldom-missed bus depot near the Nationals' ballpark, sold to Akridge and Monument Realty in 2008 and demolished to make way for a multi-use (but unbuilt) project. Despite the formal groundbreaking, Metro still has not selected a contractor, nor provided a timeline therefore.

Metro paid $6.45 million for the former DC Village, a homeless shelter site, which will house up to 114 buses serving the greater DC area, with the potential to expand service for up to 250 buses. The agency anticipates the new bus facility will be open by 2012.

Washington Highland's Overlook Brings New Affordable Housing to Ward 8

Tomorrow, at 10 AM the Community Preservation and Development Corporation (CPDC), DC's largest affordable housing developer, along with Mayor Fenty will announce the opening of The Overlook apartments, formerly known as Parkside Terrace. The newly renovated twelve-story high-rise at 3700 9th St., SE, has a total of 316 units that break down to 231 one-bedrooms and 85 two-bedrooms. The $73 million project is a welcome improvement to a formerly blighted housing project in DC's Washington Highlands neighborhood in Ward 8. Overlook has been vacant since 2005. Prior to that time it was one of the many ill-fated 100% Section 8 housing projects. The building will now include 57% Section 8 housing with the rest slated as affordable. Tim Westrich a Real Estate Associate at CPDC described the transformation from Parkside Terrace's "faded 60's look" to today's modern Overlook as "tremendous." Westrich was quick to counter the perception that Section 8 properties give "the perception of blighted properties." Not so, he says, "this is absolutely gorgeous." The new building includes seven floors of senior housing, with rental assistance from DC Housing Authority, and five floors of small family housing, all affordable. Residents on the seven floors of senior housing have access to a concierge desk, reading rooms and lounges on each floor (like a dorm?). The senior housing also includes a 5,000 s.f. community room with exercise facility, computers, a small store and a "health-care suite." The small family units on the top 5 floors will have a a 24-hour gym and in-unit utilities including a hook-up for full size washers and dryers. There are a total of 181 units of senior housing and 135 units of small family housing. According to Westrich, the building is about 50% leased at present. The architects on the project were Wiencek and Associates. The general contractor was Harkins. Harkins Vice President of Preconstruction Services Larry Kraemer said "this was a really complex project, with multiple funding sources and a building that presented us with a number of construction challenges, including a masonry skin that was peeling off the façade." But in the end Harkins worked with the design team to "bring it all together for CPDC." Financing for the project came from the DC Housing Finance Agency through a tax exempt bond program (Union Bank purchased these bonds), as well as from Low Income Housing Tax Credit equity through Capital One and Department of Housing and Community Development's Housing Production Trust Fund.

Washington DC commercial real estate blog

WMATA Buys 16-acre Ward 8 Site for Bus Depot

Washington DC Mayor Adrian Fenty announced on Thursday that DC Village, a 16-acre Ward 8 homeless shelter shuttered in 2007, has been purchased by WMATA for use as a bus garage. The garage will replace the seldom-missed bus depot near the Nationals' ballpark, sold to Akridge and Monument Realty in 2008 and demolished to make way for a multi-use (but unbuilt) project.

DC Village, an emergency shelter for families plagued by "persistent" problems such as pest infestation, was closed down as one of the Mayor's earliest acts in order to provide for "a better alternative" to homeless families; an accomplishment he had sought since his time on the DC Council.

"The project will not only bring much needed job opportunities East of the river, it will provide significant resources to off set [sic] our current budget gap" said Deputy Mayor Valerie Santos. The Metro authority will pay $6.45 million for the site, on which it plans to build a $90 million facility to house up to 114 buses serving the greater DC area, with the potential to expand service for up to 250 buses. WMATA has been negotiating the purchase since before the shelter's closure. The new garage will replace the bus depot on M Street, near the Nationals' ballpark, which Akridge and Monument Realty fought over in 2007 and 2008 and which ended in a draw, with the two developers splitting the land and razing the bus depot.

Southeast Seniors Get New Housing

A vacant lot at 2620 Bowen Road, SE in the Barry Farm community will soon be home to the Bowen Senior Apartments – a 37-unit apartment building for independent sexagenarians of Ward 8. Specifically described as a non-assisted living operation, the 23,502 square foot project is being spearheaded by the Bowen Group LLC – a partnership between Seattle-based senior care developers Second Family Inc. and property owner Shilda Frost-Labule.

"[My] history is that I’ve been a registered nurse for over the last past 30 years, and I have a history in working with pediatrics and elderly care," Frost-Labule told the DC Board of Zoning Adjustment in January 2007, shortly before receiving approval for the project. “I entered a RFP to provide housing for persons with disabilities in 2002, and during that time, I had several conversations with Department of Health, Department of Aging, and the Housing Authority, and they all were supportive of the project, stating that there was a great need for assistance with the elderly in the Southeast area…[That’s] when I bought the property.”

Designed by EDG Architects of Bethesda, the $3 million project is being funded through a combination of private loans, four housing trust funds and tax credits. Beyond providing merely new residences for area residents ages sixty and up, the development will also offer residents a wellness center to “provide services for individuals that might have chronic illnesses,” a multipurpose room and a shuttle service to provide “access to Metro, to shopping, to social, cultural events, as well as medical appointments.”

Once completed, the Bowen development will count the Howard Hill Apartments, Oxford Manor Apartments and another vacant parcel set aside for a future Hope VI housing project among its new neighbors. Hamel Builders will oversee construction when it begins later this year and will be accepting sub-contractor bids until 5 PM on June 9^th.

Financing Trouble Adds Woes to Troubled Southeast Neighborhood

Residents of the beleaguered Washington Highlands neighborhood in Southeast will have to wait at least a little longer for the DC Housing Authority’s (DCHA) planned reinvigoration of the Highland Dwellings public housing complex. In 2007, DCHA selected New Market Investors and Southeast developers Crawford Edgewood Managers Inc. (CEMI) to construct the Highlands Addition – a project that would utilize a vacant 300,000 square lot as the site of a new “physically and socially vibrant neighborhood” with 138 units of mixed-income housing. With the project’s planned summer 2008 start date having come and gone, HR Crawford, President of CEMI and a forty year veteran of District redevelopment initiatives, tells DCmud that project is now locked in a holding pattern.

“It’s all over the place. We need to decide what's getting built and how we’re going to get there,” said Crawford. “Everyone is suffering right now…We have to re-ignite things a bit.”

Crawford, who previously succeeded in luring middle class residents back to Far Southeast with the gated Walter E. Washington Estates project in 1998, chalks the delays up to a lack of readily available financing and the need for infrastructural improvements in the surrounding neighborhood before work can begin. Nonetheless, he says that though the project may be in stasis, his development team – which also includes architects Torti Gallas and Partners and Hamel Builders – is ready to commence construction once those pieces fall into place.

“We had to go through the ritual of getting [US Department of Housing and Urban Development] approval and all the public hearings and those kinds of things…It’s fully approved. We’re ready to go. You might say we’re shovel ready,” said Crawford.

However, Crawford went onto describe the project’s timeline as “questionable” – an unwelcome piece of news for Washington Highlands residents and DC policymakers alike. In the intervening years since the Highlands Addition was first announced, the surrounding community has had to battle some of the District’s highest rates of both unemployment and violence; in 2007, the neighborhood accounted for one-third of all homicides in the District. Media scrutiny of the area only intensified when, that same year, 14-year-old DeOnte Rawlings was shot to death by police inside the very same Highland Dwellings that DCHA has targeted for redevelopment. Despite its' troubled past, Crawford is confident that the area will be in for an image makeover (if and) when the Highlands Addition begins to draw in new neighbors.

“[We’ll be offering] both rental and for sale units. We’ll be a relatively innovative property, in that you won’t be able to tell who the renters are versus the owners,” said Crawford. “We’re going to integrate everyone socio-economically.”

SE Church Bringing Affordable Housing to Barry Farm

Prominent Ward 8 church Matthews Memorial Baptist has partnered with developer Community Builders (TCB) to expand their community servicing mandate into the realm of affordable housing. The Church – which has served the Barry Farm/Anacostia community for 85 years, boasts 1300 members, operates 60 different ministries and frequently hosts speaking engagements for local politicians such as Marion Barry - is now looking to bring a new housing project and community center to a large parcel adjoining their location at 2616 Martin Luther King, Jr. Avenue, SE.

According to the Office of Planning, the 79,900 square foot site currently holds five houses and an asphalt parking lot, all of which would demolished to make way for the Matthews Memorial Terrace – a 100% affordable housing development consisting of a four-story apartment building with 100 residential units, roughly of a third of which would be reserved for seniors. Next door, a three-story community center would include a health clinic (possibly an extension of the United Medical Center – itself slated for a large-scale expansion), a community room, a bookstore/café and “a dinner room/restaurant” that, according to Bishop C. Matthew Hudson, Jr., would be “Ward 8’s second full-service sit-down restaurant.” The project is being designed by PGN Architects.

“Upon learning of my desire for the Church to provide affordable housing, Community Builders contacted me and we discussed the possibility of building…on the Matthews Memorial Baptist campus,” said Hudson at a March 5^th Zoning Commission hearing. “The partnership between the Church and TCB is represented a good match to obtain our mutual goals of creating a vibrant, mixed-use affordable rental community.”

Though still in the planning stages, organizations and individuals, including the ANC 8A, the ANC 8C, the Ward 8 Business Council, the Anacostia Coordinating Council and DC City Council members Marion Barry and Kwame Brown, have all voiced their support for the project. The next step in the approval process for the Matthews Memorial Terrace lies with the National Capital Planning Commission, which will review the development team’s proposal at their May 7^th meeting. And it looks be a straight shot, given the altruistic nature of the project.

“[The Church] continuously works to revitalize and rehabilitate the Anacostia community,” said Hudson. “The Church’s goal in pursuing this project is to allow it to further serve the community which we love and are an integral part of…I’m very proud of the many ways in which the new Matthews Memorial Terrace will be able to assist Anacostia…as it continues to grow, revitalize, [and] redevelop itself for the future.”

Secy. Napolitano Offers Thoughts on St. Elizabeths

Secretary of Homeland Security and former Arizona Governor, Janet Napolitano, toured her agency’s new home at the St. Elizabeths West Campus in Southeast Washington D.C. this week with CNN’s Wolf Blitzer and, in doing so, revealed some previously unheard details regarding the relocation. In her own Special Olympics-like gaffe, the Secretary referred to St. Elizabeths as being in “a very run-down part of the District of Columbia.” Not a Bush league malapropism, but take a cue from Mayor Fenty…it’s “ripe for economic redevelopment.” But Napolitano did reveal news that bodes well for Ward 8. According to the Secretary, the Department of Homeland Security (DHS) is aiming to do the same thing for the surrounding neighborhood that the CIA did for Langley and the Pentagon did for Northern Virginia. Namely, they'll be focusing attention on areas once thought undesirable or outside of the metro area development bubble. In a response to a question from Blitzer, Napolitano said: “I think when the Pentagon was created there were many of the same arguments were made about being a bad neighbor, not helping the local economy and the like and those have not been borne out.” And who doesn't want to live next to the Pentagon now.In the course of the interview, Napolitano also stated that, in addition to the $346 million set aside for the DHS relocation Fiscal Year 2009 congressional budget, the project will be receiving funds from the Stimulus Package - making it the first DC area development to get a boost via the controversial bill. Said Napolitano:

This project [will receive] $650 million and it will equate to 33,000 jobs in this area, $1.2 billion immediate stimulus to the local economy and if you look at this area of the District you’d understand that this will be very beneficial to the overall quality of life in this area of this District.

Unfortunately, CNN has yet to post video of the interview, which also included a tour of St. Elizabeths landmarks, including future staff offices, including Napolitano’s, and the former cell of poet, and one-time inmate, Ezra Pound. In the meantime, a full transcript is available here.

Washington DC commercial property news

DC Offers $10 Million to New Retail Development

Mayor Adrian Fenty joined Ward 8 Councilmember Marion Barry today to announce that the District of Columbia has granted a total of $10 million worth of tax increment financing (TIF) to three retail-centric real estate projects currently in the pipeline: City Interests, LLC's South Capitol Street SW residential/retail hybrid, Four Points, LLC and W Street Acquisitions' development on Martin Luther King, Jr. Avenue, and the Neighborhood Development Corporation's Heights on Georgia Avenue. According to the Mayor, it’s a calculated move designed to stop Washington DC's loss of retail revenue to suburban shopping outlets.

“Essentially, this is way to make sure that you use additional revenue to help the private sector bridge the gap to where they see great and exciting new projects, but where there may not be right now the right level of financial equity to make the projects happen,” said Fenty. “The District, as everybody knows, loses tons of money to the suburbs every year…If we don’t have economic development right here in the neighborhoods of Ward 8, people will then just take their tax dollars to Maryland. It’s a cyclical problem.”

The first project on the docket is also the largest. City Interests’ development at 4001-4035 South Capitol Street SW – currently a strip mall and the site of today’s press conference – will receive the bulk of the TIF funds announced for a grand total of $8.8 million. Once completed, the project will contain 200 units of housing, 47,000 square feet of retail and 15,000 square foot grocer or pharmacy in the forgotten portion of southwest - a small strip of land just south of Bolling Air Force Base. Construction is planned to begin in late 2009.

The Four Points project on the 2200 block of Martin Luther King, Jr. Avenue SE will receive $1.1 million from the TIF program to supplement its $5.2 million budget. The mixed-use project will bring 11,000 square feet of retail and a “soul jazz café” to the site – numbers regarding the housing component have yet to be disclosed. Construction is also projected to begin sometime in 2009.

The last project announced – and only non-Ward 8 development named – was the Neighborhood Development Company’s The Heights on Georgia Avenue. Located at 3232 Georgia Avenue NW, the $25 million project will receive $742,000 in TIF credits. With 10,000 square feet of retail (possibly to include a hardware store and sit-down restaurant) and 70 residential units, NDC hopes to start building late next year.

These three projects are merely the first recognized projects under the District’s Neighborhood Retail TIF program. Earlier this year, Fenty announced that the District - in conjunction with the Great Streets Initiative - would offer a total of $95 million in financing to local developments with a strong retail component. The Office of the Deputy Mayor for Planning and Economic Development (ODMPED) will continue to accept applications for funds on “a rolling basis.” ODMPED's Project Manager, Derrick Woody, said recipients are judged on a “long list of criteria” that includes “the composition of the development team, the level and amount of retail,” and a 5,000 square foot minimum in order for projects to be considered.

Washington DC retail news

St. Elizabeths Plan Envisions Massive Redevelopment

The District announced a new plan today to kickstart redevelopment of the old St. Elizabeths mental institution in Ward 8. If approved by the District Counsel, the series of projects will beef up one of DC's poorest neighborhoods with nearly 3 million square feet of mixed-use development. Mayor Adrian Fenty, Congresswoman Eleanor Holmes Norton, and Office of Planning Director Harriet Tregoning were on hand today to announce the release of the St. Elizabeths East Redevelopment Framework Plan, which recommends transforming the hospital’s eastern, District-owned flank into five neighborhoods, "each with their own character," and pushes for the Department of Homeland Security's (DHS) proposed relocation to federally-controlled St. Elizabeths West. The government transferred ownership of the eastern portion to the District in 1987, while retaining the western campus for its own use.

The Plan is sprawling in its scope – the size of the District-owned eastern half alone measures in at 173 acres. Together, construction on the two campuses - separated only by Martin Luther King, Jr. Avenue, SE - would be second only to the revitalization efforts underway on the Southeast Waterfront in terms of size and scope.

“I think what we have proposed…will not only benefit the people who live in Ward 8 and east of the river, but, just as importantly, the entire city,” said Fenty.

Redevelopment at St. Elizabeths East would create up to 2 million square feet of new mixed-use projects and 750,000 s.f. of renovated historic space. The proposed neighborhoods (pictured, below) are being broken down into the North Campus, Maple Campus, Town Square, CT Village and Metro Station; each would feature a distinct blend of commercial, retail and/or residential space, in addition to “civic and community” areas. The northern portion of the site has been reserved for DHS office space and parking – a move made to sweeten the deal for the Feds, no doubt (more on that in a bit). Meanwhile, the historic St. Elizabeths Hospital, its new 435,000-square foot secondary building and John Howard Cemetery on the grounds would be retained.

The Plan also includes provisos for a cohesive link to the two local Metro stations and MLK corridor, where the City is betting on seeing an influx of retailer and developer interest.

On the western campus, DHS’ proposed relocation would include the construction of new, secure headquarters meant to accommodate roughly 14,000 government employees. If and when the project moves forward, it would mark the first time the federal government has ever crossed the Anacostia River, according to Congresswoman Norton. DHS currently lacks a consolidated headquarters, with offices at different locations throughout the city.

The impact of such large workforce on the environment, Metro capability and local traffic is still being evaluated, while the inclusion of the site in the proposed southeast street car system is still a possibility.

The District will submit the Plan to the City Council next month with a decision to follow in December. A Request for Proposals regarding the DHS parking lots and offices is planned for December as well, the District hopes to break ground on that phase of the project in the first half of 2009. Norton described development as moving along an “unusually fast track.”

The Plan is the product of more than 5 years of parallel development by the General Services Administration (GSA) and the District. According to Norton, it's has been included in the Bush administration's budget for three straight years, but has only been able to move forward, ironically enough, since the Democrats came to power in Congress. The challenge now lies in convincing that same body that moving DHS to another, federally-owned piece of property in Southeast would be beneficial and, most importantly, cheap. It would appear that the future of both East and West hinges on a decision by the federal government; if DHS settles on another location or Congress blocks the site, it could be a deal breaker for both halves of St. Elizabeths.

“There will be great potential here if we continue to do it right. The city and the government will work closely together, as we have on projects in the past,” said Norton.

A budget for the project is forthcoming, and Norton will be holding a town hall meeting tonight from 5:30 - 7:30 PM at the UPO /Petey Greene Community Service Center (2907 MLK Jr. Ave SE) to disclose more details and listen to questions from the public. Another community meeting will be held at St. Elizabeths on October 28^th.