Thursday, February 14, 2008

Industry Insight: Armond Spikell of Roadside Development

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Armond Spikell started Roadside Development more than 11 years ago, after taking the reigns on a retail center development in what he likes to call "Sleepy Hollow." His projects caught many a retailer's eye, and Spikell found himself soon on his way to abandoning the brokerage business, and taking on the development world head-on. With real estate experience aplenty, and a collection of neighborhood-altering projects along the way, Spikell agreed to talk about his new projects, architecture and the pitfalls of developing in DC. 

DC MUD: What made you enter the real estate development business and how has it changed since then?

Spikell: I had been developing some smaller projects on the side while being a broker, and found one project that my partner Richard Lake had been working on for several years, a piece of land in Virginia owned by a family that was very involved in real estate, but not retail. Someone had brought them an offer to lease the land and develop something we thought was an awful project. Richard showed it to me and I said, ‘don’t let them do that, that would really be a shame. Maybe we ought to develop something for them.’ So we put together a development plan and a pro forma and brought in a fellow that had been one of Richard’s first clients in the leasing business, Todd Weiss. The three of us met with the land owners and showed them our plan and they liked it. We said, 'we’ll joint venture this and build it.' So we built this shopping center, and one of the anchors was a CVS drug store. CVS started talking about having a preferred developer program and asked if we would be interested in participating. So we met with CVS, helped them fashion a preferred developer program, and we started building drugstores. That’s when we named ourselves Roadside Development; since we were building small strip shopping centers and drugstores, we thought it was a perfect name. 
Interview with Roadside Development's Armand Spikell, Washington DC commercial property news
DC MUD: Have things changed much since then? 

Spikell: I guess in ten years a lot changes. One thing that changed is that the shopping center development business became a lot more competitive than it was when we started. It was a couple of companies that were driven by large investment funds that seemed to dominate that business. That wasn’t us. We’re different – some developers, their goal is to put money to work. When they look at a potential project the goal is how much can we get invested, and how much return can we get? We’re a little different. Every one of our projects that we’ve done so far, we’ve done with a different partner, and they’ve all been good partners, but we pick the partner to match the deal, not the deal to match the partner. It gives us a lot more flexibility. 
DC MUD: So would it be fair to say that you try to see where you can have the greatest impact? 

Spikell: I think our approach is more of creative problem solving. Starting with the needs of a land owner or retailer, and sometimes an investor, but in the case of our Potomac Town Center project, there an investor was anxious to make an investment in that market, bought the land along with a development plan and then brought us in to modify the plan to make it work more profitably, then carry it out. So our approach is more problem solving.

DC MUD: So how do you make decisions on what’s worth developing and what’s not? 

Spikell: We look at sites and we think ‘Is there something we can do that’s creative and productive?’ The other thing is, since we don’t have a particular product type that we feel we have to build, a lot of it is looking for opportunities to build projects that are in tune with the community. What we find is, when you go into a community, they’re your customers, and if you want to bring retail, you want to bring retail that your customers want and will patronize. And so there’s a certain synergy there that makes a lot of sense. Purcellville (one of Roadside's retail center projects, pictured above) is a great example. Maybe it would have been more productive for that land to build fast foods and gas stations, but it’s really not what people wanted. What they needed, what there was demand for, was some upscale retail, so that everyone didn’t have to get in their car and drive out to Leesburg. So, it worked out great for us.

DC MUD: Let’s talk about some of your projects; they always seem to be near or around Metro stations, that’s not a coincidence is it?

Spikell: No, we’re big believers in Smart Growth. Since we work in the greater metropolitan area, we work in Howard County, Prince William County, Loudon County, Fairfax, Arlington and Alexandria. And when you have a regional perspective, it becomes all the more clear that for our quality of life and our ecology in general, Smart Growth is very important. It’s very important to have clustered growth where we have the infrastructure in place already. Sprawl is something that should be discouraged. And if you look at retailers that serve urban communities, oftentimes they’re in locations that they secured years ago, and then everything filled in around them. Now when they need a modern facility, they don’t have the space to put their typical prototype, so you have to be very creative. And if you’re near a Metro Stop, it allows you then to build valuable residential that’ll pay for some of the outrageous costs. Like in the case of our O street project, we’re putting all of the truck loading underground. Now a retailer, by itself, could not afford to pay for that. But the fact that there’s residential in a fabulous location within walking distance to gallery place and downtown and has the metro, the residential is paying for that. It’s great synergy. Everybody wins.

DC MUD: Back to O Street Market, we got some questions from some of our readers about whether the Giant Market will be closed during the time construction. Will it?

Spikell: You know, we figured out this very clever phasing plan for Giant, where we could work around them, and then open the new store and close the old one. And they looked at the plan, and they said given the size of this project, where we’re going to be digging this very deep hole and taking out tons and tons of mud out of the ground right in front of our store, it’s not a great environment for our customers, and it’s not a great environment to sell food. So they decided that it probably would make a lot more sense to close down. So the deal we have is that we must complete the store in no greater than two years from the date they close the doors. So in the meantime, we’ll be running shuttle buses to the nearest Giant.

DC MUD: How about architecture, when you’re seeking an architect, what do you look for most?

Spikell: It depends; sometimes we look for an architect who has a lot of retail experience, who kind of gets it and understands the needs of the retailers because retail is a function of business, and the buildings have to function properly, otherwise it’s very expensive and has a significant impact on the bottom line. The other thing is having somebody who designs interesting and high quality projects. It’s a little different; some developers may look more at cost effectiveness and productivity. Those are important, but they’re not the most important things for us.

DC MUD: Are there any architects that you particularly like?

Spikell: The team that we work with most is Shalom Baranes and Rounds VanDuzer. Rounds VanDuzer is, I think, one of the best retail architecture firms in the area. They are very creative, they do attractive buildings and they are very, very experienced with retail.

DC MUD: What about the current market conditions. Do they have an affect on your operations?

Spikell: I mean if you’re talking about the Washington market on a general basis, it’s a terrific place. The local economy is healthy, it’s still producing jobs and the oversupply of housing will get absorbed, and the demand will create a market for new housing. It’s a matter of time. Now we see something very interesting happen in retail. Whenever there’s a slowdown nationally, we get more interest in Washington for retail. The reason is, retailers are driven to expand, and public companies always want to show growth. Now if you have to open stores, where do you look? Well you say, ‘what are the strongest markets, and who’s doing best?’ Washington’s always on that list, and so all of a sudden they always focus more on Washington. Retail can be a little counter-cyclical here, that’s why we get more interest when the rest of the nation is ‘soft.’

DC MUD: Why Shaw, and do you think your timing is good there?

Spikell: Yeah I think our timing is excellent. Even with the current softness of the market, I wish our building was done already – it’s a fabulous location. Already some of the great restaurants are moving in, and I think there will be a lot of new shops opening, and there will be the best grocery store in the entire eastern United States, I think. It’s going to be the biggest grocery store in the city. That being said, if you walk a block, east or west, from our location, you’re on beautiful streets that have wonderful bones. You know, Shaw had its problems with crime, but I think the way you get rid of crime is to get rid of blight. Unfortunately our market building caved in, but we’re going to fix that and I think it will have a real positive effect on the neighborhood.

DC MUD: If you could change one element of the development approval process, what would it be?

Spikell: I think it would be better if we could get the scope and density of a project entitled, separately from having to provide all of the detail and design. In a P.U.D. you’re really answering a lot more questions than I would like to answer before you know whether or not you’ve got something that’s viable. What would be best is if you could go in to a zoning commission, or whichever agency, and say ‘here’s the concept of what we want to do, here are the major elements, here’s the amount of density, here’s how tall the buildings are going to be, and here are the benefits.’ And get them to entitle that before you have to design it and show where every window and every door is, because that’s a different level of design. And I think it’s a detriment to have to go to that extent of design, just to find out whether or not the density and the height is going to be acceptable. And after spending all of that time and money and getting guidance from the Office of Planning, you could go to the Zoning Commission and then get shot down, and I think it would be better of this staged it.

DC MUD: Stage one for functionality and stage two for the design details. 

Spikell: Yeah. And in suburban life they have a site planning process, and you do that first. And once you’ve gone through the site planning process and you get entitled, then you go and you do the rest of the design. That I think would be an advantage. If it could proceed quickly and allowed for reasonable flexibility.

DC MUD: What do you think is the most important aspect in developing a successful project?

Spikell: I think it’s producing something that the market will accept. That’s got to be the most important.

DC MUD: If you had to pick one area in DC with the most economic potential, which would it be?

Spikell: Oh Shaw. Although I will say, you know Shaw is realizing its potential now, but I think there are areas in DC that are just, just beginning. I mean everywhere there’s a metro station, you look at Rhode Island Avenue and Fort Totten. Rhode Island Avenue is a good example; you’ve got industrial uses clustered around metro stations close to downtown. You know that’s not going to last. Fort Totten has major projects already underway. Same thing with Petworth is already underway, and along the green line. No question that those are the places where the greatest opportunities are. And I hope they all develop as good walking neighborhoods.

DC MUD: Your next generation of buildings, will they all be green?

Spikell: Yes. They’re going to be green to the greatest extent that we can make them green. We’re looking at doing a couple of things that are unusual, we’re trying to study new ways that we can do mixed-use. We learned something interesting with Cityline, we never took advantage of it, but I wish we had. We had a retailer there, Best Buy, who never turns on the heat. In the coldest days of the winter, they don’t need heat because they have all these electronics in the store that create heat. And I wish we had a way of utilizing that. So what we’re doing in both our Glebe project and our O street project is: the grocery stores have refrigeration systems that take heat out of the freezers and coolers. What do you do with that heat? In a typical suburban grocery store, they take it up to a unit on the roof that blows it out into the air. We’re looking at ways that we can reclaim that heat that’ll make a difference. The other things that we’re planning on doing are out there already, you know, green roofs and energy efficient appliances and lighting. Both of those grocery stores are very likely to be LEED certified, and we can’t take all of the credit for that because both of those companies, a lot of retailers, are getting on the bandwagon, because its smart. Its smart business.

Wednesday, February 13, 2008

Allegro says: Arrivaderci Condos

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Metro Properties Inc. has just announced that the Allegro Condominiums, their 297 unit project at 3460 14th Street, NW, in Columbia Heights, has joined the tide of reverse condo conversions and is now destined to become an apartment building.

According to Jeremy Rubenstein, CEO of Metro Properties, the firm had finished their sales for the initial phase back in July, "right before the worst part of the instability of the housing market hit." MP had planned to resume condo sales this spring. "It actually has been an enormously successful condo sales program," Rubenstein said, adding "we reasonably suspected it would continue to be successful, but we looked at the risk in the financial environment and the uncertainty that many of our purchasers faced if sales did not meet our hopes and expectations. The rental market is tremendous in that location, and we decided it was the best choice for the area...we had been mulling it over for the past couple months. We're tremendously excited about this. We decided that our purchasers and our firm would be far better off."

Rubenstein expects that the entire building will be converted to apartments, and that Metro Properties will not keep any of the original purchasers as condo owners. Rubenstein predicts that its unlikely that leasing agents will have any trouble unloading the metal panel and brick apartment building with its nine foot ceilings, large balconies, hardwood floors, and underground parking. For the truly discerning, Allegro will have 62 two-level penthouse units with gigantic private outdoor roof decks, and interior apartments that face a courtyard with a reflecting pool. If all of that isn't enough, the largest retail project in DC history will be opening its doors in March, just 1000 feet from Allegro, offering tenants an assortment of shopping choices...and a Target.

The Allegro site is on the location of the old Giant Supermarket and surrounding parking lot, which was bulldozed in 2006 to make way for the new building. Metro Properties purchased the whole site in three phases, buying the Giant lot in June of 2006, and acquiring the two supplementary sites the next month. Marriottsville Construction, LLC, an affiliate of Harkins Builders, expects to complete construction by the fall of this year (construction photo at bottom).

Washington DC real estate development news

Tenley/Janney - More Controversy Over RFP

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Loyal readers of DCMud know that back in November the District government issued an RFP for the Tenley Library/Janney School at 4450 Wisconsin Ave, NW after a contentious battle with neighbors over development rights. Now the DC government has changed the scope of the RFP, post RFP, piling yet more controversy on the project.

The site will house a new library (rendering pictured), and Janney School needs a renovation and expansion pronto, so the RFP sought a builder that could quickly provide both. In exchange for their public contributions, the developer would be allowed to add another element to the library site, presumably housing, to make it worth their while. The Office of Planning and Economic Development received three bids by the January 4th deadline, with LCOR, Roadside Development, and the See Forever Foundation responding to the RFP. Now comes the wrinkle.

The Office of Planning, no doubt for reasons wholesome and honorable, changed the scope of the bid requirements on February 1st, dividing the site into two separate proposals, forbidding housing to be added to the library site on Wisconsin Avenue, and opening the possibility that housing be built on the same lot as the school. The amendment disqualified all submissions that do not meet the revised qualifications. According to the RFP addenda: "Any proposal that include (sic) a development program that integrates the Library within the larger redevelopment footprint will no longer be considered responsive."

DMPED notified two of the three certified developers of the change, requesting they re-submit their bids with solely the Janney school in scope. Although this does not take the residential aspect completely off the table, it does make things rather difficult, leaving bidders to work with only half of the site, with the possibility of condos on the same lot as the school. Sources claim that the new wording could allow for residential to be built above the library, such as cantilevering a residential structure to hang over the library, technically conforming to the new RFP.

Ross Little, Development Director at LCOR, told DCMud "It's clear that the Deputy Mayor's Office is trying to take full and proper analysis of the neighborhood's concerns." Charitable intentions and diplomacy notwithstanding, District officials are giving the initial developers two weeks to submit their reconfigured bids, a daunting task for a complex plan to hang 100 condo units from an offset core over a $16 million library. Speculators suppose that this change will in fact expedite the fruition of the new library, much sought by some members of the neighborhood, since that half of the project is fully funded by the city, which will cough up roughly $16 million to build it. The library site is being excavated now and construction is scheduled to finish in late 2009; all the books and pencil-sharpeners should be ready for a 2010 opening.

ANC 3E will be considering the issue at 7:30 PM on Valentines Day at St. Mary’s Church at 42nd and Fessenden Streets, NW. A community meeting will be held on February 28 at the Janney School for the invited respondents to present their plans to the public.

Monday, February 11, 2008

SE to See New Charter School

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Last week, the Board of Zoning Adjust- ment approved plans for KIPP DC to build the second phase of their charter school development at 4801 Benning Road, SE. Phase one, which started construction last March, is set to finish this April, allowing phase two to begin shortly thereafter. Both phases were designed by a joint venture architectural team: Studio 27 and Devrouax and Purnell.

KIPP stands for Knowledge Is Power Programs, and is self described as being "a network of free open-enrollment college preparatory public schools in under-resourced communities throughout the United States." KIPP DC is part of the larger national network; the charter school currently operates on four campuses in the District: AIM, LEAP, KEY and WILL academies. The charter school is aiming to reach more kids on their own turf. Real Estate Director Alex Shawe explains: "The simplest answer is that KIPP DC is one of the highest performing public schools in the entire District, and it's important to have a campus that's located near where the majority of our students actually live. And it's also important for those students to have a facility that matches our high expectations of academic performance."

The total plan will create two schools for KIPP, a 56,000 s.f. elementary school which can hold up to 600 students, and the recently approved 29,000 s.f. middle school, which can hold up to 320 studious youngsters. The school's new home is a 51,000 s.f. site which used to house the old Benning supermarket, now demolished. Construction of the new schools is so far privately funded, though it is anticipated that tax exempt bonds will be issued in the Spring to help finance the project. Forrester Construction is building the facilities; KIPP plans to be finished with the entire development by February of 2009.

But don't think that this new school will give your kids a better shot at getting in; KIPP is already at capacity this year. The new campus is going to allow KEY and LEAP academies to move out of their leased space and into a permanent home. KEY, for fifth through eighth graders, currently enrolls 320 students, LEAP will eventually house pre-kindergarten to fourth graders. KIPP claims that in a 2005 Stanford verbal and math test, KIPP students scored in the 92nd and 71st percentiles, respectively; local neighborhood school students scored an worrying 22% and 21%. In that same year, incoming fifth graders scored an average of 31% on a math test; in the Spring those test scores rocketed to 94%.

Saturday, February 09, 2008

Bids Close Today on DC Food Bank Warehouse

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LISC, Capitol Area Food Bank, Jair Lynch, Smoot Construction, Washington DC real estate development news
Today was the end of the bidding phase for a project that will provide a new distribution center and much-needed office space for Capitol Area Food Bank at 4900 Sixth Street, NE, just three blocks from Providence Hospital, adjacent to the Fort Totten Metro tracks. Jair Lynch, the owner's agent for CAFB, attracted five bidders to the development: Turner Construction, Smoot Construction, Forrester Construction, Epstein Construction, Gilford Construction and E.E. Reed Construction - a winner should be announced in a few weeks. McDonald Williams Banks Architects designed the new distribution facility.

CAFB purchased the site in December of 2005 for $10.35 million with a little help from Local Initiatives Support Corporation (LISC) in the form of a $1.5 million loan, and had help from the Department of Housing and Community Development. According to LISC: "The new facility will not only allow CAFB to expand programs now stalled due to space constraints, but will increase efficiencies of product movement, provide additional storage space for both dry and refrigerated food donations, increase truck access through a greater number of varied dock spaces, and install a re-packaging room that will allow them to accept bulk donations. It will also provide much needed administrative space that will allow for improved management of programs and general administration."

MWB has designed a 40-foot tall, 110,000-s.f. distribution center and found a way to use an existing 2-story, 25,000 s.f. office space for CAFB's staff by gutting and renovating its interior. "We will keep the existing masonry on the exterior of the current office and the interior will be maintained and restored, keeping a majority of the existing terrazo floor intact. In the warehouse, the exterior will be clad with metal panels and of course the interior will be concrete slab equipped with a racking system to store the foodstuffs," said Andre Banks, principal at McDonald Williams Banks.

The total project will entail 145,000 s.f. of renovation and new construction; an estimate puts a price tag at around $25 million.

CAFB claims they need the new site because they are outgrowing their old digs at 645 Taylor Street, NE. According to the US Census Bureau, more than 600,000 DC metro-residents are "at risk of, or experiencing hunger." CAFB's old site allowed them to serve about 275,000 local residents, but they're hoping with the larger spaces they can have a more efficient and widespread effect.

"The gist of why we're doing this is that the need is growing. A new facility will enable us to get access to more food, in and out to our member agencies. In addition, we will be able to significantly enhance and increase our outreach programs such as nutrition education, life-skills and empowerment," said Brian Smith, Chief Operating Officer at CAFB. The do-gooders hope to move in to their new facility within the next year.

Washington DC commercial property news

Friday, February 08, 2008

Mt. Vernon Church-Office to Ascend

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Carr Properties has just finished digging for the foundation for their project at 901 K Street, NW, and is now ready to go vertical. After contractors finish pouring the first set of pilings, the developer will set the tower crane which will allow for construction of the 12-story building.

The new addition adjacent to Mt. Vernon Square will be sandwiched in between the United Methodist Church at the easternmost corner, and the Henley Park Hotel at the northwestern-most corner - essentially taking up the entire rest of the block. The site is directly across the street from Mt. Vernon Square and the Washington Convention Center.

As with PN Hoffman's 10th and G project nearby, Carr's development will modify an existing historic church; which in Carr's case sits at the triangular intersection between Mass Ave., K and 9th Streets. In exchange for purchasing the church's land, Carr will provide the church with about 32,000 s.f. of space in the new building. Along with getting some tenant space out of the deal, the church also scored a much-needed upgrade package out of Carr and their design firm, the Smith Group. According to John Crump, principal at Smith Group, the hundred-year-old church has seen zero updates since it was built - so architects designed (and Carr funded) the interior renovations, adding elevators to the structure, replacing mechanical and electrical circuits and providing a new slate roof. In addition Carr waterproofed the church, cleaned and restored the facade of the building and blessed the sweltering holy place with the miracle of air conditioning.

All of that for a Class A, "trophy" office building. Totaling 250,000 s.f., the mostly transparent structure will contain four-below ground levels housing a concourse level and 225 parking spaces accessible from 10th Street. Above ground, the building will sit 12 stories high, with the the Mass Ave. elevation stepping back on the ninth floor allowing for roof terraces on floors 9 and 12, as well as upper floors with "floor-to-ceiling windows with 360-degree views," according to Holliday Fenoglio Fowler, L.P., the firm that arranged the $104 million construction loan.

Carr plans for LEED Gold Certification and expects to be completed in the third quarter of 2009.

Wednesday, February 06, 2008

JBG's Peck Site Goes To Final Review

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The JBG Companies has their hands full. The development firm has two weeks of hoops to jump through and a tough audience to please. Their newest project, on a 210,000-s.f., "L-shaped" site, bounded by N. Glebe Road, Wilson Blvd, N. Wakefield Street and Fairfax Drive in Ballston - aka. the Peck site - will be reviewed by Arlington's countless advisory boards which will scrutinize their plans to build roughly 800,000 s.f. of mixed-use development. The Division of Transportation will be taking a gander today, the Planning Division on Monday, the Housing Division on the 14th, the Tenant/Landlord Division on the 20th and then the County Board will take each party's comments into consideration for its decision on the 23rd.

Cooper Carry Associates' design plans call for two highrise office buildings totaling roughly 415,000 s.f., a four-story apartment building with 90 affordable housing units and about 28 townhouses. The site plan, as amended by the County, will feature a 10-story office building at the corner of Glebe Road and Wilson Blvd. with 25,000 s.f. of ground floor retail, a 7-story office building mid-block along Glebe Road with roughly 10,000 s.f. of retail, nine townhouses on the east side and the remaining 19 townhouses on the western end of the site. The "U"-shaped apartment building will sit on the southern end of the block, "turning the corner along Wilson Blvd. and the new 9th Street North," according to the current County Staff Report.

Steve Smith, Principal at Cooper Carry, was more eager to discuss the two office buildings than any other aspect of the project: "The 800 building (at the corner of Wilson and Glebe) will have a sweeping glass sail, and the glass curtainwalls follow the movement along Glebe Road. The 900 building (mid-block) also has a floating curtainwall system that mimics the movement of Glebe. [The 900 building] has a great axial view, and the height of the curtainwall crescendos the closer the building gets to the corner of Glebe and Wilson, and that gives it an iconic terminal point. That's the area where you'll see the vast distant views on Wilson. That's the area that's most prominent."

JBG is offering a number of benefits to the community with this project including LEED Certified office buildings (one building gets the gold while one gets the silver), public garage parking and an open plaza with outdoor seating, and pathways to connect the two buildings.

A rough estimate puts the onset of construction in the second quarter of this year.

Douglas's Takoma Park Apartments Approved

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Yesterday morning, the Board of Zoning Adjustment granted Douglas Development Corporation subsidiary Jemal’s TP Land, LLC final approval and entitlements for its paired apartment buildings at Maple and Willow Streets, NW, in the Takoma Park neighborhood. The development site sits about two blocks east of the Takoma Metro station, within a few feet of the Maryland border.

The 102,000-s.f. site sits in the middle of a block bounded by Maple, Willow and Carroll Streets and Sandy Spring Rd. NW; the future buildings will run parallel to Maple and Willow Streets, fronting Maple for 420 feet and Willow for 407 feet. The site is now occupied by three single family homes and a parking lot; the rest is vacant. In order to clear the way for the apartment buildings, Douglas will renovate and relocate the three homes to the south side of the site to "reinforce the transition between the existing community and the proposed development," according to the BZA application.


Douglas' now-approved buildings, designed by GTM Architects, are planned to top out at 40 feet, each with roughly 41,000 gross square feet, and each having 38 units - scaled back from the original 55,000-s.f. buildings with 40 units each. Douglas will have its landscapers provide more than 25,000 s.f. of green space on the site and plant a wall of evergreen trees on the north end of the lot - apparently to shield neighbors from views of the large surface parking lots that will dominate the complex. The BZA files describe the project as "incorporat[ing] details from the traditional Washington DC apartment buildings from the early part of the twentieth century. A belt course and decorated cornice line visually reduces the mass...while adding architectural interest to the building facade."

Albeit a few minor bumps regarding a roof stairwell that was a little too high and a little too close to the building's facade, Douglas' project has smoothly sailed through the application process, taking just 18 months from start to finish. The Historic Preservation Review Board, required to approve because the site since it lies in the Takoma Park Historic District, gave their assent in February of 2007, and the Office of Planning gave its benediction on November 5th.

A few neighbors complained of potential "flooding, traffic and street parking, [an] absentee landlord, crowding of existing homes and noise and the loss of green space," but the Office of Planning weighed in, saying that the project would have a "positive impact on the immediate neighborhood."

The project site sits across from the long-awaited Ecco Park condominium project, which SGA Architects had designed and planned for development at 235 Carroll Street, purchasing the site of the former gas station and remediating the soil in 2006, but which has yet to see construction begin despite several predictions of an imminent groundbreaking.

Tuesday, February 05, 2008

Logan Circle Condo Begins Sales Today

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DC Hampton, LLC is unveiling its newest addition to the DC condominium market today - the Citta 50 condos at 1450 Church Street NW. Now about 50% complete, developer Andrew Economakis began sales today, and anticipates completion at the end of this year. The 27-unit building is priced from $350,000 for a one-bedroom unit to about $1.15 million for the 2-story, 1,700-s.f. penthouse.


DC's Bonstra Haresign Architects started designing the building back in 2005, having to go through both Historic Preservation Review Board and Board of Zoning Adjustment approval processes. HPRB had jurisdiction because the condo incorporates the historic, 3-story building by John A. Lankford building (on the bottom left of the above diagram) - the architect behind the well known True Reformer Building at 12th & U Streets. The building had functioned as a coal distribution facility almost 100 years ago. Bonstra Haresign incorporated Lankford's structure into the 7- story, 34,700-s.f. project, surrounding and above the existing historic building.

"We are excited about the design of this project as a surprisingly contemporary building incorporating a retained historic structure. A lively composition of masonry and glass forms create a 'collage' of building elements seemingly built over a period of time. The building is topped by an oval shaped rooftop 'beacon' of translucent poly-carbonate that will glow at night" said partner Bill Bonstra.

The building, when complete, will sit on one of DC's few true industrial streets, lined with auto repair garages and warehouses, now converted to swank condos, such as PN Hoffman's Metro and Metropolis Development's The Metropole, both of which flank the newcomer. Look out Georgetown - Logan is quickly becoming the place to be for the hip, the cool....the funkay (insert a James Brown-esque 'Ow' as needed).

"I fell in love with [Church] street - it's just an amazing niche, off-beat street. It was a very industrial area, but with this building we've kept it very modern and industrial looking, and added a personal touch. That's one thing I like about this building, it's designed nicely, it's very modern. It was really cool the way Bill (Bonstra) blended together the modern and historic aspects," said Economakis, Owner and Managing Member of DC Hampton.

SE Developer to Go-it Alone on Robinson Place

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Southeast will soon see a new pair of buildings staring each other down across Robinson Place, SE, if zoning gives it the nod today. District-Properties.com intends to build a condo building at 2825 Robinson Place, and an apartment building across the street at 2836 Robinson Place, applications for which will be reviewed today at a Board of Zoning Adjustment hearing. District-Properties currently awaits a decision before the board regarding their application for a special exemption to build these multi-family projects, a process necessary in R-5-A zoning districts.

BZA found minor flaws with each building after their last hearing on January 15th. According to BZA's review of the condo, District-Properties.com needs to "refine the project so that the building's articulation and facade are compatible with the neighborhood." Their comments on the apartment building were similar: "The board felt that the building's design does not mimic the characteristics of the neighborhood and appears not to be in harmony with the surrounding buildings." Overall, the board saw the aesthetics of the two buildings a tad too ornate. In response to these comments, District-Properties.com had to submit revised plans by last Tuesday in order to allow the Office of Planning adequate time to file their supplemental comments.

District Properties was founded in 2002 by Mohammad Sikder; over the past six years, the firm has matured in the development world from renovating single family homes to developing multi-unit condominiums and apartments. But unlike many development firms who hire outside help for the process, Mohommad likes keeping expertise under his own roof - excepting the tedious subcontracting work. Speaking with DC Mud about his plans for Robinson Place, and his focus on keeping the work in-house, Sikder stated "I have architects, engineers, project managers and assistants. We have acquired the land, designed it and will develop it ourselves. Our whole team works together."

Their plans for Robinson Place call for the two residential buildings on two vacant lots near the intersection of Jaspar Road and Robinson. The condominium will be a 3-story, 17-unit building with 11 two-bedroom and 6 three-bedroom units, on a 19,525 s.f. lot; plans include landscaped areas surrounding the building, 17 surace parking spaces and a brick cladding facade. The apartment building will also be 3 stories but will have one less unit and one less parking space on a 17,500-s.f. lot. Both will top out at 40 feet. The Office of Planning recommended approval on January 8th.

Sunday, February 03, 2008

Eckington Condos: Going Once...Going Twice...

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A condominium project in Eckington will be put on the auction block this month, the first such auction of individual condominiums in DC in recent memory. Todd Place Condos, at 302-310 Todd Place, NE, began sales in the middle of last year, and will auction off 12 units individually on site on February 18th. While the auctioning of entire projects has been increasingly common as a way to avoid long carrying costs, developers in Washington DC have not previously chosen to auction units individually, and have instead opted to lower prices or to rent units until condo prices rise. Located just to the north of NoMa, where more than 10m s.f. of commercial space is planned or under construction, Eckington has seen a surge in residential development as developers anticipate the need for housing as a counterweight to the massive commercial development on its border.

Prices for Todd Place initially began in the low $300's for two-bed, one-bath condos, each fully renovated from a row of pre-war apartment buildings, with parking spaces being auctioned separately. Also on the auction block on the same date will be 4 units at 1609 Isherwood St., NE, in the Hill East community. Homeland Auctions will be conducting the auctions, which conducted the auctions for the Parkside of Alexandria last year.

Friday, February 01, 2008

2300 Pennsylvania Gets DC's OK

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The Zoning Commission took final action yesterday and approved Chapman Development LLC's plans to build a new apartment building at 2300 Pennsylvania Avenue, SE. The official plans call for a 118-unit building which will house 100% workforce housing for those earning 60% AMI. The 59-ft. building will wrap around a 6,000-s.f. courtyard bounded by Prout Street, Pennsylvania Ave and two public alleys, and residents will get the luxury of having 8,000 s.f. of retail on the ground floor. The approval clears the way for razing existing structures on the site.

Thursday, January 31, 2008

Industry Insight: Bonstra Haresign Architects

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It's hard enough to schedule an appointment with Bill Bonstra and David Haresign. With projects galore in progress and a busy staff to lead, both men, who total nearly 60 years of experience, are seemingly ubiquitous. Yet they graciously accepted DC MUD's request to pick their brains on their history in the business, its current state of affairs and even their stock portfolios. And to think, were it not for that supple bottle of Pinot Noir at Ardeo in Cleveland Park, we might never have known the duo that is Bonstra Haresign Architects.

Prior to that night, David had been considering strategies to lure Bill to his former firm, only to be rebuffed. But that evening at Ardeo the tables were turned, and Bill angled to bring David to the firm he established some years earlier, to create a team that would change the face of architecture in DC. Maybe it was the twenty years of friendship, or their shared passion to design unforgettable landmarks that brought them together; whatever it was - David swears the bottle of wine had nothing to do with it. Now, three years later, the two partners complete each other's sentences and laugh wholeheartedly at themselves.

DC MUD: What made you enter this business?

Bonstra: I have always had an affinity for construction. As a kid I used to watch the neighborhood houses being built and helped my father with any number of house addition projects that he undertook over the years. I’ve always been able to draw and many people encouraged me to get into architecture while in school. I think I’ve been fortunate, as David has, to never have wavered from the notion of being an architect.

Haresign: Well, my father was an engineer and built our first house. As a boy, I helped my dad with his carpentry projects. I sketched and drew by hand, and learned to draft in high school - all the things that everyone said architects needed to do. I was 12 or 13 years old when I realized I wanted to be an architect.

DC MUD: So you had your sights set.

Bonstra: I think one of the appealing things about the profession is the impact that you have on society. What you do is out there for everyone to see; for this reason it can put a lot of pressure on you because there are just as many critics of your work, as we are critical of others. Each building becomes part of the built landscape and in this way takes a special place in history.

Haresign: We try to do excellent design, much better than just the bare minimum, so that it has a lasting impact. Our projects show that level of care. The longer we do architecture, the more we want to do things that are great.

DC MUD: How would you characterize your style?

Haresign: We don’t really have a style, but we are contextual modernists. The contextual portion of it is really the key - understanding the constraints and the contexts that we work with.

Bonstra: Over the course of history we’ve been through many architectural styles, but these styles were within other broader periods of design. Whether its art deco, art-nouveax, even the modern architecture of the Modernistas of Barcelona, these styles happened within the modern movement. My personal taste in design is using contemporary materials and organizing them in an aesthetically pleasing fashion. We’re also artists, so we make architecture like we would make a sculpture or a painting. Additionally, I like to include some element of craft into contemporary building design; the idea being that today’s buildings are built by craftsman, by hand. For the most part we still build today the same way we did a hundred years ago…not a whole lot different. But there are a lot of new building products out today for architects to utilize in their work; such as plastics, glass, even titanium, and these different materials are useful to us in creating interesting and memorable architecture that is a product of our time.

Haresign: Our architecture is defined by the rules, and specifically by the context. We look at the immediate surroundings: physical characteristics, adjacent buildings - if there are any - orientation, pedestrian and vehicular circulation, views, topography, and solar/wind orientation. Zoning and building codes as well as cultural norms define and influence design response. And in addition to rules and context, there are fiscal constraints - time and budget dictate how the architecture is going to be expressed and what the materiality of the project is.

DC MUD: So time, context and budget are constraints, but how does the market dictate what is expected of you?

Haresign: I don’t see any difference in design that people are asking from us. There’s an evolution the folks on the fringe who thought it was really cool to be a developer, now are not in the dance anymore.

DC MUD: So does that leave you in a unique position, where more experienced developers are asking for work and you’re left with more freedom?

Haresign: No. I think the freedom and our ability to do good work comes out of client respect and trust in our experience getting projects entitled and built.

Bonstra: If they're going to spend valuable time to develop a project, they realize they want to do it right. And although it may not be limestone-clad or use titanium panels, working with a palette of interesting and cost effective materials we make it the best architecture that is appropriate. And there are the economic sides that can put a damper on good design, but architects should not use the excuse that cost effective buildings cannot be beautiful. It takes an overall understanding of budget, the clients needs, and the design sense to produce good design.

Haresign: But it has to work. Vitruvius [a Roman architect of war machines, we know you knew, but we had to look it up] described architecture as something that requires ‘Firmness, commodity and delight.’ It should be substantial, meaningful and delightful.

DC MUD: I think a lot of people wonder what bearing the market has on what you do.

Bonstra: You know, the residential market in DC really began to heat up in 1999. Overall it was resurgence in urban living. Along with our multi-family work, we do a lot of commercial work as well, but the cooling of the residential market hasn’t significantly affected our business. Everyone wants to say the residential market is terrible, overbuilt and nobody can get loans, but our population will continue to grow and those people will need somewhere to live.

DC MUD: And we’re still short on housing?

Bonstra: Yes, and we will be short again, exactly.

Haresign: In about two to three weeks there will be another series of Dr. Stephen Fuller lectures. And he will talk about statistics, job growth, and people moving into the area and what the housing situation is. Traditionally, we’re always short on units - that’s why people are building cheap units way out...because they’re inexpensive. There is going to continue to be a demand for good urban housing.

Bonstra: And that single-family nonsense out in the woods has got to stop, as a philosophy of land planning.

DC MUD: So you guys are fans of Smart Growth?

In Unison: Yes.

DC MUD: So let's talk about some of the stuff you're working on.

Bonstra: We are working at the Benning Road Metro station at Benning Road and East Capitol Streets; this site is rural in character. There are telephone poles with overhead wires, and individual buildings strung along the roadway. It’s the most unbelievable underutilization of land that you’ve seen. Our project is on an acre of vacant land; we’ll build a 150,000 s.f. office building along with retail and residential uses, which is 500 feet from the metro. It’s an area of the city that hasn’t developed much in the last 50 years.

Haresign: We just renovated two 1960’s medical-office buildings which were side by side, called Pershing Court. We used an allowance within the Montgomery County Zoning Code to do the connection, because it was already over the allowable floor area. We now have one set of bathrooms to service two buildings, one elevator that services two buildings. So we increased the amount of sellable area, that helped pay for the glass-bridge connection. It sold out like that (snaps his fingers). And it’s in the middle of Silver Spring; the owners took occupancy in October.


We’re also working in Wheaton, at the Wheaton Metro stop. Where Georgia Avenue and Veirs Mill Road intersect, there’s a triangular site that is currently being used as a metro bus kiss and ride. Bozzuto Homes entered into an agreement with WMATA, who brought in Spaulding and Slye Investments, which is part of Jones Lang LaSalle, to be the commercial development partner. It will be a mixed-use project with retail and office space, and possibly a hotel or residential tower.

Bonstra: Georgia Avenue is an unbelievable mix of land use. There are single-family houses on Georgia Avenue, along with office buildings - just a complete mix of things. And the Wheaton area is coming in right on the coat tails of the revitalization of Silver Spring. It was only a matter of time for development to move north as it had done from the west.

Haresign: Which is now an extremely desirable place to live. But it took a long time to build enough critical mass into, let’s call it the successor, or next in line to Bethesda.

Bonstra: When I was in college, Bethesda was a sleepy little urban area. We went to the Bethesda surf shop to buy skateboard accessories, and that was the only reason to go. And look what it’s become. So yes, Silver Spring was the next pod, and we’ll see Wheaton do the same over time. Smart growth along established transportation routes is sound urban planning, period.

DC MUD: What areas will be developed after Wheaton?

Haresign: I predict our city is going to continue to urbanize east of the river. It doesn’t take a rocket scientist to figure that out. And New York Avenue ‘extended’ will continue to develop.

Bonstra: I think the movement will be in growth around the metro lines. We’ve seen that in Mazza Gallerie, we’ve seen more in Cleveland Park, even in the city. They’re not going to develop faster than the overall texture of the land, but there will be some redevelopment.

DC MUD: So who’s your favorite architect in DC?

Bonstra: David Haresign (laughs).

Haresign: You know, we’ve been friends for 22 or 23 years, and I think it’s really important that we convey how much we respect each others work and enjoy working with each other.

Bonstra: I can’t imagine having a better partner and how much we get out of each other’s experience. Having done this myself for a while, you really do quickly see the benefits of partnership, to be able to accomplish more and do better work, that’s really what this is about.

Haresign: I’ve been a partner in larger firms, where there are too many partners. There’s a whole new dynamic to that, there’s a lot of negotiation and counter-energy. So when’s there’s only two people...

Bonstra: You only have to convince one guy that something is a good idea. We’re not mired in bureaucracy, or politics, or our egos. We’re a strong mid-sized firm, we’re principal-lead, we’re involved in every project, we participate with our architects in all aspects of the work, and we get the most out of our staff which allows us to spend more time doing what we enjoy: designing buildings.

Haresign: We have a huge amount of enthusiasm about architecture, and energy to make it happen in our firm...we’re having a great time.

DC MUD: How about architects outside of your firm – any favorites?

Bonstra: The list would be pretty long. I have had the opportunity to work with Shalom Baranes and David King; I respect their work enormously. I like Phil Esocoff’s work; I like his attention to detail and his sensibilities of color, surface, and texture. There are any number of good local firms - Cunningham + Quill; they do similar projects. Cox Graae + Spack, a great local firm – led by a classmate of mine, Bill Spack.

Haresign: David Newman with his partners Andy Lewis and Mark Buchanan have a great traditional architecture firm. Mark McInturff is a superb designer, and one of the best kept secrets in Washington. There are so many others…Tom Kerns, Bob Guerney, Susan Reatig…too many to name. Washington has a rich and talented architectural community.

DC MUD: Could each of you pick your favorite building in the city?

Bonstra: One of my favorite commercial buildings in the city is the Euram Building at One Dupont Circle, a simple diagram, poetic integration of structure and architecture, and it doesn’t rely on ornament to make it wonderful. The beauty is in the succinct composition of a minimal amount of elements.

Haresign: Mine are paradigm shifting modern buildings - the first in my lifetime was the East Wing. It’s contextual – it’s geometric response to the avenues and streets down to the composition of the exterior wall, the careful selection of the marble that matches the west wing...the way it grades up in coloration. KPF’s World Bank addition was an important moment in time for the architecture of DC, and continued the strong shift back toward the type of modern architecture that we enjoy today.

DC MUD: What about buildings that you’ve designed? Any favorites?

Bonstra: If I could only do one building, if I could be known for designing a single building, The Tapies (1612 16th St., NW) would be the building. It’s the most unique site, the quirkiest left over piece flanked by tall buildings of another era. I enjoy talking about it all the time; it is such an interesting piece of architecture. It was fun to design; it was fun to work with the client; it’s fun to look at. It will always be memorable for me.

Haresign: One that’s probably the most recognizable is the Capitol One Headquarters (below left, photo courtesy of Ai, now Perkins + Will). That building is designed in a very specific way - as a contextual response with massing and materials on different faces because of its orientation. And then there’s the detail, it’s very finely crafted. The primary curtainwall face is multilayered and curved to express movement along the beltway. The precast concrete on that building has a blue tint to it, and the aggregate is exposed to catch the sun in different times of the day. Other favorites include AOL’s campus and recently completed Parker Flats at Gage School (below right).













DC MUD: For ou
r last question, we'd like to know how Sustainable Design will change the face of architecture.

Bonstra: Vitruvius was probably the first sustainable designer. He was the first to write about the benefits of properly situating buildings in their environment. As you can imagine, in that day they didn’t have infirmaries or antibiotics - siting a building was very important to overall health and well-being. These are the same concepts we’re talking about today: limiting water usage, managing sunlight, taking advantage of cross ventilation, the concepts are the same. This will change what buildings look like but not as much as you would think.

Haresign: We’re not dismissing LEED, but the principles behind LEED design have been time tested in ancient architecture. We studied them in university studio and have applied them wherever possible throughout our careers. The advantage of LEED is that it has codified and rated practice compliance, and raised public awareness.

Bonstra: These natural characteristics of design have been around a long time, although we’ve forgotten a lot of things over the years. When gasoline costs 25 cents a gallon, the energy needs of our built environment may not be a priority...now with it at $3.50 you see that energy usage in our buildings is such a large component of our overall energy needs. It becomes a priority.

Haresign: We use 40% of our energy for buildings, to heat and cool buildings. That’s a significant amount. As architects, we can significantly impact energy consumption by the way that we design building envelopes.

Bonstra: Nowadays, this is very serious. My neighbor thinks that oil will eventually go to $150 a barrel before we run short. If we don’t look for alternate energy sources like wind power and wave power, how are we to meet our energy needs?

DC MUD: So...are you going to buy oil futures?

Bonstra: My neighbor does.

Haresign: Personally, we're going to stick to designing buildings.

Wednesday, January 30, 2008

1100 DC Homeowners to Get 'Downzoned'

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More than 1100 homeowners in southeast DC will have zoning on their property downgraded to discourage multi-family development, if the Office of Planning gets its way. Since this past summer,the Office of Planning has been conducting a comprehensive study of properties and their respective zoning in both Wards 7 and 8. Now that the study is complete, the results can be summed up with a quote from Jennifer Steingasser's OP memo to the Zoning Commission - "There [are] many many areas in the community where the existing zoning is not consistent with the existing housing type." This simple fact is going to change the landscape of possibilities for property owners and potential developers in Marshall Heights SE.

With their study results in hand, the Office of Planning is petitioning the Zoning Commission to rezone roughly 1,100 properties within an area bounded by East Capitol to the north, Southern Ave to the south, Central Ave to the east and Benning Road to the west. The land mass, which incorporates part of the Marshall Heights community, will be rezoned from the R-5-A Zone District to R-2 or R-3 districts. 'Downzoning,' in official parlance, reduces the size and type of building that can erected without a zoning exemption.

The reason is simple: with the current R-5-A zoning, the number of housing types that can be built is less restrictive, and includes single-family houses and (more significantly) multi-family apartment buildings - the only requirement is that to build the latter, a developer must receive Board of Zoning Adjustment approval. Now however, OP is proposing to restrict potential development in these areas to only single-family detached and semi-detached houses, row houses, churches and public schools.

On November 19, 2007 the Zoning Commission "set the case down" for a public assay; now, zoning has issued a Notice to the Public to attend a hearing on March 3, 2008, where the proposed text amendment will be reviewed. In the arcane mysticism of zoning, once the case is set down, the 'set down' rule goes into effect, forcing developers to act as if the zoning amendment has already taken place.

The reasoning behind this zoning strategy is to restrict future developments in the area to buildings with 'low density character.' Because the area under the study's scope contains many vacant lots, there exists the potential for 'infill development' where developers can squeeze as much square footage out of a given site with the use of multi-family projects. Steingasser's memo cited the District's Comprehensive Plan to sum up OP's point: "Infill development of vacant lots is strongly supported in the District...provided that such development is compatible in scale with its surroundings." Apparently, OP believes that the Marshall Heights area is not compatible with multi-family housing.

In the November 19 hearing, John Moore with the Office of Planning gave this postscript: "There are many, many, many small lots in the Marshall Heights community...where developers are proposing to put four to 12 unit apartment buildings. Often times those sites sit right in the middle of where there are single-family detached houses on most of the block. Obviously that increased density will have an effect on that existing character of the neighborhood." Chairman of the Zoning Commission Anthony Hood responded succinctly, "I think this is a long time coming."

And though lower density housing may seem counter-intuitive, OP begs to differ in this case. Because the District lost many residents due to a mass exodus to Prince George's County in search of a lower cost of living, DC planners see the current rezoning strategy as a way to maintain property values and uphold single-family neighborhoods. Steingasser's memo highlights this point: "Whereas the neighborhood lost families to Prince George's County and elsewhere in the past, it may gain families from these areas in the future if it builds appropriately designed housing, provides quality schools and improves public services." One down, two to go.

Saul Centers to Demo Building This Week

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Saul Centers Inc. is now ready to move forward with its Clarendon Center project. Yesterday, the development firm received demolition permits for the two-phase development which will consist of a 12-story apartment building, two office buildings and some landscaped open space on two blocks on Clarendon Blvd. and Wilson Blvd. at their intersections with Highland and Garfield Streets. All three buildings will have ground floor retail.

Demo-teams arrived on the site yesterday, and began picking apart the old E-Trade building 'by hand.' Full demolition won't begin until Washington Metropolitan Transit Authority gives an official phone call to SCI, approving site work within 50 ft. of their metro tunnel; SCI expects the phone to ring soon, but for now they're content with doing demo work outside the 50 ft. line. Mary Beth Avedesian, the Vice President of Acquisitions & Development at SCI, explained that because the E-Trade building abuts the Leadership Institute building, it makes sense to begin picking apart their connection by hand, so as to avoid damaging the neighboring historic structure. Unfortunately for pyros and those who just really enjoy a good explosion, the building will come down using a high reach demolition unit with a hydraulic crusher that will munch away at the building, bit by bit.

Although the County has yet to give "Excavation, Sheeting and Shoring" permits, which will initiate the start of construction and allow for foundation digging, Saul Centers anticipates that permit in February.

Tuesday, January 29, 2008

Mo' Money for Great Streets

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Mayor Adrian Fenty announced today $95 million in additional funding for the city's Great Streets initiative. In so doing, the Office of Planning and Economic Development (ODMPED) issued an RFP to solicit "applications for development assistance," i.e., proposals for funding that would forward the District's goal of improving challenged neighborhoods along six enumerated corridors: the Martin Luther King, Jr. Ave SE, H Street NE, Georgia Avenue NW, Petworth NW, Minnesota-Benning, and Pennsylvania Avenue SE.

The District will award the funds for mixed-use and retail developments through Tax Increment Financing (TIF), in which the District will issue bonds to be repaid through earmarked property taxes and sales taxes of the subject neighborhood or development. In theory, the funding is revenue-neutral since the bonds are repaid through the excess tax value generated by the improvement, and the project will "pump millions of dollars into some of our most important commercial districts, creating new jobs, better amenities and more vibrant places" according to the Mayor.

Funding requests, due by April 18th, must reference development that will break ground within 24 months of today and complete 30 months thereafter.

Akridge Names Shalom Baranes as Burnham Architect

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Burnham Place Development, Shalom Baranes, Akridge, Union Station, Washington DC real estateAkridge will announce shortly that it has chosen DC-based Shalom Baranes as the architect for Burnham Place at Union Station, the behemoth development extending behind the station and over the railroad tracks. Back in November of 2006, Akridge Real Estate Services secured the purchase of 15 acres of air rights above the rail yard north of Union Station (pictured), from the General Services Administration for a hefty $10 million,Burnham Place Development, Shalom Baranes, Akridge, Union Station, Washington DC real estate setting precedent as the first sale of air rights by the federal government. At an estimated worth of $1 billion, Akridge's Burnham Place will extend north of Union station, past the Hopscotch Bridge on H Street, and house a 400-room hotel, residential towers and first-class office and retail space in a gargantuan 3 million-s.f. development. While the project has been on the radar of many a real estate habitué, few details and even fewer updates have been provided. “Burnham Place is an exciting and important project. We interviewed candidates around the world to find a world-class architect with a demonstrated sensitivity to the local context of this site,” says Matthew J. Klein, President of Akridge. “Shalom’s skills and capabilities aligned perfectly. We are eager to move forward with the design phase of this project.” 

For those wondering how a rail station can smoothly function with construction taking place above, consider Akridge's plan: support columns measuring twenty feet from the ground will be placed throughout the rail yard, upon which developers will place a concrete platform to serve as the foundation for the new floating city. Only after four years of technical negotiations with Amtrak was a conceptual construction plan decided upon. After entering into an extensive international search for a design firm, Akridge chosen Shalom Baranes, the masterminds behind the American Red Cross HQ and the Ritz Carlton Georgetown. "For a project of this magnitude in such an important location, we felt it was beneficial to have a local firm who knows the city and the city's needs." said Mary Margaret Plumridge, Director of Marketing at Akridge. Now, the project, named after the illustrious Union Station architect, is beginning to materialize on paper. Developers are just beginning to work on a master plan and PUD which will be submitted this year, although construction on the concrete footings won't begin until 2011. The plans involve a partnership with the federal government and the District Department Of Transportation to upgrade the transit facility, including: a second passenger concourse, an access road from Columbus Circle and an arcade that will connect Union Station to H street. Thanks to good planning, Akridge has the support of the folks at the Smart Growth Alliance and the Urban Land Institute (ULI); both have been effusive about the project since day one. "Burnham Place will contribute to a more cohesive Washington community with connections across the city both in the east/west and north/south directions, via the removal of the current rail yard barrier" added Plumridge.

Washington DC commercial real estate news

Wednesday, January 23, 2008

Silver Spring Civic Center Project on Thin Ice

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With a name as wholesome as apple pie, you would think Silver Spring's Civic Building on Veterans Plaza would be as popular as motherhood and holidays. To the contrary, the plan to turn the barren plaza into a civic center building and community plaza has the Silver Spring community up in arms.

The one-acre site at the corner of Fenton and Ellsworth will be bisected, leaving half of it to house a 42,000-s.f. civic building and the other half to serve as a community plaza. The civic building will consist of three floors; the main level will hold a 5,000 s.f. "Great Hall" surrounded by scattered meeting spaces. The second floor will be the new home of the Silver Spring Regional Center, an agency that mainly serves as a liaison between the county government and the community; and the lower level will be occupied by the Roundhouse Theatre, which will use the space for offices and classrooms. So far so good.

The other half - not so much. Veterans Plaza is supposed to honor the people of MoCo who served in the military. Plans for the vacant space include a 60 ft. x 105 ft. ice rink, a 7,000-s.f. illuminated translucent overhead pavilion, and landscaped open space (nothing says 'thanks' to our boys overseas better than an ice rink with a hot pink tarp). The main feature, however, is the artwork to be completed by Toby Mendez, which will adorn the footpath that runs along Ellsworth.


A number of people just aren't seeing the point of having an ice-rink, or its accompanying overhead-pavilion - with increased internet chatter even the CIA couldn't miss. Silver Spring blogs have taken the issue to heart, responding derisively, and blogger Jamie Karn seemed to have the most articulate argument (for a blogger): "Veterans Plaza needs to be more democratic than the ice rink will allow it to be. More than 85,000 people of a broad range of incomes, races, and nationalities live within the [area]... interaction in daily and civic activities is the traditional purpose of civic plazas in America, and should be the guiding principle for the design of our plaza." One blogger (we'll keep anonymous) was more succinct, "Ice skating sucks."

"The focus of the civic building is to provide a community center for the Silver Spring area and to serve as what some people call "the living room" of Silver Spring. I think it will become the focal point of downtown, [making] the center of downtown a true community place and not just a commercial place," said Gary Stith, Director of the Silver Spring Regional Center.

Boston-based Machado and Silvetti Associates has been chosen as the design architects, but contractors are still being sought. The project has been open to bids since December 26, though Montgomery County's Office of Procurement may push back the February 6th response date. County officials could not give a reason for the bid-extension, but the implication was that the overall response was a light; just 15 bids were received. Developers, contractors and those generally interested in the project can expect word on Monday, when the county is expected to offer the extension.

"The County is currently taking a look at the number of RFI's and determining if a bid extension is necessary," said Don Scheuerman, Chief Engineer with the Division of Capital Development Building Planning and Design Section. MoCo estimates a start date in March.

Tuesday, January 22, 2008

DC Officially Awards SW Development Contract

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southwest DC Wharf development - DC hires development team including PN Hoffman Eccles, Struever bros, City PartnersSome day, there may be just be a reason to visit Southwest. Last week, Mayor Fenty awarded a contract to Hoffman-Struever Waterfront LLC, a partnership between PN Hoffman, Struever Bros. Eccles & Rouse, McCormack Baron Salazar, ER Bacon, Acresh, Gotham, City Partners and Triden. The multiplex LLC now officially holds the contract to turn 23 acres of land along the Washington Channel, into a riverside paradise.Hoffman-Struever Waterfront LLC is a partnership between PN Hoffman, Struever Bros. Eccles & Rouse, McCormack Baron Salazar, ER Bacon, Acresh, Gotham, City Partners and Triden Back in September, 2006, Hoffman-Struever was officially selected as the master developer for the gargantuan project which allowed the team to establish an Exclusive Rights Agreement with the District. The Agreement was signed in April 2007. Now, the Land Disposition Agreement is being drafted - and although the contract has been awarded, the Mayor still needs to wait for the City Council to approve disposition to Hoffman-Struever and the nearly $200 million in Tax Increment Financing (TIF) and Payment-In-Lieu-of-Taxes (PILOT) financing. City officials hope to get the legislation approved by Spring of this year. The enormous project is projected to create more than 2 million s.f. of new development and provide 2,800 permanent jobs in the community, as well as about 3,000 construction jobs, expected to take a long, long time. The District will finance about $200 million of the developmental costs, accounting for roughly 18% of the projected expense; no matter (some say), once completed, the "world-class urban waterfront" is projected to create more than $32 million in tax revenue each year, compared to the $6 million that the land currently brings in. 

Ehrenkrantz Eckstut & Kuhn was selected as the Master Architect back in June 2007. The details of their plan include 767 new housing units - both rental and condos - about 400,000 s.f. of office space, 280,000 s.f. of retail space, a 360-room hotel, 150,000 s.f. of cultural space, and the renovation of the historic southwest fish market. Developers aspire to achieve LEED Silver certification for all nine buildings. Along with all of the new buildings proposed for the area, the development team is including heaps of landscaped open space into the deal, preparing to cultivate more than 14 acres of parks, a half-mile promenade and bike trails for southwest's newest residents. 

The piers will also get their fair share of upgrades. The development team hopes to pick architects for the vertical phases of construction in the summer of 2008. Hoffman-Struever's vision dissects the area into three separate "neighborhoods." The City Pier District, located in the northwest corner of the site, is proposed to be the retail center of the area, laying hold to most of the restaurants and the hotel, thereby being the most likely place to attract visitors (and tourists). Notable mini-developments within this area include a water-taxi service (which with our luck will be 'zoned' - $4 if you want to get in, $25 if you want to go all the way to the other side), and a pedestrian bridge connecting the site to the National Mall. 

Then there's the Esplanade District, which PN Hoffman describes as the center of the project where most of the residential will be sited, along with offices and some neighborhood-serving retail. Finally, the southeastern corner of the site will hold the Cultural Park District which will include a 5-acre "cultural park" and other amenities that will serve as the center of the "cultural zone;" classes will be held on-site courtesy of the Living Classrooms Foundation and the National Maritime Heritage Foundation. “Over the past two years we’ve studied waterfronts all over the world, reached out and forged working relationships and agreements with existing leaseholders, and conducted over 100 meetings with regulatory agencies and surrounding stake holders,” said Monty Hoffman, CEO of PN Hoffman. “This is just the beginning of the process to create a ‘world class’ waterfront. We will continue to work with the mayor’s office on making a waterfront that draws visitors from everywhere, but our first commitment is to the people of Washington, DC. The Potomac River is our greatest natural resource and first and foremost, this project will reconnect Washington with its waterfront. We look forward to working with the City Council to achieve passage of the Mayor's legislative proposal so that District residents can see a shovel in the ground by 2010.” You go Monty.

Washington D.C. retail and real estate development news

Monday, January 21, 2008

Bidders Revealed on Tenley/Janney

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Bids on the Tenley/Janney solicitation have closed, and Mayor Fenty has announced the three bidders vying to take on what may be one of the most anti-development neighborhoods in DC. The RFP had been extended to January 4th to allow developers extra time to craft proposals to build a library, renovate the school, and work in private space to hopefully subsidize the program.

The three firms officially asking for the nod were: LCOR, See Forever Foundation in partnership with UniDev LLC, and Roadside Development. The latter has been working intermittently for several years on the project in an effort to appease both city and vox populi, but the sale or lease of public land for private development proved the third rail of city politics, leading to the request for bids. District officials plan to hold a public meeting in February to get responses from the public on all three site-plans.

The 3-acre site, at the corner of Wisconsin Avenue and Albemarle Street, used to be home to the old 15,000-s.f. Tenley library, demolished late last year, and the upgrade-needy Janney School. The biggest concern for local residents has been the mixed-use library/residence idea that has been deliberated for some time. Although many of the Tenley homeowners have argued against the residential portion of the project, each bidder included variations of the plan in their proposal; with housing units ranging from 120 to 170 across the board.

“The Tenley site is a great opportunity to achieve some of our most important public policy goals: Building better schools, creating affordable housing and encouraging development at transit stations and along major transportation corridors,” said Deputy Mayor for Planning and Economic Development Neil O. Albert. “We are excited about the responses to this solicitation as we are just beginning to take a closer look at the proposals.

"What we tried to do is take all the input that we got from the community, and incorporate their concerns, as well as the Office of the Deputy Mayor's requirements, to come up with something that delivers on what the RFP asks for and what the community would like to see" said Armand Spikell, Principal at Roadside Development. Roadside completed the Cityline Condominiums across the street and 2005.
 

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