D Day for "New Deal" Housing?

At 3 PM today, the Montgomery County Planning Board will decide the fate of a collection of duplex and three-story apartment buildings, located on 22 acres of land at the intersection of East-West Highway and 16th Street in Silver Spring, MD. Home Properties of New York, the owner of the Falklands Apartments, has submitted an application to raze some of the buildings, created in the wake of FDR's New Deal programs, despite their placement on a list of historic "potentials" - a catalog of possibly-vintage properties that the county has protected from destruction until officially determined as being devoid of historic value.

Home Properties is attempting to demolish a third of the apartments on the northern half of the site in order to clear the way for a collection of new buildings: a mixed-use set of apartments and stores which will create 1,059 residential units, a 50,000 s.f. grocery store and 15,000 s.f. of retail. Demolition of the existing housing needs to be cleared by the Historic Preservation Commission.

The site has been under historic evaluation since 1985; at that time Falkland failed to satisfy the requirements of historic designation. Unfortunately for Home Properties, the real estate may boast some intrinsic historical value. Aside from being the first garden apartment complex in Montgomery County, the Falkland Apartments were inaugurated by Eleanor Roosevelt in 1937. The Falkland residences were created to satiate the rapidly escalating swarms of people that were moving into the area following the inception of FDR's New Deal programs; Montgomery County's population grew by more than 70% during this period.

The apartment complex was reevaluated again on August 15 of this year, when the commission concluded that further investigation was required; on the whole, the site was deemed "eligible" for classification on the Master Plan for Historic Preservation. Home Properties has argued that the apartments are not suited for designation because of the failed 1985 valuation. Members of the community have opinions to the contrary; the Planning Board received more than a dozen letters pleading for historic designation of the site - there were no letters pleading for a mixed-use development. County Planners have recommended that the Planning Board consider all three of the parcels that make up the Falkland Apartment buildings as eligible for historic designation, leaving an all or nothing choice to the County Council.

Georgia (and Low Income Housing) on My Mind

A pair of District agencies are planning to redevelop a strip of Georgia Avenue just south of the Metro Station as part of a "New Communities Initiative." The partnership between the Office of Planning and Economic Development (OPED) and the District of Columbia Housing Authority (DCHA) seeks to develop the Park Morton community in Ward 1. Last week, the Office of Planning publicly considered a draft of the plan which proposes to broadly (and drastically) change the economic environment of the Park Morton area, a section of the Park View neighborhood located in between Georgia Avenue and Warder Street. The community response was unanimous in support for the draft that includes a compendium of objectives: protect affordable housing in the community, improve economic integration, decrease crime, replace publicly subsidized units, create workforce and market-rate housing opportunities, create better jobs, education, training, human services and other programs for the community; no word on whether it will solve our dependence on foreign oil.

The process for redeveloping Park Morton began in February 2006, when designated as a development site by a Council resolution. Despite a flood of new development over the past seven years, the Park Morton area is still beleaguered with areas of severe poverty that lack the fundamental elements of a healthy community. Park Morton, an area where only about 40% of residents own their homes and the median household income is roughly $45,000, was thereby recognized as a possible site for a New Communities program, a public entity described as a "comprehensive partnership to redevelop the physical and human architecture of neighborhoods characterized by violent crime and poverty," according to the District's CFO, Natwar M. Gandhi.

The overarching goal is to create mixed-income communities with "integrated services that offer...better housing, employment and educational opportunities," according to the draft plan. Their vision for Park Morton involves the replacement of 174 new public housing units, adding social services services within the community, creating east-west connection to break down barriers that segregate communities, and forming new open space and passive park areas. The overall site plan would create a "moderate density mixed-income community of...152 replacement units, 7 homeownership units for current Park Morton residents and 317 market/workforce units for a total of 477 homes," according to the draft.

The plan notes a lack of retail and office space in the general area, yet points out that although demand is high, Park Morton would not serve as the ideal commercial space for consumers. 53,000 s.f. of retail is in the pipeline for the Georgia Avenue corridor, with an estimated 40,000 s.f. of unmet demand remaining post-implementation. A deficient supply for office space was also found in the area, despite a 10% vacancy rate for rental office space.

The entire redevelopment window will span nine years, beginning in 2008, and is expected to cost an estimated $157 million. DCHA and OPED have an abundance of private firms collaborating on the project: DC-based development firm Banneker Ventures, nationally renowned environmental consulting firm Circlepoint, and design firms PGN Architects and WDG Architecture. Although the DC Council still needs to approve, OPED is determined to introduce the plan by the end for the month with the hopes of receiving approval by January.

Douglas Development Postpones F Street

Jemal's Up Against the Wall LLC, a subsidiary of Douglas Development, has postponed tomorrow's public hearing in order to further prepare their plans for an 11-story mixed-use project at 1000 F Street, NW. The Office of Planning deemed the design worthy of public scrutiny three months ago but Douglas Development has rescheduled the hearing for January 24, 2008.

Douglas has proposed 91,000 s.f. of office space and more than 6,000 s.f. of ground-level retail to be constructed in an L-shaped corner building on the site, a mere block away from the Metro Center station and two blocks from Gallery Place. In addition, the ubiquitous developer will provide more than five dozen underground parking spaces to facilitate commuting-ease.

Most intriguingly, the two-story "Waffle Shop" on the site, the lease for which expired in September forcing the proprietors down the street, is going to be rehabilitated...and moved. Douglas had initially received approval to destroy the eatery by the Historic Planning Review Board, but the local community was distressed about losing their beloved landmark. Douglas met with the Art Deco Society of Washington, the DC Preservation League, the Historic Preservation Office and the Committee of 100 on the Federal City regarding the matter and agreed to save the waffle shop, bowing to community requests, by dismantling the shop piece by piece and relocating it to an undetermined site near Mt. Vernon Square, though Douglas has waffled on the exact location.

Due to further historical presence on the lot, Shalom Baranes Architects will craftily engineer the new office building to incorporate a historic commercial building on the southwest corner of the lot. Douglas Development will preserve the building's battered facade, storefront, windows and canopies, "returning the building to the way it appeared almost 100 years ago," according to the Office of Planning's set-down report.

Douglas Development acquired the site in the fall of 2006 from Maryland-based Greenhill Companies, for roughly $15 million. The Historic Preservation Review Board has extensively reviewed the plans and approved the concept along with local ANC 2C, which voted unanimously to support the project. Shalom Baranes is designing the structure with terra cotta facade to "[evoke] a similarity with [the] historic masonry buildings," according to the Office of Planning.

Monterey's Metamorphosis Ends Where it Began

The Monterey, a 434-unit condo-conversion project developed by Annapolis-based Triton Real Estate Partners, is officially being re-converted back to apartments. The project, located at 5901 Montrose Road in North Bethesda, was originally stalled when Triton defaulted on their mezzanine loan and CBRE Realty Finance became full owner. Triton did begin selling condos in March of 2006 before defaulting, hawking one-bedroom units from the low $300s and three-bedroom units up to the mid $800s, but now CBRE is releasing contract owners from their obligations and refunding deposits, rescinding just over 40 of Triton's contracts-to-purchase in the months to come in an effort to facilitate the property's eventual sale on the open market.

"After substantial analysis of the marketplace and viability of the condo market right now, it was determined that the property is most suited to the rental market," said Paul Martin, Executive Vice President of Portfolio and CDO Management at CBRE. "We've revalued our interest in the property, and determined that the best course of action is for CBRE to sell."

This particular property has changed hands three times in only two years. It originally began as the 432-unit Pavilion Apartment building, owned by Home Properties LLC. Triton purchased it from Home Properties in November, 2005, much to the dismay of the Pavilion's tenants, and reportedly planned to spend $45 million on renovation efforts for the newly christened Monterey condominiums (concept pictured). CBRE assumed its role as full owner of the project in May of 2007 when Triton was foreclosed on, both at the Monterey and at a second condo conversion project, the Rodgers Forge in Towson.

The fate of the 16-story, three-tower complex will ultimately be an upscale apartment community; the north tower currently has more than 50 units that are completely gutted, remnants of Triton's unfinished business, along with 143 units that need minor refurbishment. The south tower holds 228 units that are nearly-completed condo units, which will be going for much higher rates since they provide upgrades like granite counter-tops, hardwood floors and other indicia of condo conversion that the aforementioned units lack.

Alexandria to Review Mixed-Use Development

The Madison, a proposed condo development at 800 North Henry Street, will be under review Tuesday, December 4th at a public hearing held by the Alexandria Planning Commission. The project, a brainchild of Trammell Crow Companies (TCC), would add 344 condominiums, 23,000 s.f. of ground level retail and passive open space to a site slightly larger than a city block at the intersection of North Henry and Madison Streets, which falls under the jurisdiction of the upcoming Braddock Road Metro Area Plan.

The soon to be approved Braddock Metro Plan has hindered the Madison's actualization, as outlined by an executive summary released by the Planning Commission: "The Applicant has indicated that they have been waiting for the [Braddock Metro] plan to proceed and can no longer wait for [it] to be adopted." In the meantime, TC MidAtlantic Development III, Inc., a subsidiary of Trammell Crow, has applied for slight modifications to the initial development including: Increased building density, a reduction in the amount of required open-space and reduced parking requirements.

One of the issues that seems to be garnering the most attention is the traffic problem. A traffic study was done for the Parker-Gray area by Gorove/Slade Associates, Inc., for a project at 621 N. Payne Street, roughly three blocks away from the Madison site. The findings from that study proved that "The southbound North Henry Street corridor appeared to be over-saturated." The Planning Commission has compared traffic changes that would result from the Madison's inception against data from the Braddock plan; the official response to the traffic quandary went something like this: "The proposed project would generate fewer [AM] and [PM] trips (compared to the Braddock Plan), respectively. Within the context of the overall Braddock Plan, this is not a significant increase in traffic demand."

The site plan being reviewed next week depicts two separate buildings, a 138-unit structure on the southern portion of the site, and a 206-unit structure on the northern half. Design teams created the buildings using a variety of colors, construction materials and architectural styles to evoke the impression that the project is made up of many different buildings that were built over time, "typical of Alexandria blocks...to reduce appearance of mass and to relate to opposite block faces," according to the Planning Commission.

Developers wish to construct two courtyards totaling 20,000 s.f. of open space, 15% less than the amount required by the City of Alexandria. While details are still being worked out, it appears that TCC can compensate for this shortfall by donating to the Braddock Road Open Space Fund. An additional issue has come up regarding the original design; TCC's plan creates less parking than is mandated for a project of this magnitude - another potential topic for debate at the upcoming public hearing.

NOVO to Finish Design of Kalorama Condos

NOVO Properties is one step closer to converting two apartment buildings on the 1800 block of Vernon St., NW into condominiums. NOVO has planned to modernize and redevelop these almost century-old structures for some time now but the firm just recently received the go ahead from both the Board of Zoning Adjustment (BZA) and the Historic Planning Review Board (HPRB) as of October. According to sources inside the firm, the local ANC has jumped on board as well, despite the project's ill-standing with some members of the community.

The now-vacant buildings used to hold 25 rent-controlled apartment units housing a combined total of 29,000 s.f. of space. NOVO plans to add three new units to the current mix, in addition to adding a four-floor modern bridge structure to connect the pair of stand-alone properties. Although the exterior will remain mostly as-is, the interior is planned for dramatic improvements; Bonstra Haresign has taken the design reigns and the two firms are currently in the midst of deciding the overall architectural scheme.

The property was purchased from Perseus Realty for $4 million in June of this year; though some have questioned the firm's handling of the property disposition. Some disaffected residents claimed Perseus, after offering generous stipends from $1,000 to as high as $15,000 to induce tenants to vacate their homes, used heavy-handed tactics (waterboarding?) to get residents out of the building. Councilmember Jim Graham and Mayor Fenty have investigated, but the case has all but fallen out of the public eye.

That being said, NOVO declined to comment on the record. Spokespeople for the company, however, did mention that the projected ground breaking is anticipated within the next year. NOVO is the developer behind The Takoma condominiums in Takoma Park, MD, and owns a number of medium to large sized apartment buildings throughout the DC Metro area as well as a smattering of properties located in Charleston, SC, Chicago, IL and Philadelphia, PA. The project will be built by Eichberg Construction.

Washington DC commercial real estate news

William C Smith Plans Major Housing Initiative in SE

William C Smith Company has unveiled initial plans for the first of 1100 new residential units in southeast DC, some of which will start early next year. The first set of new condos, Brownstein Commons, is planned for the site of the recently-destroyed Trenton Terrace Apartments, located on the 1100 block of Mississippi Ave, SE. Brownstein Commons will share that plot of land with a second William C Smith development, Archer Park, to create a total of 240 new residences for Ward 8. The developer is planning to begin construction on the 234,000-s.f. project in the Spring of 2008.

As a result of focus groups held by William C Smith (who we shall now refer to, simply, as "Bill"), the developer believes that a large unsatiated demand for homeownership opportunities exists in the neighborhood. Bill has responded accordingly, planning to inject a large amount of for-sale projects into Ward 8 in the coming years. A source within Bill opined that the community is underserved for housing, resulting in DC losing residents to PG County for lack of affordable homes in Ward 8.

The current project is set to be completed in phases; Archer Park, strictly a rental community, will serve as phase one of the development and will be completed first, starting next spring. Design plans call for the construction of 66-affordable, two and three bedroom rental units reserved for families below 60% AMI - the rental portion is expected to cost more than $9 million and is being designed by SK&I Architecture. Brownstein Commons, on the other hand, will be comprised of 174 brand-spanking-new workforce housing condominiums, for families between 50% and 80% AMI, and will cost an estimated $36 million. Bill expects construction on the condos to begin in the Spring of 2009.

WCS has heavily focused their developments on areas east of the Anacostia River. On December 7th, the first new grocery store in 30 years will be opened in Ward 8 at the Shops at Park Village, a 112,000 s.f. retail project that WCS is just finishing at the intersection of Stanton and Alabama Ave, SE. The retail center will also be home to a Wachovia Bank, a hardware store, insurance company and dry cleaner. Other projects completed by the firm include Ashford Court, which began selling early this year, and The Villages of Parklands. In total, the firm has added more than 5,000 housing units to the District, at a total value of more than $250 million.

Help Wanted: 1600 North Capitol Seeks Developer

A 77-unit mixed-use project will soon rise at the corner of Florida and North Capitol Streets, NW, if a suitable development partner can be found. The design of the project at 1600 North Capitol Street, NW, is currently being inked by DC-based Bonstra Haresign Architects, and the owner is now seeking a savvy developer to see the project through (phones are open, call now, don't wait). The 18,984-s.f. chunk of vacant land will house a 7-story, L-shaped building, with approximately 117,000 s.f. of space, serving both residential and retail purposes, according to the architects.

Florida and Q Street, LLC initially applied for zoning approval back in February of 2006; the typical zoning procedure ensued, but surprisingly, "There were no parties in opposition," according to the Zoning Commission. Other than a few minor changes to the design of the building's facade, the P.U.D. application went swimmingly. NCPC (National Capital Planning Commission) approved it in December of 2006, followed by Zoning's approval in January of 2007.

The now-approved P.U.D. application had requested that the zoning for the site be changed from C-2-A to C-2-B, which would allow for: An increase of residential lot occupancy to 75%, a 15 ft. increase in maximum building height to 65 ft. and "medium density" development on the lot by right. Yet in the same approval, NCPC and the Zoning Commission gave the nod for the design of a taller structure than the by-right zoning permitted, approving a 7-story central tower at the intersection of North Capitol Street and Florida Avenue; the building will now measure 81 ft. from N. Capitol Street, and 86 ft. from Florida Ave.

Of the 77 units, 73% will be one-bedrooms and 26% will be two-bedrooms; and one lucky person will get a three-bedroom unit. The plans also include approximately 5,000 s.f. of ground floor retail along Florida Avenue and two levels of underground parking to create a total of 84 parking spaces.

"We're anxious to continue work on implementing an important residential project in a fast-developing corridor of the city," said Bill Bonstra, Principal at Bonstra Haresign, "Mr. [Joe] Mamo has worked diligently with the community, hand in glove, to understand their needs. In response to community requests we've incorporated neighborhood retail into the project," Bonstra added.

PN Hoffman Switches NW Project to Offices

PN Hoffman has announced that their downtown condo project is now going forward as an office building. The building, at 10th and G St, NW, will change from market rate condominiums to a mixed-use commercial center. Two years in the making, the project will create 140,000 s.f. of Class A office space atop a newly constructed First Congregational United Church of Christ (FCUCC).

PN Hoffman has been working together with ER Bacon Development LLC to finish design plans; the purchase agreement of air rights above the church's land has been finalized as of October, while plans to rebuild a new, two-story church underneath the commercial space are still in progress. The existing church, built in 1959, is set to be demolished in December. According to PN Hoffman, development of the church will include "approximately 36,000 s.f. of space comprised of a sanctuary and social service area...the facility will provide spaces for conferences, lectures, offices, classrooms, and music events." As part of the church's resurrection, the apportioned social service space under the glass-and-steel office structure will be leased to the Dinner Program for Homeless Women - definitely a mixed-use endeavor.

The current church is in dire need of an upgrade, hence the uncommon leveraging of sacred air rights. Meg Maguire, Chair of the Site Development Task Force for FCUCC explained: "There are many things wrong with the church, it isn't handicapped accessible, all of the systems in the church are in really bad shape and need to be replaced, so we were looking at a huge investment. Even if we made that investment, at the end of the day we were not going to have the home that we would need in the 21st century...we were very fortunate to find, in ER Bacon and PN Hoffman, a partner...It's been an incredible team effort."

The commercial portion of the site will house eight stories of office space and include a third floor outdoor-terrace so cubicle inhabitants can grab a breath of fresh air in between long hours of business-as-usual. The building's design is set to achieve a LEED Silver rating by incorporating a green roof, use of recycled construction materials and minimization of water usage. The design will serve as PN Hoffman's very first venture into the world of commercial office development. PNH had previously planned to build 140 "luxury" condominiums above the homeless shelter.

Cunningham + Quill Architects is handling the office space design, while NY-based Tod Williams Billie Tsien Architects has created plans for the church. Construction is set to begin in February, 2008 with an expected completion date in the fourth quarter of 2009.

Pollinating Affordable Housing

Construction on an affordable housing project in Parkside, is set to begin. The project will create 91 row-houses, a 24-unit apartment complex and 5 flats adjacent to the Cesar Chavez Charter High School on Hayes Street NE, and is currently being finalized by The Pollin Foundation. The Consolidated P.U.D. request has been reviewed in three separate public hearings before the Zoning Commission.

Current ownership of the property overlaps separate entities: the DC Housing Authority and the city, while the National Park Sevice holds some administrative jurisdiction over a few of the parcels. Most of the land currently sits unzoned, except for a small section which is being used for public housing. The foundation created by Abe Pollin - owner the Wizards and Verizon Center - proposes new rental units to replace the existing 42 public housing units on the site and 125 new affordable housing units available for incomes between 40% and 100% AMI; 83 of those units will be for sale.

One of the most unique aspects of this particular real estate deal is the project's financing. According to Mr. John Stranix, Pollin's representative before the Zoning Commission. "The Pollin Foundation would develop the houses and take no fee. My time as development manager is not [being] charged to the project." Pollin's philanthropic contributions to Parkside are well founded, according to Mr. Stranix at a zoning meeting over this past summer: "[Mr. Pollin] believes there's a dire need for quality affordable homes. His vision is to create communities that satisfy this need by providing mixed income affordable housing and that's the project we bring before you this evening." Mr. Pollin was unable to be reached for comment. The project will be reviewed by the National Capital Planning Commission on December 6th.

Homeland Security HQ Inches Forward

In the last few months, the U.S. General Services Administration (GSA) has moved closer to completing a Master Plan for St. Elizabeth's West Campus in Anacostia, the future home for the headquarters of both the Department of Homeland Security and the Coast Guard. The final Master Plan is now projected for submission in January of 2008.

GSA presented a Draft Master Plan, which included four separate designs for the campus, to the National Capital Planning Commission (NCPC) back in August of this year. In return, GSA has now received feedback from the organization regarding its qualifications, changes which will be included in the final version.

NCPC's comments on the design plan were extensive. Members of the Commission were partial to design 4 (pictured above), although the Executive Director's recommendation includes a request for more information "with regard to access and site screening impacts of each alternative" before a final decision can be made on the historic property. NCPC has also required modifications to "minimize the major, long-term, adverse impacts to the West Campus of St. Elizabeths," according to NCPC files. Some of these modifications include: the relocation of parking structures off-campus or below grade, the reduction of overall building heights and (my favorite) the reduction of the visual impact of the U.S. Coast Guard building by "modifying its massing, sitting and monolithic appearance."

The major impediment for the project is St. Elizabeth's designation in 1990 as a National Historic Landmark. The campus was established in 1855 by U.S. Congress as the first federal hospital for the insane. In later years, the site served as a hospital for Civil War soldiers; those that died were buried on-site in a now historic Civil War cemetery.

The St. Elizabeth's West Campus is currently home to 61 buildings, most of which were built before 1915, which house more than 1.1 million s.f. of space. GSA is proposing to restore about 75% of the existing buildings, and add roughly 3.7 million s.f. of new space to the 176 acre site. However, some worry that a development of this magnitude would overwhelm the historic features of the property; NCPC hopes to alleviate these concerns by heavily reviewing the designs in order to implement a unique plan that can accommodate historic placement.

Although design plans may not have been chosen, one thing is certain: the Department of Homeland Security needs a headquarters, and soon. Michael McGill, Public Affairs Officer for GSA's National Capitol Region explained why: "[DHS needs] a close proximity of decision makers to coordinate quickly and act. They need to establish a common culture, which requires that they assemble this critical mass." The current structure of America's favorite governmental organization is a widely scattered array of 18,000 employees housed in over 6.5 million s.f. of office space in 50 separate locations which are interspersed throughout the city.

GSA owns more than 95 million s.f. of space in the National Capitol region, of which 53 million is for lease. Jones Lang LaSalle is coordinating development the St Elizabeth's site, while The Smith Group is responsible for drafting the Master Plan; Perkins + Will will design the Coast Guard Headquarters.

Changes to Eckington Project to be Decided Tonight

Tonight, NoMa West Residential I LLC will request a Planned Unit Development modification for the design plans for 618,000 s.f. of development on a 190,000-s.f. parcel in Eckington (or NoMa, depending on whether you are marketing the project or already live there). The vacant site at Eckington Place and Harry Thomas Way, NE, which falls within the NoMa BID, had already been approved for development as of October 2006, but since then both the applicant, Fairfield Residential, and the initial proposal, have changed. The new P.U.D. application seeks construction of only 1,000 s.f. of retail and a total 617,318 s.f. of residential space to be split amongst 600 units in three separate buildings.

Initial plans for the site were drafted by Fairfield (FF Realty, LLC) on behalf of the site-owner CSX Realty Development Corporation back in 2006. The Zoning Commission subsequently approved the P.U.D., signed June 22, 2007. Unfortunately for FF Realty, a new developer has stepped into their shoes, changing the design plans and ultimately the scope of the development.

Under the old plans, three large residential buildings, 27 townhouse units and five, four-story single family townhouses were to be constructed over 4.3 acres, with Q Street dissecting the property in order to "establish [a] street grid," according to a Zoning Commission summary. In total, a maximum of 636 residential units comprised of 739,951 s.f. of residential area would have been created combined with 15,084 s.f. of retail space for a total cost of $150 million. The modified P.U.D. reduces the amount of residential space by more than 120,000 s.f. and cuts the retail portion of the site by 90%.

The only remaining design from FF Realty's old plan will be the three mammoth buildings and the Q Street dissection. The first structure, Building 100, will have about 120,000 s.f. of floor area measuring 57 feet in height; Building 200 will house 250,000 s.f. of space at 64 feet and Building 300 will also have about 250,000 s.f. of space and will measure 61 feet in height. In addition to shaving the townhouses off of the plan, the new developers have also proposed to rezone the site from its approved C-3-C District, which allows 100% lot occupancy and permits building heights up to 90 ft, to C-3-A which reduces lot occupancy to 75% and allows a height of no more than 65 ft.

The modified P.U.D. will be considered for final action tonight. Prior to ZC's decision, they have required that NoMa West provide the Construction Management Plan and further detail as to the design changes.

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."