Two New Hotels to Join Development of New York Avenue NE

Once described many years ago by a local alternative paper as "The Devil's Bowling Alley" for its long stretch of dilapidated auto lots and boarded-up buildings, things are beginning to look up for New York Avenue NE. The latest news is that the joint venture of Rocks Engineering Co. and SharCon Hotel Management & Development Co. is moving forward on its development of side-by-side hotels next to the National Arboretum at the southeast intersection of New York Avenue and Bladensburg Road in the Ivy City neighborhood. The hotels will both be five-story structures, with one being a 126-room Fairfield Inn & Suites and the other a 125-unit Holiday Inn Express Hotel & Suites. The hotels take the place of the old, now-demolished Travelodge Hotel (pictured, officially at 1917 Bladensburg Rd NE). Both hotels are expected to be ready for occupancy in early 2008.

The developers are banking on not only the 80,000 vehicles that pass the intersection each day, but also the other major developments planned for New York Avenue NE. The projects (as have been reported in past dcmud postings) include: Abdo Development's $1 billion mixed-use "Gateway" redevelopment project of 17 acres on the north side of the Bladensburg intersection into almost 4,000 residential units, green space, and a grocery (delivery after 2009); MRP Realty’s "Washington Gateway" project, a $350 million, 150-room hotel and 250-unit residential tower development to be located along New York and Florida Avenues NE (2010 occupancy); and New Town Development LLC’s $1 billion redevelopment of the 24-acre Florida Avenue Market, located between New York and Florida Avenues NE, into 1,700 residential units and 330,000 sf of retail, restaurant, and merchandising space.

Old Post Office Due for Redevelopment

The General Service Administration and the Office of Management and Budget have begun evaluating redevelopment options for the lower levels of the famed Old Post Office on Pennsylvania Avenue. After an enthusiastic response to the GSA’s Request for Information in 2005, the two federal agencies began discussing the next steps for the 375-unit building. Federal Triangle’s Old Post Office was the largest government building and the first steel-framed building in the capital when initially built as the headquarters of the Post Office Department- an attempt to revitalize the surrounding neighborhood. Now, 100 years later, based on government and developers’ interest in the project, the building will either become a government office building, or the GSA will submit a Request for Qualifications and Proposals to gather ideas for making the Post Office a multi-use project.

Complete demolition is not a threat as it was after WWII, but under the National Historic Preservation Act the government space can be leased to private tenants, providing endless possible uses for the building. In the 80’s, the GSA tried to take advantage of this by creating retail space on the first two floors, a project that has since proved financially unsuccessful. Congress suggested that the use of the lower level space not be predetermined, but rather this redevelopment project to be used as an opportunity for developers to submit unique ideas for the building – with the stipulation that any changes made to the inside of the building during redevelopment be reversible. The decision to issue a Request for Qualifications and Proposals is still pending with no deadline, it may be a while before this historical building receives a modern internal revamp.

New Friendship Heights Commercial, Residential Center Gets Underway

Demolition has now begun on Wisconsin Place, a mixed-use, 1.1 million s.f. project at the corner of Wisconsin and Western Avenues in Chevy Chase. Wrecking crews began a very visible demolition in January of the Hecht’s department store, while the foundation is currently being poured on the 480,000 s.f. residential tower, which is expected to come out of the ground in April. The nine-building, four-architect project, developed by a partnership of New England Development Company, Archstone-Smith, and Boston Properties, will be completed by 2009, and include 423 residential units, 305,000 s.f. of office space, retail space, and a 20,000 s.f. community center.

While there are a number of prospective vendors for the town center, Whole Foods Market and Bloomingdales are the only confirmed companies at this time. The trapezoidal Wisconsin Place will front four different streets; specialty retail and office space will overlook Wisconsin Avenue and the Metro Station, while Bloomingdales and other retail space will be located at the corner of Friendship Boulevard and Western Avenue. Connected to the community center, the residential tower will encircle a courtyard, with exterior units facing the new Whole Foods Market on Willard Avenue and a one-acre park at the corner of Willard Avenue and Friendship Boulevard.

Construction on the eight-acre property began two years ago with the construction of the Bloomingdales’ parking garage on which the store will eventually sit. Hecht’s Department store remained open until late last year, a condition of NEDC’s acquisition of the property from Hecht’s parent company, May Department Store Co., but has now been closed for demolition. Bloomingdales, expected to open in September, will take Hecht’s place as the plaza’s department store. The "Residences at Wisconsin Place", developed by Archstone-Smith and designed by Bethesda-based SK&I Architects will include 423 "luxury" rental studio apartments. According to Darryl South, Vice President of Development at Archstone, the residences will feature a high percentage of glass including living rooms with floor-to-ceiling windows. Initial occupancy of these one, two, and three bedroom apartments, starting at $1700 a month, will begin in June 2008.

Washington DC real estate development news

Bethesda Church Site To Add Residential Units

If you look closely while driving west on Old Georgetown Road in Bethesda, just as you pass Glenbrook Road you will notice a small cardboard sign in front of the Christ Evangelical Lutheran Church at 8011 Old Georgetown Road announcing the possible future of new residential units just outside the downtown core of restaurants and rising condos. It appears that Bozzuto Development and the church have submitted an application with Montgomery County to change the zoning at the site from single-family to multifamily use, which would pave the way for them to build 107 new residential units, as well as make improvements to the church. A hearing on this application is scheduled for June 1, 2007, with the Montgomery County Office of Zoning and Administrative Hearings. If all approvals are met, construction is expected to begin by mid-2008 at the earliest, with completion two years after that. More details will be provided as they are learned....

NCRC, AWC Complete Land Swap; Development to Move Forward

After two years of legal wrangling and waiting, the land swap between the National Capital Revitalization Corp. (NCRC) and the Anacostia Waterfront Corp. (AWC) is finally expected to happen this month, paving the way for development at both the Southwest waterfront site along the Washington Channel and the McMillan Reservoir site in along North Capitol Street. The AWC can now move forward with its $800 million project to develop the 47 acres along the Southwest waterfront into "maritime-themed" housing and retail (pictured). The AWC awarded this project to the DC-based venture of PN Hoffman and Struever Brothers Eccles & Rouse last Fall. Meanwhile, the NCRC can now focus on plans for the 25-acre former McMillan sand filtration property, located just north of the US Capitol. In October, the NCRC announced that 5 development teams responded to its solicitation for development of Phase I of the McMillan site along, with the respondents being Horning Brothers, Republic Land Development, KSI Services, Inc., EYA and EastBanc, Inc. Original plans incorporated massive mixed-use development, including 1200 residential units, with affordable housing, 100,000 sf of retail, a community center and "cultural center." No timeline has been set for choosing the developer.

National Gateway Developer Sells Hotel Portion to Marriott

Meridian Group, which is developing the massive National Gateway project just west of Reagan National Airport with partner Archon Group, has decided to sell the 2-acre plot in the project zoned for hotel use to Marriott International, which is planning to place two hotels (a Residence Inn and a Renaissance) on the site with a total of 625 rooms. No sales price was disclosed, nor is there a known timetable for the hotels to be built. Progress is being made on the National Gateway project, a mixed-use development slated for the Potomac Yard area along Route 1 between Crystal City and Alexandria, with Meridian and Archon reportedly ready to break ground this Spring on one of the project's office buildings, with completion targeted for 2009. When finally built (no final completion date has yet been set), the overall National Gateway project - which also includes developers Comstock and Camden Realty – will cost over $1 billion and contain 2.2 million sf of office space, 1,550 apartments and condo units totaling 880,000 sf, the two aforementioned hotels, and retail space totaling 210,000 sf, including a Harris Teeter grocery store. Arlington Virginia real estate development news

Shirlington Hotel Approved

Arlington County gave approval this week for a final site plan application by Shirlington HHG Hotel Development on Arlington Mill Drive in Shirlington across from Jennie Dean Park. The proposal for the project, located at the corner of South Stafford St., was for a 7-story, 142-room Hilton (110,000 s.f.) located on a 0.79 acre parcel with street-level retail. The masonry structure with red, blond, and buff colored brick will feature a mix of studio, 1-bedroom and 2-bedroom units, indoor pool, and provide parking with a residential garage located across S. Stafford Street. The entrance will face South Stafford St., and the developer will improve landscaping and sidewalks surrounding the building as part of the project. The county is requiring a minimum LEED score for the project, though the developer does not intend to seek certification for the project.

This hotel was initially given the green light by the County Board in late 2000 as part of a larger development by the Federal Realty Investment Trust, a nationwide developer which has been a shaping force in Shirlington. The completion of the hotel will be the final element of the Phase II plan.

Abdo to Expand Arlington Holdings, Buys Land Across From Its Mercer and Wooster Project

Jim Abdo must like what it sees when surveying the sites from his new Mercer and Wooster Lofts condo project in Arlington along Clarendon Boulevard between Rosslyn and Courthouse. That would explain his company’s recent purchase for $42.2 million of five lots, bounded by North Quinn, and North Queen Streets, 16th Road and Clarendon Boulevard, across from his existing complex. While no plans have been drawn up yet for this stretch of street, Abdo is contemplating building residential condos. Currently the lots hold aging garden apartment buildings and a single-family home – most likely these will be demolished. Sales at the Wooster and Mercer Lofts (pictured) started last Fall, with delivery expected this year. The Mercer will house 34 condo units averaging about 1,500 sf, while its sister Wooster will contain 53 units. Both brick structures will feature 17-foot ceilings and floating stairs, penthouses with 21-foot high living spaces, private roof terraces, and underground parking and storage. There will also be a garden pool between the buildings. Pricing begins in the $500,000s and goes up to $2 million.

Camden USA Buys a Piece of NoMa Pie

Last week, Camden USA purchased 60 L St., NE, a 71,000 s.f. site, joining the laundry list of developers vying to join the NoMa development surge. This location has become a hot potato, belonging to three different companies in the last three months. As we previously reported, 60 L St. belonged to J Street Development and was called “First Place”; it was then sold to Tishman Real Estate Services. While Tishman won’t comment on the quick turnaround of land ownership, the lot was then sold to Camden USA, a Houston-based company with projects throughout the Mid-Atlantic and lower half of the United States, which plans to turn the site into a two-building, 700 residential unit project designed by WDG Architecture. Located between Tishman Speyer’s remaining property on L Street and J Street Development’s Property on North Capital St., Camden’s “luxury” apartment high-rises will begin the first phase of construction in mid 2008. Ginger Ackiss, Vice President of Camden’s Real Estate Investments in the DC area, said the first phase will include 315 “luxury” apartments rather than condominiums, followed by 375 units in the second phase. While the project is still in the permit process, Camden is happy to have its foot in the door. Ackiss said, “We wanted to get into NoMa because of all of the development going on there, we see the area transforming and we would like to be in that mix.” According to Ackiss, the DC and Dallas-based architect, experienced in residential properties including the Potomac Promenade Condominiums on the National Harbor, will begin the design process next month.

Rockville Town Center Project to Start Construction in Early 2008

After two years on maneuvering, Duball (a joint venture between Reston-based Duball LLC and LA-based CIM Group) is now expected to break ground in early 2008 on its Rockville Town Center project, a $240 million, two residential-tower complex in downtown Rockville just one block west of the Rockville metro station and bounded by East Montgomery Avenue, Maryland Avenue and Monroe Street. Duball plans to develop 485 homes, 45,300 sf of street-level retail, and about 1,400 garage spaces on this 3-acre plot, with architecture by Torti Gallas. Final project review by Rockville planning officials is scheduled for this month, after which applicable permits will be acquired. Construction is expected to be completed by 2011. While these units are believed to be condos, there is still a possibility that the developer will instead make them rentals. If apartments are built, then a hotel might also be constructed on the site (an approved use according to Rockville officials). The Rockville Town Center project has gone through some morphing over the years, with Akridge being the original owner of the site and planning a tall 300-unit building that met opposition due to its height. In 2006, Akridge sold the site to Duball for $34.5 million.

Progress in Pointe at Cheverly

Cheverly, Maryland will soon host the Pointe at Cheverly, a new condo project expected to break ground in the fall. This two-building, 244-unit project, developed by DC-Based Republic Land Development, LLC and Maryland-Based Stepping Stones Development, LLC will offer a pair of four-story buildings built over a two to three level-parking garage with room for upwards of 300 vehicles, built as a gated community. Known for their large-scale mixed-use projects including residential development of the Washington Harbour in Georgetown and Market Square at 701 Pennsylvania Ave, Republic’s development will combine five separate plots of land, totaling 3.34 acres, and replace a one and a half story office building and several empty lots. Designed by Morris and Ritchie Associates, the site will include open space for a swimming pool, courtyards, and a sundeck. Cecil Brown, the Project Architect at Morris and Ritchie, said of the first project of its size to be built in the area, “We wanted to bring a contemporary if not modern feel to the community. We wanted to sort of change the design process in that area.” According to Stacy Hornstein, Republic’s Director of Development, building on the southwest corner of 57th and Annapolis road will begin after the purchase contract with Prince George’s County Redevelopment Authority is completed in the fall; the team is currently in the process of filing for permits. The Cheverly Newsletter reported in October that the average estimated selling price for the units was about $350,000. The project's estimated completion is mid 2009, but sales are expected to begin in May. According to Ken Stuart, Deputy Director of Capital Markets for PGRA, the Prince George’s County Redevelopment Authority will work with the developer to provide below market interest rates to buyers.

H Street Project Finally Gets Go-Ahead

On February 6, the DC Board of Zoning Adjustment unanimously approved plans submitted by H Street Ventures LLC to build a mixed-use development at 601-645 H Street, NE. H Street Ventures wants to turn this stretch of block into a 312,000-square-foot residential, retail and office complex valued at nearly $150 million. According to documents filed with the Board, the developer is hoping to build 240 residential units (no decision yet whether condos or rentals), with 13,000 sf of retail space and 180,000 sf of office space. This project had faced much community opposition since its proposal last Spring, with the main concern focused on the nine-story building H Street Ventures was hoping to build between two existing buildings in this space, specifically its height and scale compared to the rest of the block (citing that it violated the H Street Overlay guidelines regulating the construction of buildings over 6,000 sf, thus necessitating a special exception). The developer subsequently worked with neighbors to reach consensus on a reconfigured, more pleasing scale for the building that adhered to all the other Overlay guidelines, and proved its exemption would not set a bad precedent for future construction on H Street. Construction is expected to start later this year, with completion in 2009.

JBG Looking to Develop Next to Red Line’s Glenmont Metro Station

Developer JBG has big plans to mine the untapped potential of the underdeveloped strip of upper Georgia Avenue running past the Metro Red Line’s last stop at Glenmont (officially located at 12501 Georgia Avenue, north of Layhill Road). JBG has reportedly reached a deal with the owner of Privacy World, a 1960’s era, 352-unit apartment complex just north of the station at 2501 Glenallan Avenue, and the developer hopes to build a new, large mixed-use complex on the 31-acre site. The JBG project would include a total of 1,550 residential units (including 250 townhomes) and 90,000 sf of retail space. There will be a 12.5% unit set-aside for affordable housing. The developer is looking to also include an upscale grocery store and restaurant. If approved, construction is expected to begin around 2010 and continue over the next 15 years. JBG’s transit zoning application for this project is expected to be considered next week by the Montgomery County Planning Board.

Suitland Metro Station to See New Center of Development

After 20 years of buying land and a four-and-a-half year zoning process, Kevin Sills, President of Oakton-based Mid-Atlantic Real Estate Investments, is planning to break ground late this summer on a 22-acre, mixed-use residential and commercial development near the Suitland Metro and across the street from the future site of Prince George’s County Redevelopment Authority’s Suitland Manor. The $800 million Town Center at the intersection of Silver Hill and Suitland Roads will have 1 million s.f. of retail and office space as well as 1,100 residential units, likely including condominiums and apartments. The project, which will replace several houses, two strip malls, and several unimproved lots, all owned by Sills, will include retail and office space on the first floor, with the residential units on the upper floors. Mid-Atlantic is in the process of replacing the project architect and plans to select a land planner within three months; no renderings have been released thus far. In the meantime, Mid-Atlantic plans to begin demolition soon, breaking ground on a 16-acre portion of the site late this summer. Mid-Atlantic, whose past projects include primarily industrial and professional centers such as Coral Hills Shopping Center in Capitol Heights, is currently in the final stages of an $8 million interior and exterior renovation on a nearby office building that, upon completion in the next month, will house the Prince George’s County Health Department.

Club at Quincy Project Expands to Neighboring Funeral Home Lot

Florida-based WCI Communities, which originally planned to build its new 12-story mixed-use condominium building completely in the parking lot of the Arlington Funeral Home property on North Fairfax Drive, has now announced that it hopes to expand this development to cover the existing funeral home building land as well. The Club at Quincy project, located in Virginia Square at 3901 N. Fairfax Drive, will now be a 124-unit condo complex, with WCI first demolishing the funeral home then building the condo building and a new funeral home on the site. The condo units are expected to average 1,200-1,300 sf. Pricing has not yet been set. With the additional space now afforded by this expansion, WCI plans to also include 3,440 sf of ground-floor retail and a 75-seat community theater to the complex, as well as a landscaped deck with a pool and spa. The project is being designed by WDG Architecture. WCI is still going through the approval process, but hopes to start construction by early 2008.

A Second Chance for First Baptist Church of Clarendon Project?

Contrary to what F. Scott Fitzgerald once wrote, sometimes there are second acts in America. Last October, dcmud reported that - after two years of much back-and-forth waiting - it appeared the First Baptist Church of Clarendon’s "The Views at Clarendon" project was off the drawing board, as the Virginia Supreme Court ruled that Arlington County violated its own zoning regulations when it approved the church’s plans in 2004 to build a mixed-use church and residential development at its current location at 1201 N. Highland Street. However, just last week the Arlington County Board of Supervisors surprised everyone and decided to once again take up this project, citing the need for more affordable housing in Arlington. The church has resubmitted its plans, and the Board, with the court's required zoning changes in place, will hold a vote on the project on February 24. "The Views at Clarendon" project will keep the church's 107-foot steeple, while rebuilding the church (a smaller version) within a 10-story, 116 rental-unit structure (with 70 units reserved for moderately priced housing) that would help defray the church’s operating expenses.

The long tale of this project will make a nice novel one day. When the church originally received zoning-change approval from Arlington for this development, neighbors immediately objected to the tall tower, and filed a lawsuit in November 2004 to reverse the decision. While the County Circuit Court judge ruled in 2005 against the neighbors, in September 2006 the Virginia Supreme Court reversed the Circuit Court and sided with the neighbors, stating that the County violated its own Zoning Ordinance 27A by not complying with its eligibility requirements. Stay tuned for the next chapter in this saga....

Crystal City Office-to-Residential Conversion Expected to Start this Spring

Feeling the residential boom immediately to its south along Route 1 down to Alexandria, and finding itself with plenty of suddenly empty office space due to the US government’s recent base realignment and closure measures, Crystal City is making big strides to transform itself into a more residential-friendly neighborhood. First up is Charles E. Smith Commercial Realty’s plan to gut and convert Crystal Plaza 2, located at 220 20th Street S., from almost 200,000 sf of office space to mixed-use residential. The company expects to start the conversion this Spring, with a target completion date of Spring 2008. Crystal Plaza 2 was once home of the US Patent and Trademark Office, before the agency moved to Alexandria in 2005. According to Arlington County records, Crystal Plaza 2 was approved last September for 266 residential units (including six additional floors on top of the existing structure), plus 29,000 sf of retail space. The building will also be re-skinned with new glass and metal. No final decision has been made yet on whether the units will be rentals or condos.

Centex Sells Pavilions at Takoma to New Developer – Project Back On, But As Rentals

Just when you think you’re out, they pull you back in. Yes, real estate and the Godfather have plenty in common, none more so than the more things change, the more they stay the same. Just weeks ago, Cityhomes by Centex Homes announced that it was canceling its Pavilions at Takoma project and not moving forward with this development. But now arrives word that the company actually is in the process of selling the project to another developer, which plans to build it more or less as originally rendered, but then offer the units as mostly rentals rather than condos. The new owner has not yet been identified, though Centex has confirmed the sale. The Pavilions at Takoma originally began condo sales in November, with prices starting in the low $200,000 range for studios in a LEED-registered, four-story building at 7023 Blair Road NW, just one block from the Takoma metro station. Expected rental prices are not yet known at this time for the revived project.

Washington DC commercial real estate news

Douglas Development Brings Sister Apartment Buildings to Takoma Park

Douglas Development met with Takoma Park residents last week to present plans for a pair of 55,000 s.f. sister apartment buildings to be built between Willow and Maple Streets behind the once hotly debated CVS on Carroll Street. The buildings will be named after their respective street proximities, just three blocks from the Metro Station. The transit-oriented project will be built on several vacant lots and will force the relocation of three existing homes. Douglas Development, known for its work in Penn Quarter and commercial development, worked with GTM Architects, which has designed several multi-family homes including Tenley Townhomes. Each building will consist of four levels, three above ground, and a basement floor. The suburban-styled complexes will include balconies, detailed windows, and a large surface parking lot to provide one spot per dwelling. And though an apartment project is more savory than what often goes on behind drug stores, there has been a mixed reaction from the traditionally development-resistant neighborhood.

According to Melissa Cohen, an architect at GTM, "They (the neighbors) are skeptical. I think development is difficult and some of the projects in the neighborhood haven't been completed as they might have liked so there is some resistance." Cohen added that Douglas still has to meet with the Historic Preservation Review Board and the Zoning Commission; under ideal conditions, it will be another two years before the Maple and the Willow break ground. In related news, SGA Architects is currently preparing to build Ecco Park, an 85-unit condominium nearly across the street.

Dakotas Condo Project Near Fort Totten Ready To Roll

After years of planning and dreaming, it appears residential development is about to begin near Fort Totten metro, one of the few stations that has not seen a construction boom over the past years. Work is about to start on Phase I of The Dakotas, a $300 million, 10-acre project containing 800 mixed-income condo units and apartments, a grocery store and restaurant, plus needed retail stores for the area (80,000 sf of retail total). The Dakotas will be located at Riggs Road and South Dakota Avenue (on both sides of Riggs), just a block or so from the metro station. The developers for this project are Lowe Enterprises, Jack Sophie Development and Ellis Denning Properties, who also envision creating landscaped green space for public use, along with well-lit and landscaped pathways connecting The Dakotas and the Fort Totten metro station. The project will be comprised of low-rise, wood-framed buildings, with fitness rooms and rook decks for residents. The condos are expected to be priced starting in the upper $100,000s for a studio to almost $400,000 for two-bedroom and den units. Development of this size has not occurred yet in this part of town, so it will be interesting to see if and how it transforms the area, and if it sparks some more development for this corner of upper Northeast DC.