Bethesda Developer Shelves Project

Plans for a 250-unit development in downtown Bethesda were put on ice this week by Street Retail Inc., a wholly owned subsidiary of Federal Realty Trust, citing adverse community reaction. The project, when put into motion, will create a 250-room hotel, 56,000 s.f. of retail space and 250 "residential components" for downtown Bethesda at the NE corner of Woodmont and Bethesda Avenues (site photo pictured).

Phase one of the project, consisting of a single 5-story office building with ground-level retail and eight-screen movie theatre, already sits on the NW corner of the lot and is proposed to be incorporated into the new development. In order to accomplish architectural integration with the surrounding Metro Core District, design team Shalom Baranes Associates has concentrated building density in the northeast portion of the lot, gradually decreasing the concentration of construction to seamlessly transition into the southwestern low-density zones.

Last week, the Montgomery County Planning Department finally reviewed preliminary plans for the development, more than a year since they were originally submitted. During that time, developers have been hitting the streets, dedicating copious time to local government officials, Planning Department members and the community at large in an attempt to head off future dissent and incorporate feasible solutions into the overall plan. It has paid off; one notable example lies in the hubbub that arose when Capital Crescent Trail constituents found out they would lose their trail during the duration of the two-year construction period. As a result of community involvement the development team came up with three alternative solutions to the problem that subsequently satisfied the concerned parties.

Still, many don't want to see more development on what is now open green space, a factor accentuated by the PN Hoffman project approved just across the street. Maryland Politics Watch writer David Lublin opines: "Precisely because so much development is already approved near to that intersection is why more open space is needed." In turn, developers have pulled out because they want to meet those concerns before entering a public hearing.

John R. Tschiderer, VP of Development for Federal Realty Investment Trust, stressed his firm's focus on community involvement. "[We] have been involved in creating Bethesda row for 13 to 14 years, and our investment in its creation has been through a public/private partnership. We have worked through the political and community leadership and the constituents thereof collectively, to create a very distinct and noticeable district. There have been many layers of benefit to all of those involved in the partnership and we are going to continue in that forum."

Developers Dump Condos

If you build it, they will come. But they will most likely not buy. That appears to be the maxim for many developers, as buyers - searching for deep discounts, or the dream home at a bargain price - sit out the chance to own, preferring the relative stability, if predictable negative return, of the rental market, to the less predictable vagaries of the condo market. Most buyers are unabashed about their abstinence, musing that time is in their favor in the short run, surmising that additional days on the market equals greater desperation of the seller, which in its turn leads to further price drops.

But then that's presuming developers continue selling their condos. While the majority of developers within DC have held out (though Arlington developers have fared worse), the switch from condos to apartments has become increasingly common, owing either to poor sales, more profitable returns of the rising rental market, or both. Enter the most recent cases in point: Highland Park, Senate Square, McGill Row, and Lincoln Park Terrace, all condo projects that recently converted to apartments after slow sales.

Together the projects have 759 units under development, now withdrawn from the market, accounting for nearly 10% of the 7944 new condominium units projected to be completed in Washington DC over the next 24 months. 240 of those units were under contract, for a net reduction of 519 condominiums from the market, with 240 erstwhile condo purchasers now presumably back on the condominium search.

"Buyers will be too smart by half" says a developer not wishing to be identified. "Developers may have [negotiating] room. If [buyers] try to wait out the market until that last possible moment, they may find that there just aren't that many choices left. At that point, we won't have to negotiate anymore." Time will tell.

HPRB Approves 13th and W Project

Today, the Historic Preservation Review Board (HPRB) voted to approve a development plan from Four Points LLC, converting a quarter of a block of land at 13th and W Streets, SE, into 23, three-story townhouses (pictured above). HPRB's approval was needed because of a single historic structure on the property, "the dilapidated and fire-damaged 1242 W Street, SE" according to an HPRB staff report from September 27. The next step will require Four Points to sit before the Board of Zoning Appeals in February.

To comply with HPRB recommendations, Four Points and PGN Architects PLLC must repair the historic house and move it forward to the street-line. Developers submitted drawings that illustrate a "still more close reconstruction of the original," according to HPRB findings. In addition, HPRB instructed that the surrounding townhouses be constructed in a manner "evocative of the Victorian era" (minus widespread typhus and frilly bonnets, presumably).

In a further attempt to preserve the historic site, Four Points proposed the construction of an alley to dichotomize the block; HPRB and Four Points collaborated to create an "L shaped" alley to serve the community and still maintain a historic feel, a characteristic of the historic area, especially within commercial blocks. That proposal has subsequently been approved by HPRB.

While the details are still being worked out, Four Points will continue to work alongside the Office of Planning to maintain historical accuracy. The February Board of Zoning Appeals hearing will review the lot width requirements for each of the 23 structures.

Office Buildings Unite! (Raise Hands in Ecstasy)

Unbeknownst to the naked eye, interior demolitions have recently begun on two neighboring buildings in Golden Triangle: 1000 Connecticut Avenue (pictured) and the adjacent Thompson Publishing Group building (also pictured...if you look really closely). Once demolition crews are finished removing the interior remnants, the buildings will be demolished to pave the way for their replacement: a 12-story building which will be home to 356,000 s.f. of office space and 14,000 s.f. of ground floor retail. Both owners of the existing structures will share proprietary rights of the future building under the harmonious name: 1000 Connecticut Avenue Associates and PNC Bank, a title which was decided on only after numerous months of creative brainstorming.

The task for architects Pei Cobb Freed & Partners has been relatively demanding; the structure must accommodate mixed-uses while maintaining "sensitive [design] to compliment the surrounding large scale commercial buildings" according to an urban design order from the Zoning Commission. In addition to fulfilling aesthetic mandates, the developers have successfully petitioned the Zoning Commission for an increase in allowable gross floor area. In exchange, Connecticut Ave Associates and PNC Bank will offer a number of benefits and amenities to the District, most notably a $841,000 contribution to the Marshall Heights Community Development Organization. The donation, which is roughly $150,000 more than required by housing linkage requirements, will be used toward constructing low-income housing at 4th and Mississippi Streets, SE.

The interior design firm, WDG Architecture, has worked closely with Pei Cobb Freed & Partners in an attempt to create an eco-friendly design plan. Although the final LEED certification level will not be determined until completion, the owners will seek LEED status and, according to Zoning, the office building will "incorporate such LEED-level elements as reduced water usage, energy performance systems and materials, ozone protection, use of recycled or salvaged construction materials, carbon dioxide monitoring, a high-efficiency ventilation system and low-VOC finish materials." A green roof is also proposed to cover 53% of the rooftop area.

Exterior demolition is set to begin by the end of November, putting the start of construction on the calendar for Spring of 2008. Delivery is expected late in 2009.

Metro Board of Directors Approve Takoma Plan

On Thursday, November 8, the Washington Metropolitan Area Transportation Authority (WMATA) Board of Directors gave final approval to amend a purchase, sale and development agreement with EYA for Takoma Park Metro Station. The joint development will provide the community with an upgraded Metro station, new access roads and sidewalks, and an undetermined amount of residential structures - although according to third-party appraisal team Lippman, Frizzell & Mitchell LLC (LFM), the current sale agreement would amount to a total purchase price of $10.32 million for EYA, allowing for "an expected development of 86 market rate townhouse units."

The initial sale agreement, from June 2005, was highly debated between both community and board members. To clear the air, Board Member Gladys Mack held a public hearing last year, where more than 150 attendees came to voice their concerns. As a result, a few minor changes were applied to the Takoma Station General Plan, the most notable being the financing. Under the original sale, EYA would have purchased a portion of the Takoma Station at $105,000 per market rate lot, with a minimum purchase price of $7.35 million - well below LFM's market valuation of the site. According to a WMATA Board Information Summary, "Some community members said that the return from the project would be inadequate."

The newly amended agreement includes a provision for a minimum return of $2.5 million net payment to WMATA. Additionally, if EYA decides to incorporate a parking garage, WMATA will require another payment of $715,000 and proceeds from public use of the garage. Ms. Mack's open-forum did little to clear the air; members of the community have continued to contest the process saying WMATA has reneged on a "no build" promise from the '70s.

Prior to the approval of the '74 site plan, the community and WMATA were at odds over the "open space" referred to in the initial draft of the plan. Community members petitioned WMATA to provide an urban park on the land, but despite community opposition the Transit Authority approved the plan in its original form, merely designating the space as "open." Some in the community interpreted that as a promise to build a park for the public and are looking to enforce that provision.

WMATA countered in their staff review that their function in developing real estate is to "acquire and own property necessary or useful in rendering transit service or in activities incidental thereto," and that "The argument that WMATA once promised to perpetually operate and maintain a park also assumes, incorrectly, that WMATA has legal authority to operate and maintain parks." As a result of staff analysis, the Board was advised to disregard any allegations of a "no build promise."

The next step for EYA and WMATA is to get approval from the DC Planning and Zoning Commissions and the Federal Transit Authority. This Monday, during the Zoning Commission's monthly meeting, commissioners will decide whether to "set-down" the project: decide whether the project warrants a full hearing, or whether changes need to be made before it can receive proper zoning review. If zoning approves the Takoma Park Metro project for set-down, a full hearing involving public participation will ensue.

Mayfair Mansions Dig Starts Thursday

This Thursday, the Community Preservation and Development Corporation (CPDC), in partnership with Marshall Heights Community Development Organization (MHCDO) and the Mayfair Mansions 2005 Tenant Association (MMTA) will host the official groundbreaking ceremony for the historic Mayfair Mansions affordable housing community, at 3819 Jay Street, NE. The existing residences will receive both a tangible makeover, involving a bombardment of upgrades and the creation of a brand new 10,000 s.f. community center (pictured compliments of Wiencek + Associates), as well as less tangible improvements including the preservation of long-term affordable rental housing and the creation of affordable homeownership for tenants.

The trinity of acronymic organizations will provide 410 affordable rental units and 160 affordable homeownership opportunities - okay, condos - in the Parkside neighborhood. The roots for these preservation and affordable housing objectives were planted back in 2005 when the Mayfair Mansions Tenants Association exercised their TOPA rights, which allows tenants of a rental unit first right of refusal to purchase before a landlord can legally sell his property. MMTA subsequently sought assistance, partnering with the two local development groups, which acquired the site in July 2006; CPDC to lead the rental preservation initiative and MHCDO to head the creation of affordable homeownership.

Under the partnership, CPDC and MHCDO have been investing in the 23-acre site for the past two years and now plan to bring the community's vision to fulfillment. The DC Department of Housing and Community Development has provided $27.5 million in long-term subsidies for both rental and ownership elements; a bundle of Low Income Housing Tax Credits was also provided in light of Mayfair's continued status as a low-income housing supplier - about 95% of the rental housing is restricted for applicants at or below 60% AMI.

The most interesting source of proceeds comes from the Federal government in the form of a Federal Historic Rehabilitation Tax Credit, which is being provided due to Mayfair's historic status; the Mayfair Mansions were originally constructed in the 1940s specifically for the African-American community in a time when racially restrictive covenants had a stronghold on housing laws. Albert Cassell, a renowned African American architect who designed numerous milestone structures for the Howard University campus, served as the lead designer for the erstwhile Mayfair community. In 1990, Mayfair was put on the historic register due to its social significance.

Although minor construction efforts have been in effect since October 10th, the official groundbreaking on Thursday will commemorate the rebirth of the Mayfair community and its dedication to serve all income levels. Amidst the celebratory proceedings, Mayor Fenty will be on the business end of a shovel, at least long enough for a photo op, along with City Council Chairman Vincent Gray and a handful of other local politicos.

Design and construction for the 570-unit housing community will be a joint-venture of architectural and construction firms. Wiencek + Associates and McDonald Williams Banks Architects will serve as the design team while Gilford Corp. and Hamel Builders Inc. will share construction and renovation responsibilities for the array of housing units. Project completion is expected in the first quarter of 2010.

Columbia Heights Largest Condo Converts to Apartments

Donatelli Development and partner Gragg and Associates acknowledged today they will convert their iconic Highland Park condominium (pictured, top) at the southwest corner of 14^th and Irving streets in Columbia Heights, into rental units. The mixed-use development was the neighborhood's largest condominium, with 229 residential units, 20,000 square feet of retail, and three levels of underground parking, directly above the western entrance to the Columbia Heights metro.

“In light of recent shifts in the condominium market, we decided that we would be in a better position to serve the Columbia Heights market with a luxury rental building,” said company president Chris Donatelli, who developed the project in conjunction with NCRC and has done as much as any individual to bring about the revitalization of Columbia Heights. Despite its location above the Metro and across the street from DC-USA, the massive retail center opening in late winter, only about 75 of the 229 units were ever under contract, never matching its sister project across the street, Kenyon Square , a 153-unit condominium also by Donatelli that began delivery in July and is now more than 70% sold out, according to sales agents Domus Realty.

Silver Spring-based Torti Gallas designed the building, which had been offering a 24-hour front desk, two-level fitness center, an "unusually large...hotel-style lobby" (pictured, below), and one of the most inviting roof decks of the city. The condos had been priced from the mid $300's to the upper $700's. Donatelli points out that conversion will have no adverse impact on the finishes or amenities, as the building has been mostly completed, with delivery scheduled for early next year.

At the same time, Donatelli Development announced it has reached agreements with six retailers, helping to round out the burgeoning area as the northern tip of the 14th Street retail corrider, as planned by the city, and bolstering Columbia Heights as a retail center in its own right. Retailers at Highland Park will now include Hank's Oyster Bar, Five Guys Burgers and Fries, Potbelly Sandwich Works, Pete's Apizza, Zinnia - a Caribbean food restaurant, and Signal Financial Federal Credit Union.

“With two large buildings in the neighborhood, we’re in a position to understand what’s happening in the market on an extremely local level,” said Donatelli. “By pulling a large chunk of units from the condo market, we make a whole new class of product available to the Columbia Heights rental market.”

Construction began in mid 2005, sales began in November of the same year. Donatelli has experience in both the condo and rental market, having developed the Ellington apartments that helped transform U Street while remaining nearly 100% tenanted; Donatelli is also currently developing Park Place, a 156-unit condo in Petworth, also above the Metro, that is expected to begin delivering late next year.

Roundtable for Surplus Public Land

This Wednesday, 26 individuals joined together at the Wilson Building to air their concerns before Councilmember Carol Schwartz in a Public Oversight Roundtable discussing the process of declaring public land as "surplus." The normally arcane process of land disposition has been under scrutiny of late, due largely to recent attempts to develop city land by legislation without a public bidding process - processes which were nixed at both the Janney School / Tenley Library (pictured, being demolished), and in the West End. Under the current regime, land is declared as surplus within the same legislation proposing its sale; Ms. Schwartz was of the clear impression that the process needs to be bifurcated to include more public input. The resulting discussion, which included much disparaging of public-private partnerships, unearthed some interesting points regarding the current process.

Ms. Schwartz, the only Councilmember present at the meeting, held the open-forum, during which many of the attendees shared their grievances regarding public-private partnerships; on more than one occasion it appeared that Ms. Schwartz was of the same mind. "I don't like unsolicited proposals," she stated. According to the Councilmember, an ideal property disposition would involve approaching each proposal as a public surplus issue first and foremost - if the government receives an unsolicited proposal, the Council should first determine whether the city needs the land in a separate finding, and if so, initiate a competitive RFP process.

Charles Barber, President of the DC Building Industry Association, offered one of the few counterpoints to forbidding unsolicited proposals, citing locations where buildable land sits in dormancy because private companies are unwilling to develop due to the risk associated with building in less-than-appealing neighborhoods. The benefits of pioneering, he added, catalyze further developmental growth and can offer drastic gains for residents of the area. Mr. Barber pointed to a prime example: the Verizon Center and its enriching effects on Chinatown.

Barber pointed out another example where the land disposition process should be more accommodating: scenarios involving property that may only have real value to an adjacent land owner because of its inadequacy to house a standalone project. He illustrated the circumstances of George Washington University's acquisition of an 8,500-s.f. parking lot from DC Public Schools. The sliver of parking lot was purchased for $12 million to be merged into a larger project: a new GWU dormitory. Other developers would have been hard pressed to make good use of such a small slice of land, and DCPS had little need for the tiny back portion of their parking lot; in fact, DCPS and School's Without Walls had much more use for the $12 million it received for the site, which will be used to renovate an adjacent school building and build a new addition. "It was a win-win situation," said Barber. "The District should have the flexibility in certain situations to accept unsolicited proposals."

But many at the hearing disagreed. Nicole Armbruster, a DC resident, declared "there is no such thing as surplus public property," citing the example of abundant civic needs that exist and could be filled by public projects on the so-called "surplus" land. Chris Otten, a member of Community Empowerment Operations, suggested that public land never be sold, but rather the government re-purpose it for new uses. He used the example of a dilapidated school being turned into affordable housing, a library, or a dental clinic.

Testimony was clearly not favorable toward private development, even Ms. Schwartz criticized developers who offer unsolicited proposals or respond to RFPs, only to request relief from real estate taxes and other forms of reprieve. "That's bothersome to me," she said, referring especially to developers of projects in developed areas of town, who "know that [they] are going to get a nice profit...This is not a charity case."

New Addition to Mt. Vernon Triangle in Spring '08

A brand new $55 million multi-use development is almost set to materialize in Mount Vernon Triangle as developers and architects put the finishing touches on design plans. 459 Eye Street NW will be the new site of Walnut Street Development's Eye Street Lofts, a 12-story structure which will house 164 apartments and more than 15,000 s.f. of community-serving retail space.

The lot, which spreads from 443 to 459 Eye Street, has been planned for development since 2005, when Walnut Street had originally proposed condos for the site. Unfortunately for the condo market, a historic preservation impediment hindered Walnut Street's vision. The Historic Preservation Review Board (HPRB) halted the plans because of the Central Auto Works garage, a historically-designated structure that currently sits on the lot. Architects HOK Group have decided to incorporate the entire aged structure into the new edifice by piercing columns through the building. Once the columns are in place, Tompkins Builders will have to construct footings beneath the garage to support 10 stories of new construction. The auto garage isn't the only structure being preserved on the site; two existing row-houses are being used in the design-plans as well as an historic blacksmith shop.

The existence of historic structures on the site presented unique obstacles for Walnut Street. HPRB required 9 months to approve project - but subsequent to the extended waiting period, Walnut Street faced an invariably different economic environment. In reaction to the drastic change in the market, developers circular-filed the initial condo proposal and entered into a waiting game to stalk the perfect economic conditions for a rental project; it seems that time is now. Ground is expected to be broken by Spring of 2008.

Alexandria Auction: An Unconventional Success

The Parkside at Alexandria residential community received a surge of sales last week during a real estate auction where more than 200 bidders came to compete on the remaining 30 condos available at the development. The scramble for the discounted townhouse-style residences ended just 60 minutes after the bidding opened - leaving nothing behind for the reluctant, and putting more than $10 million in the pockets of Mid-City Urban LLC and its partner Parkside at Alexandria LLC.

The drawing factor was the obvious chance to get a discount, and in the end, two-bedroom condos sold at an average of almost $40,000 less than their original price of $339,000, while three-bedroom units, which would have originally cost $379,000, were auctioned at almost $30,000 less.

Parkside at Alexandria was originally constructed more than a half-century ago as an apartment complex, the community was purchased by Parkside at Alexandria LLC which converted the rental units into condominiums. Sales on the 378 residences commenced in early 2004.

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White Flint Public Forum From MoCo

Lead planners for Montgomery County are inviting interested members of the public to an advisory planning meeting for discussion regarding the mixed-use design plans for White Flint. The meeting will be held November 5, at the Park and Planning Headquarters in Silver Spring, and will follow a long list of open forums arranged to discuss development of North Bethesda along Rockville Pike.

Montgomery County has initiated a full-fledged attempt to immerse public opinion into every step of the planning process. County planners have reached out for public comment in a variety of ways, holding more than a half dozen meetings of the White Flint Citizens Advisory Committee, devoting an entire episode of its insanely popular public access show “Montgomery Plans” to the future of White Flint, and taking a comprehensive look at the 15-year-old North Bethesda/Garrett Park Master Plan together with the community.

With the early design phase nearing its end, tomorrow's agenda is expected to include discussion of both revisions to Route 355, which is proposed to be beautified and tailored to be less pedestrian-hating, and the sporadic construction of new mixed-use sectors along the Rockville Pike corridor. The next step, after the current hodgepodge of community meetings has reached its end, will be to obtain approval from the Montgomery County Planning Board. The Planning Board's review will require a new phase of public work-sessions, although their decision is rumored to be due by the end of January, 2008. The final step in the design phase requires the Montgomery County Council and County Executives to hold yet another set of public hearings, after which the Council will infuse their input into the plan. Once the anthology of community input forums has come to a halt, an overall development guide for White Flint will be distributed; the tentative date is for the last quarter of 2008.

Planners are still working the initial kinks out of the design, however the over-arching goals for White Flint have been established for some time. When asked in a televised interview what the proposed design would include, Margaret Rifkin, lead planner for the White Flint Sector Plan said "We're especially going to be focusing on how to integrate more residential [space] and make this area around the metro station a really fabulous place to live and a great place to work." Rifkin added that "The community has embraced the big idea that's in the current plan, which is that White Flint will be the main urban center for North Bethesda."

Apparently the community has also agreed that Rockville Pike is ostensibly similar to an airport runway. Rifkin discussed this in a televised interview, proclaiming that she hopes that the major form-giving elements of the new White Flint will be of public domain; her vision is that open public space and new streets will help re-define the area. Route 355 would need special attention, she admitted, involving a complete character overhaul that integrates a more beautiful streetscape with the functionality of a main thoroughfare.

Rosslyn Hotel to Celebrate Grand Opening

The Hotel Palomar at Two Waterview Place in Rosslyn, VA will officially open its doors during its celebratory inauguration on November 15. The hotel is the first structure to be completed in a pair of adjacent buildings seated in Rosslyn. The hotel, designed by Pei Cobb Freed & Partners, is a 154-room, 4 Star "luxury lifestyle hotel," sitting just a stone's throw away from Georgetown by way of the Francis Scott key Bridge and two blocks from Rosslyn Metro station. The hotel will share the 30-story structure that houses it with 133 condominiums which will offer "boutique-inspired living" according to the developer, JBG Companies. The condo portion is expected to complete by May of next year.

The remaining half of the project - the 24-story office building - has yet to be completed, though no one from JBG Companies was available for comment on the completion date. Although the commercial space has not yet opened, it is most certainly not up for grabs. JBG announced exactly three years ago that the Corporate Executive Board Company would occupy the entire 625,000 s.f. space at Waterview for 20 years following the building's completion - "the largest-ever private sector lease transaction to be executed in the Washington metropolitan area," according to JBG's research.

Upon completion, Waterview will be owned by three distinct entities; CIM Group, the property holder, will take ownership of half of the development while JBG Companies and Trizec Properties Inc. will split the remaining half. The entire complex is expected to be completed by the second quarter of 2008, although multiple delays have set the 15-years-in-the-making project back significantly, including a construction accident which injured 16 workers last December.

Silver Place Design to Get a Hearing

The Silver Spring community has been invited to attend an open forum on Thursday, November 8, by the Montgomery County Planning Board for a hearing to collect input on Silver Place, a mixed-use development (concept design pictured) at 8787 Georgia Avenue: a 9-story office tower, upwards of 300 for-sale and rental unit residences, and more than 500 underground parking spaces. The board hopes to accomplish two objectives at the round-table: adopt a memorandum of understanding that will outline the roles of the developer, SilverPlace LLC, and the Planning board, and submit a request for up to $4.9 million in funding from the Montgomery Council to begin the design phase.

The Planning Board is seeking public consensus and intends to involve the community - a difficult task considering the complexity of the development, which is comprised of an intricate assortment of condominiums, rental units, retail space, a new 120,000-s.f. Parks and Planning Department headquarters and lots of public urban space to link each component contiguously. The Planning Board will hold charrettes, or interactive design workshops, requiring the convergence of varying public concepts into a single comprehensive architectural design. The board's hope is that these workshops will "match design talent with public perspectives to produce a concept that meets the Commission's need for a headquarters and sets a new standard for public buildings and urban office space," according to a press release distributed by The Maryland-National Capital Park and Planning Commission (MNCPPC, for those in the know).

The design team whose RFP response ranked highest among members of the commission last January, was SilverPlace LLC, a "to-be-formed joint venture partnership" between the Bozzuto Group, Spaulding and Slye Investments and Harrison Development.

Razing Begins Monday on Old Capper Site

"The bulldozers are ready," said David Cortiella, Project Coordinator at the District of Columbia Housing Authority, alluding to the demolition vehicles that will be unleashed upon the old Capper Seniors building this coming Monday, November 5. This correspondent's preference for dynamite notwithstanding, the slow work of demolition will take place at 601 L Street, SE, lasting approximately four weeks, clearing the way for a new construction project (pictured) to be supervised by Forest City Washington, the developer behind The Yards on the southeast riverfront and the Ballston Common Mall in Arlington, VA. EYA and Mid City Urban LLC will also work in collaboration with Forest City on the site. 

The DC Housing Authority has been working to prepare for demolition since the beginning of September, carefully navigating the obstacle course that is the HAZMAT abatement protocol. As of tomorrow, all of the hazardous material on the site will have been removed and the raze permits will be in effect, paving the way for the future of the site. What lies in store is a 500,000-s.f. office building on the southern half of the lot and an undetermined number of mixed-income residential components on the northern half. The redevelopment project began with destruction of two Capper residential buildings and the construction of two new residences in their place: Capper #1, completed in 2006, as a seniors' residence and Capper #2 for workforce housing, set to begin housing residents as early as next month. The office building, by being designed by Shalom Baranes Associates Architects, is the third structure to materialize in the vast 32-acre Capper/Carrollsburg Housing Redevelopment - a project which has been funded by the US Department of Housing and Urban Development in the form of a $35 million Hope VI grant. The rest of the 32 acres will be developed in a joint effort,Mid City Urban and Forest City is proposed to house retail spaces, office buildings, condominiums, apartments and townhouses.

Brookland Eyes 10 Acres of Development at St. Paul's

St. Paul's College, located between 4th St. and the Metro tracks in Brookland, is subdividing its 20-acre campus and has contracted with EYA to purchase and develop half of the property into 250 single-family townhouses. The college says it will monitor the $50 million project to ensure that the design vision of the college is realized through EYA's efforts.

The property, abutting the Trinity and Catholic campuses along 5th and 6th Streets, will be fed by extensions of Jackson and Hamlin Streets, and will house three and four story town-homes of two distinct design styles: a minority of the structures will feature gothic architecture matching the existing college building, while a vast majority are said to be in keeping with the design features reminiscent of the surrounding Brookland neighborhood. About 10% of the housing will be devoted to low-income households. Along with the homes, EYA has discussed constructing sidewalks along existing streets as well as building passive parks and courtyards to beautify the residential landscape.

The next step for EYA and the Paulist leadership is to appear before the entire ANC commission towards the end of this year. ANC 5C representative Silas Grant has met with the members of the community multiple times, but according to sources close to the process some people within the community feel that the construction and heightened traffic density could cause problems. Still, others see the single family homes has having a positive effect on property values for the community as a whole.

The P.U.D. was submitted in September and if all goes as planned it should be ratified late in 2008, putting EYA on schedule to break ground in the first quarter of 2009. Once the P.U.D. is approved, EYA will open up the bidding to contractors, although the Virginia based Lessard Group has already been chosen as the acting design architect and VIKA Inc., located in Maryland, has been designated as the project engineer.

Washington DC real estate development news

Mayor Fenty to Celebrate View 14 Construction

Shovels will hit the dirt tomorrow at the official ground-breaking of the View 14 apartment building, a mixed-use development located at 2303 14th Street, NW. The $80 million development, a joint venture between the local Level 2 Development, LLC and Chicago-based Centrum Properties, will create 185 "sleek" apartments and 34,000 s.f. of retail space at the corner of 14th Street and Florida Avenue, NW.

Level 2 has been preparing for tomorrow's ground-breaking in several stages over the past two years; back in 2005 the main lot was purchased for $10.2 million from Petrovitch Auto Repair Inc.. Then, late in 2006, it bought the adjacent lot from Comcast for $3.2 million - a price which included the sale of the property and the cost of relocating the existing satellite farm which it housed.

Level 2 has focused much of its efforts towards recreating the area above the U Street corridor, working on a number of projects within a few blocks of the View 14 site. Late in 2006 they purchased the Nehemiah Shopping Center, located just across the street, and recently sold the property and the design plans. Level 2 has also completed some relatively smaller projects in the area including the Clift back in 2001 and the Mercury at Meridian Hill Park in 2005.

Within the P.U.D. for View 14, Level 2 agreed to offer $40,000 in contributions to local organizations, introduce itself as a new participant in DC employment programs and, most notably, contribute $1 million in funds which will be delivered by Level 2 principals David Franco and Jeff Blum to the Sankofa Tenants Association. The funds are being donated to enable 48 low-income households to purchase and renovate their building, the Crest Hill apartments, as part of an affordable housing cooperative.

Clark Residential will serve as the general contractor for the site while SK&I are the acting design architects. The expected completion date for View 14 is in the second quarter of 2009.

Office of Planning to Release Tenley RFP

The Office of the Deputy Mayor for Planning and Economic Development will release the final Request For Proposal (RFP) for the Tenley-Friendship Library (old library pictured) and adjacent Janney School site on Monday, October 29. The solicitation for design plans will come more than a week after the library was demolished and several years after its closure for upgrade.

The RFP is the third stage of an arduous process for Tenley Library. Roadside Development, a DC-based development firm, had been approached by the community back in 2005 during its work on the CityLine project next door, and began to work on initial concepts. Toward the end of 2005, the public library agency (DCPL) claimed it already had a plan for the project and requested that Roadside suspend its work on a design plan so as not to impede the timeliness of development. Yet the DCPL project moved at such a dial-up pace that by the time a contractor was chosen and the designs had been completed, costs were much higher than originally expected and the entire project was scrapped.

Roadside came in for a second time, late in 2006, to approach the community and work on the project, but the community decided it was best that a competitive process ensue, for the betterment of the dual locations. Armand Spikell, a principal at Roadside, reflected on his early involvement in this process: “In the end, most of the community were in favor of a public-private partnership that would result in something better for both the library and the school, and there could be benefit from taking value of the air rights of that location.”

The site, located at 4450 Wisconsin Ave NW, is roughly 158,000 s.f., with the Janney School occupying a majority of the land – the school building itself consumes about 43,000 s.f. but the most recent draft of the RFP appeals for the school size to be doubled during development and that it be “[brought] up to current building codes…bringing it into compliance with ADA.” As it stood before, the old Tenley Library was only 18,000 s.f. – the solicitation will call for the addition of 2,000 s.f. of space for the new building, as well as the addition of a residential portion over the library. The Office of Planning has not determined whether the public land itself will be sold, maintaining a provision within the draft RFP which states that the District will enter into negotiations for the disposition “either through sale or a ground lease.”

Although each draft has been full of design guidelines for the library and school site, it has left the residential portion of the project undetermined – definitely the most controversial appendage to the public property given the stiff resistance the community has shown to nearly any type of development, such as the Maxim condo project next door which got downsized past the point of feasibility and now sits boarded and undeveloped several years after approval. The Request did outline an Affordable Housing element, requiring that 30% of the units be designated as affordable, with 15% priced for people at the 30% AMI or below and another 15% designated for residents earning 60% AMI or below.

The Public Schools district has apportioned a separate budget for capital improvements, however those resources will not be available for six years – posing a “time lag” problem for the immediate needs of Janney. While DCPL did not disclose the budgeted amount for capital improvements, this much is clear: the Public Library system will be seeking reimbursement for surrendering the air rights to the site. The surrounding community is divided in its views about the project – many have used the objectives of the Smart Growth Network, an EPA-funded developmental planning initiative of transit and pedestrian-oriented development, as a launching pad for their justification of the Metro-centered site.

Ward 3 Vision, a partnership between the residents of Ward 3 and the Coalition for Smarter Growth, in most cases looks favorably upon development projects that are transit-oriented. Tom Hier, chair of Ward 3 Vision, stated that he supports the RFP process "to learn how a public-private partnership may creatively achieve increased density, while potentially benefiting the library, Janney School and the community,” adding that “The city has invested millions of dollars in metro stations and we want to take advantage of that.” Opposing residents, including the Advisory Neighborhood Council, raise the usual red flags of density, over-development, and increased traffic congestion, though the site sits over the Tenley-AU Metro station. In addition, the ANC has recently passed a resolution stating that the land has not been designated as surplus, and that an RFP at this stage in the game is pulling the proverbial cart before the horse. Developers will have six weeks from Monday to submit their design plans for the site, and while some members of the community have raised concerns as to whether six weeks is enough time, the Office of Planning responded that an adequate window of opportunity has been provided for submissions.

Alexandria Condos Going to Auction

On Sunday the 28th, Parkside Alexandria is due to auction 30 remaining condos in the 378-unit complex in Alexandria, VA. The Parkside, on N. Van Dorn Street, was originally an apartment building, converted to condos by Mid-City Urban, which claims on its website to have nearly $1 billion in housing units on the east coast. Sales for the Parkside began in early 2004 when condominium sales were in their hayday, but reduced pricing was not sufficient to move the remaining units that began delivery 18 months ago. Renovation work completed on the project in January of this year. According to the development page, the remaining units will auction at a minimum bid of $225,000 for units that had at one point started at $279,000.

Moody's Ranks Urban Markets

Moody's real estate market assessment for the third quarter of 2007 was released this month, boasting the DC metro region as one of the top retail sectors in the nation with a score of 77 on a scale from zero to 100.The DC metro area was given a composite rating of 65, two points above its score from last quarter, compared to 71 nationally. Although DC didn't make it into the "five best markets" category because of low industrial (38) and suburban office (49) ratings, other competing cities like Miami (60), Chicago (63) and Philadelphia (67) received similar scores while New York City holds the number one spot with a score of 87.

The study breaks down and rates seven market segments in 53 of the nation's largest cities, then compiles them into a composite score. According to Sally Gordon, manager of the study and developer of the evaluation model, the composite score is a non-weighted straight average of the market segment ratings. The market segments encompassed in the study - suburban office, central business district (CBD) office, multifamily, industrial, retail, full service and limited service hotel - are rated based on a blend of variables, including supply relative to demand, current vacancy rate and change in vacancy over time, amongst others. New condo developments were not rated.

The figures enclosed in the study indicate that the ratings for DC's CBD offices dropped slightly to 66 due to an accelerating rate of construction which has widened the gap between supply and demand. However, even though demand for CBD offices is low, DC was still reported as having a vacancy rate that is among the lowest in the country, 6.4%, third only to Charlotte, NC and New York, NY. The multifamily rental market also received a strong rating of 82, although the vacancy rate was reported to be slightly higher.

According to the study, DC's retail sector also seems to be thriving, but developmental construction efforts are failing to satiate an apparent appetite for growth. The retail score of 77 is a healthy number which reflects a 4.7% surplus in demand, half a percent more than the national average. With that figure in mind, Moody's categorized DC as one of the "ten largest shopping center markets" in the country.