Showing posts with label new condos. Show all posts
Showing posts with label new condos. Show all posts

Wednesday, May 01, 2013

Award-Winning Condos Coming to U Street

0 comments
Just around the corner from old school U Street locales such as Ben’s Chili Bowl and the Lincoln Theatre, work is currently underway on the tentatively-titled 11th Street Condos - a pair of matching four-story condominiums / townhomes with a distinctly upper crust pedigree and back story to match. And given the history of the project’s site at 11th and T Streets NW, it’s also a pretty good indication of just how far the neighborhood’s come in under a decade. 
New condos in Shaw by Christian Zapatka, Washington DC real estate update

 “Originally, there’d been a gas station there,” says the architect behind the 11th Street project, Christian Zapatka. “About five years ago, there was a competition sponsored by the American Institute of Architects to design what was called the “Rowhouse of the Future” for that site. We were one of five winners of the competition and we had our work displayed at the Building Museum. The property owner saw the projects, then came to us and said that he liked our design and wanted to build a two-condo building there.”

The project’s owner/developer, Sahr Bockai, has since followed through on those intentions by contracting Zapatka to design the duel, 1,800 square foot, red brick homes. Once completed in June, each will features ground level media rooms and a second-story kitchen, beneath two upper levels of bedrooms, including a master suite. But the centerpiece of the development at 1900 T Street, NW is a private interior courtyard for use by the occupants – and though that may be an atypical amenity for a condominium project, it is keeping with the owner’s vision and the aesthetic of the surrounding community.

“We designed them as condos, we got them permitted and approved as condos because we had toReal estate for sale in Washington DC take them through the Historic Preservation Board,” says the architect. “We wanted it to be new and modern, but still blend in with the brickwork of the old neighborhood.”

Zapatka has carried over that same sense of what he calls a “synthesis of the modern and the old” to another condominium project one neighborhood over. The Fourth Union Condos, which are also currently under construction, aims to cull six condominiums out of owner Quing Sun’s neighboring properties at 1553 and 1555 9th Street, NW in Shaw. 1553 will contain four of the units, 1555 will contain remaining two. That project too is expected to hit the market by this coming autumn.

Monday, August 02, 2010

New Condo Opens in Petworth

9 comments
DC's newest condo project has opened in Petworth. The Flats at Taylor Street began sales in July after completing a one-year renovation of the 26 unit apartment building, with prices ranging from $199,900 to $299,900 for one and two-bedroom condominiums. The condo project, near the Petworth / Georgia Avenue Metro, is in one of DC's more active development districts, joining a cluster of other large projects either recently completed or underway. The new condominiums will beef up the housing stock, along with recently completed Park Place apartments and NDC's newly opened Residences at Georgia Avenue with Yes! Organic market, as well as the 130-unit apartment building Georgia Commons now underway one block south, Donatelli Development's apartment building going up across from the Metro and a new retail development next door, as well as a CVS that opened just last week, effectuating years of promises for upper Georgia Avenue. Taylor Flats, at 804 Taylor Street, NW, is the rebirth of an apartment building that was fully gutted in 2009, with unit layouts redesigned by Bonstra Haresign Architects for more contemporary living spaces that include in-unit washer & dryer and larger living rooms. Taylor Flats condos will also be the first large condominium to utilize CityFirst Homes, a District-sponsored program to give condo buyers downpayment assistance. The program provides moderate-income purchasers with $75,000 toward financing and downpayment costs, with an interest-only repayment for the first seven years at a fixed 3.79% interest rate, allowing a 2% downpayment without mortgage insurance. The remaining purchase price is financed privately through Bank of America. The condominium sales office is open on Sundays or by appointment, email sales @ TaylorFlats.com.

Washington DC real estate development news

Friday, March 19, 2010

Capitol Hill Condo Opens Saturday


Washington DC commercial property salesCapitol Hill's newest condo opens for sales on Saturday. 15 East is expected to be ready for occupancy by mid April. The 4-story building, by Macy Development, will offer condos for sale, Capitol Hill, Washington DC real estate, 284 15th Street, southeast, DC, 200034 one-bedroom and 4 two-bedroom condos for sale on the corner of 15th and C Streets, SE. Prices will start at $289,900 for the one-bedroom units and $389,900 for each of the two-bedroom condos.

Located 3.5 blocks north of the Potomac Avenue Metro station, near the new Harris Teeter, construction on the new building began in late 2007 but halted during the financing drought. The project was revived earlier this year, with completion scheduled within the next 4 weeks. Two-bedroom condos will come with the option to condos for sale, Capitol Hill, Washington DC real estatepurchase parking, and all will have some private outdoor space. Two bedroom condos feature a corner living room with a wall of glass facing south and west. Sales and marketing by DC Real Estate.

15 East
285 15th Street, SE
Washington DC, 20003
Commercial construction project, Capitol Hill


















commercial construction on Capitol Hill, sales and marketingWashington DC real estate devel
opment news

Thursday, January 14, 2010

Embassy Condos Try Again

5 comments
The Embassy Condo of Mt. Pleasant and owners 1613 Harvard Street Limited Partnership have finally bounced back from a legal defeat in 2005 at the hands of the DC Department of Consumer and Regulatory Affairs (DCRA), and have once again begun selling the 76 units in the building as condos.

The previous owners of the Embassy Apartments, as they have long been known, registered the apartment with DCRA as a condominium way back in 1980 - a necessary step in the conversion process - but did not pursue sales. When the new owners attempted to evict the tenants for the conversion on the basis of the 1980 approval, the tenants brought the matter to DCRA, which issued a "cease and desist" order against Embassy owners in March 2005. The ensuing law suit ended in 2005 with a judgment against the building owners in which Superior Court Judge Gerald Fisher issued a smackdown, and ruled that “having failed to exercise its right to convert for 19 years since it acquired the property and for almost 25 years since the property was approved for conversion, Harvard is equitably barred from doing so now."

Since that time,
the group behind the project is now back in good standing with DCRA and has started condo sales. In 2006 the owners received approval for window replacement and interior renovations. The sales website for the condos boasts of "sweeping hardwood floors, chef’s grade kitchens and contemporary finishes." Sales representatives did not return any calls regarding the project. Paid advertisements began appearing last week, but the project has not yet appeared on the MLS.

Post your comments about this project below.

UPDATE : (o1/15/10) Sales representatives for the Embassy contacted DCMud with additional information on the building. Sales are set to begin next week on the 23rd, at which point it will appear on the MLS. Prices for studios range from just below $200 to the mid-$200s, one-bedrooms range from the high $200s to the high $300s, and two-bedrooms range from the mid-$400s to the low $500s.

Saturday, October 03, 2009

Manna's Latest Condos Open This Weekend in Southeast

1 comments
Manna DC condo, LISCAffordable Housing provider Manna will host the Grand Opening of its latest new condo project, the newly-renovated Belgrove Condominiums. Just across from the Good Hope Marketplace, at 2760 Naylor Road, Belgrove offers affordable one and two bedroom units, starting at $143,500 for one bedrooms and $179,500 for two bedroom homes, but unlike many of Manna's projects will not be subject to income qualifications. Not walking-distance to a Metro, parking will be available to purchase.

But don't expect concierge service. In keeping with the profile of no-frills, affordable condos, the three-story walkup offers features like modern energy efficiency, low-flow toilets and shower heads, "resilient tile floors", individually-metered electric and gas, common laundry room, secure controlled entry, and private storage bins. Condos will be open from 1-4 pm this Saturday and Sunday. Manna acquired the property with a LISC loan in February of 2007.

Washington DC real estate development news

Wednesday, September 16, 2009

New Condo Survey - Harvard Lofts

11 comments
1466 Harvard Street, NW, Washington, DC - Harvard LoftsWashington DC's most recent addition to the new condominium 1466 Harvard Street, NW, Washington, DC - Harvard Loftsmarket is Harvard Lofts, a 12-unit condo on the south side of Columbia Heights, located at 1466 Harvard Street. With construction recently completed in May of 2009, Harvard Lofts opened for sale on Saturday for the first time, DCMud provides a first look.

It is obvious from the exterior that the building is a decidedly modern twist to an otherwise historic row of single family homes and small apartment buildings, many of which are still unrenovated. The mostly glass facade incorporates a gated entry to the side courtyard, with private entrances to each of the 4 "townhouse" style condos. Each townhouse, priced from $599,000 to $639,000, has a 1466 Harvard Street, NW, Washington, DC - Harvard Lofts, Columbia Heightsfirst floor bedroom and 2nd floor master bedroom and bath, with lofted spaces overlooking the living room below. Townhouses showcase large windows, but are only exposed on the east side that looks directly into the base of the condominiums next door, allowing for little natural light, even on the well lit half of the units.


The main entrance leads to the remaining 8 condominiums, each with a distinct layout and design - a revitalizing break from the shoe box layout of most new condos. In keeping with the uber-contemporary architectural design, most units have double-height ceilings, with floor-to-ceiling windows that frame the historic neighborhood to the north or city and monument 1466 Harvard Street, NW, Washington, DC - Harvard Lofts condo salesviews to the south, you choose.



Each condo has a different expression of purely modern design, with hardwoods over a concrete slab, for privacy and structural integrity, and white-on-espresso Porcelanosa kitchens, with Bosch appliances, that vary from traditional u-shaped to contemporary kitchen-living combinations, though the latter are insufficiently small. Although less than 2 blocks from the Metro, tandem parking is available to purchase; most condos have private outdoor space.

columbia Heights real estate, Washington DCThe penthouse level features two small one-bedroom units with private terraces, and two 2-bed plus den penthouses, each with several large private terraces at $875,000 each. The developer, Harvard Loft, LLC, notes that pains were taken to make the building green, from choice of materials to efficient appliances and innovative lighting that is both efficient and bright, though no LEED certification was achieved. The condos are open on weekends and by appointment.

Washington DC real estate news

Saturday, August 29, 2009

Empty Southeast DC Project Hangs on Longer

2 comments
The Merion Group, the new owners of 1705-1729 East Capitol St., SE, have asked for a permit to raze the building, the first sign of movement on the eyesores across from Eastern Senior High School near RFK Stadium. The raze permit, filed under the name PYD I LLC, comes after a March 2009 approval by the DC Zoning Commission, which had approved development plans filed Comstock East Capitol LLC in December of 2007. The 2009 approval allowed for modifications by the new owner. Kennedy Place, as the new condos will be called, now has an extension until 2011, when the revised PUD expires.

The site is currently a vacant, 80-unit apartment building (pictured) on East Capitol Street, SE, between 17th and 18th Streets. The 42,629-s.f. plot is just blocks from the Stadium-Amory Metro. The Merion website describes the project as "a redevelopment effort which will create new condominiums in a gentrifying area of Capitol Hill." The ANC must be pleased to hear about their neighborhood finally gentrifying.

In December 2007 Comstock received approval for a consolidated PUD and zoning change from R-4 to R-5B, allowing construction of a 133-unit building. In that same month, Merion acquired the property for $6.2 million from Comstock, which paid $9 million in 2006. Merion Chairman Bill Bensten was formerly a senior executive at Comstock.

In September of 2008, PGN Architects, the project architects throughout the toss up, filed on behalf of the owners for a minor modification to the original PUD, changing the total units from 133 to 141. In January 2009 the counsel for Merion requested a one-year extension to December 2010 in addition to the earlier modification request.

Though the original plan had been to immediately begin construction, as financing realities were pouring cold water on new construction, developers added more one and two bedroom units to the mix, requiring interior changes to the architecture, further slowing the project. The change was intended to increase marketability.

The approved zoning changes and plan modifications give the developers until December of 2010 to file a building permit, and December of 2011 to begin construction. Beyond that, developers would need to start anew.

Wednesday, July 22, 2009

A New View in Bethesda's Woodmont Triangle?

3 comments
Laurence Lipnick, Battery Lane, LLC, Bethesda real estate development, retail for leaseMontgomery County will decide tomorrow whether a lot on the northern edge of the Woodmont Triangle section of Bethesda can do the impossible: build a residential project in the city's low-rise neighborhood. Okay, not technically impossible - but seemingly difficult, and a slew of competitors have failed to pierce the heavy veil of financial gloom. With developers for the Monty, Trillium, Rugby Avenue, 4900 Fairmont, Auburn Avenue, 4851 Rugby Avenue all unable or unwilling to move forward in Woodmont Triangle, developer Laurence Lipnick and Battery Lane, LLC will try for site plan approval of Woodmont View at the Thursday meeting of MNCPPC.  The question is whether to allow 46 two-bedroom condominium units in a 9-story building, replacing the Bethesda real estate, commercial real estate, Woodmont Trianglesmall office building on the corner of Battery Lane and Woodmont Avenue, and turning the single family home on the north end of the site into a "philanthropic" venue. The county's planning staff report has recommended approving the project, but with a few catches. The plan began with an approval in March of 2004 for construction of townhomes on the site, but with a 110-foot building going in across the street, or at least the prospect thereof, and lots of low-income and multi-family housing in the vicinity, building townhouses no longer seemed like such a good idea, and so the developer made a plea for the extra density. 

Complicating the plan - please mind the arcanery - is the Bethesda-Chevy Chase school district's moratorium on new construction that began July 1st, intended to stop development until the school system catches up with population growth. The open-ended moratorium clearly proscribes the subdivision of lots, but may less obviously affect the conversion of an office building into a residential tower. Woodmont View does not subdivide the existing lot, but still raises the fur on the neck of planners who see it as breach of the meaning of the moratorium, and the county has to rule on the matter of its school impact before it will issue a construction permit. All this "for 1.9 children," according to Debra Borden, an attorney with Linowes and Blocher, referring to the number of children the study deems will need accommodation as a result of the development. No 1.9 children left behind, it seems.Bethesda commercial real estate, Woodmont Triangle The height issue is the developer's Hail Mary to get 90 feet out of the site, originally zoned for 65 feet, and granted a 14 foot exception due to the provision of 8 subsidized units. The developer has requested an additional 10 feet 8 inches, an addition which would keep the building at 46 units but increase the size of each. A county synopsis of the project notes approvingly that the new design facilitates transit-oriented development, "help[s] provide a northern gateway to the Woodmont Triangle," contributes to urban planning guidelines with streetscape improvement and three levels of underground parking, and that 9 full stories would "be compatible with the surrounding buildings." Nonetheless, their Spidey sense tells them its still just too darn high. According to project architect Eric Morrison of Morrison Architects, who has designed renovations to local embassies for the Czechs and Argentinians, and was the local architect for the much vaunted Finnish Embassy, the apparent height of the building will not change, but will only add to the stepped-back level of the ceiling behind the ornamentation. Morrison says that the peaked facade is due to Bethesda's mandatory inclusion of attractive rooflines. The design will also be broken up so as to appear "not as one monolithic structure," according to Morrison, who also likens this and its twin on the other side of Woodmont Avenue, to "a nice gateway" to Bethesda. Oh, and Lipnick must provide and maintain a bicycle on the premises for travel to NIH (not for other purposes, mind you), along with pump, (not making this up) tube, bike lock, and both kid and adult helmet (color not specified). In perpetuity. Which seems like a very, very long time. 

Bethesda Maryland commercial real estate news

Monday, June 29, 2009

Ballpark: Build It and They Will Come, They Might Even Stay

5 comments
DC real estate, Onyx on First, Southeast DC, Nationals Stadium, Washington DC commercial property, new apartmentsIt's a good thing that the Nationals' standing as perhaps baseball's worst team ever will likely have no effect the residences of the surrounding neighborhood. The Capitol Riverfront Business Improvement District (BID) has issued its second quarter residential statistics for 2009, showing how desirable the area is to reside in, and it looks like the cliched Costner-ism of "build it and they will come" is working...for some more than others. EYA's Capitol Quarter townhome development appears to be the leader of the pack of with "88 of 113 (market rate) units sold" - though sales began in the fall of 2006. With prices starting at $630,000, EYA can be content with its position as the only new single-family home project in the area, and their only competition in the area are the dreaded c-word – condominiums – and its Capitol Quarter has generated a slew of favorable media coverage for its tre trendy green construction practices and subsequent “LEED for Homes” certification.Onyx on First, Southeast DC, Nationals Stadium, Washington DC commercial property, new apartments Proof positive that condos are indeed still on the sluggish side, Texas-based developer JPI’s pair of Capitol Riverfront condos. Or at least they were considered as condos before the Big Crash - The Axiom at Capitol Yards, The Jefferson at Capitol Yards and Faison's Onyx on First (pictured) – are now all renting as apartments. But according to the BID, the buildings have achieved 60% occupancy of their collective 960 units. That leaves approximately 384 empty units on the market, despite the fact the first completed building, The Jefferson opened its doors one year ago this month. It’s presumably that same dearth of buyers that made JPI go rental with their third area building, 909 at Capitol Yards; so far with less success than its predecessors. According to the BID report, only “25% of the 237 units” at 909 – but the project began renting only in the spring of this year. The developer has been trying to court the young, urbanista demographic for the building by advertising amenities like yoga studios, communal Nintendo Wiis and a residents-only bar/pub. JPI's tentative plans for a fifth and final 415-unit apartment building at 23 Eye Street still remain on the table, at least officially. Valhal Corporation’s Capitol Hill Tower Condo-op is still trudging along with "80% of 344 units sold." That would seem an admirable rate of occupancy had the building not opened early in 2006, with sales almost a year before that. Not mentioned in the BID stats is the Cohen Companies' Velocity condo project, the 200 unit condo nearing completion, but for which sales are reportedly not, well, high velocity. Nonetheless, the BID reports that, in total, there are now “an estimated 1,863 residents living in the Capitol Riverfront , with over 2,000 residents expected by the end of the year.” You could be one of the lucky 137 by year's end. Ghost town or boom town? You be the judge. 

UPDATE: Says Ted Skirbunt, Director of Research & Information Systems at the BID: "JPI’s buildings were always going to be rental from the beginning. The only building thus far to convert from condos to rental apartments is the Onyx."

Washington DC commercial retail and real estate news



Monday, June 22, 2009

Industry Insight: Paul Robertson of Robertson Development

13 comments
Paul Robertson, Robertson Development, Washington DC real estate, Moderno, Visio, Murano, The BeauregardWith his firm’s tenth anniversary coming up this August, Paul Robertson, the enterprising developer behind such U Street area condominium projects as Moderno, VISIO and MURANO, spoke to DCmud about what it takes to last a decade in the DC development game.

In addition to detailing Robertson Development projects past and present, the company’s founder and president shared his thoughts on butting heads with the DC Water and Sewer Authority (WASA), divulged his newest project and revealed how his firm has just forged a new partnership that will take their work out of the for-sale market and into some surprising new arenas.

How did Robertson Development initially come together?

I started Robertson Development in August of 1999. I had been working for Sallie Mae for about 13 years prior to that, during which time I renovated some DC town homes on the side. Having lived the past 23 years in the U Street corridor, I have seen tremendous development opportunity and progress. I always loved design, real estate, and construction, and I majored in finance so it made sense to get in the business.Paul Robertson, Robertson Development, Washington DC real estate, Moderno, Visio, Murano, The Beauregard

In doing my first full renovations, which I ended up living in, I did the plans, pulled the permits and acted as my own general contractor. I just kind of learned things on the fly. I also used to go look at a lot of open houses in the area – still do. I saw a void there and thought there were some things that I could bring the market I didn’t necessarily see.

I networked a lot and found an agent, Ken Taylor, who helped identify two large brick townhomes on the 1400 block of N Street. I ended up buying them and turning them into eight units. That was The Rocco and The Capece. I designed the majority of the floor plans and was the GC and the developer for the project. Terry Sellheim joined the team as VP of Operations and we hired construction staff. It was a tough project to build because we added a floor to the top of each one, and did massive excavation and underpinning to create basement units the full depth of the buildings. It was a very tight sight and a very, very challenging first condo project.

Can you detail some of the projects you have done?

Prior to the completion of The Rocco and Capece, I started The Highland project, which is at 1531-1535 P Street. It is three town homes that we converted into eight units…Then we did our first new construction – again, still operating as the developer and general contractor. I have a Class A general contractor’s license from Virginia – and built Woodson Row on 12th Street, just south of U St. That’s, coincidentally, another eight unit project, but was all new construction – triplexes over duplexes – which was very successful.

At the same time…we put together the two parcels for The Beauregard and bought property to build what became VISIO. The Beauregard was finished a couple of years ago. It’s a 45-unit building with underground parking. Tompkins Builders was the GC. We built VISIO and are now just finishing up MURANO, which is the sister building to VISIO.

Recently, we’ve co-developed Moderno, with Lakritz Adler Development who asked us to join the team early in the design phase. Prior to construction, we assumed the majority of responsibility for the project. My personal residence at the time - in Woodson Row, which is across the street - was used as a model to sell some of the units in pre-construction. The project is complete, and sales have gone amazingly well. Now I’m working as co-developer with Collins Lange Development on a new project called Truxton Row.

Can you tell us a bit more about Truxton Row? Will it be condos as well?

Truxton Row is a 16-unit condo project. Collins Lange asked me to participate, again, in all phases of the development and construction. The first thing was to re-work the floor plans to enhance their functionality and style, which I’m confident added significant value to every unit. The great thing about good design is that it doesn’t really cost anything. It takes effort, time, experience and imagination but the dividends are huge.

Paul Robertson, Robertson Development, Washington DC real estate, Moderno, Visio, Murano, The Beauregard

The project will be done in two phases; construction has now started on Phase 1. The project has eight town homes, 7 new and 1 renovated. Each home contains two units, most of which are duplexes with a few flats. Many are similar to units at Woodson Row. There are terraces and double-height living rooms and so forth. The exteriors will be very traditional. Despite the trend toward doing “lofts” and ulta-contemporary, the interior finishes will lean more toward a “transitional” and traditional look. It’s going to be very exciting project.

Why the attraction to traditional architecture over say, the glass and steel look that’s so prevalent these days?

We wanted to follow the look of the exteriors and to offer a more refined sophisticated look. It will be great to offer some classic, upscale finishes in new construction. Currently, almost all new construction has a very “contemporary” aesthetic, but that doesn’t appeal to all buyers.

Given that are you are a condo developer, how has the condo decline affected business? Is the DC market as insulated as public perception makes it out to be?

Well, I don’t think it’s insulated because certainly virtually all projects have seen price reductions – although Moderno has fared very well in that regard. But because of the high desirability and significant job creation of the metro area, we haven’t been hurt as badly as some other locations. Washington is still one of the best places to live.

What attracted you to condos? Have you ever considered pursuing a rental project?Paul Robertson, Robertson Development, Washington DC real estate, Moderno, Visio, Murano, The Beauregard

Yes, but everything that I have looked at to this point, and actually embarked on, has lent itself more to condominium than it did to rental. Although rental has been hotter in the past year or two, we see small signs that potential new condo projects are becoming more viable again.

Which neighborhoods do you see as ripe for redevelopment? You’ve fared well in some emerging areas, like U Street and Logan Circle.

There’s still plenty of opportunity in the U Street and Shaw area, and certainly Columbia Heights, Brookland and Petworth – that’s where I see it going. But there’s still infill in better neighborhoods. It’s harder to find and certainly harder to find at a price that makes sense, but it’s there.

What are your thoughts on DC development process as a whole? Is there anything you’d like to see change?

I would take whatever steps necessary to significantly reduce the time it takes to get a building permit. They are making strides at DCRA, but, if I were the mayor, that would be a priority because it would really facilitate more development and therefore generate more tax revenue for the city.…Also, I would start an initiative to work the utilities – WASA, Pepco and Washington Gas – even though they’re not governmental agencies…because one still needs to get approvals from those utilities and often times that is a greater challenge than working with DCRA. People tend to focus on the DC government, but what they don’t often realize is the complexity and the time consuming nature of dealing with Pepco, WASA and Washington Gas.

What’s next for Robertson Development?

I’m in talks with a couple of developers about additional co-development projects. One is a mixed-use and the other 100% residential…Both will be in DC. We are really pleased that others seem to recognize the value we can bring to all phases of a project. Of course, we’ve made lots of mistakes, but it helps our partners because we try to help them avoid them in the future.

I should mention also that Robertson Development is branching out and starting another company called Robertson Walsh Design. Paul Robertson, Robertson Development, Washington DC real estate, Moderno, Visio, Murano, The BeauregardI’ve partnered with an architect, Brandon Walsh, to start the company. We both love design, space planning, cool materials, et cetera. We are currently doing several projects including designing a vacation home in the mountains of West Virginia and doing a rooftop terrace for the local nightclub, Town. We’ll be launching a website announcing those projects and services very shortly.

If you had a dream project, what would it be? What would satisfy you the most in terms of future development?

I would like to do another project like The Beauregard because, although it is terrific, I have learned lessons from it and other projects that I would love to apply to another “large” building. It’s the challenge of doing something better than the last time, of continuing improvement and refinement. But what is most satisfying is hearing the positive response we get from the people who have bought homes from Robertson Development.


Washington DC commercial real estate news

Sunday, June 14, 2009

Mount Pleasant's Raven Gets Expansion, Upgrade

1 comments
On the heels of a renovation to the three-story residences that wrapped up last year, one of DC's best dive bars, the Raven Grill at 3125 Mount Pleasant Street, NW, is now working on getting a new rear addition, plus an upgraded exterior, courtesy of Washington affordable housing developers, Manna, Inc.

"We're trying to make it look like the original. If you look around the Raven and the [neighboring Mount Pleasant Dry Cleaners], you can see that there are still cracks. We need a new coating that looks like original," said George Rothman, President and CEO of Manna, Inc.

Manna’s in-house development, design and construction teams worked with the Raven’s owner, Merid Admassu, for the build-out of the Antonatl Condominiums - a name invoking an El Salvadoran war hero, which you already knew. Manna resurrected the 12-unit, affordable condo out of the charred remains of 13 fire-gutted apartments above the fabled watering hole, built in 1928 and gutted by fire in 2003. Work on the Raven itself will include a 300 to 500 square foot addition to the bar’s rear, primarily for storage space. Both projects should be completed in one fell swoop.

“The [condo] construction was probably completed in December and people have been living in it…We haven’t finished the front of the building yet because we’re finding a sub-contractor to do the specialized work with those windows,” said Rothman. “Everything inside is finished and the outside, we’ll probably do that when we’re doing the addition in the rear to the Raven.”

For those fearful that their designated hangout for three dollar PBR’s might lose some of its old-school DC charm, Rothman emphasized that the bar won’t be going anywhere and should be keeping normal business hours when work gets underway in the next four to six months.

“The Raven is an institution. It will stay. That’s always been important to us” he said.

Tuesday, June 09, 2009

The Floridian Goes South?

12 comments
Buyers at The Floridian condominium in Shaw received some unwelcome if unfortunately common news last week when they were informed they would be unable to settle on their contracts until a lien and lawsuit involving one of the lenders was resolved. The condo project at 919-929 Florida Avenue, by Kady Development, has been funded by "a number of different" lenders, including Bank of America. Contract holders have had their settlements delayed until the disputes are resolved.

"The situation is that the seller, about three weeks ago, disclosed to all of our potential purchasers and [current] owners that he is having an issue with the lender and hopes to get it resolved within - what he said at the time - a month, but that he couldn’t be certain. So, we've been working with anyone who is under contract and new potential buyers and telling them that information,” said Gerard DiRuggiero of Urban Land Company.

“[We] can’t settle [contracts] at the moment. So, it’s just weekly updates and we’ve cleared that with all the buyers. Again, people are remarkably flexible and we’re giving them the information that we know. The residents seem to be handling it well and they love the building and the location,” said DiRuggiero. The Florida Avenue project sits amid several sites that were intended for development, such as the Atlantic Plumbing site, but that never materialized.

However, as of last week, the 118-units in the development’s dual, Eric Colbert-designed 8-story towers boasted an occupancy rate of 50% according to the sales team, though DC government records show only 29 recorded sales - after having begun sales in October 2005 and beginning settlements in the first half of 2008. Like the Metropole, a nearby project which was taken over by the lender in April and has been all but invisible since, the Floridian’s sales center at 913 Florida Avenue, NW, remains technically open for business…for now, at least, but without a date certain for resolving the issue. The project was built by Tompkins Builders.

Post your comments about this project below

Sunday, June 07, 2009

Industry Insight: Steve Schwat of Urban Investment Partners

9 comments
Since co-founding Urban Investment Partners (UIP) at the turn of the millennium,UIP Steve Schwat, Urban Investment Partners, Washington DC real estate, Macklin, Columbia Heights UIP principal Steve Schwat has overseen a diverse portfolio of real estate and development projects in Washington, DC and Prince George's County. In addition to owning and/or managing roughly 2800 rental units throughout the city, the firm has developed several for-sale condo projects, including The Archbold in Glover Park and Providence Square on Capitol Hill.

As the area condo market began its steep descent a few years back, UIP turned its focus to a practice Schwat calls the "value add" - a program that provides "substantial rehabilitation" to blighted or vacant buildings with updated amenities and streamlined utility systems. Schwat spoke with DCmud about UIP's expanding list of services and the state of DC development in general from their newly acquired Connecticut Avenue offices, directly beneath one such "value add" property currently under renovation: the historic Macklin apartment complex at 2911 Newark Street, NW.

Can you tell us a bit about how UIP came together and the work you do here at the firm?

I’m one of the original principals. There are three of us. We started back around 2000 and I have been in Washington since 1980, when I went to school at GW. I’m serial entrepreneur of sorts. I’ve owned a number of different businesses and I have a background in sales. My initial interest in real estate was doing single-family homes, and then I did my first condominium project in the early 80s, by renovating an older historic-type building. I sort of caught the renovation bug.

I enjoy starting companies, administrating companies and getting them running. What been as a hobby in real estate turned into a full blown career. My two partners, both of whom are Dutch, have been in real estate for a very long time. There was a combination of their deep experience in real estate investing and my knowledge of Washington and ability to create a functioning operation.

UIP doesn’t only operate as developer, but offers general contracting and property management services as well. Can you profile the organization for us?

UIP was always the rental group and all of our rental properties are owned under some kind of UIP entity. Drummond Development was our for-sale company and, if we do a for-sale project, it’s done under Drummond – just to keep the different types of investment separate. Then we have Urban CM, which is our construction group, and we currently do our own construction on projects up to $5 million. That may expand sometime in the next year or so if we do bigger projects.

Our property management group started in January of this year. We hired Dave Barton, who was running Randall Hagman’s residential management group, and when he resigned, they sort of sent him off with his staff and about 700 apartment units. So, we now manage our own properties. Before that, we were hiring third-party property managers…[but] we’d always envisioned having our own property management company, simply because we were constantly dissatisfied with the level of performance we got from other companies.

As it turned out, as the industry changes and the capital markets change and businesses are consolidating, we’d been considering it for so long that it didn’t seem like a consolidation move. In the end, in a market where you’re starting to worry about your ability to do as many deals this year as you did last year, it’s certainly a benefit to bring a fee-based entity in. UIP Steve Schwat, Urban Investment Partners, Washington DC real estate, Macklin, Cleveland Park, commercial property for sale You were giving away 5% before and now you’re bringing it in yourself. That’s not to say property management is highly profitable business. For us, it’s not yet, but it’s highly profitable for us as asset holders and asset managers.

How do you go about finding and selecting properties for rehabilitation? They all seem to be historic, yet something with an architectural history like the Macklin seems like a more obvious choice than say, 1921 Kalorama.

The prominent history, from an investment perspective, is probably fifth down on the list of the top five priorities. It’s certainly more fun to do architecturally significant buildings than it is to do historically insignificant buildings...What we look for in a property if we’re going to do a "value add" is “Can we increase the rents? Can we decrease the expenses? Does the building need the improvements that we’re talking about? And is there a method within DC rent control that’s going to allow us to achieve those goals?”

That’s really the key when you’re marketing inside a rent controlled environment like the District of Columbia. It’s not a matter of looking for loopholes; it’s a matter of utilizing the system in a legal way, taking buildings that are in need of substantial rehabilitation, putting it all together, and, in the end, doing what is a justified renovation of the building.

But, in that, you have two things that directly conflict. One is the city’s desire to maintain affordable housing. [The second is that] if you’re going to pour a million dollars into a building to renovate it, that’s something that will cause you to increase, not decrease the rent. Dig one level deeper and that conflict becomes a reality where you have people living in grandfathered buildings with antiquated heating, cooling, and electrical systems…If you were to build that building today, it would never meet code. But because it’s been grandfathered in over so many years, it technically gets past the code. But that doesn’t mean UIP Steve Schwat, Urban Investment Partners, Washington DC real estate, Macklin, commercial real estateit’s safe or that the electrical system doesn’t need to be replaced.

Within rent control, there are a number of tools you can use to increase rents. But you can’t just take a crapped out building and increase the rent because it’s still crapped out. You can’t take a building that you wouldn’t live in…and just raise the rents because that’s not very moral. So there’s a balance of working within the rent control environment and achieving that perfect storm of, “Is the property currently requiring improvement? Is the property currently renting below market rate? Is there a tool within a rent control that we can use to increase the rents while working with the Office of the Tenant Advocate and the Rent Administrator?...[That is] separate from my political opinions on what preserving and providing affordable housing should be. That is not to say that I agree 100% with the District, but there is the law and you have operate within it.

That said, some of the District’s rent control laws are antiquated and somewhat backwards in their thinking. The concept of maintaining affordable units in an otherwise upscale building has some inherent issues that are problematic...If you build $700,000 houses or condominiums, is it appropriate to have a $200,000 condominium in that building? Issues like amenities and monthly maintenance fees are also in direct conflict with one another.

Does UIP view new construction as profitable arm of the business? Or is the company content with sticking to renovations culled from DC’s vast inventory of vacant buildings?

UIP Steve Schwat, Urban Investment Partners, Washington DC real estate, Macklin, leasing commercial property, ShelbyWell, a vacant building is what we see as a “value add” building. So, yea, we’re all over that. And, yes, potentially for condominium sales, I think the market – although it dropped off precipitously at some point after 2005 and has remained low – still has absorption in DC. There are still people looking to buy condominiums. For instance, The Shelby at 1706 T Street or The Macklin at 2911 Newark Street, both have condominium registrations associated with them, so they could be sold as a condo at some point in the future. But that’s not our plan or the way we underwrote them. We underwrote them as rental properties and we renovated them as rental properties.

Ironically, coincidentally, fortuitously, though, a renovation of a rental property…is very similar to the renovation you do for a condominium because you have to self-contain utilities and make it simple, so that someone can own it. There’s a lot of synergy there in renovating a building for rental, where you’re reducing your expenses. Part of our whole “value add” strategy is not only increasing the rents, but also decreasing your expenses from five, six grand per unit per year to something less than three grand because you’re not heating the building with a highly inefficient furnace that burns all day long…as opposed to replacing it with a self-contained unit that the tenant is responsible for. It’s amazing how green a technology that is…If leave, I turn it off; I come home, I turn it on.

The definition of “value add” is in how you exit and, if there’s one thing I’d like to say, it’s that “It’s the exit, stupid”…I like to talk about my condominium experience because we did a lot of “value add” renovations with condos. People go, “Oh no, condos,” but the sale of a condominium and the sale of an apartment building is the same thing. It’s just a contract selling one on a wholesale basis and another selling condominiums on a retail basis. A condominium unit is generally worth more than a rental unit, but, the point, is it’s a really a matter of what the equity wants and what the market is saying.

We have a friendly competitor that recently completed a condominium building on Vernon Street and they’re having a really high velocity of sales. We just finished an apartment rental two blocks from there and we rented out all our units in less than a month. There are strong market indications for both. We thought we’d start to see the rental ceiling – what’s the highest we can rent these units for – and we haven’t seen it…With the inventory higher now than it was two years ago, people have a choice. If you’re building something in a bad neighborhood or an undeveloped neighborhood or uncharted territory, I think you’re going to have problems. The only time you didn’t have problems was when supply and demand were so imbalanced that people were writing contracts just based on paper plans…We’re certainly a lot closer to reality today than we were three years ago. Three years ago, it was more important what the appetizers at the opening party were than how people wrote UIP Steve Schwat, Urban Investment Partners, Washington DC real estate, Macklin, Columbia Heights, DC commercial property broker, the Macklincontracts.

With a well located property, you can sell condominiums today. We’re just over the last few months, after two years of not even mentioning the word condominium, I actually had a meeting with an equity partner who said, “We’re not afraid of condos. If you show that you think it’ll work, we’ll do condos.” And I think the market is saying just that.

Does that mean we’ll being seeing more from-scratch, new development from UIP in the future?

We’re just starting to look at ground-up construction. We’re starting to look at developable property that we stopped looking at for a year or so - some as rental, some as condo. For a while, you couldn’t buy developable land for a price that you could rent at. Seller anticipations are starting to come into line with buyer expectations. There was that time when if you had a vacant building for sale, it was a hundred grand a year because it was assumed you’d do a condo and sell it out at three hundred grand a year…Now you got the guys that bought the buildings for a hundred, paid a little more money to get rid of the last two or three tenants…carried it for a year and they now have a vacant building – with a big fat tax bill, a nasty interest carry cost each month and nobody that is willing to finance a condominium.

Ok, so go rental? But if you’re on 10th Street, NW, an area that’s not supporting $2000 or $3000 a month rentals, how are you going take a hundred grand a unit, spend another seventy grand to renovate it and then rent it for $1200 a month? You’re losing money, so no one’s going to finance that.

There’s a lot of that type of property out there and that’s the type of property that we’ve been looking a lot at lately. There a lot of distressed owners – I won’t call them sellers yet – and they’re trying to figure out how to get out.

Given the tumultuous state people like that have found themselves in, what advice would you give to fellow DC area developers?

UIP Steve Schwat, Urban Investment Partners, Washington DC real estate, Macklin, Columbia Heights, retail for leaseI’d go back to the basics and say that the money is in the buy. You can’t underpay for a property, you can only overpay. And once you’ve overpaid for that property, only time will help you erase that. So you have to buy property…and look at it on an income producing basis. The question is, “Can I buy it, fix it up and rent, while staying cash positive?” If you can’t, nobody’s going to finance it. And if no one’s going to finance it, why would you invest a million dollars of your own money to generate fifty grand a year in income? There are plenty of alternative places to put that money.

Where do have to be these days? DC is faring a lot a better than other areas these days, but investors don’t want to invest in DC real estate unless...you can assure them going in. I don’t see much stuff being sold for less than seven (cap rate). Maybe some AAA, pension quality development, like Mass Court, will go…but there’s not a lot of that kind of product out there. But if you’re talking about the kind of stuff that we buy – 20, 30, 40-unit buildings and small retail stuff – you’d better be at an eight cap.

[Look at] the 14th Street corridor or U Street or Adams Morgan. Christ, look at 18th Street and the vacancy right here in Cleveland Park. You’d better have a pretty good deal – a good buy, a good tenant and reasonable cap rate – if you’re getting into a small retail or small apartment building. And the interesting thing is that’s what we like to do. We like to find that opportunity.

With that in mind, what’s next for UIP in over the course of the coming year?

I see us moving forward with a very aggressive and very prolific acquisition strategy. Last year, we acquired some $60 odd million worth of real estate and bought five buildings with our equity partners. This year, we’ll be closing on two properties over the next couple weeks. We sold one or two earlier this year, which was opportunistic and advantageous…I seeUIP Steve Schwat, Urban Investment Partners, Washington DC commercial real estate, Macklin us making between half a dozen and dozen acquisitions over the next six to eight months.

I’ve got a stack of potential properties. We’ve got a couple deals that are small retail, a couple deals that are small residential, we have a couple big, multi-hundred unit deals and a couple that are potential bank deals. And they’re all in DC. We own property in PG County – Hyattsville, Riverdale – and we are good at managing those garden-style walk-ups as well. We own a bunch of that and we’re looking a lot of it too, but I’d say that’s probably 20% of what we do. The 80% of what we look at is DC, from Southeast to Northwest, and distressed owner deals, bank deals, failed condo associations, failed tenant associations and failed development plans. We’re looking at a lot of that.

We’re looking at some properties that are owned by non-District headquartered companies. There are a lot of larger commercial real estate companies that got into the District and are now trying to get out. They hate the District, they hate rent control, they hate TOPA. We don’t love rent control either, but we’re damn good at it and we’ve been doing it for ten years.

Wednesday, May 27, 2009

New Condo Report: The Argent

4 comments
Argent Condos, 1280 East West Highway, Silver Spring, MD
The sales center at The Argent, Perseus Realty LLC's $37 million Silver Spring condo building, has opened its doors and DCmud was among the first to peruse some of its 96 for-sale units. The Argent is something of a curiosity in DC metro area because, as other similarly minded residential developments in the area have converted to rentals, The Argent is forging ahead in a condo market gone south. Home Properties' 1200 East West Highway building, directly across the street, is under construction and hoping to finish up early next year - advertising only rental units - while the Portico, once envisioned as a condo, is now leasing. Other projects in the area have simply failed to materialize.

Nonetheless, the developer is hoping to combat any possible sticker shock by dropping prices on units once scheduled to start in the low $400s. As of today, a 636 square foot studio is going for $247,900, while prices top out at $553,900 for 1435 square two-bedroom with den. The building’s sole three-bedroom unit, located on the second floor, is priced at $570,900, measuring in at 1426 square feet. Those prices increase by roughly $3,000 the higher you climb in the building’s nine-stories - but don’t hold your breath for amenities while you’re up there.

"There’s a rooftop terrace. It’s walking distance to the grocery store and all the different shops…Unfortunately, there’s no pool [and] no exercise room,” said one of the sales

representatives working the project. The JSA Inc.-designed development is rounded out by a plaza/sculpture garden, fronting on East West Highway, that was designed by local artist Mary Ann E. Mears. The building opened on May 22nd.


Post your comment on this project below

 

DCmud - The Urban Real Estate Digest of Washington DC Copyright © 2008 Black Brown Pop Template by Ipiet's Blogger Template