White Flint Mall Plan Goes Before County

The Montgomery County Planning Board will vote today on a preliminary plan put forward by the owners of the White Flint Mall to transform the 1970's-era shopping mall into a high-density development with over 5 million s.f. of residential and commercial development.

As indoor malls fade across America, mall owners Lerner Enterprises and the Tower Companies plan to replace the mall, and an adjacent office building, which sits on 45 acres on the east side of Rockville Pike, half a mile from the White Flint Metro Station. An attorney representing the developers said the owners have declined to comment before the hearing.

The genesis for redevelopment plans came after the County's approval of the White Flint Sector Plan in 2010.  That plan allowed additional development on properties in the 430 acres covered by the plan, many along Rockville Pike and near the metro, from single-use commercial to vertical mixed-use.

White Flint Mall property, Image: Montgomery Planning Dept.

Construction won't come quickly; today's sketch plan approval vote will be solely conceptual and preliminary; owners will still have to submit a Preliminary Plan followed by a Site Plan process, all of which could take years to finalize.

The mall redevelopment is part of the White Flint Mall District within the larger Sector Plan.   Plans call for replacing acres of surface parking and the 874,000 s.f. mall with a 5.2 million s.f. development that will include commercial, residential, and hotel space.  To date, the Pike and Rose has been the only project to commence since passage of the Sector Plan.

White Flint Mall Redevelopment Plan. Image: County

Unlike the existing mall, the new plan calls for primarily underground parking and includes 1 million s.f. of office space, 280,350 s.f. of hotel space, 2,426 residential units (2.8 million s.f.), and 1 million s.f. of retail.  Plans also set aside a site for a possible future elementary school, lay out a grid of public and private streets, and sketch out a new a public park area north of the existing White Flint Neighborhood Park.

Planned building heights range from 40 feet to 250 feet, with the tallest fronting Rockville Pike and the shortest buildings facing the public park.  The plan, which would be built in three phases, details other public-use spaces - a central plaza, a gateway plaza, north and south gateway plazas, and a neighborhood plaza - which county planners say must be built to completion.

County planners are also requiring developers to include wayfinding signs, vegetated areas and walls, small business opportunities, moderately-priced dwelling units (MPDU's), and bicycle parking, among other obvious things like transportation and storm water management plans.

White Flint Mall Redevelopment Phases. Image: Montgomery County Planning Dept.

Washington DC real estate and retail news

West End Hotel Construction Begins

OTO Development has begun work on the Hilton Garden Inn at 22nd and M Streets, in DC's West End neighborhood.  The project had been on hold for years as a previous team sought to put a fashionable "1 Hotel" on the site, but failed to get the project off the ground.  Turner Construction, the general contractor on the project, began site work last week.

OTO, based in Spartanburg, SC, is one of the three developers partnering to build the West End Hilton, along with newly-formed partnership including Starwood Capital Group and Perseus Realty, LLC, a partnership that brought the financing needed to start construction.  Shalom Baranes of Georgetown is architectural firm designing the terracotta and brick, 10-story, 237-room hotel, which will feature a second-floor, landscaped courtyard, meeting rooms, a rooftop garden and pool and a green roof.

West End Hilton Garden Inn, Washington, DC

The 15,600 s.f. lot at the corner of 22nd and M has been dormant since 2008 when the site's original developer demolished the Nigerian Embassy to make way for a boutique hotel.  Starwood then planned a luxury hotel but failed to secure financing for the concept.



In 2011, developers sought permission to modify the site plans and instead of a boutique eco-luxury creation, they announced plans for a Hilton Garden Inn (a brand categorized as upscale mid-priced) with 237 rooms, along with Shalom Baranes and OTO Development as a third development partner.  Although neighbors complained about the "fanny pack crowd that would frequent the hotel, the choice proved easier to finance.

The hotel will also feature a ground-floor restaurant and bar with indoor-outdoor seating opening onto the street on the corner of 22nd and M, and is the beginning of Hilton's play into more urban areas.

Washington D.C. real estate development news

West End Hotel Ready to Start Construction

The future Hilton Garden Inn in DC's West End

In a deal that marks a step forward for a hotel project at 22nd and M - on hold for four years - developers are set to close Wednesday on construction financing for the project, OTO Development CEO Corry Oakes told DCMud.

If the deal closes today and construction moves forward in a few weeks as developers expect, deep-rooted weeds on the prominent corner in DC's West End neighborhood may soon be gone, salving neighbors' ire.

"We're very excited about moving this long-awaited project forward and becoming part of the community," Oakes said.  He said contractors would break ground on the Hilton Garden Inn, planned for 2201 M Street, within weeks.

Turner Construction will be the general contractor on the project, Oakes said.  OTO, based in Spartanburg, SC, is one of the three developers partnering to build the West End Hilton Garden Inn, a partnership which also includes Starwood Capital Group and Perseus Realty, LLC.  Also Wednesday, the three partners were due to close on a deal consummating their joint venture agreement.

Shalom Baranes of Georgetown is architectural firm designing the terracotta and brick, 10-story, 237-room hotel, which will feature a second-floor, landscaped courtyard, meeting rooms, a rooftop garden and pool and a green roof, according to a project architect.

The corner of 2nd and M has been an empty lot for years

The 15,600 square-foot lot at the corner of 22nd and M hasn't seen action since 2008 when the site's original development team demolished the Nigerian Embassy to make way for a boutique hotel. Developers later abandoned plans for a Starwood "eco-luxury hotel", billed as a "1 Hotel", when they couldn't secure financing for the structure.  They settled on the Hilton Garden Inn brand instead, but by the time developers applied to revise their permits, many neighbors and West End leaders had already gotten excited about the "1 Hotel" concept.    

"During the zoning hearings, I was not shy about my disappointment that the concept switched from the 1 Hotel to the Hilton Garden Inn, as I felt the West End really didn't need more hotels and at least the 1 Hotel was interesting, both as a destination concept and architecturally," West End ANC2A commissioner Rebecca Coder wrote in an email to DCMud Monday. "However, at this juncture the neighborhood simply wants the corner activated."

Developers abandoned plans for this "eco-luxury" hotel

In the project's beginning, developers included Starwood and Perseus with Oppenheim as the architect.  Original plans for the site called for a 150-room, 23-suite hotel, under the Starwood Capital "global eco-luxury" hotel brand "1 Hotel", featuring an organic day spa among other features built to LEED standards.

Years passed.  The lot sat empty, but D.C. wasn't the only place so-called "eco-luxury" hotels, envisioned to cater to a niche market of über-wealthy lovers of greenness and light, weren't sprouting.  According to HotelChatter.com, Starwood's plans for a 1 Hotel in Seattle were withering too, along with the economy. Starwood started excavations for a 1 Hotel in Seattle, but later re-filled the hole and the lot reverted to a parking lot when it couldn't secure financing for the project, according to the Seattle Times.

Then, sometime between the nadir of the financial crisis and the birth of Occupy Wall Street, developers decided to change course on plans for 22nd and M after Perseus contacted more than 40 lenders, all of whom declined to finance the West End 1 Hotel project.

In 2011, developers sought permission to modify the site plans and instead of a boutique eco-luxury creation, they announced plans for a Hilton Garden Inn (a brand categorized as upscale mid-priced) with 237 rooms.  The new incarnation now included Shalom Baranes as the architect, and OTO Development, a hotel development company based in Spartanburg, South Carolina, as a third development partner.  Changes included a redesign of the exterior façades, an increase in the number of rooms and a three-foot reduction in height to 107 feet, and 53 parking spaces in a valet-operated garage.  There were neighbors who balked.

Plans for the Hilton Garden Inn at 22nd and M, West End, DC

"Some neighbors have already said they fear the new hotel will attract "the fanny-pack crowd" to the West End neighborhood," the neighborhood group West End Friends wrote on their web site last year after an ANC2A meeting when developers presented their new plans.

But if hotel site plan changes sparked West End fears of fanny packs, site developers and project architects maintain there is no need to fret about that.  "This is very much upscale for the Hilton Garden Inn brand," lead project architect Patrick Burkhart said.

Burkhart said the hotel would feature a second-floor, landscaped terrace with outdoor seating areas, and a lobby with a fireplace, monumental staircase, and a water feature with plants cascading from the second-level terrace.  The hotel will also feature a ground-floor restaurant and bar with indoor-outdoor seating opening onto the street on the corner of 22nd and M. Burkhart said the hotel marks a move by the Hilton Garden Inn brand into more urban areas, including D.C. where he said it would be the District's third.

West End Hilton Garden Inn, Washington, DC

With a new hotel, the corner will see more activity in years to come.  Demand is up for hotel rooms in the District.  According to Jan Freitag,  Senior Vice President with STR Global, a hotel industry benchmarking and consulting company based in Hendersonville, TN, data shows 10.5 million rooms were sold in the first five months of this year in the Washington, D.C. market, 1.5 percent more than last year.  "More people are coming to DC."

At least some of those people may soon be destined for 22nd and M.  Lucky for the West End, even fanny packs can be luxurious too.

AdMo Hotel Gets New Look, Pushes Forward

Plans for the hotel addition to the Adams Morgan Historic Hotel have a new look, a new design team - and no shortage of comments on both - at yet another Historic Preservation Review Board meeting.

The Board again will hear community testimony at its May meeting before making a decision about the plans to develop at the First Church of Christ Scientist building on Euclid Street. Dozens of residents attended the March and April meetings for their chance to speak, but two meetings was simply not enough time to hear them all. Another 45 minutes will be designated for the project in May when the Board might finally get its chance to ask some questions and cast a vote.

Barbara Mullenex, principal at OPX Global, presented its latest plans in March showing a more subdued, red brick masonry building with light steel windows behind the century-old church that itself is under consideration for historic landmark status. The new building is 90 feet tall on Euclid Street but steps back as the land slopes down 13 feet toward Champlain Street. A 3-floor, mostly glass, 28-foot hyphen joins the two buildings.

Click here for more renderings

Friedman Capital Advisors and national hotel developer Beztak Companies first introduced plans for a 180,000 s.f. "boutique hotel" four years ago. Marriott signed on to manage the hotel as part of the Edition line of boutique hotels created in conjunction with Ian Schrager's hyper-sophisticated brand. But Kevin Montano, head of development for Edition, said the developers terminated the Ian Schrager agreement several months ago.

The Adams Morgan Historic Hotel website still lists Marriott as the hotel management. Brian Friedman did not return calls or emails requesting information about the project.

New construction behind the (not yet designated) historic church will provide space for guest rooms, parking and other more private facilities. The church will be refurbished and repurposed for a restaurant, ballrooms and community room open to the public.

The Board provided concept review for the project in July and November of 2008 when Handel Architects presented a mostly glass building with colored panels. According to the latest Historic Preservation Office staff report:

"In its two concept reviews in June and November 2008, the Review Board offered a range of comments to improve the compatibility of the project. Those comments focused on: 1) increasing the distance and visual separation between the church and the addition; 2) ensuring the connection was light-weight in feeling and lower in height than the church’s cornice line; 3) redesigning the porte-cochere and vehicular access to the addition to ensure it did not extend over to the side yard of the church; 4) shifting the mass of the addition away from the church to the greatest extent possible (moving it further down Champlain Street and/or concentrated at the rear/west side were specifically suggested); and 5) articulating the building’s all-glass elevations so that they didn’t appear flat, monolithic and looming behind the church building. It has been based on this guidance that the HPO has worked with the applicants over the past 18 months to ensure that these points of concern have been addressed."

The building is more clearly separated from the church, the glass connector is much shorter and transparent, vehicle traffic moved to a redesigned porte-cochere that fits better with Champlain Street, massing shifted away from the church, and masonry replaced most of the glass.

The Historic Preservation Office staff report "recommends that the Board find the revised concept to be compatible with the proposed landmark and consistent with the purpose of the preservation act..." If the Board follows that recommendation, it is fairly certain members will offer tips for improvement as plans develop. The real problems could occur with zoning.

Residents who dislike the plan seem to focus on two big factors – height and community impact.

This fall, the Office of Planning sent a report to the Zoning Commission including concerns about the building’s height. The Zoning Commission agreed in November to set down the proposal for a hearing but also expressed its own height concerns.

Designs changed since November based on recommendations from the Zoning Commission such as colors and massing. But the overall height dropped only two feet to fit within current zoning limits, leaving even more uncertainty about whether a high-end hotel can be a good-enough addition to AdMo - the District's preeminent late night bar scene. 

Washington, D.C., real estate development news

Planning Board OKs JBG's New Woodmont East Plans

JBG Companies on Thursday received unanimous support from the Montgomery County Planning Board for its amended Woodmont East plans that more than double the lot size and revive a previously eliminated hotel.

JBG already planned to build in the same block at 7200 Woodmont Avenue, located between Elm Street and Bethesda Avenue. Shalom Baranes Associates designed the project with landscape design by Oehme van Sweden Landscape Architects.

Plans for the new section involve constructing two additional floors of office space on the existing Artery Building, adding retail space along the ground level, and building a new 182,950 s.f. hotel.

The hotel (center) and office/retail space along Bethesda Avenue

Amended plans also add 168,950 s.f. of office space, 25,088 s.f. of retail space and eliminate 22,974 s.f. of space for the 210 residential units.

Incorporation of the Capital Crescent Trail (mostly the alternate route along Bethesda Avenue) continued to raise concerns for the Board. Some feared that the increased foot traffic along Bethesda Avenue could create safety and logistical problems for trail users. But they ultimately were satisfied with the plan to use landscaping, curbs, outdoor dining areas and pavement changes to separate the sidewalk from the trail.

Trail construction hinges on the future Purple Line, Lot 31, and third-phase construction. All parties agreed that if the trail benchmarks are reached after construction of the second phase and before the third phase starts, the company can choose to either build the trail or pay the county to do it.

The Board did not raise any significant concerns with the rest of the plan. If fully constructed, Woodmont East would provide a link extending the revamped downtown area.

JBG's Holly Hull said the development is "extending and celebrating Bethesda Row."

Woodmont East will focus on the pedestrian experiences, presenters said. Following the lead of Bethesda Row, the sidewalks will be next to retail spaces. Outdoor dining will be pushed way from the buildings to keep the sidewalks clear. Artistic benches scattered throughout the property offer a place to "lounge." And building setbacks will give the appearance of low building heights.

Robert Sponseller, principal at Shalom Baranes Associates, said they strayed from the standard approach in designing this project. "We have designed from the public space up."

When completed, Woodmont East will have more than 1 million square feet of new and repurposed office, retail, residential and hotel space. Construction could start as early as 2013.

Bethesda, Maryland, real estate development news

Hoffman-Madison Details Second-Stage Plans for Southwest Waterfront

PN Hoffman and Madison Marquette, the chief developers of the long planned $1.5 billion Southwest Waterfront project, unveiled revised details of its vision for the 3.2 million s.f. development, which will include offices, apartments, a four-star InterContinental Hotel, four piers and a three-acre park -- part of the District's bid to transform its sleepy waterfront into a destination on par with San Francisco's Embarcadero and Seattle's Pike's Place.

While the first stage of what's to be known as the 23-acre Wharf District was approved by the Zoning Commission in 2011, that stage mainly dealt with traffic issues and building heights and setbacks -- today's Planned Unit Development (PUD) submission will give many in the District their first glimpse of the architectural vision and details.

"Each space is going to have its own experience," said Monty Hoffman of co-developer PN Hoffman in an interview. Hoffman's company has built more than 35 projects in the D.C. metro area, including The Lofts in Adams Morgan, the Mather Building near Verizon Center and the coming Northern Exchange on 14th Street. "There will be a different designer on each parcel so each can put their own DNA into the projects," Hoffman said. "It's not going to look like one contrived development."

Hoffman said that his group, along with partners Madison Marquette, builders of Cityline at Tenley, studied waterfront cities like San Francisco and Seattle to bring elements of the Embarcadero and its Ferry Building and Pike's Place to the Wharf District. That will include laying the groundwork (if not the tracks) for connecting to the District's planned 37-mile streetcar network, which could run on M Street SW and Maine Avenue and connect to the Nationals ballpark, said Matthew Steenhoek a development manager at PN Hoffman. The District has a M Street and Maine Avenue connection as part of its third phase of the streetcar plan. Steenhoek said short-term, the District Wharf would be connected by Circulator buses until the streetcar plan is built.

The project is more than 50 years in the making. Ever since the federal government as part of its "Urban Renewal" plan razed much of Southwest D.C. to build the I-395 freeway and apartments, residents of Southwest have been cut off, for the most part, from the revival of the rest of the city while its natural waterfront remained underutilized.

Still, don't look for Baltimore Inner Harbor-style national chain attractions at District Wharf, Hoffman said. "We're not inviting large national brands, we're not going to be dominated by national chains," he said. Instead, emphasis will be placed on integrating D.C. icons like the Maine Avenue Fish Market into a larger community, he said. "We're going to be more Washington-centric."

What it will share with Baltimore's Inner Harbor is an emphasis on water-related activities and entertainment. The Washington Channel is 16 feet deep, which would allow some deeper-draft vessels to sail up to the many planned piers, including 180-foot tall schooner ships. "Water activity will be central, so whatever we can draw to the water will be critical," Hoffman said. To that end, Hoffman plans a partnership with the Capital Yacht Club to bring more boating activities to the piers, including regattas. The Washington Kastles, the District's tennis team, will also remain at the Wharf, although moved from their current location atop the demolished Hogates restaurant, Hoffman said.

So far, Hoffman-Madison has lined up $50 million for pre- development, partly through Monty Hoffman's own pocket as well as Madison-Marquette. "We're self-funded," he said. "We're spending about $1 million a month, but we've got the capital to work with for pre-development." Hoffman didn't say who will be financing the rest of the construction but said that he's got multiple avenues from potential investors. The District's Southwest Waterfront Redevelopment Bond Financing Act of 2008 also provides $148 million worth of related infrastructure improvements along Maine Avenue. The District Department of Transportation (DDOT) last July began rehabbing parts of Maine Avenue in advance of the Wharf project. The Wharf District is expected to bring in $40 million in taxes to the District a year.

The Land Disposition Agreement, or LDA with the District will close at the end of the year,

which puts Hoffman on track for a groundbreaking in the first quarter of 2013, he said.

Here's how the project will break down:

Stage 2 is being designed by Rockwell Group and Perkins Eastman, which absorbed the former master planner of the Southwest Waterfront from Ehrenkrantz, Eckstut & Kuhn in 2010. It includes parcels 2, 3, and 4 along Maine Avenue. Parcel 2 will include 135,000 s.f. of entertainment-related venues, nearly 500 residential units in 357,000 s.f. and 39,000 s.f. of retail.

Parcel 3a will consist of 218,000 s.f. of Class A office space and 15,000 square feet of retail by Perkins Eastman. Parcel 3b will include a 245,000-s.f. InterContinental Hotel featuring a clock tower and 278 rooms. InterContinental operates the Willard Hotel. Carr Hospitality is the developer and BBG-BBGM is the architect.

Parcel 4 will be designed by Handel Architects, creators of the Ritz-Carlton D.C. and Ritz-Carlton Georgetown, and feature industrial and dockyard-related waterfront structures. It will include 168 rental units on 124,000 s.f. along with 130 condominiums on 179,000 square feet and 77,000 s.f. of retail including a fitness club.

Hoffman-Madison plans a public presentation of the plans on Feb. 27 at 6pm at Arena Stage.

Washington D.C. real estate development news

MRP and JBG To Develop the Exchange At Potomac Yard

MRP Realty and JBG Companies this week announced plans to jointly develop a new 1.9 million s.f. mixed use project at Potomac Yard, just one mile south of Reagan National Airport.

The joint-venture plans for the 17-acre development along Route 1, to be known as The Exchange, call for a town center featuring 800,000 s.f. of office and hotel space, with two hotels offering 625 rooms, along with 534 residences. The town center will include a plaza that features a seasonal ice skating rink.

SK&I is the residential architect and Gensler the master planner, according to MRP spokeswoman Julie Chase. MRP also hired SK&I and Gensler for its Washington Gateway project, set to break ground this year.

The development will also be served by the region's only Bus Rapid Transit system which could begin operating along Route 1 by 2013-2014. Further out, the long-awaited infill-station on the Metro's Blue and Yellow Line could serve both Potomac Yard shoppers, located just north of the planned development, and The Exchange residents and office workers.

Metro is in the process of drafting an Environmental Impact Statement on how to best locate and construct the infill station site and a final decision on the station is expected in late 2013.

Groundbreaking for The Exchange development's infrastructure began in December 2011 and construction on the first 323 residences will commence in the second quarter of 2012, the companies said.

Arlington, Virginia real estate development news

Celebrating NoMa

The NoMa BID annual meeting tonight will bring together residents, decision makers and business leaders to celebrate progress and unveil new plans for the coming year including a new approach to parks.

So just how are things going? "Fabulously. Things are amazing," says NoMa BID President Robin-Eve Jasper.

According to the Broker Roadshow Book released this month, the BID has $4 billion in assessed value this year with another $1 billion under construction. There were 380,000 s.f. of private sector space leased in the last year. Twenty restaurants and shops opened in the last three years. New residents signed leases for 1,200 apartments, and another 2,200 units are under construction.

First + M

"I think we reached a point where people are feeling confident about the neighborhood," Jasper said. "It’s building on itself now."

NoMa BID reports a 17 percent increase in average household income since 2010. Jasper said that increase helps coax stores and restaurants to come into the area.

More residents soon will call NoMa home as Archstone's First + M apartments prepare to welcome tenants. The leasing office opened this week, and Jasper said the first residents are expected in June.

With all of those new residents, the neighborhood will need parks. Jasper said a "public realm vision" will be unveiled at the annual meeting. Without giving away all the secrets, she did say that the vision considers how people use parks to create the most useful spaces.

Construction also continues in NoMa. Two new projects are neck-and-neck in the race for being next in the ground: JBG Companies' Hyatt Place Hotel at the planned Capital Square site and MRP Realty's residential building at the planned Washington Gateway site.

Capital Square

JBG says it plans to break ground on the 200-room hotel this summer. It will be completed next year.







A spokeswoman for MRP said permits are still in progress, but the project is on track to start work this summer.

Several projects started construction in the past year, including Trammell Crow's Sentinel Square office project and Stonebridge's third building at Constitution Square.

And there still is more to come in the already booming area that exceeded initial expectations.

Jasper said that initial estimates were about $1 billion investment and 15,000 jobs, but says that today there are 45,000 jobs just in the NoMa BID. "All the right pieces were there, the right people to push to make things happen," she said, adding that the plans were not too restrictive or directive with planning and regulation. "And it enabled the private sector to come in and do what it does best."

"The vision that I have, for what it’s worth, is that in the next few years you start to feel this gravity and cohesion in the neighborhood generally where...there’s a vibrant commercial spine in the area of 1st street, and there’s a great feeling and sense of community in all of the adjacent neighborhoods," she said. "And if you go several streets out -- to all the row houses and apartment buildings --that people feel they’re all part of it. That this whole part of town becomes an area that has its own gravity."

Washington, D.C., real estate development news

West End Hilton Garden Inn Seeks Modifications This Week

This Thursday, the joint venture between Perseus Realty, Starwood Capital, and OTO Development, "PerStar M Street LLC," will visit the Zoning Commission with its request to modify the PUD zoning application for its West End hotel site, a now-empty parcel at 2201 M Street once occupied by the Nigerian Embassy. The 15,600-s.f. area is currently visualized by developers as a Hilton Garden Inn, a vision that replaces an earlier, sustainable, "eco-luxury" 1 Hotel.

The change in brand, from a 1 Hotel to a Garden Inn, comes with several zoning changes: a redesign of the exterior façades; an increase in the number of rooms, from 170 to 238; a minor increase in density, from 122,235 g.s.f to 124,564 g.s.f. (7.84 to 7.99 FAR); a small reduction in height by 3' to approximately 107'; and 11 additional parking spaces (increased from 42 to 53) in a valet-operated garage.

The Hilton Garden Inn, although not "eco-luxury," aims to become LEED-Silver certified; the Garden Inn is being designed by Shalom Baranes, who replaced the architect of the 1 Hotel, Oppenheim.

The neighborhood ANC was disappointed in the change from the 1 Hotel to a new plan and new flag; ANC 2A Chair, Rebecca Coder, emailed the following: "While the West End didn't need another hotel, the fact that the 1 was a unique concept made it palatable." Coder added that the ANC is hopeful that the concerns articulated by residents, related to the design and desire for unique retail, will be considered by developers.

The current version of the PUD, which accommodates the scrapped 1 Hotel plan for the site, was approved in June of 2008, and the buildings at 22nd and M Streets, NW – the Nigerian Embassy and Asia Nora – were razed in February of 2009 in anticipation of the project's start, which never happened.

In March of 2010, the PUD application was given a two-year time extension, due to "difficulties with financing based upon changes in economic and market conditions beyond the applicant's control;" a report by the Office of Planning in support of the time extension stated that Perseus Realty contacted 40-plus lenders unwilling to provide financing, citing the general decline in the hotel market and the negative growth in revenue generated by existing hotel rooms.

The construction extension requires that a building permit application be filed by June of 2012, however, from that time, a full year is given before construction must be underway – "no later than June 27th, 2013" – which means that although Robert Cohen, president of Perseus, said in August that the development team's goal is to begin construction in June of 2012, there is no pressure from the District to begin next year, and still another hurdle awaits – construction financing.

The Office of Zoning explained that the upcoming hearing, on Thursday the 27th, to review zoning request, may or may not result in proposed action by the Zoning Commission: "It’s possible that the Commission could take proposed action at the end of the hearing and then it would be referred to NCPC for a 30-day comment period before final action could be taken. If they don’t take proposed action at the end of the hearing, then the next step would be for it to be placed on one of the scheduled meeting agendas for decision."

In August, Neil Jacobs, president of SH Group, Starwood's luxury hotel brand management company, stated the reason for the brand change was that, "With a 1 Hotel we were limited in the number of rooms we could get onto the site. We didn't want to compromise the brand, and commercially [the Garden Inn] is a better choice."

OTO Development came on as a partner after the decision was made, in the fall of 2010, to desert the 1 Hotel in favor of a more affordable Garden Inn.

The Hilton Garden Inn will contain a 5,000-s.f. restaurant offering seasonal sidewalk seating, and if all goes well with the upcoming PUD change process, and ability to secure construction financing, developers aim to deliver the hotel and restaurant by the summer of 2014.

Washington D.C. real estate development news

Shaw Giant Closes Today

The Giant supermarket has closed to make way for construction of the new Giant, anchor of the long-anticipated CityMarket at O in Shaw, with excavation planned for November, said Susan Linsky, project manager at Roadside Development. The new 71,000-s.f. Giant will be the first completed aspect of the project, as Roadside is contractually obligated to deliver a replacement within two years of closing the old store, meaning, by September 8th, 2013. "We're really excited," said Linsky. "However, there is a lot of work to do in advance of excavation." Facade support, utilities prep, etc. 

Construction, by Clark, will be in several phases and split between the east and west parcels. The east parcel, which is mainly comprised of the Giant, will be topped with affordable senior housing (84 units), and an apartment. Although the Giant will deliver first, the other two components of the east parcel will deliver last, likely in late fall 2014 or early spring 2015. The second phase of the real estate project, to deliver immediately following the Giant, will be the west parcel's 181-room hotel, a 400-unit apartment unit and several retail outlets (around 16,000 s.f. in all); likely completion date of these components is late fall 2013, or early spring 2014. A condominium, also on the west parcel, will be included in the last phase. The 1-million-s.f. urban infill project will be built on a parking podium consisting of over 500 spaces. Roadside believes the project will “serve as a catalyst for the revitalization of the Shaw community, one of Washington's oldest commercial, residential, and cultural districts.”

Washington D.C. real estate development news

MRP to Begin Phase One of Washington Gateway in NoMa

MRP Realty will soon move forward with a long- awaited three-phase, 1-million-sf mixed-use project on 3 acres in northern NoMa. Matthew Robinson, Senior VP of MRP, says the $360-million project known as Washington Gateway will break ground before the end of the year, with the first phase residential and retail. The project has been planned since at least 2006, with several near starts over the past 5 years.

At the intersection of Florida and New York Avenue, NE, the Washington Gateway development team will seek financing on a rolling basis. As for now, the team is focused solely on phase one: 400 units of residential in an 11-story building with 5,200 sf of retail.

In terms of getting the first phase off the ground, all seems to be in line for MRP. An equity partner is in place, construction loans are in the works, construction (sheeting/shoring/excavation) permits have been applied for, and a building permit will be filed at the end of September, according to Robinson. One year into construction, MRP plans to start phase two, which will consist entirely of office space. Further down the road, phase three will consist of office space and a retail component.

Nearly 1 million square feet of built area in all, the three-building project consists of approximately 350,000 sf of residential, 600,000 sf of office, and 12,200 sf of retail. The original plan called for significantly less residential space - 260 units versus 400 - with the space going to a 181-room hotel - a component that was scratched due to changing market needs as perceived by the development team.

Robinson says that getting rid of the hotel component, "makes the residential building better. The additional space allows for greater residential amenities [in the form of] increased shared spaces, [including] an extensive 3,700 square foot club room, and two-story fitness center." A rooftop pool and lounge area will offer "Capitol dome views," adds Robinson.

The 11-story residential building was designed by SK&I, and will be built under general contractor Davis Construction. Construction, if underway before the end of the year, should be complete within the next two years. The two 11-story office buildings, to be included in phase two and three, were designed by Gensler. And although the same height, the grade on site varies by about 40', confirms Robinson, creating a height variation optical illusion.

The overall design of the whole Washington Gateway project is a hollowed-out glassy triangle (labeled number 3 on the map to the left), offering an inner triangle of public space, accessible by an opening on Florida Avenue. All retail will front Florida Ave; retail tenants are being pursued, though phase one will be built on spec. Retail will most likely include "neighborhood serving retail," says Robinson, including sidewalk cafes.

Also a part of the development will be a widening, and repaving of the sidewalks along both Florida and New York Avenues. New trees and street furnishings will be added, and landscape architecture design will be the work of Oculus.

"It's exciting right now in NoMa," says Robinson. Washington Gateway will be followed by Camden Property Trust's 60 L Street, NE (1 & II), located just east of the new NPR headquarters currently under construction. Camden's 60 L Street will become NoMa's largest residential building, with 730 units, if it goes through as planned.

Mill Creek Residential's NoMa West, the largest single-phase residential project in NoMa to date includes 603 apartments with a single retail store. Located north of the FedEx building (just north of Washington Gateway) the Mill Creek project broke ground in March, and aims to finish in the spring of 2014.

Several other projects with substantial residential and office space are planned for the NoMa BID, including the Bristol Group's NoMa Station (II - IV), a follow-up to One NoMa Station (400,000 sf office, and 5,000 sf retail) next door at 131 M Street. NoMa Station II-IV is a massive mixed use project to front 1st Street between M and L Streets, NE, made up of: 700,000 sf office, 50,000 sf retail, and 700 residential units.

8/30 correction: 350,000 s.f. of residential, not 290,000 s.f.

Washington D.C. real estate development news

Hilton Garden Inn Aiming for Next Summer at One Hotel Site

The West End has been waiting on 1 Hotel for several years. In a way, the wait is over, according to Robert Cohen, President of Perseus Realty LLC, half of the site's development team along with the Starwood Group, who said, "There is no more 1 Hotel [for this site]." Instead, there will be a 238-room Hilton Garden Inn with a 5,000 s.f. restaurant, and construction is expected to begin in June of 2012.

New design, Hilton Garden Inn:
Previous design, 1 Hotel:
Perseus Realty is currently applying for an amended PUD with the Zoning Commission, using the above (first rendering) working design by local architecture firm Shalom Baranes. "It's a first class design," explained Cohen. "It'll be the nicest Hilton Garden Inn in the country." Shalom Baranes principal Patrick Burkhart is in charge of the new Hilton Garden design, the 1 Hotel design was done by Chad Oppenheim of Oppenheim.

"Due to the climate in the last two or three years, we felt that a Hilton Garden Inn is a better use for the site. Nothing more than that," said Neil Jacobs, president of SH Group, Starwood's luxury hotel brand management company, formed in 2009. "With a 1 Hotel we were limited in the number of rooms we could get onto the site. We didn't want to compromise the brand, and commercially [the Hilton] is a better choice."

The 1 Hotel brand is alive and well, confirms Jacobs, who notes the construction of a new 1 Hotel currently underway on 6th Avenue in New York.

The Starwood and Perseus investment at M and 22nd Streets, NW is the site of the former Nigerian Embassy and Asia Nora - both razed in 2008. A restaurateur, yet to be selected for the 5000 s.f. space, will be largely dependent on qualities that are interactive and community focused, according to Cohen.

8/11 addition: previous project and design commentary, Former Swanky 1Hotel...

Washington D.C. real estate development news

Plans Submitted for Southwest Wharf Waterfront

Visions of a "world class" waterfront destination along the Washington Channel in Southwest had been dancing in developers' heads for years before a contract was awarded by the District in 2008. On June 28th the winning team's vision became more clear when PN Hoffman and Madison Marquette filed a preliminary report with the D.C. Zoning Commission, clarifying its plans for the 52 acres (including build out on the water) that will be radically revamped as "The Wharf" to be constructed in three phases over the next 10 years.

Phase one of the project - encapsulated for approval as the "Stage 1 PUD" - will be reviewed by the Commission on July 18th. In addition to reviewing Stage 1, the Commission will rule on the request to rezone the area from R-3 to C-3-C on land, and from unzoned to W-1 in the water.

If approved, the initial stage will be valid for 18 months, allowing developers that long to submit the final Master Plan to the office of the Deputy Mayor's for Planning and Economic Development (DMPED) for approval. Construction of the first phase is projected to begin in late 2012, and is expected to last until 2016. In those four years, phase two will undergo the review and approval process.

Phase 1 will begin in the middle section, roughly from 7th Street to 9th Street, in between the entertainment-heavy section closest to I-395, which focuses on water-transit-oriented piers and redevelopment of the Municipal Fish Market (phase two), and the residential area at the southern end (phase three). Redevelopment of the Municipal Fish Market will take place in phase 2.

Phase one includes the restructuring of portions of 7th, 9th, N St and M Place; a new Capital Yacht Club; two new piers - "City Pier" off of 9th and "7th Street Pier" - and a major infrastructure overhaul of Water Street. The grand scheme is to turn Water Street into a promenade with 60' of width shared between pedestrians, streetcars, bikes and outdoor diners.

The parcels in phase one (2,3,4 and 5) will be developed as office, retail, residential and hotel space. Parcels 3 through 5 could potentially be 130' high, as is permitted in a C-3-C zone. The plan shows that parcels 3 and 4 will have ground floor retail and office and/or residential towers, parcel 5 will hold two hotels, and parcel 2 is slated to become a concert/entertainment venue with seating for 4,000 to 6,000.

Parcel 3, at the corner of Maine Avenue and 9th Street, has been claimed in part by the Graduate School USA, which will take up 190,000 s.f. of space and operate 18 hours a day. A temporary Kastles Stadium, now located near parcel at 9th and Maine Street and intended to be temporary, is now being considered for parcel 2.

Holland & Knight, legal counsel for PN Hoffman and Madison Marquette, submitted the project's prehearing statement to the Commission in May, and the more recent "20 day [in advance of hearing] submission" on June 28th. Significant changes in both prehearing documents that will affect phase one include a decreased F.A.R. (floor area ratio), the removal of residential use at parcel 5, reduced parking spaces and increased bike docking areas. Most encouraging is the reduction of subsidized housing required by the District from 30% to 20% of total housing.

A community workshop was given by the developers on June 7, where several issues were raised, most of them surrounding the riparian development, including the depth of the channel, and the extended length of several piers, which cuts the width of the channel from 400' to 200' wide.

Subsequent development will include a revamped Banneker Park and the Southwest Ecodistrict of 10th Street (not controlled by Team Wharf), which will ideally provide a link from the waterfront to the Mall.

Other elements of the overall development (all three phases) include a combined 3.2 million s.f. gross floor area (3.87 F.A.R.), 8 to 12 acres of park/open space with "programmed public activities" catering to year-round use, 625 hotel rooms, 1,200 "mixed-income" residential units, and 400 to 500 Marina Slips

The entire project is estimated to need $2 billion; the District pledged $200 million in 2008 in tax increment financing. The redevelopment, say developers, has the potential to bring in $40 million in tax revenue annually.

ANC 6D will hold a meeting, in advance of the Zoning Commission hearing, at the Dept. of Consumer and Regulatory Affairs (DCRA) at 7pm, next Monday, July 11th.

Washington D.C. real estate development news

Union Station North, New Zone to Accommodate Billion-Dollar Burnham Place Project

After 18 months of efforts by the DC Office of Planning (OP) to establish appropriate specifics, the DC Zoning Commission (ZC) approved OP's creation of a new zone - Union Station North (USN) - which will supersede an area zoned for industrial and light manufacturing use in the City's Comprehensive Plan. The USN Zone was created to allow developer Akridge's mixed-use planned development project, Burnham Place, designed by DC-based architect Shalom Baranes Associates, to be built above the Amtrak rail yard located immediately north of Union Station. Burnham Place, estimated early on to cost $1 billion, has been in the works since Akridge bought the air rights above the railyard from the General Services Administration (GSA) for $10 million in November of 2006, a notable transaction due to price and precedent - the deal became the first transfer of air rights from the federal government to a private buyer. The 14-acre, air-rights property will be developed into 3 million s.f. of commercial, retail, residential and hotel space. The new USN Zone District will allow Akridge to build up 90 to 130 feet above the H Street Bridge, as the bridge is technically the ground floor of the property. 

According to Lisa Steen, Vice President of Marketing at Akridge, building heights will be gradual, starting 300' away from Union Station at 90', then rising to 110' and finally 130'. In this way, "The view of Union Station will not be compromised," says Steen, adding, "and the view from the buildings could be fabulous." The ZC Order was approved unanimously in April, and has allowed Akridge to move forward with design specifics, now that allotted heights for residential towers has been established. The decision to create a new zone also ensures that the ZC will have the authority to review and approve any development at the site. Furthermore, the Order allows Akridge to create a unique, and dense, transit-oriented development that utilizes project neighbors - Amtrak, below, and transit hub Union Station, to the south. Amtrak is currently developing a Master Plan - expected to be complete in early 2012 - to double or even triple its capacity at Union Station, and if a intercity high-speed rail is created, Steen speculates the possibility of commuting by rail to New York from Union Station as quickly as commuting by car to Fredricksburg. Building above a railyard poses challenges that Akridge will overcome by building 20-foot-high support columns, strategically placed throughout the rail yard, which will support a concrete platform to serve as site foundation. Potential relocation of the Greyhound Bus terminal and possible redevelopment of the parking garage at Union Station are currently under consideration by Akridge and several other entities including the District Dept. of Transportation (DDOT) and the Union Station Redevelopment Corporation (USRC), created in 1982 to restore Union Station using $8.1 million appointed funds. Akridge has yet to disclose a timeline for the project's multiple phases, other than to say it plans to propose the early phases of construction upon the completion of Amtrak's master plan, expected to come early next year. A tentative goal for beginning the initial infrastructure work on Burham Place is for 2014. 

Washington D.C. real estate development news