U Street Hotel in the Future?

Trendy and quirky U Street, which has seen a spate of residential development of late, may get a hotel in the not too distant future. The plan, brought before the Cardozo-Shaw Neighborhood Association last week by JBG Companies, proposed developing the strip mall that currently houses the Rite Aid, a nail salon and dollar store, into a 10-story multi-use development.

Though in its very early stages and likely to evolve, the vision is to replace the current strip mall across the street from the Ellington Apartments, replacing it with a single building that would house underground parking, retail on the ground floor, a boutique hotel on floors 3-8, and possibly capped by two floors of residential to max out the density. The existing strip mall takes up most of the block on the south side of the 1300 block of U Street. The area falls within a historic protection zone, but no historic building would be affected.

With neighbors apparently in favor of supplanting the current retail, the largest obstacle, financing notwithstanding, will be to change the underlying zoning, which does not now allow for density sufficient to support this project. Phil Spalding, Commissioner for ANC 1B, says the development has local support, and that there will be "a strong push for retail to animate the street," speculating that some of the current retail could reopen in the new space, though stressing that the plans will likely see "another 9 or 10 redrawings" before construction could begin. Renderings are not yet available, but Spalding describes the current iteration as 'classical.'

Jamieson Condo in Carlyle Opens for Sales

The Jamieson Condominium, Alexandria's newest residential building, garnered attention today by officially holding its grand opening this evening. The 79-unit Jamieson started selling its condos from the $300s; the residences will occupy 6 floors above a 10-story, four-star Westin Hotel in the Carlyle section of Alexandria. The condo-hotel, located about 3 blocks from the King Street Metro station and clad in the ubiquitous red brick of Carlyle, officially opened the hotel to guests last November. The developer, Atlanta-based Regent Partners, is banking that extending four-star treatment to condominium owners through hotel services will lure buyers to its project, as happened in Arlington's Waterview Condominium, which sits above the hotel Palomar in Rosslyn and recently sold out of its 136 condo units. Regent built the 319-bed unit on land it purchased from Norfolk Southern in 2004 "Regent Partners is excited to bring this unique lifestyle option to Old Town Alexandria. The only condo/hotel highrise in Alexandria, The Jamieson is designed to offer residents luxuriously finished condominium homes and the advantages that come with living above a hotel like the Westin Alexandria," said Kristi Trogler, director of Sales & Marketing with Regent Partners. Units range in size from 700 to more than 1,000 s.f.

Alexandria Virginia commercial property news

New Rooms in Courthouse by Marriott

Donohoe Construction, under the authority of Donohoe Hospitality, (who is in cahoots with Donohoe Development) has just started to pour the concrete footings for the 176-room Marriott Residence Inn at 1425 N. Adams St. in the Courthouse section of Arlington. The 10-story, all-suite hotel will be branded as one of Marriott's extended stay residences.

The visionaries behind the National World War II Memorial, international architectural firm Leo A. Daly, took the design role for Marriott. You might also know them for the project they did for KPMG in McLean, or for The Institute for Genomic Research in Rockville. Daly-architects had no trouble grasping the vision for Marriott's newest addition to Arlington, and have designed the simple 132,000-s.f. hotel with clad in brick and architectural precast concrete.

In addition to topping off the Courthouse Plaza section of Clarendon, the Residence Inn will bring a wealth of meeting space to the table as well as a "high-end" restaurant to the corner of Clarendon Blvd and N. Adams Street. In total, about 9,500 s.f. of retail are planned for the ground floor along that intersection, with the still unnamed restaurant having 5,500 s.f. at its disposal. The new hotel will further Smart Growth objectives by adding mixed-use development three blocks from the Courthouse Metro station. And as if being part of a "smart" urban plan weren't enough, Donohoe Development has also incorporated a "smart," environmentally conscious design for the building, including about 26 LEED points for features such as the increasingly popular green roof; hopefully just enough for LEED certification.

Donohoe (and its innumerable subsidiaries) will also provide streetscape improvements to the area, including a water feature and public art around the hotel, as well as myriad practical improvements to the crosswalks and sidewalks. The new Residence Inn should be dropping off pillow mints as early as the summer of 2009.

Residential Units for Hilton Washington?

As a part of a larger hotel revitalization project, the Hilton Washington, north of Dupont Circle, could be seeing residential units in the near future. After buying the Hilton for $290 million in May, L.A.-based Lowe Enterprises Inc. and Beverly Hills-based Canyon-Johnson Urban Funds LLC are considering adding a yet-to-be-determined number of residential units to the 1,119-room hotel.

Harmar Thompson, Senior Vice President of Lowe Enterprises said developers are in the process of doing the initial schematic design and massing. He added, “We haven’t formalized anything yet; we are going through detailed work with the community and the Office of Planning.” According to Thompson, more details, including a decision on condos vs. apartments and number of units, will be announced in September.

The Sound of Silence – Birchmere Cancels Plans for Silver Spring Music Hall

And now for a story that harshes our mellow, considering dcmud’s mini-obsession with music (after our real estate crush, of course). Last September, we reported that Montgomery County officials had announced a partnership with Lee Development Group that would bring a new branch of the Birchmere Music Hall to the old art-deco J.C. Penny building at 8656 Colesville Road (owned by Lee Development), located at the corner of Colesville Road at Fenton Street in Silver Spring, by 2009. The Birchmere – a long-time stalwart of the Del Ray, Alexandria, scene on Mount Vernon Avenue (old-timers like us will also remember its original location in Old Town), has supported many major singer-songwriter talents, including well-known performers such as Mary Chapin Carpenter, Lyle Lovett, and John Hiatt.

However, this week Birchmere officials announced that the planned $8 million, 800-seat venue (pictured) is now off the table, and that Montgomery County officials and Lee Development both have backed out of the deal. Instead, it appears that this location might instead see the development of a 152-room hotel, 183,000-sf office building, a 650-space garage, and a "stand-up" nightclub. (A comedy club? Shudder ....) While the loss of The Birchmere is a blow to music lovers, at least developers appear to still be singing a positive tune on Silver Spring’s potential.

Update: The Post is now reporting that instead of the Birchmere, a bigger music venue is in consideration to occupy this space! Live Nation, the world's largest producer of live concerts, is contemplating putting one of its Fillmore-branded clubs here, and would make the club three times as large (over 2,000 capacity) as what was planned for the Birchmere. While we'd personally prefer having the homegrown Birchmere and its emphasis on intimate shows, the Fillmore coming would be a major coup on Silver Spring's part. Stay tuned ....

NoMa Gets Its First Hotel

On July 11, the usual DC official suspects (including Mayor Fenty) joined the ownership team headed by The Finvarb Group in breaking ground on the first new hotel squarely in the North of Massachusetts (NoMa) area in Northeast DC (usually delineated as being bounded by Massachusetts Avenue to the south, North Capitol Street to the west, Florida Avenue the north, and about 3rd Street NE to the east). The eight-story, 218-room Courtyard by Marriott will be located between the New York Avenue Metro station and the new US Bureau of Alcohol, Tobacco, and Firearms (ATF) headquarters, and will feature 10,000 sf of ground-level retail, including at least one outdoor café. In addition, an elevator will provide direct access from the plaza between the hotel and the Metro station entrance to the elevated Metropolitan Branch bicycle and pedestrian trail running alongside the Metro track. The hotel will also be next to MRP Realty’s planned Washington Gateway project, and the Florida Avenue Market redevelopment.

New Hotel Coming to the West End

One of the hottest areas for development these days is the District’s West End, the once-quiet stretch of Northwest Washington between Dupont Circle and Georgetown (north of Foggy Bottom) best known in the past for its unremarkable office buildings and lack of retail … well, excluding the long-gone and missed Cineplex West End Theater and the original Goldoni restaurant on 22nd Street between L and M Streets, and the more-recently gone and not missed Lulu’s nightclub on M Street. But new development is quickly awakening this area, starting a few years ago with the building of the Ritz-Carlton hotel/condo at 22nd and M Streets, followed by the Columbia Residences development and The Atlas on 25th Street, the new Trader Joe’s grocery store, and still more to come. The most recent news now comes with Perseus Realty’s announcement that it plans to build a new luxury hotel for Starwood Capital Group called "The One" at 2201 M Street, the site of the former Nigerian Embassy, just across the street from the Ritz. While Perseus still needs to gain approval for the project from the DC Zoning Commission (as it would exceed current zoning permission), the developer envisions a LEED-certified “green” hotel, with a glass and greenery-filled atrium stretching from floor to roof visible from the exterior. In all, the building would be 125,000 sf and 110-feet tall. Perseus expects to submit its formal zoning application in late July.

Update: The Washington Business Journal is reporting the hotel will officially be called "1 Hotel & Residences," and the $100 million, 5-star hotel will feature 180 rooms, a "double skin," vine-covered surface to insulate the building, and solar water heating. Ground is expected to be broken in summer 2008, with completion in late 2009.

Our Feature Presentation: More Development!

Given the twists and turns of the real estate market, we often feel like cooking up some popcorn, sitting back, and watching the show. But this is taking things literally. Out in Fairfax County, the Merrifield Multiplex Cinema, located where Lee Highway meets up with Gallows Road, might soon be demolished and replaced with a massive 27-acre "town center" complex containing 800 residential units, 600,000 sf of retail (plus a rebuilt theater), and possibly hotel and office space, if South Carolina-based developer Edens & Avant and Bethesda-based Clark Realty have their way. Initial plans for this project were honored last year by the Washington Smart Growth Alliance, which praised the town center concept, along with plans to include three new urban parks throughout the site. There will also be a focus on mass transportation, with free shuttle service and pedestrian/bicycle accessibility to the nearby Dunn Loring-Merrifield Metro station. To date, the development team has spent over $100 million just acquiring land and planning for the project, and expects to have final site-plan approval before the county’s Board of Supervisors in October 2007. If approved, ground could be broken by Summer 2008. Together with Trammel Crow Residential’s plan to build a 720-unit apartment building with retail down Gallows Road on a 15-acre lot at the Metro station, Merrifield might soon be known for its bustling activity rather than rundown warehouses.

And Now For Something Completely Different ... Joule Now Extended-Stay Housing

Back in February, the Ed Peete Company announced that it was converting its nine-story, 87-unit Joule Condominium project at 3409 N. Wilson Boulevard (located between Clarendon and Ballston) into apartment rentals, despite the fact that 90 percent of the units had been sold and the project was just about finished (these contracts were cancelled). But now, in an interesting twist, it now appears this stylish building will become an extended-stay corporate housing location operated by PA-based Korman Communities Inc., which bought the property from Peete for $43 million and will manage it under its AKA subsidiary. One-bedroom units at the AKA-Arlington are leasing for $135 per day (two bedrooms for up to $215/day), with a minimum 30-day stay requirement – somewhat expensive, but given the high-end condo amenities featured in these units (including washer and dryer units), possibly worthwhile. As the market continues its upward climb again, we’ll watch to see the future fate of this and other projects.

Shirlington Hotel Approved

Arlington County gave approval this week for a final site plan application by Shirlington HHG Hotel Development on Arlington Mill Drive in Shirlington across from Jennie Dean Park. The proposal for the project, located at the corner of South Stafford St., was for a 7-story, 142-room Hilton (110,000 s.f.) located on a 0.79 acre parcel with street-level retail. The masonry structure with red, blond, and buff colored brick will feature a mix of studio, 1-bedroom and 2-bedroom units, indoor pool, and provide parking with a residential garage located across S. Stafford Street. The entrance will face South Stafford St., and the developer will improve landscaping and sidewalks surrounding the building as part of the project. The county is requiring a minimum LEED score for the project, though the developer does not intend to seek certification for the project.

This hotel was initially given the green light by the County Board in late 2000 as part of a larger development by the Federal Realty Investment Trust, a nationwide developer which has been a shaping force in Shirlington. The completion of the hotel will be the final element of the Phase II plan.

National Harbor Developers Announce Hotel Plans

Developers at National Harbor announced today five new hotels that will occupy the 300-acre project on the Potomac: Residence by Marriott, Hampton Hotel, Westin, Fairfield Resorts, and Aloft. The site, in Prince George's County just south of the I-495 / I-95 intersection, will offer prime waterfront where the Potomac both widens and deepens, allowing waterfront vistas and a convenient marina and harbor that real estate developers say will be 15 minutes by boat from Washington DC. The project, which broke ground last year, will offer a strong southern pull for the area's large scale development long conspicuous in DC and across the river in Alexandria but comparatively rare in P.G. County. The impact could be stunning to a region with an industrial maritime history that now makes little use of its extended waterfront. While DC's own waterfront development takes shape near Nationals Stadium and, at a sloth's pace, in Southwest, developers at National Harbor had already announced plans for the regions largest hotel, a 1500 room Gaylord National Resort and Convention Center that will open in 2008. That great sucking sound is DC's tax base moving to P.G. County. DC hotels, with an occupancy rate currently below 70%, are projected to contribute $51m just in direct tax revenue in FY 2006 in the District, a fact not lost on planners in P.G. County. National Harbor has also been approved for 2500 residential units – all in the form of condos - with mixed residential and retail buildings slated to occupy prime waterfront and main street locations in 2009. 

Maryland, real estate development news