Real Estate Financial Modeling Seminar

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LOCAL COMPANY REFM LAUNCHES TO MEET GROWING DEMAND FOR FUNDAMENTALS-BASED ANALYTICAL, INVESTMENT AND EDUCATIONAL RESOURCES

In conjunction with its exhibiting at the Urban Land Institute Washington’s DC Conference, Arlington-based Real Estate Financial Modeling (REFM) officially launched its company yesterday to meet the growing demand in the real estate professional and educational realms for fundamentals-based, quantitative real estate development financial modeling resources.

As real estate professionals and students worldwide have returned to conservative underwriting standards, there has been a strong increase in demand for analytical, investment and educational resources to help the real estate community better analyze and present their development transactions in this rigorous way.

REFM was founded by Wharton MBA and DC metro area real estate developer Bruce Kirsch. Through REFM’s Live Group Training Sessions, Bruce imparts the wisdom, techniques and shortcuts learned through more than 10,000 hours of Excel modeling and real estate development experience. The next Training Session is on Saturday, September 26th at George Washington University, and in an innovative twist, all Training Session attendees will also get the REFM Financial Model and Video Tutorial Module downloads, which contain sophisticated Excel-based models as plug-and-play tools ready for transaction analysis, as well as videos of the Training Session content as a permanent reference. Those who are unable to get tickets to a Training Session can purchase the Modules as a standalone product at REFM’s website, www.realestatefinancialmodeling.com.

By providing this novel, detailed learn-at-your-own-pace Video Tutorial component, REFM not only empowers its customers with the ability to customize the Financial Models to their particular needs, but also saves university professors and students valuable class time for more nuanced teaching and learning of these critically important technical skills. Additionally, a Case Study offered by REFM is already on a syllabus at the University of Southern California, and more than 15 other major universities worldwide are currently evaluating the Case Study product.

“Now, more than ever, meticulous quantitative analysis of real estate transactions is critical,” stated Bruce Kirsch, Principal of REFM.

Down the Rabbit Hole at National Park Seminary

With a mix of decaying and revamped historic buildings tucked among cookie-cutter suburban dreams, Maryland's National Park Seminary, an adventurous attempt at adaptive reuse, is surely the most unique new community regionally, if not nationally. The collaborative development team of The Alexander Company and EYA will sponsor a "ribbon cutting" today, highlighting the new construction and first stages of historic renovations ready for tenants, particularly the newly finished Ballroom condos.

A surreal, 32-acre conservation area is the setting for 280 new and rehabbed residences culled from an international showcase of homes - think Swiss mountain lodge next to Dutch windmill, astride American colonial. Shopping for a Japanese Pagoda? Yes, but you will have to wait, Alexander is still using it as office space.

The beltway-hugging Silver Spring site includes new townhomes, historic condominiums, rental apartments and historic single-family homes, formerly an elite girls finishing school and the United States Army quarters (an exemplar of mixed-use). The land extends to I-495 and a few new townhomes have back porch access to Rock Creek Park. The nearest metro, Forest Glen, is about a mile from the site, so residents working in DC will be stuck commuting up 16th street, the most direct route to downtown.

The Seminary has an interesting recent history as well: having identified the property as surplus, in 2001, the U.S. Army tried to raze the historic structures, but local preservationist Save Our Seminary banded together to prevent the historic loss. The federal government then turned the land over to Montgomery County, which selected Alexander as the developer in 2004 after a competitive RFP. Alexander, both the developer and architect, worked with EYA as a local partner for the new construction and hired Struever Bros. Eccles & Rouse as general contractor. The historic preservation is valued at over $150 million, which Alexander hopes to offset through sales of the new construction.

Dan Peters, Director of Communications for Alexander, highlighted the unique buying opportunity of historic units, "not one of the condos or apartments has the same floor plan...the site is the most unique residential development in the country." No argument here. The single-family historic homes designed to look like international dwellings and the hodgepodge designs of the condos are unexampled, one part World Fair, one part Alice in Wonderland. Interspersed are the mostly-standard townhomes of EYA - generally the epitome of architectural sameness at home in any suburban cul de sac, for one of the most eclectic juxtapositions outside of a museum.

Since sales began in January 2006, all but 4 of the 90 new EYA townhomes have sold and the 66 historic rental apartments are fully leased, though only 20 of the 50 historic condos, which began delivering in late 2007, are spoken for at present. Only two of the historic single-family homes have sold so far.

The one, two and three-bedroom EYA townhomes range from $400,000 to $900,000. The 90 new townhomes and courtyard homes feature Spanish Mission, English Tudor, and Arts & Crafts architectural styles.

With only 4 new townhomes left for sale, buyers may want to fix their gaze on the condos or the historic single-family homes. The condo, pictured at right, features stained glass throughout, a lofted bedroom and reportedly sold for nearly $1.5 million. The first phase of historic condos is just about entirely complete and the second phase, which will tackle historic buildings including the gymnasium, the stables, the servants quarters and carpenter's shop, is set to begin in spring of 2010. Peters indicated construction would take between 12 and 18 months to complete.

Peters notes that historic single-family homes will demand a knack for historic preservation to meet the county's standards. Though to date only two of the homes have sold, the developer was optimistic that sales of historic condos would pick up with the progression of construction - a benefit of selling a concept versus a finished product. But with an entire phase of construction remaining, buyers may still need an active imagination.

Tenley Library Construction to Start

Years into discussions about the fate of Tenleytown Library, DC officials have announced that construction, or at least a ceremonial pretense, will at last begin this morning at 10:30am. After an embarrassingly nasty brawl over the fate of the postage stamp-sized parcel at Albemarle and Wisconsin, the fate of the library seems at long last decided. Sort of. Following the long term loss of the library in 2005, everything has gone according to plan, excepting, that is, the lack of plan for a new library, the city's belated selection of a developer for the site, the public outcry over the city's selection thereof, the battle over the right to build housing above a Metro (gasp!), a subsequent war between the DC Council, locals, and DMPED over control of the project, DMPED's decision to lead its own charge and issue an RFP for the project on its own, DMPED's mysterious shift in qualifications for the site - after submission of bids - which it shared with only 2 of the 3 applicants, DMPED's decision and hire LCOR, Inc. as the developer in July of 2008, the community's rejection of LCOR's plans, DMPED's pronouncement of a "rare opportunity" to bring subsidized housing to the "underserved (retail-challenged) Wisconsin Avenue," the quiet dropping of LCOR from the project in March of 2009, the Mayor's decision to build the library and then figure out if apartments should go on top of it, and his final pledge that the building would - damn the torpedoes - be completed in 2010. Did we miss anything? Water under the bridge though. 

Now work begins on the new library, and one thing is for sure, Forrester Construction will build it. Even if "it" is still undetermined. As of August, the city had not committed on a plan for the residences supposed to sit on top of the library, but rather had planned to build the library in the hopes that someone could somehow put a building on top of library shortly thereafter, consigning the project to permanent construction site status. Nor had the District selected an architect to design the library (now technically under construction), basing its plans instead on simple conceptual designs by the Freelon Group (see rendering at left) and R. McGhee & Associates. And Janney parent groups, which opposed the plan as a taking of its green space, will now lose its field as a construction staging ground for up to two years. And then construction may start all over again. Wow, glad that's all settled.

Washington DC commercial real estate news

Constitution Center: Letting the Light In, Keeping Terror Out

The $250 million renovation of Constitution Center — the block-sized, former Department of Transportation building at 7th St., SW — is inching towards the finish line. When renovation plans for the 1960s-style concrete relic began circulating five years ago, owner David Nassif Associates had three objectives for the architects and engineers at SmithGroup: Design a modern structure that will stand the test of time, retain the building’s original concrete frame, and make the building attractive to bulky federal tenants. The blast-resistant glass building incorporates federal security guidelines and boasts worker-friendly amenities like private D Street metro access, which mean SmithGroup may achieve all three when James G. Davis Construction wraps their work in November of 2009, 29 months after work began in mid 2007.

As lead architect David Varner puts it: “Maintaining the concrete frame probably saved about $60 million in construction costs and shaved about a year off the renovation.” But as far as design, “We pretty much went out of our way to invert just about every design feature of the old DOT building.” Although designed in 1969 by the architect behind the Kennedy Center and Radio Center Music Hall, Edward Durell Stone, the general consensus - at least among DOT employees - was that their old office frankly didn't measure up to general office standards. DOT employees used to describe their offices as “dark and disorienting,” according to Varner because the original building had less than 50 percent glass. That’s not a problem with Constitution Center’s floor-to-ceiling, blast-resistant glass design that ensures “no employee will be further than 45 feet from a natural light source at any time.” No federal agencies have yet signed up to move their offices to Constitution Center, but the buzz is that the owner would prefer one federal tenant with multiple departments to move in by early 2011. With 1.3 million s.f. of rentable space, a 310-seat auditorium, a 15-acre garage with a 1,500 car capacity (the largest in the city), four lobbies, and a 90,000 s.f. central courtyard, it's safe to say the future occupant will be able to stretch out in the complex that occupies the entire block between 6th, 7th, D, & E Streets. Add to its list of superlatives that the project is the largest office renovation in the country expected to receive a LEED Gold certification. Along with aesthetic improvements, a major security overhaul went into the new design of the Constitution Center complex. Garage columns are steel jacketed to guard against an ISC Level IV explosion, just for that country-Inn-kind-of-feel. And while your Beemer may be toast by that point, two separate security access points were placed at the employee-only entrance. All air-intake units and filters are located 110 feet above the ground to guard against any airborne biological attack which, we're told, tends to concentrate closer to the ground. Constitution Center even has its own filtered water supply. The major trade off? The grand central courtyard designed by the landscape architects of Oculus will, predictably, be closed to pedestrians, meaning no more public access or farmers market. But when you're talking about an office building with its own filtered water and air supply, are you really surprised? Varner explains that in a modern, secure building, the owner felt it was not feasible to keep a public courtyard. But, in an effort to maintain a solid relationship with the community, Oculus and SmithGroup designers worked to increase the outdoor green space by 700 percent, beautifying the street front for those that have to walk around it. Shedding a little sunlight on federal offices isn't such a bad idea, even if it's coming through blast-resistant glass.

Washington DC commercial real estate news

Bikers Boon at Union Station

The simple life of free-range bike racks on street corners is meeting its demise as cyclists opt for membership in "bikestations" that offer secure locations, a place to change, and access to metro. That, at least, is the thought behind the newest addition to Washington's ascendant bike-commuter culture, the bikestation at Union Station, now accepting membership and scheduled to open in the beginning of October.

The station can hold up to 100 bikes in its 1,600 s.f. of space on the west side of Union Station; think bike rental and repair, changing rooms, lockers and security, all in one space. The station will be staffed 66 hours a week, but is accessible by members 24/7 with a security card.

According to a press release from DC Department of Transportation, membership rates are $96 per year or $30 a month, plus a $20 annual administration fee. Cyclists can register at bikestation.com or check out bikeandroll.com for more information.

Congressman on a Wire

The federal government and the circus will be one step closer after today's Zoning Commission hearing, which will consider an application for a Trapeze School on land currently owned by the General Services Administration. The zoning text amendment would allow TSNY (Trapeze School of New York) a trapeze and performing arts facility on 55,300 s.f. of land east of the ball park and southeast of the U.S. Department of Transportation building.

Pending approval the "trapeze school and aerial performing arts center" will have access to the land as a matter of right until December 2014. The school is currently in a temporary location at the site of the Old Washington Convention Center at 9th and H St, NW. Perhaps Congress might consider doing one of the schools "team-building workshops." The Zoning Commission hearing is scheduled for tonight at 6:30 PM in the Office of Zoning hearing room at 441 4th Street and is open to the public, so swing by.

photo by Rich Riggins

11th Street Bridge Under Troubled Wires

The 11th Street bridges that span the Anacostia in SE DC are one step closer to a transporation makeover, assuming government agencies can play nice. The National Capital Planning Commission (NCPC) recently reviewed the District Department of Transportation's (DDOT) design, which will replace the 40-year-old 11th Street bridges, improving traffic flow, connecting I-695 and I-295 and creating a pedestrian and bike-friendly addition to the I-295 bridge. The new bridges make accommodations for future street car use of the bridge, including features for (gasp) overhead wires. The bridges will get their makeover, but the street car may have to wait.












According to DDOT, the Southwest/Southeast Freeway (I-695) was originally planned as part of the "Inner Loop Freeway System," a highway system designed in the '50s and built in the '60s that was (thankfully) never fully completed. The portion at issue here was to connect the Inner Loop with the Anacostia Freeway (I-295/DC-295), a plan that was ultimately abandoned; to date motorists have no direct connection between the two highways north of the 11th street bridge complex. DDOT's plan suggests that this inconvenience leads to increased traffic on neighborhood streets like Martin Luther King Jr. Ave, Good Hope Road, Minnesota Ave and Pennsylvania Ave.

The current upstream bridge has four lanes headed north and the downstream bridge has four lanes headed south, for a total of eight lanes (we can add good); the new bridges will have a total of 12 lanes. The upstream bridge (I-695) will get an additional four lanes, or four in each direction, but two will be used as entrance and exit lanes. The downstream bridge (I-295) for local traffic will still have four lanes, two in each direction with the two outer lanes shared, in theory, by street cars and motor vehicles. The local traffic bridge will also include a 14 foot "shared use path" for pedestrians, runners and cyclists.

While the 11th Street Bridge plan does not directly provide for street cars, it does include the tracks, light posts, and overhead wires for the street cars that may eventually help bridge the chasm between the two sides of the Anacostia river. DDOT has been moving full speed ahead on the Anacostia street car program and is pretty excited about it (to anthropomorphize a bit), and weekly updates are now available online. The plan to install track lines in the new 11th street bridge is just another example of foresight by the transportation planning body.

But, DC being a jurisdictional hodge podge of government overlords, enter the turf battle. The NCPC Executive Director's recommendation stated that NCPC "does not support a street car system with overhead wires in the L'Enfant City" and encouraged DDOT "to pursue alternative propulsion technologies...that do not require overhead wires." The same issue was raised about the street car planned for the H Street corridor. The conflict is not going away any time soon.

If you paid attention to our NCPC crib notes last week, you'll remember that their authority over the historic Washington City means it will uphold federal law that prohibits overhead wires from obstructing view of landmarks.

DDOT and NCPC have clear mission statements and long-term plans, which often can work in unison to improve planning in the District. On this issue, however, it looks like we will see a showdown or at least some creative bargaining as the two agencies are pitted against one another in the what future generations will surely call the "Great Street Car Dilemma of L'Enfant City."

Metro Breaks Ground in Ward 8 Bus Garage

On Wednesday, Metro ceremoniously broke ground on a new $95 million bus garage in Southwest DC. The garage will replace the seldom-missed bus depot near the Nationals' ballpark, sold to Akridge and Monument Realty in 2008 and demolished to make way for a multi-use (but unbuilt) project. Despite the formal groundbreaking, Metro still has not selected a contractor, nor provided a timeline therefore.

Metro paid $6.45 million for the former DC Village, a homeless shelter site, which will house up to 114 buses serving the greater DC area, with the potential to expand service for up to 250 buses. The agency anticipates the new bus facility will be open by 2012.

Washington Highland's Overlook Brings New Affordable Housing to Ward 8

Tomorrow, at 10 AM the Community Preservation and Development Corporation (CPDC), DC's largest affordable housing developer, along with Mayor Fenty will announce the opening of The Overlook apartments, formerly known as Parkside Terrace. The newly renovated twelve-story high-rise at 3700 9th St., SE, has a total of 316 units that break down to 231 one-bedrooms and 85 two-bedrooms. The $73 million project is a welcome improvement to a formerly blighted housing project in DC's Washington Highlands neighborhood in Ward 8. Overlook has been vacant since 2005. Prior to that time it was one of the many ill-fated 100% Section 8 housing projects. The building will now include 57% Section 8 housing with the rest slated as affordable. Tim Westrich a Real Estate Associate at CPDC described the transformation from Parkside Terrace's "faded 60's look" to today's modern Overlook as "tremendous." Westrich was quick to counter the perception that Section 8 properties give "the perception of blighted properties." Not so, he says, "this is absolutely gorgeous." The new building includes seven floors of senior housing, with rental assistance from DC Housing Authority, and five floors of small family housing, all affordable. Residents on the seven floors of senior housing have access to a concierge desk, reading rooms and lounges on each floor (like a dorm?). The senior housing also includes a 5,000 s.f. community room with exercise facility, computers, a small store and a "health-care suite." The small family units on the top 5 floors will have a a 24-hour gym and in-unit utilities including a hook-up for full size washers and dryers. There are a total of 181 units of senior housing and 135 units of small family housing. According to Westrich, the building is about 50% leased at present. The architects on the project were Wiencek and Associates. The general contractor was Harkins. Harkins Vice President of Preconstruction Services Larry Kraemer said "this was a really complex project, with multiple funding sources and a building that presented us with a number of construction challenges, including a masonry skin that was peeling off the façade." But in the end Harkins worked with the design team to "bring it all together for CPDC." Financing for the project came from the DC Housing Finance Agency through a tax exempt bond program (Union Bank purchased these bonds), as well as from Low Income Housing Tax Credit equity through Capital One and Department of Housing and Community Development's Housing Production Trust Fund.

Washington DC commercial real estate blog

New Condo Survey - Harvard Lofts

Washington DC's most recent addition to the new condominium market 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 first 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 views 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.

The 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

Affordable Housing Coming Soon to Bethesda

Construction may begin as soon as the first quarter of 2010 on central Bethesda's new affordable housing project. The Edgemoor's 12 units of affordable housing on Hampden Lane near Arlington Road. The Housing Opportunities Commission (HOC) in Montgomery County, MD plans for all units to be urban style residential units. The units will consist of an even split between one-bedroom rental apartments and studios.

John Poyer, Housing Acquisition Manager for the project explained that HOC will develop, own and manage the property, which will be financed with a combination of Low Income Housing Tax Credits and a loan from Montgomery County.
According to Poyer, the financing is lined up and construction should begin in 2010. HOC serves as a public housing agency, a housing finance agency and a housing developer, serving Montgomery County.

A mere two blocks from the Bethesda Metro, the Edgemoor will not offer onsite parking. The building will be four stories high and offer residents a courtyard for "passive recreation"and an interior "party room" for gatherings. The facility will also offer a computer room and fitness center for residents.

Other partners involved in the development are the designer, NOA Architects, and the civil engineer, Macris, Hendricks, Glascock, P.A. The building will be built to LEED certification standards, but HOC will not apply for certification, given the extra costs entailed. LEED Consulting was provided by EDG.

Stanton- EastBanc Chosen as Hine School Developer

Today, neighbors of Eastern Market got an answer to a long-outstanding question: What will go in the place of the former Hine Junior High School on Capitol Hill? Washington DC officials announced that Stanton-EastBanc had won the right to develop, with a plan that includes a mix of retail, residential and open space to appease the outspoken Capitol Hill neighborhood. The project may break ground as soon as 2011. The selected team includes Stanton Development Corporation, Eastbanc Inc., Dantes Partners and Weinstein Esocoff Architects. The plan for the 3.5 acre lot in Capitol Hill's Eastern Market neighborhood calls for a total of 510,000 s.f. of total development. The new development will include approximately 150 apartments and over 200,000 s.f. of office space. Currently slated for the spaces are the nonprofit International Relief and Development and the Shakespeare Theatre Company. Additionally, the space will offer 150 parking spaces and "neighborhood-serving retail and restaurants." Stanton appears to have gotten the upper hand for several reasons. The group is entirely DC-based, has a proven track record in several buildings in the Capitol Hill area and did not request any subsidy from the District for the project. 

With support from several active and outspoken Capitol Hill neighborhood groups, Stanton secured the project out of an original field of 11 bidders. The competitive project had the Eastern Market neighborhood a-buzz, forming coalitions in favor of one plan or another. Leah Daniels, owner of Hill's Kitchen in Eastern Market hosted meetings at her shop so the StreetSense/DSF/Menkiti Group could show off their plan. It would have included a boutique Kimpton Hotel, which Daniels felt - still feels - is an important addition to the neighborhood. Daniels said that while the group she wanted to win didn't, at least it wasn't the team she didn't want: Bozzuto Group/Scallan Properties/Lehr Jackson Associates/E.R. Bacon Development, LLC/Blue Skye Development/CityStrategy, LLC. She did credit the Stanton group for being willing to continue to work with the community to ensure that the space maximizes its location in the heart of the Eastern Market community. According to Joe Sternlieb of EastBanc, the developers are looking for neighborhood-serving retail. They have letters of interest from restaurants including: Cafe Leopold, Kaz Sushi, Dolcezza Gelato, J. Cholatier, Tryst Diner by Constantine Stavropoulos, The Boat House Restaurant of Charlottesville and the Twins Jazz Club. Retail interest includes: Dawn Price Baby (looking to expand from current Hill location) and B&M Wine among others. Sternlieb indicated that retail spaces will be no larger than 5,000 s.f. each and will likely average 2,000-3,000 s.f. per tenant. In July, the Deputy Mayor for Planning and Economic Development (DMPED), Valerie Santos, narrowed the field of competitors to three and encouraged them to submit final offers for the right to redevelop the site. The school was closed in 2007, in part to free up funds for the DCPS headquarters. Responses to the District’s request for final offers were due in early August. Today's announcement marks another high point in the vibrant neighborhood which recently saw the reopening of the Eastern Market after the fire that ravaged the historic structure in April 2007. Councilmember Tommy Wells (Ward 6) said that the new site should reflect how "special" the Capitol Hill neighborhood is and that the developers and the city have "a lot more work to do" to make sure the project enhances the neighborhood.

Capitol Hill commercial real estate news

Lots of Cleared Lots for Sale in the Palisades

Encore Development and their engineers at Dewberry and Davis are wrapping up razing and land development work at 4800 U Street, NW, making way for eight, freshly-cleared lots that range in size from 6,000 to 12,500 s.f.  Located just a block from MacArthur Boulevard, the parcels, dubbed Berkley-Chase, are now "up for sale to either individuals or home builders," according to Encore principal, Steve Kay and will sell for $925,000-$995,000 each. The Berkley-Chase development makes up approximately half of the 3.2 acre parcel Encore originally purchased back in 2007. Encore sold the other half of the property to the St. Patrick's School before razing the late 1940s home on the property, commencing sewer work, and putting in a series of retaining walls between the lots for sale and the adjoining St. Patrick's School property. Kay says his company has quietly begun putting the lots on sale and is "working on a couple potential deals now." To date, none of the lots have been sold, but more prominent listings with Washington Fine Properties should be popping up in the coming weeks. 

Washington DC real estate and development news

Arlington and Alexandria Hope to Lure Developers for Restored Waterfront Property

Have you heard about Four Mile Run, the next hottest waterfront development area in the DC suburbs? Arlington and Alexandria urban planners are hoping to transform the Four Mile Run into a draw for developers seeking to capitalize on a waterfront environment. The restoration project set out a series of wish lists for environmental improvements and guidelines for greener, more modern buildings. Arlington and Alexandria continue to push forward on the three year project, optimistically riding the storm of the current economic downturn.

For those unfamiliar with the Four Mile Run Project, here’s the rundown: The lower 2.3 mile portion of Four Mile Run runs from Shirlington to the mouth of the Potomac and acts as a natural boundary between the cities of Alexandria and Arlington. In the 1970s and 80s, the Army Corps of Engineers channelized this portion of Four Mile Run to control a major flooding problem. The solution worked, but the resulting channel became an eyesore that eliminated the vegetation and aquatic wildlife that used to call that part of the stream home.

In March of 2006, the cities of Alexandria and Arlington drafted a plan to revive the once thriving environment along the channel bed without sacrificing flood control. Enter the Four Mile Run Restoration Plan and the Four Mile Run Design Guidelines—an overview of improvements planned along the stream and a guide for developers hoping to take advantage of what the cities of Alexandria and Arlington hope will become a bustling gateway between the municipalities over the next 10 to 15 years. Another plus for developers: the guidelines do not set new ordinances or even make hard and fast development rules for that matter.

“We wanted future developers to focus their orientation toward the stream instead of turning their backs on it as developers had done in the past,” explains Arlington County Urban Planner, Leon Vignes, adding that in the years to come, the newly revitalized stream will come “to be seen as a feature for building in the area.”

According to Arlington Environmental Planner Aileen Winquist, developers should look forward to the completion of the Tidal Restoration Demonstration Project within the next two years. This project will restore the stream banks and improve the appearance of the channel bounded by Route 1 and extending to Commonwealth Avenue/South Eads Street. Additionally, a design competition for a new pedestrian/bicycle bridge extending from South Eads Street to Commonwealth Avenue to connect the cities of Alexandria and Arlington is also in the works.

“Our mantra in Arlington has been cafes and retail on the first floor. We’d love to see that and development with an eye to the stream. But we don’t make land use recommendations,” says Vignes. “We really just want to leave the possibilities open and see all types of development.”

On the Alexandria side, you’ve got the Potomac Yard project. New apartments and condominiums will join the relocated Signature Theatre in Shirlington. And rumor has it that the Target on the Alexandria side might also be up for redevelopment.

As long as developers strive for greener building practices, do what they can to incorporate public spaces and the newly improved stream in their designs, and take into account storm water management, they'll be welcomed by city planners in Alexandria and Arlington. (Not that they could actually penalize developers for not following the plans).

Public hearings and planning meetings to discuss additions and finalize the Four Mile Run Design Guidelines are scheduled for the 14th and 26th of this month.

Last Chance to Buy a Co-op, Taxes Start October 1st

Considering a co-op for your next home, or getting out of one? Going to settlement this month will be the only way to avoid the hefty taxes that co-op buyers and sellers were once immune to. Thanks to an amendment nestled away in the DC Budget Support Act, the tax benefits of purchasing a co-op will cease to exist as of October 1st. Called the "Economic Interests in Real Property Clarification Amendment Act of 2009," the Act might be better dubbed the co-op killer of 2009. The sale of co-ops, technically a transfer of an economic interest more akin to the purchaser of stock than a transfer in title, is not currently taxed by the District of Columbia. The absence of recordation taxes is one of the few incentives to buying into a cooperative, most of which have more onerous rules than condominiums, carry underlying obligations to the purchaser, and bestow on the Board of Directors the power to reject applicants, all of which tends to suppress the price of co-ops below that of an equivalent condominium. The amendment changes the phrase in the Deed Recordation Tax Act (Section 302b(a) to be specific) from "a transfer of an economic interest in real property" to "a transfer of an economic interest in real property, including shares in a cooperative housing association." Henceforth, co-op buyers, and sellers, will be subject to the same 1.1 % (for properties selling below $400,000) to 1.45% transaction tax that applies to other types of property.

Obama Appoints New NCPC Chair

Yesterday, President Obama appointed L. Preston Bryant Jr. as the new Chairman of the National Capital Planning Commission (NCPC). As Chairman, Bryant will lead the 12-member Commission charged with securing and enhancing the historical, cultural and natural resources of the capital region. NCPC also oversees federal construction projects, long-range planning efforts and planning policies. Bryant currently serves as Virginia's Secretary of Natural Resources.

The NCPC was established by Congress in 1924 (at that time it was known as the National Capital Park Commission). It is the central planning agency for sites on - or adjacent to - federal land in the National Capital Region, a jurisdiction that covers 2,500 square miles in DC, MD and VA. NCPC also provides an advisory role for the District government on certain land use decisions. NCPC focuses on four main principles:

Urban Design and Plan Review- NCPC reviews a wide range of plans and projects from memorials, museums and federal office buildings to communications towers and perimeter security projects. It also reviews District of Columbia public projects, proposed street and alley closings, and Zoning Commission actions, as well as private development in the Pennsylvania Avenue Historic District.

Comprehensive Planning- NCPC developed The Comprehensive Plan for the National Capital: Federal Elements, to guide decisions for long-term development on topics such as transportation, preservation and historic features, parks and open space, among others.

Signature Planning- Long-term plans for the region including security concerns, transportation, and future memorials.

Federal Capital Improvements- NCPC helps set the federal government's development priorities by reviewing agency plans for capital improvements and advising Office of Management and Budget on which plans should move forward.

We hope you read this carefully; expect a quiz next week.

K Street Without Congestion? Perhaps...

In an attempt to wrangle competitive federal transportation stimulus funds, the DC Department of Transportation (DDOT) sped things up over the summer to include a K Street Redesign as part of the application for U.S. Department of Transportation TIGER (Transportation Investment Generating Economic Recovery) funds. The K St Redesign will cost $139 million, which DDOT hopes to cover entirely with TIGER funds. Thanks to the September 15th application deadline, DDOT may finally put an end to the six years of discussion, with interested parties including WMATA and both the Downtown and Golden Triangle BIDs.

DDOT is currently considering two build options to address infrastructure, safety, congestion and access problems in the busy K St corridor. The K Street transit system "serves over 250,000 of the city's approximately 700,000 workers...If workers cannot commute to and through K Street comfortably and efficiently, tenants and jobs will leave the city's core" said Rich Bradley, Executive Director of the Downtown BID in making his case for the K Street redesign.

K St's infrastructure is about 30 years old and the current design is inefficient to say the least. The four center lanes are congested with the various metro buses, commuters buses and cars. The service lanes, separated from the center lanes by medians, are meant for loading, parking and turns, but are more often plagued by parking violations. Beyond the inefficiency and congestion, there is no continuous east-west cross-town transit system to connect Georgetown, Downtown, the Convention Center and Union Station, as stated in the K Street Busway Executive Summary.

The first option includes two center bus/transit lanes, which might allow taxis at certain hours, separated from the general purpose lanes by a median. During rush hour there would be three general purpose lanes and during regular hours the curb lanes might be used for loading and parking. In this alternative, commuter buses would stop in the curb lanes to pick up passengers traveling to the MD and VA suburbs.

The second option includes three center bus lanes at all time (where the road allows). The third lane would act as a passing lane and would switch every few blocks to allow buses in each direction to pass one another. The center lanes would also be separated by a median from the two general purpose lanes. There would not be any parking allowed at any time, but certain locations would be set aside for loading. In this scenario, the commuter buses would use the transit lanes, with Metro and Circulator buses using the center lane to pass.

Bicycle lanes have not been completely ironed out at this point in either alternative.

The project submitted for TIGER funds did not choose an alternative as each would incur the same cost. According to DDOT spokesperson, John Lisle, the EA will be released late this month for a 30 day public comment period. The preferred alternative will be decided after the public comment period ends.

TIGER money is awarded on a competitive basis as "capital investments in surface transportation infrastructure projects that will have a significant impact on the Nation, a metropolitan area, or a region." Final decisions on awards will be granted in February of 2010. DDOT intends to bring the plan to 30% design phase by that time. Assuming the TIGER grants come through, construction for the project could begin by late 2010.

DC Tax Sale Canceled

Washington DC's property sale for unpaid real estate taxes was canceled today. The annual sale was scheduled to begin today, but bidders occupying seats at 941 North Capitol Street were reportedly put on hold several times, only to be told in the afternoon that the tax sale was canceled "indefinitely." DC government officials confirmed that the sale was "postponed," and would be "rescheduled," but gave no timeline for the process.

Registration for the District's tax auction for property in tax arrears began August 31, and the auction was to have started today, lasting until all properties had been disposed of. While District officials would not comment further than to say that a challenge had been filed "to the District's right to set a threshold for the sale of delinquent real property taxes", sources said that the an investor and auction participant had filed a challenge to the process by which the District conducts auctions, seeking an injunction against the auction.

The District had delayed the previous tax sale due to the scandal in the Office of Tax and Revenue.