Redevelopment Coming to Dilapidated Northeast Housing

The Office of the Deputy Mayor for Planning and Economic Development (ODMPED) is now seeking a development team to revitalize two District-owned properties in the vicinity of Northeast’s Deanwood neighborhood, at DC's easternmost point. The District intends to use the two parcels on the block - at 400-14 Eastern Avenue, NE and on the 6100 block of Dix Street, NE, respectively - to bring modern, affordable housing to Ward 7, while other nearby non-residential projects like the Strand Theater, Deanwood Recreation Center and Marvin Gaye Park get 21st century make-overs to call their own.

The 50,644 square foot Eastern Avenue site currently houses 8 four-unit flats - all of which are vacant and uninhabitable, due to years of disrepair and vandalism. According to their Solicitation for Offers, ODMPED plans to demolish those structures, in order to make way for “walk-up apartment buildings.” Their intentions are much the same for their 20,186 square foot stretch of Dix Street, though that property is currently a vacant lot. ODMPED surmises that that parcel could best be re-appropriated as a satellite development of the Eastern Avenue project, or host a stand-alone “townhouse or low-density apartment structure.”

Either way, both projects will be developed under the purview of the District’s Nehemiah Housing Program, which builds homes for households earning between $25,000 and $75,000. One such project developed under that program was DuPont Commons at Ridge Road and C Street, SE – which was built in concert with Enterprise Homes and won a string of awards upon its completion in 2004.

Additionally, both sites are currently governed by two long-range planning initiatives – the Lincoln Heights and Richardson Dwellings New Communities Initiative Revitalization Plan and the Deanwood Strategic Development Plan – that are targeted at undoing the “blight and underinvestment” the community has suffered from over the past 40 or so years.

As such, ODMPED has stipulated their preference for proposals that “build upon the goals” of those plans. That includes developers with the ability to snatch up adjoining parcels to build-out the size of the intended development or who are capable of providing a strategy that allows for a healthy mix of one, two and three bedroom and, especially, family-sized units. Another winning factor is the inclusion of Ward 7 retailers in the proposals, specifically ones that qualify as “Local, Small, and Disadvantaged Business Enterprises” (LSDBE). And, of course, any proposals delivered to ODMPED must emphasize affordable and accessible housing as a chief component.

Proposals are due to ODMPED by 4 pm on February 16, 2009. Presentations to the selection panel and a final announcement will occur the following month.

Re-Inventing Public Housing at Park Morton

Mayor Adrian Fenty today announced the District's Request for Proposals (RFP) concerning the $170 million initiative to redevelop Petworth's Park Morton public housing complex. Although currently seeking a development partner for the deal, the city has already forged ahead and outlined their intentions for the site: 317 market-rate housing units, 206 affordable housing units, a 10,000 square foot park and a new community center with green designs throughout. The mayor prefaced his comments to the press by assuring the current residents in attendance that they will be relocated to new units in the project and that "no one will be displaced."

Mayor Fenty credited the New Communities Initiative established during Anthony Williams' tenure as mayor (which also includes Barry Farm and Lincoln Heights, in addition to Park Morton) as the genesis of the new development and explained how the city planned on manifesting change in an area best described as derelict and dangerous. “It is about bricks and mortar because a lot of these projects are old. They need a lot of work and, to be honest with you, just re-doing them isn’t going to cut it,” he said. “But its also about more than bricks and mortar. We’re also going to have health care facilities, schools, recreation centers, and job training centers here at Park Morton.” The mayor concluded his remarks by stating, “It’s important to note that while this in-and-of-itself is an important opportunity and investment for the Georgia Avenue corridor, this is just one of the many different things that are happening.” He went on to specifically cite Donatelli Development Inc.’s $70 million, 156-unit Park Place project and neighboring $5 million retail investment, along with Jair Lynch’s 130-unit apartment complex at 3910 Georgia and the District’s own new, mixed-income development on the 3400 block (more to follow from DCMud in the coming weeks) as other in-the-works projects aimed at making area attractive to prospective residents and retailers. 

Ward 1 Councilmember Jim Graham, who had introduced the initial city council resolution for the Park Morton project and led community meetings on the subject, followed Mayor Fenty’s turn at the podium. He began by reiterating the mayor’s promise that no residents would be displaced by the project and promised that the upcoming changes would result in “a much more successful and livable community than we have today.” He also said that the District would not repeat mistakes with regard to public housing that have plagued the city for decades. “Gathering all the poor people in one neighborhood, in one building, ought not to be the preferred approach,” he said. “When we have the opportunity to create mixed-income, diverse background [housing], that is an opportunity we should not lose.” He went to specify that the new Park Morton will become a beacon of diversity in Ward 1, “without losing a single person who is here today.” Michael Kelly, Executive Director of the DC Housing Authority (DCHA), went on to trumpet the long-term viability of a new community comprised of “low income, moderate income and market-rate people.” And sounding a bit like George Washington at the Continental Congress, Kelly referred to it as "This grand experiment," asserting that the project "is [due to the leadership] of Washington, DC, and has not been replicated anywhere else in the country.” 

Kelly cited the Housing Authority’s upkeep of current Park Morton facilities, including the addition of new boilers, stairwells and security cameras as initial steps towards a better quality of living. He then went on to ask the assembled residents if such efforts had made them feel safer – and received a rousing reply of “yes.” Following the remarks, all in attendance were led on a tour of the newly remodeled Park Morton Children’s Center. As the first example of Park Morton revitalization, Mayor Fenty inspected the new computer lab, classrooms and music rehearsal spaces that are to serve as a hub of community operations during and after construction. BIDs for the Park Morton project are due by December 12th with final selection to occur in March. 

Washington DC commercial real estate news

DC Selects Georgia Avenue Developer

Washington DC Mayor Fenty arrived by Smart Car today to announce that the District of Columbia has selected Donatelli Development and Mosaic Urban Partners as the development team for three parcels of land on Georgia Avenue. The lots are located one block north of the Petworth Metro station, at 3813, 3815 and 3825 Georgia Avenue. Development plans have not yet been finalized, but Mayor Fenty said today he expects the final product to include retail, restaurants, and market rate and affordable housing. Echoing his oft-repeated calls to fire up development on the neglected corridor, the Mayor insisted today that DC has "gotta have economic development on Georgia Avenue" for the benefit of the whole city, and that the project would complete by the fall of 2010. The city has not yet reached purchase terms with the development team. Donatelli Development has an extensive track record with the city, and, with DC-based Gragg & Associates, is nearing completion on Park Place, a 161-unit residential and retail building almost across the street. Donatelli also owns an adjacent vacant lot, on which it plans a 49-unit condominium building, though timing remains uncertain said Chris Donatelli. This will be a first for development partner Mosaic, a firm based in DC. Mosaic partner Calvin Gladney, a former NCRC staff member, said that partnering with Donatelli allows them to "integrate retail strategy," and "achieve a better end result for the community." Gladney was a bit more circumspect than the Mayor regarding timing, quickly noting that "there are so many variables", including financing, though partnering with Donatelli will certainly streamline the underwriting process. The project will convert two small neglected buildings and a vacant lot, all District owned, into a mixed use project on two separate sites. Architect Bill Bonstra, partner of Bonstra Haresign, the ubiquitous firm chosen to design the project, said that the project would feature a green roof and locally based retail, and that there was "a real push to do a community-minded project." 

The new building on the now vacant lot will rise three stories at street front, stepping back for a fourth and fifth floor. The selection of developers was unusually swift, with the District having solicited bids at the end of April, with a due date of July. Two teams submitted bids for the project. The mayor's office hopes the project is well timed, coming as the Petworth neighborhood struggles to fulfill the expectations of a revitalized mixed-use corridor. On May 23rd the Mayor stood nearby to announce that Georgia Avenue development was finally taking hold, highlighting Donatelli's Park Place, and Jair Lynch Development Partners' 130-unit apartment building at 3910 Georgia Avenue. But Park Place will not complete until next year, and Jair Lynch has encountered financing, title, and zoning hurdles with its project, and has been reluctant to even give a start date. And while the Neighborhood Development Company is also well underway on its own apartment building just to the north, many of the expected success of Georgia Avenue have yet to be initiated, and a bevy of apartment-turned condominium low-rises that expected to benefit from the retail surge that never happened remain unsold. But the prospect of five new developments all rising within a few blocks is undoubtedly a new direction for Petworth, and an event that may make an honest man out of the Mayor.

Washington DC commercial property news

WMATA's Florida Avenue Project: And Then There Were None?

WMATA, which holds title to three key parcels of land on Florida Avenue in Shaw, wants someone to develop its vacant land. But not that badly. WMATA issued an RFP for the properties in April of last year, and nine developers got in line quickly to explain why they should be chosen, but Metro apparently wasn't in a rush to chose a suitor.

According to Angela Gates, Media Relations person for WMATA, board officials will meet today in a closed session to continue the selection process. "There won't be a public announcement for another six months," Gates said.

The process began in April of 2007, when WMATA announced it had received an uninvited offer for the three parcels, located between 7th and 9th Streets on the south side of Florida Avenue. Because WMATA's rules require that it consider competing bids, the Metro authority issued an RFP the same month and required responses by May 30, 2007.

Proposals were due in May of last year at which time nine developers submitted plans, so why, a year later are applicants and neighbors still without an idea of what kind of development WMATA seeks for the land?

Gates said Metro delayed the decision to find a developer for the joint development project because the "Board of Directors wanted further information" on the selection process. WMATA said their questions about the method of selection are confidential, but that the process included, "review of the quality and value of the proposals, the qualifications and experience of the proposers, the ability to implement the project as proposed and the consistency of the proposals with WMATA's needs as well as local development policies and needs." Sounds pretty straightforward.

Gates said there were two stages of the review process and that all applicants still in the running are local development firms, but could not release the names of any companies. In the first round, nine developers expressed interest, this pool was then narrowed down to six, who were invited to submit further proposals. In the second round, four bidders returned, two of which have since merged.

The parcels up for grabs, now an active flea market, is just one block from Howard University Hospital and the Washington Convention Center. Parcel one is 3,800 s.f. with frontage on 9th Street and Florida Avenue. Parcel two, a mere public alley away contains 8,600 s.f. and fronts 8th Street and Florida Avenue, and parcel three, on the other side of 8th street is the largest space at 16,472 s.f. that front Florida Avenue and 8th Street. The parcels are zoned a medium density community center zone that allows a maximum height of 65 feet, with up to 80 percent residential occupancy. The lots do, however, pose a challenge for potential developers. Each lot is encumbered by the Metro tunnel that passes below, limiting excavation to nineteen feet - so much for below-grade parking. According to the RFP, there will be incentives for below-market rate housing, arts, and other such community-serving features. The initial announcement says WMATA is open to both lease and purchase agreements, but prefers the former for obvious reasons.

While there seems to be no rush in achieving this, WMATA said, "The primary consideration in this case is remaining consistent with the local development plan, which supports transit-oriented development and promotes a mixed use of residential, office and retail space. Metro hopes that development around the Shaw-Howard U Metrorail station will help revitalize the area, promote transit-oriented development, increase activity and liveliness, continue U Street's rebirth and promote center city living."

Howard Issues RFP for Bond Bread Building

Howard University has issued a Request For Proposals (RFP) for real estate developers to submit bids for a "first-class, mixed-use development" at 2112-2146 Georgia Avenue. Part of the 2.2 acre site at the corner of V St. and Georgia Avenue, the Howard Town Center, was offered to Howard by the District of Columbia just two weeks ago in an exchange designed to facilitate Howard's residential development, and the University obviously plans to waste little time in moving forward with development of the neighborhood.

The project is the site of the Bond Bread Building, a property long contested by its one-time tenant, which lost a legal battle for control of the land. According to the RFP, the development "must include rental apartments, retail (including grocery store) and parking," and is strongly suggested to be LEED certified. Though the site has a maximum floor area ratio (or FAR, which limits the amount of floor space in relation to the size of the lot it is built upon) of 6.0 and a height of 90 feet, but also falls within the districts "Duke plan" (for developing Shaw and U Street), which encourages greater height and FAR allowances. The project is expected to have 300 rental units that will comply with D.C.'s formula for market rate and affordable housing. A mandatory pre-bid conference will be held at Howard on May 15th to discuss the project, the terms of which require that the real estate developer enter into a long-term ground lease with the University and undertake all development obligations. Bids are due by June 10.

Lincoln Theatre's Development Debut

This morning, Mayor Adrian Fenty held a press conference to raise the curtain on the city's plan to save and develop U Street's historic Lincoln Theatre. The project will entail development of the parking lot behind the historic D.C. theater, with some of the resulting profits being earmarked to save the beleaguered venue. The 88 year old District-owned theater had received much press as of late, issuing warnings of closure unless it receives funding sufficient to cover its operating expense shortfall.

The Deputy Mayor's Office for Planning and Economic Development has now issued a Request for Proposals (RFP) for developers interested in the space, located in back of 1215 U Street NW. We're guessing that few people will miss the 40 surface parking spaces; the Mayor opined that, when developed, the lot could hold a 90,000-s.f. building, possibly occupied by a hotel, offices, or residences.

Among the requirements for any potential developer: the stipulation that at least 30 percent of any housing units be set aside as affordable housing, as would be obligatory in any DC-owned property. Also, projects must include "at least 7,500 square feet of flexible event space, including a restaurant-quality kitchen, which would be managed by the theater management."

Ward 1 Councilmember Jim Graham, also in attendance, expressed his obvious excitement that the project has begun “moving and shaking.” He and Mayor Fenty both emphasized the importance of the lot’s development to the continued economic growth of the U Street area —and its benefit to Lincoln Theatre. As Mayor Fenty put it, “This is and was black Broadway” - and he wants to keep it that way - and by combining affordable housing, some needed development on U Street, and saving the theatre all in one act, we're guessing he'll get a standing ovation.

Washington DC commercial property news

DC Kicks Off Minnesota Metro Development

Mayor Adrian Fenty announced yesterday that that the District has issued a solicitation of bidders for a five-acre lot adjacent to the Minnesota Avenue Metrorail station. The chosen team will have the opportunity to build up to 600,000-s.f., though the city has not specified the type of development, leaving open options for a mixed-use development of office, retail, and housing.


According to Sean Madigan of DC's Office of Planning, "We don't have a firm idea of what we're looking for, in terms of whether the development should be pure office building with street-level retail, or just have a retail focus, or housing focus. We really are looking to the development community to see what is really possible there." The site is adjacent to the future location of the Department of Employment Services' newly announced headquarters, a 230,000-s.f. building at the northwest corner of Minnesota Avenue and Benning Road NE, which will include ground-floor retail and and underground garage.

Potential bidders for the site are required to include a 20 percent equity partnership with
Local, Small and Disadvantage Business Enterprises. The chosen development partner must also show an effort to include Ward Seven contractors and businesses in their plans. The area is already under revitalization - it sits amidst about four million s.f. of new projects at Parkside and Ward Seven, and the city is pumping about $40 million into the neighborhood through the Great Streets Initiative. A new Benning Road Library may also be popping up soon in the neighborhood.

"It couldn't be better located," Madigan said. "The city sees this as a great site because it is located right there at the Metro, and is a really prominent corner at Minnesota and Benning. It really is the gateway into that part of Ward 7." Proposals are due by May 6th; the city hopes to narrow down their choices by the end of the summer.

Stranded in Northeast

The District has been seeking developers to revitalize Deanwood's Strand Theatre, and has now extended the response deadline to January 21. Seeking developers with a proven mixed-use track record, "creative vision" and "the organizational and financial capacity," DC planners hope redevelopment of the property at 5131 Nannie Helen Burroughs Avenue, NE, will revitalize not only the building but the flagging neighborhood as well. The search for bidders began on December 12, 2007, when the District and the Office of the Deputy Mayor for Planning and Economic Development (ODMPED) held a pre-bidders' conference for more than 40 attendees. The response deadline to the Request For Proposals was extended on Monday.

Deanwood's state of affairs is briefly outlined in the RFP: "Over the past 40 years however, much of Deanwood has suffered from disinvestment, which has caused the residences and commercial corridor along Nannie Helen Burroughs to struggle." Thus ODMPED views the project as highly significant, having the potential to garner development interest in the Northeast commercial corridor, hence the level of expertise required for bidders to be considered. This project, along with three other short-term and long-term developments serve as ODMPED's attempt to resuscitate Deanwood back and cataylze new growth: The Great Streets Initiative Plan for Nannie Helen Burroughs, the Lincoln Heights New Communities Plan and the Deanwood Strategic Development Plan.

Currently, the theatre provides 8,200 s.f. of area on a 6,000 s.f. lot. And while historic designation is pending, the DC Preservation League labeled the building as one of the "Most Endangered Places" last year. District agencies have decided that regardless of the site's current historic status, redevelopment will take place as if it is a historic structure, and are considering all methods of disposition including leasing the space, although a minimum lease of 75 years is required. The RFP explicitly encourages potential developers to maximize development on the site, stating that "The District will look very favorably at [bidders] who demonstrate the ability to bring additional development resources and/or additional parcels of land to the table."

Specific goals to be achieved with the site's redevelopment were fleshed out in a number of District-sponsored public meetings over the course of 2007. Community members indicated a number of appropriate uses, including: a cultural hub for art exhibits, retail and restaurants, commercial space for local businesses and a half dozen others. Not only will bidders have to collaborate with community stakeholders to implement their collective vision, but the District is also suggesting that each offer incorporate the voluminous goals of the Lincoln Heights, Great Streets and Deanwood Strategic Plans into their proposals. God speed to the lucky winner.

Tenley Solicitation Extended to January

The deadline for responding to the Tenley Library / Janney School RFP has been extended by the DC government to January 4th. Developers were asked October 31st to submit proposals for a "world class mixed-used development" (but don't even think of building more than 5 stories) on the site of the now-demolished Tenley Library at the corner of Wisconsin Avenue and Albemarle Street, which will include rebuilding a state of the art library as well as renovating the existing 43,000-s.f. school and constructing an addition for its cramped students.

Development of the land, currently owned by the District, has been addled by the incongruent needs of interested parties, pitting at odds the DCPS (public schools), DCPL (public libraries), the Office of Planning, retail-starved neighbors, and local anti-development activists that have a near perfect record in the community. As DCmud reported in October, the process began in 2005 when Roadside Development, developer of the just-completed Cityline Condominiums across the street, assembled its own development plan after discussion with neighbors, offering school renovation and a free library (the dated library having been shuttered in 2005) in exchange for the right to build residences above the new public library. The plan was obviated when DCPL came up with its own plan, but when that failed to launch, Roadside came back to the table to offer an amended plan. But by then Tenleyites had recently downsized another condominium on Wisconsin Ave. and successfully removed an adjacent (and admittedly monstrous) tower from the top of Tenley hill, and successfully petitioned the DC government to open the process to competitive bidding.

The District issued general specifications for the project, including doubling the size of the historic school, construction of a 20,000-s.f. library, and providing 30% of the new housing units for low-income residents, in keeping with the Comprehensive Plan's stricture for development of DC-owned property. The RFP also suggests that bidders incorporate retail into the project. Because plans for the library are already underway, DCPL has requested that residential units be built next to its new facilities, rather than over it, to avoid delaying its opening.

Offerers are being asked to provide their vision for the site as well as work with school and library officials to incorporate their uses, as well as provide a "meaningful community outreach." In accordance with the District's Comprehensive Plan, the site could also potentially be used for housing and retail, specifically street-level retail, that would enliven the Wisconsin Avenue commercial corridor. The site is less than a block from the Tenleytown-AU Metrorail Station.