DC's Best Water Views Opening Next Month

A Washington DC address - and a view of the water - are nearly oxymoronic desires.  At least until next month, when RiverPoint opens at the southern tip of Buzzard Point with 485 apartments and 70,000 s.f. of retail next month.  The southwestern promontory of DC was, not long ago, an industrial no-man's land, but real estate development has recently and rapidly shifted the landscape toward much trendier uses, including a strong retail presence on the waterfront.  The mixed use project by Akridge, Western Development, Orr Partners and Jefferson Development Group is close to  completion on what is very nearly the southern tip of southwest DC.  The conversion of the former Coast Guard headquarters was achieved by Antunovich Associates, the same firm that designed the conversion of the Watermark, the other Coast Guard headquarters building a block away, another office-to residential project by Douglas Development that delivered this summer.

In keeping with its location highlighting river views, RiverPoint features a rooftop pool with views that stretch well down the Potomac, and beyond the Frederic Douglass Memorial Bridge (still under construction).  Development of the land also completes one more section of the Anacostia River Trail, which will soon connect under the FDMB, making an easy walk or bike to the Navy Yard or Anacostia. 70,000 s.f. of retail will include restaurants by Greg Casten (of ProFish, Ivy City Smokehouse, Nick's Riverside Grill and Tony & Joe's), and by Spike Gjerde, a James Beard chef that until recently ran A Rake's Progress at the line hotel in Adams Morgan.  Architect Joe Antunovich noted the challenges of converting such a large building from "a very sturdy headquarters, but we were able to carve out atrium spaces to let light deep into the building that created more views of the water."  Antunovich called Buzzard Point "a sleeping giant, neglected for so long, and yet so close to so many things."  The firm had to remove the second floor to accommodate retail, noting the unhelpful 10 foot slab-to-slab floor plates required removal of a floor to allow for 20 foot ceiling heights in the retail.

Washington DC commercial real estate news

Georgetown Park Goes Big Box

A recent effort to breathe life into Georgetown's only retail mall, The Shops at Georgetown Park at 3222 M Street, NW, has had the wind knocked out of it. The Georgetown Angels, a trio of ladies with boutiques at the mall and big voices for locally owned business, had banded together last year in a shared cause: to enliven the mall, increase exposure, and boost foot traffic off of M Street. But now, the mall is garnering some attention of a different sort, not what the Angels (think Charlie's, not Guardian) had in mind.

With the pending closure of Barnes & Noble down the street (the massive bookseller did not renew its recently expired lease) murmurs over the future of the mall (and inklings that H&M will move from the mall and take over B&N's corner spot) increased in volume, and are gaining validity now that several mall tenants have not only been asked to leave by the end of the year, but several packed up shop just yesterday.

Although property owner and operator, Vornado Trust Realty, would not confirm an 80,000-s.f. lease with Target, officials from the giant retailer have been exploring the viability of a large retail site with concerns about the traffic-choked location.

It's thought that Target will likely take up the basement (now a sorry food court and a DMV branch) and possibly the ground floor. A deal with Bloomingdales, for around 80,000 s.f., seems to have also been revived after initial talks fell through in 2008, although this is unconfirmed.

Along with a drastically different type of retailer and fewer retailers overall, Keith Sellars of WDCEP sees the potential for new restaurants to front the C&O Canal side of the property.  Retail tenant occupancy at Georgetown Park has fallen since 2009, and Kassie Rempel, DC native and owner/founder of mall-tenant SimplySoles, says of the change, "It's unfortunate, but I can't say it's a surprise." Rempel, one-third of the Angels, will be in the mall until the end of the year, and although considering a few relocation options, moving to the mezzanine level of the mall, as offered by Vornado, is not one of them.

Another Angel, Heidi Kallet, owner/founder of The Dandelion Patch, confirms she too is leaving Georgetown Park but says her shop "will stay in Georgetown." Finishing out the trio of Georgetown retailers, Stephanie Fornash Kennedy, owner/founder of the eponymous, eight-year mall tenant Fornash, has also received her official notice to vacate by year's end. Rempel says it's clear that Vornado, "is clearing out the first and second floors."

There has been talk of redeveloping the Georgetown Park mall since the late '90s; most notably when Herb Miller (of Western Development Corp.) and Anthony Lanier (of EastBanc, Inc.) entered into an agreement, in 1998, to pursue a joint venture to develop the property.

However, the mall, which opened in 1981 as a main component of the $200-million mixed use development by Western Development, was cruising along in the '90s, and into the early 2000s, and owner at the time Georgetown Park Associates (GPA) - which obtained the deed from Western Development in 1989 - wasn't looking to sell until 2006.

In March of 2006, GPA's sale of the property commanded a hearty $84 million, from Miller. Lanier sued Miller for breach of the 1998 agreement. Unease had been brewing between the two for a few years, after disagreeing on how to interpret an amendment, made in 2001, to the joint-venture agreement; Miller asserted that the 1998 agreement was void if not acted on by May 31st 2002.

Either way, the Georgetown Park deed was finalized on March 1st 2007.

In response to Lanier's lawsuit, as reported by the Washington Post in April of 2010, "Western sued EastBanc and Lanier personally for more than $50 million in damages, citing a malicious legal filing and other causes."

Though it was reported that Western defaulted in excess of $70 million owed to lender Capmark Financial Group, the foreclosure was called off in May, and a Vornado led group called AG Georgetown Park I LLC obtained the property from Capmark Finance/GP Partners LLC on July 9th 2010 for $30.8 million; significantly less ($54 million less) than Miller paid four years before.

Now, with Vornado a year into its ownership of the property, the site holds a mall that is a 30-year-old shell of its former self, and rapidly emptying. Long gone are the days when it drew local businesses, Georgetowners, out-of-towners and the like from M Street.

Washington D.C. commercial real estate news

Capitol Hill School Developer Short List Narrows, Slightly

For what its worth, the Office of the Deputy Mayor for Planning and Economic Development announced today that three teams have been selected to submit "final offers" for the right to redevelop the former Hine Junior High School on Capitol Hill. That would be newsy, but for the fact that on June 9th the District of Columbia narrowed the list from 6 developers to 4. The upshot: the team of National Development Campus / Western Development has been eliminated.

No word yet on why Western Development got the boot, nor why the elimination of one of the four remaining teams was significant. The Deputy Mayor's office issued a press release on Thursday inviting all developers (all except Western, that is) to submit "final" bids in "early August," stating that "the three proposals were the closest in line with the Capitol Hill community's preference...because they all called for a mix of neighborhood-serving retail, new housing and great public spaces." Presumably, Western failed to meet those needs. The Western team, led by local Ben Miller, who helped develop Chinatown and owns Georgetown Park, was recently heralded by the Citypaper for its concept of a nonprofit incubator which, unlike the other contestants, obviously failed to make the appropriate to-do about retail and housing around the Eastern Market site, leaving it well-funded but too fuzzy for local tastes.

The school was closed in 2007, in part to free up funds for the DCPS headquaters. Responses to the District’s request for final offers will be due in early August and a selection could be made as soon as the end of August.