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.”

DC Teams with Feds for Adams Morgan Affordable Project

Mayor Adrian Fenty was on hand last Thursday for a ceremonial ribbon cutting at the newly refurbished Ontario Court housing complex in Adams Morgan – a 27-unit, 100% affordable apartment building developed by Jubilee Housing, Inc. with designs by Bonstra Haresign Architects. The $9.4 renovation of the 86-year-old edifice also includes a new 4,000 square foot home for Jubilee’s JumpStart Early Childhood Development Center in the very same building at 2525 Ontario Road, NW.

David Bowers of Enterprise Community Investment, Inc. – one of the project’s backers, along with the US Department of the Treasury, the DC Department of Housing and Community Development and PNC Bank – began the festivities by leading a prayer in which he blessed not only the residents of the newly renovated building, but the project’s financiers as well – who, according to Bowers, are “not in the building business, but the people business.” Jim Knight, Executive Director of Jubilee Housing Inc., echoed that sentiment while exploring the various funding sources used to realize the project.

“Housing advocates and city officials have come together to create a funding source that goes by the name of the Local Rent Supplement Program,” said Knight. “It ensures affordability for the lowest income earners among us….The city government [also] came together and worked to create the Housing Production Trust Fund. We’re one of the few localities in the country that has one of these resources. It has been funded in the past and it is here at Ontario Court.”

According to the Mayor’s office, the project received $3.5 million from that fund for upgrades including “new mechanical, electrical and plumbing systems, new carpeting, upgraded kitchens and bathrooms, installation of new security systems, new air conditioning, and new laundry equipment.”

Far from being merely a local initiative, however, Ontario Court also received a big boost from the U.S. Treasury Department via their Community Development Financial Institutions Fund’s New Market Tax Credit Program. The program, which was created in 2000 to “provide tax incentives to induce private-sector, market-driven investment in businesses and real estate development projects located in low-income urban and rural communities,” was used to raise capital for Ontario Court - a project that Mayor Fenty says is indicative of a sea change in the DC development community.

“When the market-rate housing boom was coming through the District, people said, ‘This is the renaissance of the District of Columbia. This is the city come to life,’” said Fenty. “Market-rate housing has a place, but what we’ve seen over the past two or three years, as the market has stabilized and returned a little bit to normalcy, is an appetite and patience for building what is probably even more important to the District of Columbia – and that’s affordable housing."

In the coming months, the Department of Housing and Community Development will continue to pursue such developments in the Adams Morgan area by “putting money into” renovation projects at 1703 Euclid, 1720 Euclid, 1631 Euclid and 2233 18^th Street, NW - the last two both Jubilee properties.

909 at Capitol Yards Opens

While the Washington Post may be increasingly skeptical about the viability of Southeast's Capitol Riverfront as either a residential or commercial neighborhood, it is certainly a strategy that developer JPI has bet heavily on. Next month, the developer will open the doors on the 909 at Capitol Yards project - their 421-unit "boutique-hotel themed" apartment building and third entry under their greater Capitol Yards development. According to the Capitol Riverfront BID, tours of the WDG-designed complex have already begun for prospective residents and move-ins are scheduled to begin late this month. JPI is apparently targeting that hard to pin down 18-35 demographic the project with an advertising campaign that boasts of amenities like a two-story bar and lounge, yoga rooms, a “pub room” with shuffleboard (?!) and Nintendo Wiis, an in-house movie theater, a rooftop swimming pool for hosting “raucous barbeques,” and a Twitter ticker in every elevator tracking losses in the housing market (no, not really). Should you feel the need for something more “classic and traditional” or an apartment with a little “industrial style,” JPI is directing inquisitive renters in the market around the Ballpark to the first two buildings completed under their Capitol Yards banner: the Jefferson and Axiom. Their marketing whizzes have even gone so far as to whip up a “personality quiz” to help choose from among their properties (sample response: "Call up your fav five and hit Banana Cafe for pitchers of Caipirinhas"). Though JPI still has one project in the pipeline– a 419-unit apartment building with 15,000 square feet of retail at 23 Eye Street – completion of Capitol Yards could be viewed largely as the developer’s curtain call the DC area. The Texas-based company had once targeted DC, along with New York City, as hot spots for condo development. However, after completing projects like The Byron and Jenkins Row – the latter of which is still selling four years on – the market’s prospects seem now much dimmer than they did just a few years ago and JPI has yet to announce any new plans for follow-up developments. Correction: 909 at Capitol Yards was designed by the Preston Partnership, not WDG Architecture. WDG designed two other neighboring JPI projects, the Jefferson and Axiom at Capitol Yards.

Washington DC retail and commercial real estate news

Adams Morgan Fixer-Upper Gets Fixed-Up

The Kalorama / Adams Morgan neighborhood will soon have one less dilapidated tinderbox for neighbors to revile. Located at 2110 19^th Street, NW, the three-story apartment building at the site has gone from bad to worse over the past half-decade. Luckily for area preservationist aficionados, however, renovation (if you can call throwing out everything except the facade a renovation) is currently underway and, once completed, this real estate ugly duckling will emerge a swan - courtesy of DC apartment developer and management company Keener Squire Properties and the architects of Eric Colbert and Associates.

Originally known as the The Hilltop, residents of the then 15-unit tenement - described by The Washington Post at the time as a "badly deteriorated building" - were bought out of their leases in 2005. Another District development company, Nicol Development, then tried their hand at culling 22 condominiums out of the building shortly thereafter and summarily failed, leaving nothing but a condemned husk of a building in what was (ironically enough) one of the District’s more desirable neighborhoods. But then 2007 happened, and Nicol lost control of four local projects, this one to the lender. The property had been informally floated above $5 million by Nicol, then more formally listed at $3.8 million but still no takers. Cut to the summer of 2008, when Keener Squire was able to pick it up at the “fixer-upper” special rate of $2.1 million.

“My client bought it at auction,” said architect Eric Colbert. “Someone had tried to develop it a while back, but they didn’t know what they were doing and wound up abandoning the project…It must have been at least five or six years [since people lived there.]”

That's about to change. Keener-Squire is currently projecting a 12-month timetable for a complete renovation of the once-roughshod apartment complex. The building’s original 25,000 square foot shell will receive an extra 5,000 feet during the course of the build-out, allowing for a total of 35 new residential units and two new floors. Keener-Squire’s in-house general contractor, Wayne Construction, is overseeing work at the site. Sources say the building is being designed as rental apartments, but, as always, market forces will ultimately dictate the final outcome.

Donohoe Galvanizes Bethesda Development in the Woodmont Triangle

The Donohoe Development Company is in the early design and planning stages on what looks to be the largest mixed-use project to hit Bethesda since Bethesda Row went and upped the area’s chi-chi quotient a few basis points (see this month’s issue of Forbes for proof). Now, on the other side of town, in the decidedly less dapper (but getting there) Woodmont Triangle area, Donohoe has teamed with WDG Architecture to realize Woodmont Central: a multi-phase, mixed-use project that will bring office space, retail and, yes, apartments to Wisconsin Avenue and beyond.

Within the next few years, Phase 1A, as Donohoe is calling it, will be the 8280 Wisconsin - a commercial complex with 80,792 square feet of Class A office space, along with 10,820 square feet of ground floor retail, at the corner of Battery Lane and Wisconsin Avenue. At present, it's the site of a Texaco that boasts the area’s only car wash. Unfortunately for area auto buffs, both will be razed prior to build out. It will, however, be the first sign of new development at the very same intersection that had previously been slated to host the now indefinitely on hold Trillium Condominiums.

In a first for Woodmont Triangle development, Donohoe's office building will be followed by Phases1B and 2 - but not at the same site. It’s a split that will allow the development team to benefit from a recent amendment to Bethesda zoning statutes. Said Jad Donohoe, Donohoe's Development Director:

[The parcels] are three blocks apart, but in the same project…Back in 2006 there was an amendment to the Bethesda Sector Plan for the Woodmont Triangle. For the first time it allowed this transfer of density between sites that aren’t contiguous or are even across the street from each other…It’s a new idea and the thought was that because there is such fragmented ownership in that section of Bethesda, this would be a way to bring the density needed to make more of a Bethesda Row-type of experience. If you look at what Federal Realty Trust did on Bethesda Row, those things have been happening on that side of Bethesda for 10 years. By contrast, Woodmont Triangle has been kind of struggling. This is the solution and it’s one of the first projects to take advantage of that provision.

And take advantage they shall. Currently the home to a surface parking lot and "some old two-story buildings", the corner of Rugby and Del Ray Avenues will eventually host The Gallery at Bethesda - a high-rise with 457 rental apartments (including 51 MPDUs), 9,051 square feet of ground floor retail and public park that Donohoe describes as being comparable in size and scope to the nearby Veteran’s Park. "It’s really going to be one of the few green spots there in the Woodmont Triangle for public space,” said Donohoe.

Though still “a couple years away from breaking ground,” Donohoe speculates that "The Gallery will be home to approximately 900 new Bethesdans, with occupancy beginning in 2013. 8280 Wisconsin will deliver in late 2012." The team's first project plan was filed with the Montgomery County Planning Board in January and they're currently scheduled to make a second appearance before the Board on April 23^rd. Bethesda real estate is for sale.

Dupont Apartment Building Reopens After Renovation

In keeping with its past successes buying and renovating historic but neglected apartment buildings, Urban Investment Partners (UIP) is putting the finishing touches on their $1.8 million renovation of the Absecon Apartments - now named The Shelby - in Dupont Circle. Located at 1706 T Street, NW, the Shelby is just one of the century-old rental properties in the area that's been blighted by years of mismanagement and poor upkeep. According UIP’s Steve Schwat, the condition of the building took even the seasoned real estate professionals by surprise.

"When [buildings] are fully furnished have a nice young couple living in there, they don’t look so bad. But everything in the building is at twice its expected useful life,” said Schwat. “[At T Street], we had units in the basement that were built but never permitted…It was just crazy in there - holes in the floor, holes in the walls. It was as bad as I’ve ever seen it.”

Luckily for prospective renters and the neighborhood in general, the developer - working in tandem with Bonstra Haresign | ARCHITECTS and their in-house general contractor, Urban CM – has succeeded in completely overhauling the once dilapidated building and its 24-units. Said Schwat: "The entire building was renovated, we performed selective demolition, all new electric, all new plumbing, all new separately controlled HVAC, granite counters and stainless steel appliances. It’s pretty much condo-grade finishes, but it’s a rental building."

Additionally, UIP has taken it upon itself to reincorporate original elements of the building’s façade that vanished from lack of upkeep over the intervening decades. As a contributing site to the Strivers Historic District of Dupont Circle, the development team will be outfitting the Shelby with a steel and glass version of its original awning. Other architectural flourishes, along with a new front entry door, will round out the renovation for what Schwat calls an “Ian Schrager, boutique hotel kind of feel." The Shelby is currently leasing up with occupancy set to begin on May 1^st. Open houses for potential residents are scheduled for April 17th, 18th, and 19th, 9-5 each day. For more information call 202-244-3811.

UIP is doing much the same with two other concurrent rental renovations in the District: at The Macklin at 2911 Newark Street, NW and a second at 1921 Kalorama Road, NW.

Washington DC real estate development news

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

New Mixed-Use for Arlington Strip Mall

Fairfax-based development company Walnut Street Development (WSD) hopes to bring some needed mixed-use development to their backyard. Just across the county line, the company has teamed with architect Ann Ardery for a mixed-use makeover of an Arlington strip mall at 2515-2525 Lee Highway.

The three to four story project aims to deliver 22 new apartment units, along with 13,000 square feet of retail. The 22,643 square foot lot currently hosts a one-story, 4,500 square foot edifice whose sole retail contribution is now a 7-11 and adjoining vacant storefront. WSD’s project plan also calls for a “predominately underground garage” with 73 parking spaces and a LEED silver certification. Though the developer has yet to specify what kinds of retailers they’ll be courting for the project, they have assured local residents that some sort of “convenience retail” – ala the current Sleven at the site – will be included.

The project’s dimensions have shifted somewhat since it was originally submitted to Arlington County in 2004; the project’s first incarnation called for 24 residential units with a diminutive 3,750 square feet of retail. Through meetings with the Planning Commission and Transportation Commission, as well as presentations to the residents of the neighboring Cleveland House Condominiums and the North Highland and Lyon Village Civic Associations, not to mention market forces, the project has re-emerged with stronger emphasis on the planned retail space. The project goes back before the Arlington County Board again April 26^th.

In the meantime, WSD is also well underway on at their Residences at Old Town Square development. That project, located at the former site of the Fairfax City Library, will contain 80 new condos in two buildings and is scheduled to deliver later this year.

Arlington Virginia real estate development news

The Millennium Arrives in Pentagon City

General contractors BE&K Building Group will top out construction today on Kettler’s 21-story Millennium at Metropolitan Park project – the second installment of what is planned to be an ambitious 8-phase, 10-building development in Pentagon City. The project’s first component, the 399-unit Gramercy, opened in 2006.

Once completed in April 2010, the Dorsky Hodgson Parrish Yue-designed building will feature 300 rental apartments with high-end amenities including “a rooftop pool, spa, fitness center and party room,” in addition to a first floor library and business center. More than 7,500 square feet of ground floor retail space will round the initial construction. Work on a “central park planned to serve residents of the entire Metropolitan Park complex” will begin in the project’s next phase – which Kettler’s Jamie Gorski told DCmud in February is currently scheduled to go to ground later on in 2010 with a late 2012 delivery.

UIP Moves in on Historic Connecticut Ave Space

Urban Investment Partners (UIP) is currently two months into their $1.9 million renovation of The Macklin – the 70-year old, 17-unit apartment building straddling the same stretch of Connecticut Avenue as some of Northwest’s most beloved destinations, including the Uptown Theater and the Ireland’s Four Provinces Restaurant and Pub.

Located at 2911 Newark Street, NW, the Macklin will receive a thorough 21^st century upgrade, courtesy of Bonstra Haresign Architects. The development team is completely overhauling the building’s aging heating and cooling units, plumbing system, baths and kitchens – the latter of which UPI boasts will include “all-new wood cabinetry, granite or stone countertops, under-cabinet lighting, stainless steel finish appliances including mounted microwaves and dishwashers, and new tiles.”

Additionally, the Macklin’s floorplan also includes the 11,000 square feet of retail space directly below the building at 3400-3412 Connecticut Avenue, NW, which now houses the new UIP offices after their relocation from Arlington.

The Macklin renovation is ambitious if only because it seeks to improve upon the original designs of Mihran Mesrobia – the architect behind such DC landmarks as the St. Regis and the Hay-Adams Hotels, as well as the one-time chief designer for iconic, early 20^th century developer, Harry Wardman.

Nonetheless, UIP succeeded where others had failed in mid-2008 when they acquired the formerly rent-controlled Cleveland Park building for $9.5 million. Earlier, in 2006, the Macklin had been the subject of a failed attempt at redevelopment by the Hastings Development Corporation, which sought to more than double the amount of units on site and install a parking garage beneath the property. Faced with the resident and community opposition, the proposal never made it beyond the planning stages.

According UIP’s Steve Schwat, the renovation is currently scheduled to wrap up in October. UIP’s own in-house general contractor, Urban CM, is overseeing construction.

The Macklin is the third such historic renovation currently that UIP currently has underway in the District. The others can be found at 1921 Kalorama Road, NW and 1706 T Street, NW, both in Adams Morgan.

More Money for Macedonia

The Arlington County Board has approved up to $2.855 million in low-interest loans for the Nauck Development Partners' (NDP) affordable housing redevelopment of the Macedonia Baptist Church

in Arlington. Per the terms of the approval, all of the building's 36 units are to remain "guaranteed affordable" for a minimum of 75 years.

NDP, which is a partnership between the Church, the Bonder and Amanda Johnson Community Development Corporation and AHC Inc., previously sought another $2.86 million low-interest loan and $40,000 County grant from the Board in January - both of which were summarily approved. NDP has secured $14 million in financing for the project, nearly $6 million of which is drawn from County funds. Part of the Macedonia's funding package will come in the form of 4% tax credits and tax-exempt bond financing via the Virginia Housing Development Authority, which the development team had been vigorously pursuing since last summer.

Located on three neighboring parcels at 2219, 2229 and 2237 Shirlington Road in the Virginia suburb of Nauck, the Bonstra Haresign-designed Macedonia will host the aforementioned 36-unit affordable in addition to two sections of commercial office space and a “small business incubator.” AHC Inc.’s Project Manager, Curtis Adams, told DCmud last December that the development team plans to begin construction in the late spring of 2009.

Adams Morgan Renovation Yields New Apartments

Everything old is new again, especially in Adams Morgan. In a timely full-circle, yet another of Adams Morgan's numerous Depression-era apartment buildings will be getting a full makeover in the coming months...just as we coincidentally circle the drain of our own financial crisis.

Starting next month, Ellis Denning Construction and Development will begin a $2 million renovation of Urban Investment Partners' (UIP) six-story rental apartment building at 1921 Kalorama Road, NW. Kunal Shah, Purchasing Manager/Estimator at Ellis Denning tells DCmud that the each of the building's 59 units will be receiving a top-to-bottom facelift with new kitchens, bathrooms, flooring, finishes and paint jobs (now lead-free!).

Ellis will be overseeing the selective demolition of certain internal portions of the aging building, from which they're planning to carve three new apartments out of the current 60,000-square foot plan.

In addition to Ellis, UIP has also taken on Bonstra Haresign Architects to design both the renovations and new construction. Given the structurally sensitive nature of the planned procedures, Shah declined to comment on a timeline for the project, but did note that only thirteen of the building's 60+ residents will be permitted to remain in the building once work begins.

The very same team of Ellis and Bonstra is currently at work on another nearby apartment complex at 2525 Ontario Road, NW, while Ellis has also paired with Hickock Cole Architects for a similar project at The Ritz at 1631 Euclid Street, NW. Both of those developments are owned by affordable housing provider Jubilee Housing, Inc.

Alexandria "Gateway" to Start in '09

Following January approvals from the Alexandria Zoning Commission and City Council, Bethesda's Green City Development (alternatively known as Tall Cedars Development) is moving forward with their plans to add another landmark to Alexandria, at least in name. The so-named Landmark Gateway project is the Northern Virginian city's bid to redevelop an area primarily known for strip malls and warehouses and, for many local officials and community members, the work can't start soon enough.

"The Landmark Gateway proposal has been reviewed in numerous community meetings over the past two years as well as by the Landmark-Van Dorn Corridor Small Area Plan Advisory Group," said Department of Planning and Zoning Director, Faroll Hamer. "This project will be an important catalyst for an area that is struggling to turn itself into a vibrant revitalized community, and with the current economic downturn and difficulty in securing loans, it may be the only chance in quite some time.”

Located on a six-acre parcel at South Van Dorn and Pickett Streets, the Gateway will replace the industrial structures on site with a three building “Art Moderne”- style development that will include 431 rental apartments (with an unspecified mix of affordable and market-rate units), 35,000 square feet of retail space and a 544 space underground parking garage. The designers behind the 550,000 square foot project, Architects Collaborative Inc., are currently working with landscape architects, The FAUX Group, to create “a series of urban…lively streetscapes, public plazas [and] promenades linking storefronts to the retail parking areas, public art elements as well as private courtyards…for area residents.”

Green City is currently projecting a December 2009 start for the first two, five-story buildings in the $100 million project. Both are aiming for a LEED silver certification. 

Greater Washington DC real estate news

The Residences Delivering on Georgia Avenue

The Neighborhood Development Company’s Residences at Georgia Avenue just finished construction, thanks to Hamel Builders. The 72-unit "affordable" apartment building sits in the heart of Petworth at 4100 Georgia Avenue, NW.

Financed by $28 million from a laundry list of contributors, including the District of Columbia Housing Finance Agency, the District of Columbia Department of Housing and Community Development, the Wachovia Affordable Housing Community Development Corporation and MMA Financial, NDC founder Adrian Washington says, “The Residences is a shining example of what can be accomplished when the private sector works hand in hand with the community and the District government to move neighborhoods forward.” The project was designed by local architects, Wiencek and Associates.

The project, which broke ground in September 2007, will also be home to the District’s second Yes! Organic Market in as many years (the first opened at PN Hoffman’s Union Row development in November). The new, 10,000 square foot Yes! - Petworth’s first boutique grocer – will open this coming summer following completion of its own independent, interior build-out.

In the meantime, the Residences at Georgia itself will become an official addition to the Georgia Avenue corridor after a ribbon-cutting ceremony – to be attended by Mayor Adrian Fenty and Ward 4 Councilmember Muriel Bowser - on March 31^st at 10:30 AM.

Washington DC real estate development news

Bethesda's First New Apartments of 2009

While a number of large projects in downtown Bethesda failed to lay brick one during 2008 (Trillium, Edgemoor, 4823 Rugby Avenue, The Monty, 4913 Hampden Lane), smaller projects are making it to the finish line sans marketing blitz and loan defaults. Such is the case with the Jaffe Group’s new apartment building at 7809 Woodmont Avenue – right next to such familiar locales as the Tastee Diner and Veterans’ Park. But, hey, financing is easy when your development partner is a bank.

The 12,000 square foot project will add not only three new rental apartments to one of Bethesda’s most trafficked thoroughfares, but an expanded Eagle Bank location as well. As Gary Jaffe, principal of the Jaffe Group, tells DCmud: “The building is four-stories and a basement. On the first floor is Eagle Bank with a drive-thru. The second floor is for the Chairman of Eagle Bank. Then we have two one-bedrooms on the third and a bedroom and den on the third with a large rooftop patio.”

Coming in at a cost of $6.5 million, each of the project’s three residential units will measure in “just shy” of 1,000 square feet and feature the design work the Bethesda-based architectural firm, Michael Fanshel Associates, plus all the requisite modern amenities (plenty of stainless steel). And completion is now just weeks away. “We’re hoping [to end construction] in about three weeks on April 4th or 5^th,” said Jaffe. “We plan to be completed and have our construction done, but the bank will probably still be doing some outfitting on their space. We’ll be ready to lease in mid-April.”

Bethesda Maryland commercial real estate news

Dual MoCo Apartments Headed for Approval

Two long-gestating residential projects - The Monty in Bethesda and Bonifant Plaza in Silver Spring - will (finally) be cleared for approval by the Montgomery County Planning Board at their scheduled March 12^th meeting. Together, they'll signal the MPBD’s largest residential approval of the new year and contribute nearly 300 new residential units to the county.

Located between Fairmont and St. Elmo’s Avenues in the Woodmont Triangle area of Bethesda, the 17-story (!), SK&I-designed Monty will usurp the present two and three-story storefronts on site, only to replace them with up to 200 residential units, 7,700 square feet of ground floor retail and a 5,500 square foot public plaza. Developer Monty, LLC - who received previously received Board approval in early 2008 to nearly double the number of units contained in the project at the expense of once expansive floorplans - will dedicate 20 the said apartments to affordable housing.

Meanwhile, in Silver Spring, developer Theo Margas’ Bonifant Plaza project will be moving ahead with its planned 115,000 square foot, AR Meyer & Associates design. Sporting 72 rental apartments – 9 of which will be affordable – Bonifant Plaza will stand on the so-named Bonifant Street – a site, coincidentally, within earshot of the MCPB offices in downtown Silver Spring. Margas told DCmud in January that the meeting will be “only for the budget plan” for the Bonifant, but expects the approval to solidify a timeline for the project, which has been in development since at least 2006.

As of this writing, both projects have been earmarked for approval by MCPB staff – an opinion that the Board itself rarely dissents against.

New Rentals for Falls Church

FALLS CHURCH, VA - Landlords are finally getting their due. As the rental market makes a roaring comeback, developers are now aiming for, rather than backing into, the rental market. For the first time in more than 30 years, a developer is planning market-rate, rental residences in the center of Falls Church. And while several nearby projects shifted from for-sale to for-rent as the market shunned sales, developer Hekemian & Co. intends a new apartment building on three prime parcels within walking distance of the Northern Virginia township's Metro-serviced downtown. Though that would seem like a boon for Falls Church real estate, retailers and residents alike, its move that has drawn flak from local homeowners, yet given local civil servants a reason to be in good cheer. Annapolis-based Hekemian plans to bring a 304,000 square foot mixed-use development called the Northgate to the intersection of North Washington and East Jefferson Streets. Using designs prepared by MVA Architects, the Northgate development will feature 119,164 square feet of residential area, which will include 95 “luxury residential rental apartments” and 10 three-story townhouses in the rear. In an interesting twist, the developer has proposed initiating a VIP program for prospective residents that provide “move-in discounts for city employees, including teachers” – meaning no security deposits or application fees for eligible tenants. Hekemian is also setting rent on 7 of the available units at an affordable rate, so paycheck-impaired educators can look forward to a double discount as well.

The residential component is to be coupled with 22,396 square feet of retail at targeted at “higher-end retailers and services” (i.e., “a white tablecloth type restaurant” or art gallery) and 15,125 square feet of separately accessible office space, though specific tenants have not been named, and developers typically court popular opinion with such desirable tenants. Given the bevy of uses in play on the parcel, the building height will vary from 4 to 5 stories, with the townhomes standing along the building’s rear to provide a buffer with the neighborhoods beyond. The sites at 436, 458 and 472 North Washington Street currently house a cluster of single-family homes, a funeral parlor and its adjoining parking lot, respectively. Convenience aside, some local homeowners in the suburb were initially concerned about the presence of a 55 foot shopping and apartment complex on the corner. Since the project first surfaced publicly in early 2007, Hekemian has retooled their plans multiple times, in accordance with the wishes of the Falls Church Planning Commission. Those changes resulted in the loss of 19 units and subsequent creation of the townhouse buffer. Even so, some remain concerned about the developer’s push for a variance that would allow them to build up to five feet from the property line, instead of the normally regulated twenty.

While still under negotiation with the Board regarding an acceptable traffic pattern, the developer has since sought to curry local favor by promising up to $20,000 worth of streetscape improvements and shooting for an ever-popular LEED (environmentally-friendly) certification.

Though Northgate has been consistently planned as rental residences, it's been beaten to the punch by others - like Pearson Square and Avera Station - that were initially conceived as condo developments, but wound up rental due to the lack of confidence in the housing market.

Falls Church Virginia commercial real estate news

2300 Penn: Demo Begins

Mayor Fenty brought a little showmanship to the usual groundbreaking ceremony as he announced the District's plans to revitalize the 2300 block of Pennsylvania Avenue SE, and then, in a gesture that may inspire more city youths to be Mayor, began demolition of one of the buildings himself (pictured).

"While all groundbreakings are significant, a groundbreaking here on the 2300 block of Pennsylvania Avenue just shows that all of this great economic activity is bringing prosperity and progress...east of the river," said Fenty at the demolition site. "I think for that we should all be excited."

The Computecture Incorporated-designed facility at 2323 Pennsylvania Avenue will consist entirely of affordable housing with 247 units, 115 units of which will be "workforce" housing for families earning no more than 60% of the area median income. In addition, it will also feature a Harris Teeter grocery store and 8,000 square feet of space that the city hopes will go to "high-end" retailers. “If Pennsylvania Avenue is going to be the major corridor leading into east of the river neighborhoods that we all expect it to be," the Mayor said in closing, "we’ve…got to get rid of the blighted properties that are on it."

As the first major development in greater Anacostia since the Penn Branch Shopping Center was built a decade ago, the project at 2323 Pennsylvania Avenue is exciting indeed. The lot where the project is to be erected was formerly home to an unsightly strip of used car lots and a tattoo parlor. An interesting note on the block’s historic status: one the homes slated for demolition is where John Wilkes Booth was treated for his injuries following the assassination of President Lincoln.

The mayor detailed the $7 million in construction loans and $1.2 million in affordable housing tax credits offered to the developer for the project and then thanked the DC City Council for its determination in getting the project off the ground over the past two years.

Also in attendance at the event were DC Councilmember and Chair of the District’s Committee for Economic Development, Kwame Brown, Anthony Muhammad of the Advisory Neighborhood Commission 8A and Tim Chapman of Chapman Development, the primary developer behind the project – in addition to a packed house of community leaders and activists.

Brown went on to express his pleasure with the development from the perspective of someone who lives only blocks away. “I think there is no greater sign that what we’re doing together from an executive and legislative standpoint is working,” he said. “I think in the next five years we’re going to look back and say ‘Wow, look what used to be here and what is here now.’”

Brown trumpeted the housing development as a beacon of hope for residents of Wards 7 & 8 and as a surefire measure to draw to new retailers and residents to a part of the city best described as undesirable, if not dangerous. The afternoon’s remarks came to a close as Mayor Fenty got behind the wheel of a heavy duty land mover to demolish a one-story brick structure, giving the project a memorable kick-off.

This is not Chapman Development’s first foray into development of the District’s less affluent areas. The firm was previously responsible for the Lotus Square Apartments on Kenilworth Avenue, NE. According to the Bank of America representative responsible for funding the Penn Avenue project, Lotus Square maintains the appearance of market rate housing, despite its affordable, and enjoys high levels of tenant satisfaction - one the driving forces behind the selection of Chapman as developer. The work site is currently being cleared by 25 members of the Earth Conservation Corps (ECC) with construction expected to begin once demolition is complete.