Northwest One Unfolds

On Monday, DC finally began work on the Northwest One site, the ambitious but still conceptual site located across the street from NoMa, on the northwest side of North Capitol Street. DC Mayor Adrian Fenty initiated the first groundbreaking of Northwest One by commencing demolition of Terrell Junior High School, at 1000 1st St. NW, making space for a new $47 million mixed use facility including a new school, library, and recreation center. The Northwest One site is bounded on the east by North Capitol, on the west by New Jersey Ave., and on the south by K Street. The District, through Forrester Construction, will replace the junior high and the distressed Sursum Corda and Temple Courts housing projects, which haven't been doing much to bring up property values in the neighborhood.

The next stage of development will be to demolish Temple Court, which the District bought last summer and has begun relocating tenants in anticipation of tearing down the building this summer; both housing projects remain mostly occupied at this point. Ordinarily, the District would build replacement housing before evacuation of existing subsidized housing, but according to Sean Madigan of DC's Office of Planning, the condition of the projects is "so bad" that the Fenty administration decided to purge and demolish immediately.

The District currently owns most of the entire development site, part of which was acquired when it took control of and disbanded NCRC last year; the remainder is owned by the DC Housing Authority. Late last year, the District selected One Vision Development Partners, a joint venture between William C. Smith, Jair Lynch, Banneker Ventures, and CPDC, as its development partner for the entire project. Details of the project - both the scope of development and compensation to the development team - have yet to be finalized, but the team has proposed the construction of more than 1,600 new apartments, condos and townhouses priced for mixed-income buyers and renters, as well as a 21,000-s.f. clinic, about 40,000 s.f. of retail and 220,000 s.f. of office space. According to Madigan, an increase in density and the "right mix" will be crucial to the success of the project. Once the administration comes to an agreement with the developer, the project will be placed on the lap of the city Council for approval.

Immediately replacing Terrell Junior High will be the Walker Jones school, library, recreation center and athletic fields, a project that Mayor Fenty described as being "a first-class facility from top to bottom." "If we are to expect excellence from our students we've got to provide great facilities that promote an integrated environment for learning," Fenty added Monday during his on-site speech. According to the Office of Planning and Economic Development, Walker Jones will be one of the first new schools constructed during Fenty's reign, and it will be ready, says he, in time for the kick-off of the 2009 school year. The new Walker Jones will house 100,000 s.f. of classroom, a 20,000-s.f. community recreation center and a 5,000-s.f. library along with some new playgrounds and sports fields. The entire project is expected to meet the District's green building standards.

The complete project is said to be in the ballpark of $700 million in new development. After production of the new school and its amenities, the District will then focus on the new housing, of which a third will be market rate, a third will be affordable, and a third will serve as workforce, some of which will serve as replacement housing for current residents. Madigan referenced NPR's recent decision to build its new facilities across the street from the site as "a huge vote of confidence for Northwest One."

Ballpark Area Scores Another Office Building

Donohoe Realty sat before the Zoning Commission yesterday evening and got the first set of approvals on their proposed office building at 1111 New Jersey Avenue, which will sit at the intersection of New Jersey Avenue and M Streets, SE, right on top of the Navy Yard Metro station. The building had gone through the Board of Zoning Adjustment application process back in May of last year for 'essentially' the same project, but since then Donohoe acquired the adjacent Navy Yard metro site, which fronts M Street. This new addition to the site now requires the Zoning Commission, rather than BZA, to weigh in. The Commission approved the plans 4 to 0.

WDG Architecture designed the office building to sit 11 stories high, with a total of 200,000 s.f. of space within shouting distance of Nationals stadium, just south of St. Matthews Church and adjacent to the Opus office building currently under construction. The offices will sit atop three-underground levels of parking and a single story of ground floor retail. The rooftop will have dual uses: half will be a mechanical penthouse while the other half will be exposed with rooftop terraces.

WDG's Siti Abdul Rahman explained the design of the building during the Zoning Commission's last public hearing:"What we did is we created a very simple, plain, curtain wall glass, very pristine vaults with minimal architectural detail on this facade which is facing M Street...it wraps around towards New Jersey Avenue, and on New Jersey Avenue, what we did is we added a bit more texture onto the facade by creating a horizontal architectural metal banding glass. So it became a bit more texture[d]...To tie these two walls together, we added a metal vertical element and that will run down to the building and ties down to a metal and glass canopy. We also use[d] a more clear glass to benefit the retail spaces."

The next step is to get NCPC's nod - after which Zoning will give their approving order and construction permits can be sought.

Columbia Heights Opens Retail Center

Last week marked a proud moment in District of Columbia history - the city's first Target store opened in the DC USA retail complex in Columbia Heights.

The 540,000-s.f., three story 'urban center', on roughly five acres of land between Irving Street and Park Road, is expected to garner more then $12 million in revenues for city coffers and will supply the District with more than 1000 jobs. Coming on the coattails of a 180,000-s.f. Target are Bed, Bath and Beyond, Washington Sports Club, Best Buy and a number of smaller retailers more often relegated to the suburbs, like Caribou Coffee, Mattress Discounters, Quizno's, Marshall's and Staples. New York based Grid Properties and Gotham Developers saw the project through to completion.

In a statement to the press last week, Mayor Fenty said: “[I]t is fitting to call this project both the catalyst and the capstone to an unprecedented economic resurgence in Columbia Heights – where nearly $1 billion worth of new housing, retail and office space has moved through the development pipeline since 2001.”

George Washington University professor, and economist, Tony M.J. Yezer opined. "If you think about what happens when you have group houses or [families with] double income-no kids, if they work downtown, they're not particularly fond of the suburbs. Its logical, that since there is a lot of employment of those types, they're going to want to live in Columbia Heights. If I could speculate, this [growth] might have happened earlier, except that perhaps, the government in DC was somewhat problematic in the 1980s.

"Does retail follow housing, or does housing follow retail, the answer is yes to both. This retail growth in Columbia Heights is caused by the population transformation and the population transformation will bring further retail. Things may be going fast in DC now, and the reason is that they didn't happen over time because they were delayed by what I consider to be problems with local government. You can have the economic rationale for converting a neighborhood to be fairly large, but you can also have regulatory impediments. The dam has burst. [Development] is going to happen very fast."

Bring on the cheap sneakers.

Washington DC commercial real estate news

More Southeast Development

Crawford Edgewood Managers Inc. (CEMI), together with New Market Investors LLC and the DC Housing Authority, is making headway on Highlands Addition, a revitalization effort that would turn more than 300,000 s.f. of vacant land in Washington Highlands into 138 mixed-income homes. The triumvirate has now selected Hamel Builders as the contractor after a lengthy bidding process, and now have to finalize the layout of alleys and thoroughfares that the project will create, which is still up for City Council approval. Once the chunk of land has been successfully gridded, all that's left is to buy those chichi golden shovels.

 

The plan, first filed before the Zoning Commission in November, 2006, seeks to build 138 units in the form of single-family detached, semi-detached and row house structures, and a number of stacked flats. In order to fit that many units on the site and to comply with density requirements, the partners needed the Zoning Commission to rezone the lots from R-5-A, to R-5-B. This also allowed the architects at Torti Gallas to design the buildings with a bit more freedom in building heights, which will range from 32 to 53 feet. Developers will also provide tenants with more than 300 parking spaces in garages, parking pads and on-street, but most of the units will have driveways.

The kicker for Zoning was the mixed- income pitch. With help from the District of Columbia Housing Authority, Crawford and New Market will offer "high-quality housing affordable to people in a wide range of income levels," providing more than 100 market-rate units for purchase, 30 units for rent to serve households at 60% AMI and a number of priority-rental units for households earning less than 30% AMI. Developers did not include homeownership opportunities at affordable rates - only the rental units will be subsidized.

"This development will change the neighborhood. It will bring homes to this area which brings taxpayers who will stabilize the neighborhood. Right now, it is crowded with low income housing, but this will be a great improvement for the neighborhood," said Cynthia Dickens for CEMI. "We should never warehouse people again. This project will bring socio-economic stabilization to a neighborhood that has long been neglected," said H.R. Crawford, codeveloper of the property.

In their pitch to Zoning, the two firms stated that, "Highlands Addition residential community will create a physically and socially vibrant neighborhood in place of this vacant site which is detrimental to the neighborhood." In addition to claiming social responsibility, the developers are attempting to create an "environmentally responsible development with sustainability features such as enhanced stormwater management, Energy Star appliances...and pedestrian-friendly, tree-lined streetscapes."

Developers anticipate a start date sometime this summer, and will phase the project beginning at Valley Drive and building outwards.

Washington DC commercial construction news

Art and Development in Southeast

ARCH Development, together with InscapeStudio, is putting together its own revitalization package for southeast DC, offering subsidized artists' housing to stimulate both the arts and economic development in one of DC's needy neighborhoods. In the next few months, two of ARCH's projects will materialize side by side, at the 1600 block of V Street and the neighboring 2025 Fendall Street, SE. Both projects will be for sale and include elements of affordable housing.

ARCH, both a nonprofit development firm and nonprofit artist-training center, has already delivered on a residential project: a 4-unit, artist-residence at 1706 16th Street SE, half of which is used for complementary housing for artists doing community work in the area, and the other half as gratis housing for artists who are visiting the District. How can they offer free housing you ask? During Christmas of 2005, a fire tore through much of the building when it was briefly vacant, and thanks to a grant from the Commission of Arts and Humanities, the building was renovated in 2006 and continues to operate with a negligable overhead. Among the residents that Arch attracts to the building will be Delphine Perlstein a Parisian artist who will be exhibiting at ARCH's Honfleur Gallery and the French Embassy in April, and the crew from HGTV, who will come to Washington DC to revitalize three historic Anacostia developments (1, 2 and 3).

Duane Gautier, President of ARCH, gave input as to how his firm has a special advantage in neighborhood revitalization. "We believe that arts and culture can be one of the strategies that can revitalize the Anacostia neighborhood. What we're trying to do is develop a critical mass of arts and culture activities both commercial and residential, which should help to generate further development in the neighborhood. And that's what we want to see: more private sector involvement."

Now the firm is finishing up their plan for V Street, which requires the demolition of the existing building, and will replace it with a three story, 8-unit, artist-housing condo. Its one and two bedroom units will range from 550 -1200 s.f., and the first five lucky buyers will get free access to each of the five work spaces located on the first floor for two years, as an added incentive implemented by ARCH in the hopes of selling the building as quickly as possible. Prices range from approximately $165,000 to $210,000 - four of the units will be affordable for households earning approximately 60% AMI, while the other four units will be sold at market rate. ARCH is currently finishing up permit drawings for the condo and plan on breaking ground in October 2008, setting up for a grand opening in the fourth quarter of 2009.

The Fendall Street condo building, at the corner of Fendall and V, sits just in front of the V Street condos. Arch is currently performing internal demolitions on the apartment building that sits on the site, with the plans of stripping it bare, and remodeling the entire three story building to house 29 condominiums ranging from 600 - 11,000 s.f. Like V Street, 10 units of the building will be reserved for artists, and it will house a number of artist studios in the basement; about 80% of the total units will be affordable and only 20% will be sold at market rate. Gautier expects the Fendall Street project do be finished by February, 2009.

Industry Insight: MRP's Ryan Wade

MRP Realty has developed more than 17 million square feet of land in the District of Columbia and has roughly 5 million square feet of proposed development in progress. With such volumes of development in the pipeline comes a keen and watchful eye on the market. On behalf of MRP, Ryan Wade, one of the firm's founding principals, gave DCMUD an exclusive look at the inner workings of his firm. He shared a little bit of their insight, gave us their read on the pulse of the market and talked strategy on beating out the competition when the times are a-changin'. 

DCMUD: So to start off, what made you enter the real estate development business? 

Wade: Good question. My family was in real estate. My father worked for Northwestern Mutual, and then actually had his own firm, so I guess I grew up in the business. And then, coming out of school (Carolina), I always knew I wanted to be in real estate. My brother is in the business and works with us. It's just a great business in DC too - it's a good social business. You can make a lot of money. But it's more than that; I think it's a good culture. 

DCMUD: What about leaving Trammell Crow, how did that happen? Wade: Crow had some of the best culture in the business, or has some of the best culture and people in the business. I had a great four years at Crow, working closely with Bob Murphy, Fred Rothmeijer who's with us, and Chris Roth who is still there. We just had a great opportunity with good partners and pretty good capital relationships. It was just a fortunate time in the market where we could actually do it and pull it off. DC MUD: 

Are there differences between the way things were run over at Trammell Crow and the way you do things over here? 

Wade: I think it's very similar. We have the open floor plan, where there's a bullpen. It's very open, very collaborative. I think decisions are made very quickly. I think they were in that environment, and I think they are here. We’re doing pretty much the same thing. We've teamed up with capital partners, with Rockpoint Group out of Boston, Mass Mutual, Brookdale Group, who we've done business with before. So it's just a different jersey. 

DCMUD: So on to Gateway, what attracted you to that site? 

Wade: We've done a lot of assemblage. We've purchased a lot of land in DC starting in the CBD, a lot in the East End, in the Mount Vernon Triangle. We've always been very fortunate controlling land in DC. Especially if you have a long time horizon. So look at just the height limits in DC, it pushes development east. That's the next market there, in Southeast. We've missed Southeast. We don't have any down there. DC MUD: So most developments in NoMa are office space, for the most part. Why did you add a residential component? Wade: The primary reason is we looked at how we could get the most product going at the same time, to create a sense of place, bring retail, and get it out of the ground. So we're going to build the office building, hotel, and the residential building, which is 80 percent of the overall development, in phase one. It allowed us to move into more phasing than a small office building. You can't build a million feet, all office, on day one. But we can with multiple property types. It also brings a sense of place and creates the environment. DC MUD: So the phasing is important to the 'sense of place?' Wade: If you have a million square feet of office, you'd build phase one for the office, and then you'd wait for the lease on the office. Whereas we're essentially going to build phase one and phase two at the same time. The ground is worth more as office, but marginally more, and waiting the extra couple of years is worth it to get it going. And also, going back to the sense of place, and having a hotel on site and mix of uses, it's pretty important. We have about 10,000 s.f. of retail here. The problem with NoMa right now, is it's not finished and doesn't have the retail. DC MUD: So how do you make decisions on what's worth developing? Wade: I think we're pretty focused, we're pretty good at buying land and understanding where the value is. We're pretty good at entitlements. We've been in every jurisdiction so we know what we're getting done, and we have a pretty good sense of the market. It's experience with the markets, and knowing what we can and cannot get done within the jurisdictions. We also focus pretty heavily around transportation solutions. For example, in Loudon, we bought a site that has just come to fruition. In our Tyson's project deal, we actually donated land to the HOT lanes Consortium. So they're going to put HOT (Hight Occupancy Toll) lanes literally right into our project. DC MUD: What do you look most for in architecture? Wade: We spend a little bit more in the buildings than some of our competitors. We try to build the top end of the market. If you look at our Tysons building, it's going to be the best building in northern Virginia. It's going to be over the top, trophy quality, the best that Virginia has seen. And I think you'll see that in Washington Gateway. You'll see a high quality design. So we just need to make sure if we deliver in the wrong market, that we have a great product. DC MUD: Can you talk a little bit about some of your upcoming projects, like the Tyson’s project (7940 Jones Branch Drive)?

Wade: It's going to be the best building in northern Virginia. It has a curtain wall design. We'll bring in a top quality chef which we should be able to announce in the next few months. We are going to have more amenities than anybody in the Tysons market, with fitness, concierge, conference facilities, cafes, full service restaurant, the whole nine yards - floor to ceiling glass. Because of its location and design, its presence should be pretty significant.

DC MUD: What about the Courthouse site (pictured below)?

Wade: Yeah 1310 North Courthouse, it's on Courthouse Road, good visibility from Route 50. We just bought it. We're completely renovating it, gutting the entire thing. We’ll have new lobbies, new bathrooms, new elevator cabs, new plaza. We completely changed (the first floor layout) to bring in a fitness operator. We're just going to completely change the inside of the building. DC MUD: And Potomac Yard? Wade: We're in the entitlement process now, working with Alexandria. We have 1.8 million s.f. total, 400 residential units, 800,000 s.f. of office, 600 hotel rooms, and about 200,000 s.f. of retail, with an emphasis on food services and entertainment amenities to really create a town center. We haven't programmed it, but we're going to have a major theme in the open space,like Reston has with the ice skating rink. DC MUD: What do you think is the most important aspect in developing a successful project? Wade: I think high quality, and probably the right real estate, the right area and location - and also team. One of the benefits is, back to being able to work with anybody, that we can pick the best people to work with on each individual project. DC MUD: What affords you that luxury? Wade: The fact that we don't have any in-house services. We're pure developers. We don't have management, we don't have leasing, we don't have sales, or finance. DC MUD: Last one- which part of DC's development process would you like to see changed? Wade: I just think it would be great to change the process for DC in literally any jurisdiction just to make it more efficient. It just takes a very long time to get anything approved. It's a very difficult predevelopment, entitlement process. But on the flip side, it's also the benefit, because it makes it difficult to do, so you don't have as much supply once you actually get through the process. Alexandria's probably the hardest. DC is, we've always found it to be fair. We've gotten through with what we needed to get through.

Todd Place Condos

Sponsored Announcement

Todd Place is the total renovation of 3 separate apartment buildings, 302-310 Todd Place, into 12 condos, each with two bedrooms, deep walk in closets in each bedroom, vaulted ceilings, and beautifully finished interiors. Located within walking distance of the Rhode Island Ave Metro station and NoMa Metro stations, in DC's booming NoMa area, the fastest growing commercial real estate sector in the District. Off-street parking available for each unit. Interior finishes include solid bamboo floors, generously sized granite counters in the kitchen and bath, skylights on the upper floors, ceiling fans, walk-in closets in both bedrooms, and private security systems. Developed by Lindsay Development & Hillsborough Investments. Newly reduced prices range from $249,500 to $265,500.

NPR Announces New Home in Noma

Today, Mayor Adrian Fenty announced the newest resident of NoMa, NPR, which is now making preparations to dispose of its old site. The District's favorite nonprofit will add to the list of NoMa's growing family, XM Satellite Radio, CNN, the Department of Education and the Bureau of Alcohol Tobacco and Firearms. According to the NoMa Business Improvement District (BID), an organization created by the City Council to support development in NoMa, private developers have invested over $1 billion and broke ground on over three million s.f. of space within the area north of Massachusetts Avenue since the initiative began.

J Street Development, which had other plans for the site at 1111 North Capitol Street, NE, before deciding to sell to NPR, will develop the 10 story, 400,000-s.f. office building and the massive, 60,000-s.f. newsroom bullpen inside. The building will take the place of the old Chesapeake and Potomac Telephone Companies warehouse, which is currently leased by the Smithsonian. Shalom Baranes Associates will design NPR's new global headquarters with space for more than 20,000 s.f. of retail while maintaining a number of facades from CPT's historic building. To begin the move, NPR will begin marketing their old digs at 635 Massachusetts Avenue for sale within the next two weeks. The organization will then leaseback the property until their move-in date, expected by the end of 2011.

"There are businesses within this city's boundaries that are important to the fabric of our communities. NPR is one of those businesses. We started working months ago to find NPR a new headquarters...This project will be an impetus for many things to come over the years," announced Fenty proudly.

"The new headquarters will be the physical manifestation of our broader thinking about NPR for the future...This translates to a setting that offers our staff the most creative, collaborative and interactive atmosphere to do their best work," boasted Ken Stern, CEO of NPR. With this openness in mind, Stern then discussed the vast amounts of public space that the development will include in the new campus, to be used for live broadcasts, lectures and for the community at-large.

Studley represented NPR in the deal, searching for a place that was close to the metro to serve commuting NPR employees, while at the same time attempting to remain within the District. According to Vernon Knarr of Studley, "For NPR to move outside of DC would have been a big change."

As part of the development, the city will help fund the project with a dual phase, 20-year tax abatement which translates to roughly $40 million dollars, a factor that Deputy Mayor for Planning and Economic Development Neil Albert said was "critical to the economics of this deal." Alongside those tax abatements will come a slew of streetscape improvements to make the project "feasible and aesthetically pleasing," added Fenty.

NPR was founded in 1970, and opened up shop on M Street, only to move to Penn quarter more than a decade later, in what many called a pioneering move. Stern likened their current move to that same pioneering mentality from the '80s.

Fenty's Vision for Underdeveloped Neighborhoods

Mayor Adrian Fenty outlined his vision for growth in DC's less developed neighborhoods through the Center City Action Agenda 08, announced today. He hopes the plan will expand development from the heart of the city to new emerging areas such as NoMa, the Southwest Waterfront, the Capitol Riverfront, and Anacostia. The Mayor also claimed that the plan will improve the city's housing, arts, culture, recreation, and transportation, thereby making the city more sustainable and globally competitive.

In the District's first step to reach out to these neighborhoods, the headquarters for the Department of Housing and Community Development will move from its Union Station address (though technically in NoMa) to Anacostia Gateway on Martin Luther King Jr. Avenue, SE in September.

While not commenting on how this ambitious program would be achieved, much less paid for, Fenty said, "This agenda provides a compelling vision and a strategic implementation plan for growing the District's base and providing employment opportunities, better services and ultimately an improved quality of life for the residents of the nation's capital. And we are leading this effort by example."

Fenty's goal is also to add another 3.9 million s.f. of retail, office, and housing development on an annual basis, with additional affordable housing. The District is calling for an increase in jobs as well, aiming for an additional 6,000 office, 700 retail, and 500 hospitality jobs. The plan focuses on making DC a more sustainable city with additional parks and green jobs, and better walkability.

Monument Wins Injunction on WMATA's Ballpark Site

Monument Realty won a temporary victory last week in its dispute over the Washington Metro Area Transit Authority (WMATA) site near the ballpark, scoring an injunction on the sale or transfer of the bus depot that it had unsuccessfully sought to purchase in 2007. Monument originally planned 100,000 s.f. of retail on the site, located on the western side of Half Street - the block-long street that will serve as the main promenade to the ballpark (see rendering, above). The site would complement the 275,000 s.f. of office space, 50,000 s.f. of retail and 320-unit residential building that Monument is already constructing on the other side of Half Street (see photo, below), all just a block away from the Nationals' new stadium. In a ruling issued February 28th, a U.S. District Court enjoined WMATA from selling the land until further consideration by the court.

The site became the nexus of a dispute between Monument and WMATA last year, after Monument's failed attempt to secure the land in a public offering that WMATA eventually awarded to Akridge. Both Monument and Akridge (among 8 others) had responded to the solicitation for the bus garage by submitting bids to WMATA, but the Monument bid contained an escalation clause, a term that WMATA's offering had specifically prohibited, and which WMATA disregarded in their calculation of the bids. Discounting Monument's escalation clause, Akridge had the higher offer and was awarded the site for its bid of $69 million. With the game apparently over and Akridge heading for the showers, Monument is now asking for the instant replay.

Specifically, Monument is looking back to December of 2005, when the Anacostia Waterfront Corporation (AWC), on behalf of the District, designated Monument Realty as the Master Developer for the Half Street area. Under the designation, Monument was given the exclusive right to negotiate, acquire and develop properties along Half Street owned by the District. Monument then acquired the eastern side of Half Street, incorporating the Navy Yard Metro Station. AWC then attempted to negotiate the acquisition of the disputed bus garage (see photo, below), to be folded into Monument's plan.


It was then that WMATA issued a Joint Development Solicitation to invite developers to jointly (with WMATA) develop the bus garage. The District then requested that WMATA end its solicitation and coordinate all further development plans with the AWC; WMATA voluntarily complied, vowing to synchronize future development with the AWC. As the District Court pointed out in its Injunction, WMATA was obligated, based on its own Policies and Procedures, to offer the host government the first right of refusal on any property it sells, priced at fair market value.

After a successful purchase of the site above the Navy Yard Metro Station, Monument then made an unsolicited bid on the bus garage site, negotiating directly with WMATA rather than the AWC. Rather than accept the sole bid, WMATA's board - believing itself not obligated to deal exclusively with Monument - voted to invite competing bids, and issued an Invitation for Bidders. Shortly thereafter the District informed WMATA that it would exercise its right to purchase the site. WMATA withdrew its invitation, and agreed to sell the site to the District. WMATA claims that the District subsequently decided not to purchase the Bus Garage, and with that in mind, issued a second invitation for bidders. It was this second phase that attracted 10 bidders, and ended in Monument's bid being partially disqualified and Akridge being awarded the property last September.

On October 26th, Monument sought a Temporary Restraining Order against WMATA to enforce the right of first refusal as an intended third party beneficiary, claiming breach of contract, fraud, and breach of fiduciary duty. The District Court threw out the tort claims because of WMATA's sovereign immunity, but did not throw out the remainder. Monument re-filed on January 2 of this year, with a widdled-down motion for a preliminary injunction against the sale, which the judge granted last week.

"The Court recognizes the merits of this case by taking the serious step of ordering injunctive relief. We are committed of the Capitol Riverfront neighborhood as evidenced by our investment of tens of millions of dollars in this project over the past several years. We've always had a grand vision for Half Street and realize the importance of the project as it is the gateway to Nationals Park. It is great to know that we still have the opportunity to make the city's goal of having a coordinated development plan. A successful project for us also equals success for the city and for The Nationals", said Jeffrey Neal, co-founder and principal of Monument Realty (and former Akridge executive).

A 'Status Conference' will be held to discuss further proceedings on March 7th, after each party has been able to file their individual recommendations.

Washington DC retail and commercial real estate news

Bozzuto Planning...Something...on New York Ave.

The Zoning Commission yesterday took proposed action to approve the rezoning of 5,000 s.f. of land to a moderate density commercial zoning district at the southwestern edge of the block bounded by New York Avenue, 5th and L Streets, NW. Zoning will soon take final action on April 14th after the National Capital Planning Commission gives the yes (or no).

Bozzuto eventually wants to develop the site, but no formal plans have been submitted - and because of the site's negligible size, the P.U.D. process wouldn't apply - P.U.D sites have to be 15,000 square feet. In essence, if Bozzuto can get an official zoning change, they can develop the property by right, but must heed the Historic Preservation Review Board's comments.

The site, which actually sits in both the Shaw neighborhood and the Mount Vernon Square historic district, has no official plan. And although Bozzuto Development Group, the applicant requesting the zoning change, is applying for 5,000 s.f. of rezoning, that amounts to only half of the lot, leaving the other half to be zoned for residential uses. The reason Bozzuto is leaving half the site residential is complicated; the firm owns three lots on the block: the lot being sought for rezoning, and two lots adjacent to the east. The pair of lots to the east are already zoned for moderate commercial uses, so the firm is trying to extend their commercial capabilities for half-a-lot more.

Bozzuto has proposed an 'illustrative' development, though it is not officially attached to the record, which would demolish a single historic building on one of the eastward lots, and would move another neighboring historic structure westward, into the slice of land that would remain in the residential zoning district. Bozzuto would then fill in the vacant lots between the historic property and the Yale Laundry Site, which serves as its eastern boundary. Although there is no official record of what the building would be, Bozzuto might be wise to keep it fully residential, from a purely zoning perspective; Zoning regulations effectively permit "any commercial zone [within this district] to be developed to a high density, if the development is solely residential." However, Bozzuto must be taking note of the Yale Steam Laundry condo project next door, which is not expected to sell out any time soon.

Bozzuto's illustrative development plan ensures the "stepping down [of] the mass of the building proposed." If the rezoning takes place, Bozzuto would be working within a 130-ft. height limit and roughly 50,000 s.f. of gross area. As the Zoning Commission comments, "The requested zoning would, in theory, permit the applicant to construct a building approximately three times as large as what would now be permitted on this site."

We're not sure what its going to be, but that doesn't stop us from being excited.

Edgemoor Edges Toward Expansion

Back in the first year of the 43rd President, Armont Development Corporation applied for a zoning change to build a 12-unit residential and 9,000-s.f. office building which would share a 38-unit garage on a 28,000 s.f. site in Bethesda. The application for Edgemoor At Arlington North, at 7425 Arlington Road, was granted, but Armont sat on the site for the past seven years. A short time ago and one real estate cycle later, Armont saw an opportunity to acquire nearly 10,000 s.f. of adjacent land to increase the size and scope of the project - the development firm acquired the land and needs to rezone it for an expanded development.

Armont seeks to amend the development plan to include the new property, to build a 31 unit residential building with 50 underground parking spaces, and has abandoned the idea of mixing office space into the plans. Montgomery National Capital Parks and Planning Commission reviewed the new plan today at their Planning Board meeting; the staff has recommended approval.

Back in January, Armont staffers met with residents of the area to discuss their concerns and issues. The Planning Department recognized that "[i]t appears that the two sides were not able to reach a mutual agreement...although some initiatives in the applicant part were recognized as positive steps." Community members had issues with the building's height, its proximity to neighboring townhouses and its massing and density (other than that everything was fine). In light of the opposition, Armont withdrew its application for a 57-foot structure, scaling it back to 48 feet.

The next step for Armont takes place in the office of Montgomery County's Hearing Examiner, Françoise Carrier, who will hold a public hearing on March 7th. Once the Hearing Examiner submits her findings to the County Council, all concerned parties have 10 days to submit their respective arguments to the Council, which will then decide whether or not the arguments are worth hearing.

The Edgemoor would sit four blocks from the Bethesda Metro station on the red line, fronting Arlington Road for more than 200 feet and Montgomery Lane for 100 feet. The adjacent property that Armont is seeking to have rezoned is a slice of land to the north of their ready-to-be-developed chunk, betwixt Arlington Road, Montgomery Lane and W Lane. The expansion portion is currently zoned R-60, but needs a TS-R Zoning District to be able to house the type of project Armont is planning. In Maryland, land can only be zoned TS-R "in areas where multi-family residential development is recommended by the Sector Plan and where it will encourage use of transit stations." Edgemoor at Arlington North - 1,200 feet from the red line - would seem to meet that criteria.

The total building will add 69,000 s.f. of space, providing 31, one, two and three-bedroom units, along with 3,000 s.f. of public space and 5,000 s.f. of recreation space; 12% of the units will be designated affordable housing. Along with the normal amenities like open space, etc., Armont will upgrade the pedestrian crosswalks at Arlington Road and Montgomery Lane because, as the Planning Department's staff report indicates, "Area residents have found that vehicles cannot be relied on to stop for pedestrians, despite a painted crosswalk."

Because Arlington Road is a transitional urban area (and a fantastic Tim Robbins flick), the Community Based Planning Staff laid out guidelines in the Sector Plan for "townhouse style and scale" developments for the area. Armont complied, the building will measure 35 feet from Arlington Road, and stepping back from the main road will grade up to 48 feet to reduce visual massing. Planning Board staff recommended approval in a memorandum dated February 15, and will hear public concerns on March 5.

Bethesda real estate development news

HPRB to Review 14th and U

Plans for a mixed-use apartment and retail project at the southwest corner of 14th and U Streets in NW will be on review today, as Robert Moore of Georgetown Strategic Capital LLC (GSC) and Eric Colbert & Associates appear before the Historic Preservation Review Board. They last met in December when the developer and architect presented their initial concept ideas for Utopia (as it is referred to around GSC's office), but HPRB recommended they alter the design to reduce the impact with the smaller buildings in the surrounding historic area. The property is currently owned by F.S. People's Realty Company and Jenco Group, which is currently negotiating a long term ground lease with GSC for the development.

GSC's preliminary plans (rendering above, depicting the west side of 14th St) propose construction of 230 rental apartments in a seven to ten-story building at the corner of 14th and U streets, which Moore expects will attract young professionals. And not without reason; one block to the east, Donatelli Development's Ellington apartment building has maintained high occupancy with some of the highest residential rents in the area. In the current design, GSC will offer a range of units from studios to small two bedroom apartments, but averaging around 750 square feet. The building will be a block from the 13th and U St. metro station, for what Moore calls an affordable, "urban living experience."

GSC also plans 20,000 s.f. of retail on the first floor, doubling the 20,000 s.f. of existing retail in vintage buildings along U Street, which will be incorporated.
According to Moore, "People are welcoming this change to the neighborhood. This is a strip that isn't very attractive right now. We hope to bring an exciting new mixed-use building to the neighborhood, and provide much needed affordable rental apartments."

Eleven historic buildings exist on the site within the U Street Historic District and Uptown Arts Overlay zone. None will be removed, although some non-historic buildings will be torn down for the project. The plan incorporates some of these historic elements, such as the frontage of rehabilitated buildings on U St. and three small commercial storefront buildings on 14th St., which combines a mix of historic and architecturally insignificant new buildings that are blessed with such retail as McDonald's and other fast food take-outs.

The main problem HPRB wanted to see altered was, of course, the height and density of the buildings in relation to the smaller surrounding edifices. The new conceptual idea, to be discussed today, includes two components to relate to the two different zoning categories, the southern half being low density and the northern half allowing for higher density.

Although planners hope to have their designs approved today, both HPRB and Moore said there will likely be further follow up meeting between the groups to iron out differences. The designs will then move on to the Board of Zoning Adjustment before any construction will take place. GSC plans on beginning construction in 2009 with completion in the beginning of 2011.

Alexandria's Hunting Plaza Waits on VDOT

This month, the Alexandria Planning Commission took a look at IDI Group Companies' proposal for Hunting Creek Plaza, a project that would renovate the current Hunting Towers apartments (pictured at right as two cross-shaped, red brick buildings) by constructing a luxury condominium community on the Hunting Terrace site (rendering digitally inserted in picture at right, above brick apartments), both wedged between the Potomac and the George Washington Parkway. In a setback for the developers, the Planning Commission deferred a decision until the land officially reverts to IDI Group and its partner, Kay Apartment Communities.

IDI saw a unique opportunity in the two existing Hunting Towers buildings - which currently lay hold to 530 apartments - to preserve the pair of buildings as affordable workforce condominiums, similar to what they've done with properties like Parkfairfax. After Hunting Towers' renovation is complete, IDI plans to offer the workforce housing from $125,000 - $240,000 for existing tenants. The remaining units would then be sold, during a priority marketing period, to the city's workforce: school teachers, firemen, policemen, hospital workers, and bloggers (uh, technically that last one was left off the city's list...probably an accident) could snatch them up at prices ranging from $140,000 - $330,000. Anything left over would go to the public at workforce prices, ranging from $145,000 - $355,000. All of this would be subsidized by profits from the sale of the new condo complex.

The vision of the new building (Hunting Terrace) is a 361-unit luxury condo complex. HLS Architects, together with the Old Town firm of Bartzen & Ball Architects, designed Hunting Terrace as four buildings: two, adjacent five-story residential buildings fronting Washington Street and two adjacent main buildings, which step up from eight to 14 stories, with a landscaped courtyard acting as a buffer zone between the two pairs.

The Planning Commission's deferral on the new construction comes in light of the Virginia Department of Transportation's work on the Woodrow Wilson Bridge, the second half of which is planned to open within 12 months. Under the eminent domain process, VDOT had omnipotently purchased both the Terrace and Towers sites during the early phases of bridge planning, and demolished roughly a third of each parcel, destroying one building of the Tower side, and three buildings on the Terrace side to make way for the leviathan tangle of new roadways.

But roughly two years ago, Virginia's favorite transportation authority came to the conclusion that its holdings on the Terrace (i.e. new building) side were no longer needed, and sold it back to its original owner, Kay Apartment Communities, which by then had partnered with IDI - the pair have been working on finalizing the new construction drawings since then. But don't uncork the champagne yet, because VDOT still owns the future-workforce housing site, and the Planning Commission wants to see VDOT's sale contract for it before they will approve the proposal to build the new condominiums.

This, most simply put, poses a problem for IDI, because the entire project hinges on the redevelopment of Hunting Towers. The Planning Commission will not grant approval for the increased density and height of the new condominium tower, unless IDI uses the revenue therefrom to subsidize the affordable workforce housing a la the Hunting Towers renovation. Yet VDOT may not sell the confiscated land until the end of this year, and IDI, for various reasons, cannot sit on the condo site until such time that the other half of the project can be purchased. To alleviate these concerns, IDI has offered $20 million in collateral funds to begin building the condo side, in order to avoid suspicions that they will reneg on their obligation to revitalize Hunting Towers into workforce housing. The planning commission still wants to see the contract before they will allow IDI to build the Terrace condos.

"We're working very diligently to try to negotiate with VDOT and reach an agreement on the Hunting Towers parcel as soon as possible. Unfortunately if we don't have the additional height and density that we're requesting that would in turn generate the $20 million subsidy it would be impossible for us to preserve the 530 homes in Hunting Towers as affordable workforce housing. We would have to consider other development alternatives," said Carlos Cecchi, Vice President at IDI Group.

Neil Alblert's Stimulus Package for DC Developers

The Office of Planning and Economic Development announced yesterday nearly $9 million in development grants for neighborhood projects through the Neighborhood Investment Fund (NIF), a subsidiary program of OPED. The seed money is being offered to catalyze further development in neighborhoods that need it most.

The District's development booty will be offered offered through two programs: $6.9 million, managed by The Reinvestment Fund, will be offered through NIF's Land Acquisition and Predevelopment Loan Fund, which will help to provide non-profit and Local, Small and Disadvantaged Business Enterprises (LSDBE) with low interest loans for land acquisition and predevelopment purposes. The second program will offer another $2 million, managed by Local Initiatives Support Corp (LISC), through NIF's "Predevelopment Grant and Project Grant Fund" to help finance construction and rehabilitation.

“Our charge is to ensure that every section of our city enjoys real economic development opportunities...We expect qualified organizations will put these funds to work – leveraging our initial investment to create some real community benefits,” said Neil Albert, Deputy Mayor for Planning and Economic Development.

In order to qualify for a grant, a project must be considered eligible in both location and scope. The funds apply to projects that would create either affordable housing, mixed-use development, or community facility projects in 12 NIF target areas, namely: Anacostia, Bellevue, Bloomingdale/Eckington, Brightwood/Upper Georgia Avenue, Brookland/Edgewood, Columbia Heights, Congress Heights, Deanwood Heights, H Street, NE, Logan Circle, Shaw and Washington Highlands neighborhoods.

The deadline to apply for one of these grants ends on July 31, 2008, or until the grant the District gives away all of its money. To get a pice of the pie, check out their website.

Funding Time for Silver Place

Today, the Maryland- National Capital Park and Planning Commission (MNCPPC) sat together with the County Council’s Planning, Housing and Economic Development committee, to discuss a two-stage financial package for funding SilverPlace. The County Council Committee voted 3-0 in favor of funding the first stage, a set of design charrettes that will facilitate community input for the overall design. The second half of the finance package will fund final design and construction of the project - MNCPCC is requesting $4.9 million in total funding from the county for its interest in the property.

If all goes according to plan, the first design 'charrette' - a roundtable discussion, to you and me - should begin this Spring. MNCPCC expects the community input stage to last until the end of the year, when they would request the second stage of funding. According to MNCPCC, "The design phase could take up to 10 months." Our guesswork indicates the final design could be submitted as late as 2009.

Silver place, located at 8787 Georgia Avenue in downtown Silver Spring, will be a mixed use project (see prior post) encompassing a nine-story, 150,000-s.f. office tower, which will house the new 120,000-s.f. MNCPPC headquarters, and a residential component housing 358 units, 91 of which will be rental units - the remainder will sold as condos. Preliminary plans also call for some retail and copious public gathering space. Currently, the site houses a large surface parking lot and the current, three-story, MNCPCC headquarters, which has become so overcrowded that the organization needs to rent out suites for its staff. Developers will build the new project in phases so that planning staffers won't be out of a home until their new one is finished.

Torti Gallas is designing the master plan for the site, working alongside a group of development firms, who appropriately call themselves SilverPlace LLC: a combination of Harrison Development, Spaulding and Slye, and Bozzuto Group.

Waffle Shop: A Moving Story

Yesterday, the Zoning Commission approved Douglas Development's 1000 F Street project for proposed action. This leaves the project to be reviewed by the National Capital Planning Commission on March 6th before Zoning can make their final decision.

For the unenlightened, Douglas had submitted a Consolidated P.U.D. for the 11-story, 91,000 s.f. office with 6,000 s.f. of ground-floor retail back in the third quarter of 2007 (see original blog). The L-shaped corner project, which will sit in very close proximity to the Metro Center station, will also include the renovation and relocation of the two-story "Waffle Shop" now on the site - not just the business, but the entire building will be transported. Douglas is heading up the shop's location change thanks to the Art Deco Society of Washington, the DC Preservation League, the Historic Preservation Office and the Committee of 100 on the Federal City's requests to save it in all its historic glory. HPRB had initially granted Douglas's request to destroy the eatery, despite the dearth of retail downtown and the vacant storefronts which attend to so many of Douglas's retail spaces in Penn Quarter, but the community's ire motivated the city to reconsider the issue. No space has yet been designated for the store's relocation.

Douglas will also incorporate another historic commercial building into the new development, keeping its facade and all of the other 'pretty parts' to lend some historic credibility to Douglas' new office building. The renovation and construction will be guided by architect Shalom Baranes.

DC Agencies Unite on 'Master Plans'

Today, a handful of District agencies announced their partnership to provide a guiding set of principals for the many distinct planning initiatives going on throughout the city. The Architect of the Capitol, Office of Planning, National Capital Planning Commission, National Park Service and the Commission of Fine Arts have all gotten together to create a synopsis of "four distinct planning initiatives: the Capitol Complex Master Plan, the Center City Action Agenda, the National Capital Framework Plan and the National Mall Plan."

The overview, entitled "Planning Together for Central Washington," identifies substantial places, corridors and 'important connections: in a self-described "broad plan for central Washington, DC." The National Capital Planning Commission headed up the initiative, attracting other agencies that play a major role in developmental planning to join their effort to ensure that central Washington "continues to serve as a model for the nation and the world."

The collaboration, which brought together federal and local agencies, took a close look at all of the plans that effect Central Washington, seeking a way to illuminate the fact that despite myriad planning initiatives currently being prepared, they all complement one another with regards to the goals being achieved. “That was the genesis of this leaflet, that we need to explain the inter-relationship of these efforts,” said Patricia Zinsheim, Associate Director of Revitalization at the Office of Planning.

With that in mind, the team came up with five common objectives for the city: a "welcoming atmosphere, well-connected public space, distinctive places, green and sustainable, and 21st century transportation."

"The impetus for the brochure was to show how the various plans for Washington are unique, yet so complementary to one another. From NCPC’s perspective, we also think it’s a great example of how collaboration and partnership play a vital role in furthering an objective that is important to all of us; enhancing Washington’s standing as a great capital city," said Lisa MacSpadden Director of the Office of Public Affairs at the NCPC.

Mayor Fenty gave his two cents: "The residents and businesses of the District of Columbia, as well as our visitors, will be the real beneficiaries of the great improvements in streets and public places that come about as a result of coordinated federal and local planning for Center City DC."

Club (ing) on Quincy

WCI Communities and WDG Architecture have just started the design and development phase for a mixed-use project, the Club on Quincy, two blocks from Ballston Commons at 3901 N. Fairfax Drive in Arlington. The project, bounded by N. Fairfax, N. Pollard, 10th and N. Quincy Streets, was approved this past November and will serve as the newest addition to the heavily developed Ballston area.

WDG's design plans call for the construction of 162,000-s.f., 120-unit condominium building standing 12 stories high with roughly 2,700 s.f. of ground floor retail space. According to Tamera Reed at WDG, Club will also provide three levels of underground parking housing 232 parking spaces for its residents. But the pair of acronymic firms didn't stop there; in an attempt to push the meaning of 'mixed-use,' the firms will not only include the typical ground floor retail amenities, but also add an 11,000-s.f. black box theatre and a 13,000-s.f. funeral home to the ground level. (Talk about one stop shopping…)

In order to clear the way for the project, WCI will have to demolish the currently standing Arlington Funeral Home, and build the project on its footprint and its neighboring parking lot. Construction is scheduled to commence in the third quarter of this year.

And in case you’re wondering what a “black box” theater is, New York City's notorious Roundabout Theatre Company says: "By definition, it is a neutral environment. Its walls are painted black so each theatre production and design team can transform the space utterly in their own ways to suit the needs of each show. There is no raised stage or even designated ‘acting’ area. Black box theatres are perfect for ‘workshops, rehearsals, readings, and experimental productions. They’re incubators, a tabula rasa—or blank slate—onto which can be written each new testament to theatre artists’ imaginations"

Thank God for google

Gateway On Its Way

MRP Realty is about to finish the design phase for their long awaited Washington Gateway project located at the corner of New York and Florida Avenues in NE, on the northern edge of NoMa. The 1 million-s.f. project will cost an estimated $350 million to construct, and sit atop the New York Avenue metro station. MRP closed on the purchase of the land from Greenebaum & Rose Associates in August of ’07. Designs are now 80% complete with only interior refinements remaining. The bidding phase and excavation applications will follow, with ground breaking expected in the third quarter of this year.

The project will consist of three buildings, two of which will be office towers. The northern tower - the tallest in the NoMa and Capitol area - will have about 415,000 s.f. of office space. Its sister tower to the south will have roughly 210,000 s.f. The taller building caused MRP a setback in December of 2006 when the National Capital Planning Commission objected to its height, an attribute at least in part caused by a 40 foot height difference between New York and Florida Avenues. The Zoning Commission overrode their objection (yes, they can do that) and made the final approval in February of 2007, deciding to measure the building's height from New York Avenue, although the foundation for the building will be poured on the Florida Avenue level. This allows MRP an extra three stories, making the Washington Gateway more visible to those entering NoMa from New York Avenue - a rare coup for height in our two-dimensional city.

The opposite side of the site features a "T" shaped building, housing a 180-room hotel and a 260-unit apartment tower, of which 8% of the units will be reserved for affordable housing. The rental units will feature 'condo level' finishes like granite counter tops and undermount sinks. A public central plaza will connect each building.

Washington Gateway will also give commuters and residents easy access to the New York Avenue Metro and the Metropolitan Branch Bike Trail. The three-story glass Bicycle Atrium will provide bike storage, lockers, refreshments, trail and neighborhood maps, and an automated bike pump.

MRP is teaming up with Gensler Architecture as master planner and designer of the commercial office buildings. SK&I Architectural Design Group is working on the residential building and hotel while Oculus is planning the plaza and streetscape design.

According to Gensler's Michael Patrick, Washington Gateway "extends the urban grid of NoMA from the south into what was an abandoned and isolated eyesore, and creates a great urban space in a plaza with first class materials."

"The residential building cantilevers an energetic volume of triangular glass which will capture and frame the view for those eastbound on either Avenue. The residential tower and south office building create a ceremonial entry from NoMA, with the office building's plaza facade articulated in high detail of stone, glass and metal to set the tone for the Class A office space inside," Patrick added.

Completion of Washington Gateway is expected in the fall of 2010.