Industry Insight: Michael Stevens on the Capitol Riverfront

Two years ago, it occurred to Michael Stevens that the Southeast Riverfront could use a Business Improvement District of its own, rather than being lumped together with that of Capitol Hill. A consultant at the time, Stevens approached property owners, already considering joining the Capitol Hill BID, in what is now the Capitol Riverfront Business Improvement District and told them that the area surrounding the incoming Nationals Park had unique development needs.

With the stadium, Department of Transportation, and residential projects popping up around his 1100 New Jersey Avenue office, Stevens, the Capitol Riverfront BID Executive Director, agreed to sit down with DCMud to talk about what's new in Southeast. Stevens discussed how to bring development to a portion of DC formerly associated with housing projects and strip clubs, a river two tires and a soda can past picturesque, and why the Green Line is the new Red Line.

So what, exactly, do BIDs do?

It’s hard to say. They are management organizations that address issues of cleanliness, safety and cleanliness, development, advocacy, community building, infrastructure and transit access. Property owners vote taxes on themselves to get these extra services.

You seem to be in a unique position, as you had a hand in developing the BID. How did you get involved?

I was a consultant and I approached the property owners; they had been approached by the Capitol Hill BID, but the context of the mature Capitol Hill neighborhood was totally different. That is a mature townhouse neighborhood with commercial corridors. This is a twelve-story, high-density, mix of uses that’s going to have access to transportation, infrastructure, parking, and the new ballpark. I approached the property owners and said, “You need a BID here to deal with your very specific issues. You can’t bring the Clean and Safe from Capitol Hill and say, ‘here you’ve done it.’” I told them that this is literally going to be a twelve-story neighborhood versus the two and three stories of Capitol Hill. The freeway is also a very clear divider both physically and perceptively.

They agreed to that idea and hired me as a consultant over two years ago this month to start pulling together the nuts and bolts of a BID, to meet with property owners to understand the issues and the development dynamic, and that’s when we started understanding how special this place could be. You have a development dynamic that will lead to the creation of a new mixed-use downtown essentially, that many mid-sized cities in America would kill for.

I worked in Memphis for four years, they have 6.5 million s.f. of office space, we will have 15 million, San Antonio is the seventh largest city in America, they have 5.5 million s.f. of office space. We’ll have 9,000 housing units, 800,000-900,000 s.f. of retail space, and 1,200 hotel rooms with four new parks and the Riverwalk Trail. So on 500 acres in this city, we’ll build almost ten percent of the existing office market. I had to start making points of comparison to understand how much stuff will be happening down here and how close it is.

That 15 million s.f. of office space means 95,000 daytime employees. 9,000 housing units means 15-16,000 residents. 900,000 s.f. of retail space is like a mid-sized regional mall, but it will be diffused through the neighborhood and in two mixed-use projects rather than in one building. The 1,200 hotel rooms are in six, 200-room hotels. We have the Marriott of 200 rooms which is already exceeding all of their sales expectations. In our efforts, we try to brand this as an office and business center, as an urban neighborhood, as a retail hotspot, as a tourism destination, and then as a great waterfront and parks environment. This will be a regional destination that embraces the river. We call it our front porch, rather than our back door so we have opportunity to engage and embrace and use river like it’s never been done before.

What is your view for the BID five years from now?

I think you’ll see a lot of the amenities that people are looking for start rolling off. Two parks will have opened, maybe a third, which starts to provide that open spaces system that builds community. You will see a number of restaurants which office tenants want, but that also serve residents. You will also see retail from the Forest City Project. You will see a lot of buildings that are coming out of the ground now, finish and start leasing up, which will add another layer of activity, and then people will start to understand that this is a new neighborhood emerging on the river that it’s not this far away place. In five years you will see a grocery store if not two, and very nice ones on the market, not Safeway or Giant – Whole Foods and Harris Teeter are looking at the area.

You seem to have a lot of green space and green buildings, has that become a branding thing for Southeast?

Oh yes, we have the largest green roof building system on the East Coast in the DOT building. The ballpark is the first LEED certified stadium in the country, we have special standards for tree wells, and they will catch storm water runoff and naturally filter it before going into the Anacostia River. Then Canal Park will be a model of environmental sustainability, it will catch storm water runoff from surrounding blocks, capture, filter, recycle, and reuse the water on sight. We are hoping to capture it on the rooftops of other buildings as well. A lot of that was planned before ballpark. I think the city should be very proud because they were very prescient about area. This is ten years of economic development positioning.

It started in 1998 when NAVSEA (Naval Sea Systems Command) consolidated all the regional operations to the Navy Yard campus and brought 14,000 employees and improvement to the Navy Yard, and that spurred five new buildings in the area to house contractors who worked as part of the BRAC (Base Realignment and Closure) process. The federal government should be proud. Then you have Mayor Williams who was a visionary guy, then you have the federal government which said, “we want the DOT down here,” and that sent a certain signal and then GSA worked with Norton in the SE federal center and Forest City was awarded development rights to the area, so that was a huge perceptual change. People said, “if Forest City wants to be down here…” Then the Hope VI grant at the Capper Carrollsburg, then the ball park – we even say the ballpark, while catalytic, is just gasoline on the fire. The other major factor in all this, is downtown will be built in four years – Mount Vernon Triangle, NoMa, and us are in competition with each other to capture that growth.

Where Golden Triangle and NoMa have a lot of commercial tenants coming in, it seems that there are a lot of residential projects coming here, how does that affect the BID?

I want to clear that up. We’ve had a lot of tenants come here. We have the 2 million s.f. Department of Transportation with 6,000 employees. That is bigger than ATF. There are 14,000 employees in the Navy Yard campus and 12,000 contractors associated with the navy yard campus. Plus we have the William C. Smith Headquarters, Parsons Engineering is coming… So we have around 27,000 employees, I don’t think there are that many in NoMa. So we’ve done pretty well from an office tenant standpoint, and were much farther along in the development cycle for residential. It’s the proximity to the river, to Capitol Hill, to the ball park, and what’s in the pipeline here for new parks that will support a lot of community development. We definitely consider ourselves a mixed-use neighborhood. And Golden Triangle, downtown, Capitol Hill are mature districts compared to NoMa, Mount Vernon Triangle, and us. The younger BIDS confront similar challenges.

What kind of input do the current residents and all those future residents and companies have in the BID and what is their role?

There aren’t a lot of residents yet, there are about 1,000 in the BID’s area, with 2,000 units under construction. Some will roll off this summer. Over the period of a year, we met with the Capitol Hill Co-op, the DCHA that’s building on the old Capper Carrollsburg site, and we met with all property owners individually and collectively. We have quarterly meetings with owners to say, “Here are the issues, lets prioritize, and go over the BID tax leading up to filing.” We have had enormous public input and since then, we have created a Board of Directors of twenty-one voting members, of property owners, and five at-large non tax-paying community stake holders. We have an extensive committee structure that supports the actions of that board.

You mentioned the Capper Carrollsburg project. What are your expectations for that?

It will be an instant neighborhood over the next five years. It was such a transformation of this area when they tore down the really bad public housing. It was a perceptual and physical change that was instantaneous, our crime rates went way down, the bad housing was eliminated, and people started to see what could happen with rebuilding. We will double the number of housing units to 1,550. What’s also good is that it introduces, instead of just having a consolidation of affordable or low income families in one complex, this will be a blended income strategy that introduces different economic levels, home ownership versus leasing, and the 350 townhouses will be fantastic. We are creating higher density units.

Do you think there will be a time when, after a baseball game, you will say, “Hey kids, want to go hang out by the Anacostia waterfront”?

Absolutely – next season, next spring. The bike trail has come to the 11th Street Bridge. We will bring it under the bridge to tie it into the already built Navy Yard section. Next year the Riverfront Park will be done. In fall 2009, Yards Park opens, and that will be five acres, then Diamond Teague Park will open that spring.

How do you think that infrastructure will continue to evolve? It seems that now the Capital Waterfront area is a place to which you take the metro to the ballpark for a few hours and then leave, but that kind of transit puts a strain on infrastructure in terms of driving and the Metro.

I’d say sixty-five percent of ballpark patrons are Metro-riders. I think it has worked fairly well, I know that people have said they have waited for two and three trains, but I think Metro is learning and that they add more cars and increase frequency. The parking lots have only been half and a quarter full – that’s fantastic!

How do the BIDs work together, what is the communication between them?

We have a BID council that meets every six weeks, there are eight bids, we are newest. We’ve been up and running for almost a year. NoMa preceded us by about 3 months and Liz (Price) has done a great job. We all collaborate because we have issues of commonality, infrastructure, and transit accessibility. We think there might be maybe one central employment pool for all of the BID Clean and Safe teams, that we will purchase goods together, but for now, we advocate together, do strategic planning together, and look at how we can do things better. We share what we are doing. It’s very good company.

How does the budget work?

Our budget is about $1.4 million and it’s all through BID tax, although we do accept contributions or sponsorships. We have a several-layer BID tax. There is a formula all the way down, first we tax unimproved land, or buildings under 15,000 s.f. It’s twelve cents per $100 dollars of value, ... Then we realized that there were land uses that didn’t put as much demand on service – public storage, industrial uses, so that is also taxed differently.

Can you explain the Clean and Safe idea you have been mentioning?

BIDs were started forty years ago when downtowns across America were experiencing declines and were dirty and dangerous and experiencing an exodus of retail and office to the suburbs. BIDs were created as management organizations to provide additional services to what municipalities were willing to do in the financially strained time. Property owners essentially voted taxes upon themselves, beyond what the city does. They taxed to get a pool of money to improve geographic area.

One of the first things to come out of that was Clean and Safe teams. They are men and women in uniform with pans and broom, power washers, and street sweeps who work to make the areas as clean as possible. It is streetscape improvement. The safe part consists of Hospitality Safety Ambassadors, men and women in uniform on patrol at street corners, by Metro stations, handing out information, and answering questions, so visitors have someone to talk to. They can also intercede in aggressive panhandling and notify the appropriate service.

We’ll expand to weekend service, now they work from about 7:30 am to 4:30 in the afternoon. We want the most impactful services on employment days. As we add more residential units, we will add weekend services. One-third of our budget goes to the clean and safe teams.

You’ve had a big year with the Nationals Park opening, how has it been working with the Lerners and the sports industry?

The ballpark has run very smoothly, each game is an opportunity for 20,000 -40,000 fans to come and see a new neighborhood being built on the river, the Lerners have been good partners with us. They are on our board of directors, the Sports Commission is on board as an at-large member (not voting). They run a thirty second video on our BID before every home game. That clip really starts to position in peoples’ minds that this is the Capitol Riverfront and that it’s a new neighborhood being built around the new ball park. People are astounded when they come down here – its fifty years of overlooking an area of the city that has now caught fire and is, we think, farther along in its development cycle than Penn Quarter was when the MCI Arena opened. We think the ballpark will have a similar catalytic effect.

With all of these deliveries approaching and all of the development going on, what has been your greatest accomplishment?

I would say getting a BID started with a board of directors and staff and the Clean and Safe Team, also, one of the first big accomplishments as a BID was getting a special assessment district created in concert with the Deputy Mayor. We realized that this development could not be supported by the current infrastructure and so we had to rebuild it all in concert with the DOT five-street reconstruction.

How would you change the overall development process of DC?

I think I’d streamline the development review process to make it more predictable and less time consuming. I don’t think its predictable, I think it takes much longer than developers anticipate, so they incur enormous interim financing costs. What would take three years in another city could take nine here. The city also needs to fix infrastructure – across the board in the United States, we are facing massive infrastructure issues – we have realized how woefully underfunded our infrastructure is in cities across the country. We need to improve mass transit, water, and sewer. Those are the huge pieces. Here we are trying to create mass transit options beyond what we have. We are thinking about streetcars and light rails, we were predicted to have street car across the 11th Street Bridge that would tie into M Street and connect Southeast and Southwest and then head up 7th Street to downtown.

Is there a timeline or is it just an idea?

I think it is conceptual because there isn’t funding for it yet. All of this is driven by funding. We could see the light rail, best case scenario, in five to seven years, worst case, ten to fifteen years. Its more than just funding though, its engineering, acquisitions, relocating utilities, then building.

What is the timeline on Florida Rock?

It was just in the paper last week that they their PUD has been approved and they are waiting on architectural approvals, but now they are talking about whether they want to build or just sell the land.







How does their decision and development affect the BID?

If they build, the quicker they do, the quicker revenue goes up for us, it is a key piece of waterfront linkage but also the front yard to the ballpark. A lot of people don’t like it, it doesn’t bother me, it’s the industrial heritage of the area.

How are some of the other developments in the area coming along like Half Street and JPI’s three buildings?

For Half Street, Monument and Akridge are going to negotiate before court, so someone will be made whole and we hope that happens over the summer. JPI’s 70 I Street opens this month, 100 I Street will open in July, 909 New Jersey will open in summer 2009. Those are said to be the fastest selling projects in DC. Then, Velocity Condos open in spring 2009, Faison’s 265 units open this summer as well, in August. 100 M, which is adjacent to Faison, will finish in September, Parsons Engineering in January, and 1015 Half Street is their second building and I hope the Department of Agriculture will choose that as their new site.

William C. Smith has two tracts here and we pitched to NPR to come too, but they chose NoMa because it’s on the Red Line. We said, “you have 175,000 cars on a daily basis, unimpeded views of the Capitol, and you’re in the Riverfront district!” There is such urban walkability here.

How many people do you have on staff?

In terms of staff, there are three of us with a fourth coming later this month. We are fairly small, but growing.

How do you guys go about getting your message out?

We’ve had numerous articles in the press over the past year: NY Times, Washington Times, Washington Post, On Site Magazine for The Washington Business Journal, Landscape Architecture Magazine, Luxury Condo, DC Modern Luxury, Washingtonian.

We like to say, “NoMa’s had a good month of publicity; we’ve had ten years of publicity.” We use our website; we’ve done forty to fifty presentations on the BID to the public. You’re going to have ups and downs of media coverage. Our property’s owners aren’t as aggressive in shouting that they have a Harris Teeter coming as other places. It’s about tours to the brokerage, public presentations, media coverage, website, publications, and community events. We were part of a boat tour with 430 Brokers, we went by riverfront sites and each of us got a chance to talk about our sites. We are on the Real Tour on the 19th.

Vornado Hits Crystal City Again

Sticking with their strengths, Vornado/Charles E. Smith is recycling an old 13-story office building, turning it into a 19-story - you guessed it - "luxury tower" at 220 20th Street in Crystal City. Designed by global firms HOK Architecture and Dorsky Hodgson & Partners, 220 Twentieth Street will be a 270,000 s.f. mixed-use tower that will include 265 luxury rental apartments and 1,600 s.f. retail space at its completion in mid 2009. The developers will recycle the concrete structure of the old building while adding six floors, rebuilding the façade, systems, and interior space. “We’re thrilled to bring 220 20th Street to market. We believe this new sustainably-designed residential project will bring a sparkling new level of quality and visibility to the new Crystal City,” said Richard Smith, Senior Vice President of Development. Two blocks from the Crystal City Metro, developers say the project will be LEED Certified for such features as its water efficient landscaping, bike storage, and use of recycled material during construction, and that from the rooftop pool deck it will boast panoramic views of the planes touching down at Reagan National Airport, the not-too-distant District, and surrounding clusters of the vertical, but newly-walkable, neighborhood of Crystal City.The developers intention for the project was to bring more residents to Crystal City and “set a design standard” for the area. Modest goals, perhaps, but here's to hoping they succeed...

Arlington Virginia commercial real estate news

LEEDing the Pack Downtown

A new office building has raised the bar for environmentally friendly office buildings in the District of Columbia. Lerner Enterprises and WDG Architect's 20 M Street, located near the new stadium, was awarded LEED Gold Certification this week. The second-highest ranking for environmental certification was awarded to the project for Core and Shell Development - the first office building in the city to receive the award. The 10-story, 190,000-s.f. office building contains four levels of below-grade parking, 10,971 s.f. of retail space that will include a fitness center, and includes such features as a high-performance glass curtain-wall and plumbing that reduces water use. Architects got additional LEED points for use of recycled materials in construction and locally-manufactured products, as well as access to public transportation. No points were given for views of the stadium.

The project was designed in 1999, but was put on hold after 9/11, and was brought back to life in 2004. Across from the Navy Yard Metro and a block away from the new, also green, Nationals Park, the building “reflects the city’s high design standards for new office construction.” Though completed, the building has remained an empty shell since construction ended in March 2007, as a tenant has yet to sign for the office building.

According to Eric Schlegel, Project Manager at WDG, the decision to "go green" was, "a philosophical change for the developer" and one that helped to create a pedestrian-friendly M Street.

"I believe that along with some other developments along M Street, the project will set a new standard for design quality in the area and bring commercial and retail activity to the neighborhood," Schlegel said.

The LEED for Core and Shell rating system is for developers, builders, and other real estate big wigs who want to incorporate sustainable, environmentally friendly designs into their new construction. Though similar to the LEED for Commercial Interiors rating, the LEED for Core and Shell category is limited to aspects of construction projects over which the developer has control, as opposed to interior design, lighting, and other tenant-related systems. Both LEED rating systems were developed as part of the U.S. Green Building Council’s effort to establish a national “green building” standard.

The project, which has central, high-speed, traction elevators, also includes the exclusive use of low-emission paints, carpet, adhesives, and sealants, and advanced storm-water management measures, high-efficiency HVAC systems and humidity control. Ok, let's repeat: New, energy efficient, close to Metro and ballpark, with a cool gym. Seems like they wouldn't even need a broker.

Esocoff's Canterbury Tale

We expect brick facades on historic buildings, we hope for minimalist "urban-chic" exteriors in up-and-coming DC neighborhoods, but rarely do we see a fusion of historical brick and contemporary design. This combination is what Esocoff & Associates have planned for Douglas Development's "Canterbury" at 704 3rd Street, NW.

The team’s 130,000 s.f. office building (90,000 s.f. new construction, 40,000 adaptive re-use), approved by the Historic Preservation Review Board two weeks ago, combines a historic brick building (The Harrison) with a new structure that will be twice as tall as its predecessor, rising to ten stories. The new building will be what the architect describes as the “grandson” of the older building.

“Everyone wants their kids to be better than they were - smarter and better looking; our building is twice as tall as the older one and it is only appropriate,” said Philip Esocoff, Partner of Esocoff & Associates.

The biggest and most obvious challenge for the developer and architect was bringing old and new together, especially at the north end of the project which is both older and deeper than the southern end. After all, the north end dates back to the 1880’s, and the southern, to 1908. Their solution was to drill columns through the footprint of the old building in three locations, this would hold up the new building that is beside and canopies over the older one.

The existing structures were originally built as an apartment complex, but because developers at the time didn’t know what, exactly, an apartment building looked like, the result was what appeared to be a five-story townhouse. The age of the structure was enough to force the developer to get rid of partitions and brick core elements; fortunately, they were able to keep some cast iron column and exposed vaulted ceilings which will be included in the renovation.

Esocoff stressed the importance of learning from past structures and incorporating those lessons into new projects, citing the evolution of the fire escape from life safety devices, to recreational amenities for Tony and Maria in West Side Story, to “green features” that shade glass lowering energy use in 2008.

He applied this observation to his own project, “You’ll see some of the same angles as the historic building, and the same way the historic building had different ornamental devices, the new one will be contemporary, but match the older one in seriousness and thoughtfulness.”

The architect describes the goal of the project as more than simply to create another office, but to create a landmark. “We decided to make Noguchi-like lamps that you can see at the top, and one of the reasons we did it is because it will be seen for decades. When you look down 3rd Street from the Building Museum, and you're there learning about art, and see the larger version of our old building, you see what DC has to offer,” Esocoff said. Noguchi-inspired will be incorporated into the upper east portion as well as in the middle of the south view.Taking “green” features to another level, this project’s score will likely be first in its LEED class with green roofs, plantings on each level watered by rain water collected on the roof, and in-set windows to reduce energy use. If Esocoff had his way, the dirt from parking excavation would be used for brick for the façade. “Then the project would literally be made from and in the city” he said.

“I don’t know that that many people give this much thought to projects, maybe they just have more natural instincts, but projects should be meaningful.”

Construction on the project that Esocoff says will set a paradigm for building is anticipated to begin in November 2008, with delivery up to two years later. The developers will meet with the HPRB one more time before filing for building permits.

Akridge's Field of Dreams

With all the talk about waterfront development, you would think the best waterfront property in DC was spoken for. That might just depend on who you ask. Real estate development firm Akridge currently holds the keys to a corporate dream home: nine acres of land on the Anacostia waterfront, which can house 2.7 million s.f. of development and more than 1,600 parking spaces by right, not to mention site lines down the Potomac River. And for baseball fans who dream of finishing up a day at the office with a cold beer behind home plate, the Akridge site is only four blocks away from the new Nationals Stadium. Officially, the site's address is 100 V Street, SW, just within the historic Buzzard Point district. Yet the potential for development is vast; with the possibility of spanning three full city blocks to create a corporate campus that fits nicely within the context of the Fort McNair neighborhood. “We think it’s ideal for a user that has security needs because there are several natural buffers. The site encompasses three full city blocks with water on one side, Fort McNair on the West and a PEPCO sub-station across First Street SW, it is on a point with little thru traffic, and adjacent occupants also have large campus-like properties,” said Mary Margaret Plumridge, Media Contact for Akridge. 

Akridge, which purchased the site in 2005 for $75 million from utility supplier PEPCO, has lovingly maintained its original parking lot appearance, retaining the Field of Dreams look and, Akridge hopes, its promise. The new owners did remove an abandoned oil tank left behind by the previous owners - unfortunately empty. The development team has decided (for now) to avoid setting a firm design plan in stone. It's what Akridge calls the "ideal build-to-suit" opportunity. Basically, if you like the idea of having your office a stone's throw from the Potomac, or the notion that you could catch a home run from your office courtyard (assuming Bonds is still juicing), this might be the opportunity you seek. And in a reverse Field-of- Dreams-scenario, if someone wants it dearly enough, Hellmuth Obata & Kassabaum will design it for the lucky bidder, at which point Akridge will build. Because of Akridge’s by-right zoning, the developer is ready and willing to build and is marketing the site to either a “secure user” or for the traditional mixed-use path. Akridge expects to eventually manage the project that is built, but recognizes that the nature of the user would dictate that possibility.

Washington DC commercial real estate news

Crystal City Goes Metropolitan

While DC developers boast of the number of cranes in their neighborhood, Arlington residents are becoming more Metropolitan by far. At least in name, anyway, as Kettler moves into the next phase of its mega real estate project that borders Crystal City, Pentagon City, and Pentagon Row. The behemoth project has already delivered two 300-plus unit residential buildings, The Metropolitan at Pentagon City and The Metropolitan at Pentagon Row, in 2002 and 2005, a feat that would have earned satisfaction enough for many serious developers. But now Kettler continues to work on the remaining eight phases - 10 buildings - on 19.6 acres of real estate within eyesight of the District. The whole site is bounded by 12th, 15th, Eads, and South Fern Streets. The next of the remaining eight phases, The Millennium at Metropolitan Park, will include 300 rental apartments and 8,100 s.f. of retail, potentially with a restaurant. 

The goal of the project was to contribute to the "vertical communities" in the area, a response to the demand for luxury apartment housing in transit-friendly areas and a contribution to the towering architecture of Crystal and Pentagon City residential developments - a Virginia-style Co-Op City. Kettler had been leasing the land from Vornado, and purchased the first eleven acres in Pentagon City in May 2007 for $104.4 million. Kettler will eventually pay $220.4 million for the entire soon-to-be shadow-casting site. Currently on the lot is The Gramercy (Phase I), six warehouses for demolition, and a lot of empty space. "With the projected job growth in Arlington, there is current and future demand for housing in communities with high-end finishes and amenities as well as existing neighborhood-serving retail projects,” said Cassie Cataline, Vice President of Communications for Kettler. The nineteen-story "luxury" building referred to as a "signature project" for the developer was designed by HOK architects and Cleveland-based Dorsky Hodgson Parrish Yue and will deliver in winter 2009, bringing with it the majority of a 2.5 acre park the eight buildings will eventually surround. The 300 foot long Millennium building will face the park and have a three-story glass lobby to allow those on the other side of the building to glimpse the park. "The goal for the second phase was to make it compatible, but distinct and more contemporary. It has a unique position because it faces the park directly rather than being perpendicular to it like the other buildings," said Sandy Silverman, Partner for the project at Dorsky Hodgson Parrish Yue. "Met Two fits in in the sense that it has similar masonry materials and color pallet, but it's cleaner, simpler. The development is like the Battery Park City complex, it's a community but it has a large-scale guideline to bring it together," Silverman said. The name of phase three has yet to be determined - long shot, but we're guessing it will be "The Metropolitan" - it will also reach nineteen stories with rental apartments and retail, this time 410 units and 16,000 s.f., respectively. Also designed by Dorsky Hodgson Parrish Yue, delivery is scheduled for spring 2011. 

Phases four through eight will bring an additional 1,000-2,000 residential units, but because their delivery is so far in the future, the developers will let the market determine the unit types, whether they be apartments, condominiums, or hotels. Design on phase four will begin next year and it will be another ten to fifteen years before we see the final phase. What's with the repetitive names? "It’s about branding and marketing and building a strong identity for our high-end urban apartment series," Cataline said. The Gramercy at Metropolitan Park, part one of the eight, is a retail and residential eighteen- story building that opened in October 2007. The building included 399 rental apartments as well as 11,000 s.f. of retail space. “This location is served by two metro stations (Crystal City and Pentagon City), VRE and National airport as well as potential ferry service; it is at the convergence of virtually every major commuter route into Washington, DC.,” said Cataline.

Arlington Virginia commercial real estate news

Columbia Pike: A Streetcar Named Desire

Once tagged as the land that urban planners forgot, "destination" seems to be the new buzzword for developers with a hand in the Columbia Pike Corridor revitalization. Breaking from its existence as a pass-through to DC and back, developers are launching increasingly urban initiatives to attract offices and businesses to the corridor. And now in addition to the high-density mixed-use projects that are taking shape, planners in Arlington and Fairfax County are designing a streetcar that would run from Bailey's Crossroads (Skyline) in Falls Church, down Columbia Pike to the Pentagon City Metro.

"It's an initiative that’s been in works for quite some time, it's been approved and we are in the evolution and implementation of that right now. There is a desire to try to improve both the streetscape and transportation systems (see now the tie-in to Tennessee Williams?). We recognized that with revitalization and increased density there will be more people using the transportation systems," said Pamela Holcomb, Managing Director of the Columbia Pike Revitalization Organization (CPRO), an organization formed in 1986 to resuscitate the ailing thoroughfare.

The "modified streetcar alternative" that was selected as the most appropriate model and that will now go forward is a tram-like trolley. Because Columbia Pike is so narrow, the trolley would run on either side of the street with inlaid rails that allow cars to coexist with the tracks. "This is not seen as a cutesy idea the way some places have done it. It is not for tourists, these modern light rails are intended for efficiency. This will attract businesses," Holcomb said.

It seems those working on the project imagine a more European-style tram reminiscent of Rome and Amsterdam, despite the slow speeds of those systems, that will run with traffic on either side of the street, a unique solution, at least in the DC area, to transportation challenges. Construction on the trolley is slated to begin in 2010 with delivery in 2014.

The trolley will arrive none too soon for developers tasked with integrating a new community with little sense of commonality and that, for its new found density, will stretch over three miles from end to end, but extend no more than one block deep in most places.

Tim Jasper, Project Manager for Columbia Village, said he has seen the benefits of streetcars and thinks the trolley will benefit the developments.

"I pushed for the Scottsdale trolley project too. I think the fact that we are not really on a Metro line here in Columbia Pike makes transportation a little more difficult, there are tons of buses. I think it would be a way cool idea; its kind of a different angle," said Jasper.

The Columbia Village project at Columbia Pike at S. Greenbrier, which developer Fairfield Residential LLC is working to re-name, will bring another mixed-use project to the strip. The site is the only one in Columbia Pike that allows heights over six stories and will, therefore climb to 10 stories (if you got it, flaunt it). The project will include over 234 residential units and approximately 7,500 s.f. of retail space with three levels of below-grade parking.

But other projects are also in the queue. "We are excited about the number of projects on line at Columbia Pike; it will really turn it into a destination (there's the buzzword) for people looking for apartments and retail in the area and make it a much more exciting place," said Margaret Smith Ford, Partner at Woodfield Investments', which is now building the Siena Park project at 2301 Columbia Pike. Designed by WDG Architects, Siena Park will eventually offer up 188 rental apartments, 32,000 s.f. of "neighborhood-serving" retail and restaurants, and 14,000 s.f. of office space. The $88 million project - replacing the old Safeway on the site - will also include three levels of underground parking.

By the time the trolley is finsihed, the Carbon Thompson and B.M. Smith Associates' Penrose Square will be completed as a mixed-use development and a stop on the trolley line. The developers have also donated a parcel of land in front of the development for a new town square for Columbia Pike; Arlington County is charged with its design.

Behind the green space will be a 57,000 Giant supermarket with 325 residential units above it that will be completed in 2011. Penrose Square will offer structured parking (325 retail and 400 residential spaces) and 40,000 s.f. of other retail space; vendors have not been chosen.

Andrew Gutowski, Senior Vice President of Carbon Thompson and Penrose Square project manager said the company strongly supports the trolley. "I've lived in Europe and have seen trolleys and trams and how they can help the community," he said.

He added that the trolley line and grocery store would have a mutual symbiotic relationship, the trolley bringing the store customers, and the store giving residents another reason to use the new form of transportation.

While the exact trolley brand has not been selected, Holcomb said the primary purpose is to more efficiently move people down the pike. Fear not, bus lovers, public buses will still be used during rush hour. As construction continues along the pike, the trolley team is in the process of environmental planning and engineering studies.


Also in the area is DSF Advisor's Halstead at Arlington, a 269-unit residential project with over 40,000 s.f. of retail and 450 spaces in an underground parking garage in the Southwest corner of Columbia Pike and South Walter Reed Drive. An example of a neighborhood-rebuilding project, the development will restore the facade of the Arlington Hardware building and will build a new location for the Arlington Free Clinic.

Fire Sale of Land in SW

The Office of the Deputy Mayor for Planning and Economic Development issued a Solicitation for Offers yesterday for the development of two District-owned parcels in Southwest. The forgotten quadrant of DC to some (not us), Southwest is just starting to get attention thanks to the development of “Southwest Waterfront” by PN Hoffman. The District seeks “highly-qualified development team with the financial capacity to complete this complex project” and prefers to hire one developer for both sites.

The first parcel, Lot 28 on the western side of Square 494, is 34,000 s.f. and bounded by 6th, School, and E Streets. It is currently the antiquated home of a two-story fire station used by Fire Engine Company 13. The fire station will pose a challenge for developers as a new fire station must be included in proposals, but will save taxpayers the cost of constructing a new station or renovating the old one.

“We can’t have the station go out of service, the developer should come back to us with a plan of how to keep the station open the whole time and build a new one, either on one of the two sites or adjacent to the property if they own land in the area,” said Sean Madigan, Press Officer for the Deputy Mayor.

The city says there is no time like the present to move Company 13 to a newer facility while simultaneously bringing another development to the neighborhood. SW firemen wont be the only civil servants enjoying new digs.

The eastern side of the lot, which is about 40,000 s.f. and the home of the Metropolitan Police Department’s First District Headquarters, is planned for DC’s new 240,000 s.f. Consolidated Forensic Laboratory. According to project manager Senthil Sankaran, MPD will eventually move to another SW location to make room for the laboratory on the vacated site.

The presence of a fire station and forensic laboratory does make the site a little loud (and grim) for a residential project, but the city will consider all offers as long as they include a fire station. Madigan said an office use is most likely, but a hotel or apartment building could be possible if built correctly and with (a lot of) insulation. But if the Ritz Carlton can be next to a fire station in the West End, why not here too?

Community leaders would like to see a community center incorporated in the proposals and the District is requiring that developers designate that at least 35 percent of any contracts go to certified local, small, or disadvantaged businesses and give at least half of the jobs to DC residents.

“Particularly this section of office space is a great opportunity to do some infill work. This project alone won’t transform this office quarter, but a project like this could go a long way to make this a more lively area just south of the mall and could help connect the area to the waterfront activity that is coming. There is no reason not to do this now,” Madigan said.

The second site, Square 495 or Lot 102, stands empty and is used as a parking lot by a local school during the week and a church on the weekend. Smaller than its adjacent site at 19,187 s.f., it is bounded by 4th Street, E Street, and the Southwest/Southeast Freeway. (The building on the left is a privately-owned office building.)

Proposals are due on August 15, 2008, but a pre-offer conference will be held later this month.

Andrews Air Force Base BRACing for Growth

As DCMud reported last year, the Andrews Business & Community Alliance (ABCA), has been incubating plans for 7 million s.f. of new development around Andrews Air Force Base in Prince George's County, in an attempt to expand the $1.2 billion in annual economic benefit the base brings to the county.

Andrews Air Force Base is part of the 2005 national BRAC (Base Closure and Realignment Commission) process that was used by the Department of Defense to streamline operations and reorganize bases to increase operational readiness, taking the strategic decisions out of the hands of provincial legislators. The BRAC program handed a net increase of personnel to Andrews, and the county is making plans to benefit from that increase.

At Andrews, BRAC will create 800 new military positions that will be in place by January of 2011. According to James Estepp, Director of Operations, Greater Prince George's Business Roundtable and the Andrews Business & Community Alliance, the realignment will lead to a net increase of 3,000 military and civilian assigned jobs. ABCA is a group of members of the surrounding business, community-service, and faith-based organizations who work to support "the mission at Andrews Air Force Base while fostering successful economic and community relations."

ABCA plans for a development to surround the base as the increase in personnel begins, including over 5 million s.f. of office space, 2 million s.f. of retail, and over 15,000 residential units to accommodate the population increase caused by the new employees, their families, and the additional businesses drawn to the area. The base proper is 5,000 acres, the land around it is owned by multiple individuals and corporations, a coordinated development effort of all the land is not yet assured.

“Our original idea was a vision and we are working on increasing our membership (in the alliance) to make that vision happen. There will be multiple developers in play because of the land, where it is, and how it is owned. We are talking about 5,000 acres. We are certainly drumming up support,” Estepp said.

He added that there would not be any major steps forward within the year because of the BRAC time frame. “BRAC isn’t law until 2011, so federal, state and local politicians will not be under pressure to move until closer to the deadline.”

Maryland Gov. Martin O’Malley has authorized the creation of state “BRAC zones” for which areas in Maryland can apply to get matching state funds for infrastructure work around military bases. According to Estepp, this benefits the Alliance's plans as it provides incentives to the county for infrastructure for businesses moving near the base. The municipality would apply for such a zone.

Andrews is bound by Route 4, Branch Avenue, Old Alexandria Ferry Road and Allentown Road. Part of the Alliance’s plan involves extending Metro’s Green Line to the base.

Both Anne Arundel and Montgomery Counties are involved in the BRAC processes, moving jobs to Fort Meade and the National Naval Medical Center in Bethesda.

Construction at Capitol Quarter Begins

With a financing package that settled today, construction of the 33-acre Capitol Quarter in Southeast is now set to begin. Spurred by a Hope VI grant from HUD in 2001 that has been leveraged from $34.9 million to $700 million, the DC Housing Authority is partnering with Forest City Enterprises, Mid-City Urban, and EYA Associates, Inc. to create Capitol Quarter on the site of the now-demolished 707-unit Arthur Capper and Carrollsburg Dwellings public housing projects in Near Southeast. DCHA closed today on the first of three phases; construction will now begin on a 158 townhouse segment that will deliver at the end of 2009.











Until this point, construction was being done on the infrastructure of the area as part of an agreement with the District government to install new underground utilities, sanitary and water lines, and a new storm management system. These improvements were financed by a $36.7 million bond approved by the District Council and backed by new real estate taxes generated from new developments.

A mixture of affordable and market-rate rental and for-sale townhouses, the site, located officially at 1023 4th Street, SE, will include 395 public housing units, 162 rental units for seniors, 139 rental units for workforce housing, 410 affordable rental units, 42 voucher for-sale units, 171 for-sale workforce units, and 144 market-rate units when the project reaches completion in 2013. Located near the Navy Yard, the development will also offer 702,00 s.f. of office space, 51,000 s.f. of retail space, and an 18,000 s.f. LEED-certified community center.


“The retail will be neighborhood serving but will also serve the office portion because this will be a large residential community, but it is also right on the Navy Yard, and that huge office complex is right there. It is also caddy-corner to the stadium,” said Dena Michaelson, Director of Public Affairs for DCHA.

The 33-acre site is within walking distance of the Navy Yard Metro, and was vacated in phases starting in 2001. The project was fully demolished in 2006, and has since completed the senior independent-living building. The second phase, which will include another 158 townhouses, will deliver between 2011 and 2012. The third and final phase will deliver 52 townhouses between 2012 and 2013. The townhouses, handled mainly by EYA were designed by Lessard Group.

Bethesda Condo Gets the Go-Ahead

Plans for Rugby Avenue Condominiums at 4851 Rugby Avenue went before the Montgomery County Planning Board for a second time this morning and were approved. In the fall of 2007, developers Polinger Shannon & Luchs (cleverly disguised as 4851 Rugby Avenue LLC) were denied their application for a 10-story, 71-unit condo building with 1,250 s.f. of public art studio space and told that the plans exceeded the nine-story (90 feet) zoning limit. The new plan shows a lower height and increased art space.

The Woodmont Triangle project will now include only 61 condominium units, 8 of which will be affordable, 2,000 s.f. for four art studios, and a 3,277 s.f. outdoor public plaza. Now nine stories, the building will replace two small office buildings on the north side of Rugby Avenue at the intersection of Auburn and Rugby Avenues, and will include two and a half levels of underground parking.

"Obviously we are in the Bethesda Central Business District – which is a dynamic market in and of itself," said Elliot Schnitzer, a manager at Polinger. "Walter Reed is relocating to Bethesda Naval. Our site is between the Medical Center and Bethesda Metro stops and in walking distance to Bethesda Naval," he said.

Schnitzer also told DCMud that the developers will now work with Guy Martin of CORE Architects on construction drawings. When asked about the likelihood of joining the go-rental trend, Schnitzer said the company was standing by their condo plans. As DCMud reported last week, Triumph Development canceled its plans for 4901 Hampden Lane in the center of the Bethesda shopping district just last week, citing the approval process and market factors.

“People who have changed to rental have already broken ground. We hope to time it to hopefully hit the market on the rebound,” he said. A construction schedule has not been set, though the project will certainly beat out its neighbor - 4823 Rugby Ave. - which has submitted plans for a 24-unit building but remains in the 'concept' phase.

The Duke Begins Sales in Old Town

While a small group of VIP previewers got a sneak peak of the Duke Townhomes and Flats sales center last night, the official grand opening for Old Town's newest residences will be next Saturday, June 7th. Marquis Custom Homes, an affiliate of Van Meter Companies, is selling 18 brick townhomes ranging from approximately 2,000 s.f. - 2,300 s.f., each with a patio, balcony, and parking in a garage under the structure. The project also includes 40 flats that range from about 1,300-1,600 s.f. that will deliver in a year, the developer claims. These are two-bedroom, two-bathroom units, with parking and storage space, some of which also have a den.

The project replaces the Fannon Oil site, which has been largely been vacant recently. Unlike the innovative, urban-chic styles developers strive for in emerging D.C. neighborhoods, the developers had to follow specific architectural guidelines to make the project fit into the Historic District.

“The Old Town Architecture Review Committee is very picky, so a lot of the decisions of what to build were governed by the historic nature of the area. The townhomes that you will see from the street are all brick, so they blend in. Every detail was combed over to make sure the project fit in with the historic nature of the area,” said Jane Herrmann, Sales Manager for the project.

Located on the 1300 block of Duke Street on the edge of the Historic District of Old Town Alexandria, the project is two blocks from the King Street Metro and the main strip of shops and restaurants. The project will join Cromley Lofts and the Jamieson, both new residences selling near the King Street metro station.

Alexandria Virginia real estate development news

Hill East: Douglas Takes Down the Colonel

Fresh on the heels of the Mayor's announcement that the Hill East redevelopment will soon get underway, Douglas Development is hatching its own project on Pennsylvania Avenue. Douglas, owner of the old Kentucky Fried Chicken (KFC) site on the corner of 15th and Pennsylvania Avenue, SE, has plans for a two-story office and retail project. But while the Mayor seems willing to take on neighborhood anti-development forces around the corner, Douglas plans only two stories in a low-density nod to local tastes. Zoning of the site allows the company to build up to four stories, but the developer’s feasibility study suggests a two-story structure that blends into the neighborhood in a curb to curb structure that eliminates the parking lot. Douglas will demolish the fast food restaurant and parking lot. The catch? The maximum g.s.f. for the site is 10,915 s.f., and the developer is required to provide 28 parking spaces. The proposed building, designed by Bethesda-based GTM Architects, is, according to the developer's study, 13,499 s.f., with no parking. 

So it seems that Douglas needs the neighbors on its side in order to get past the ANC and the Board of Zoning. According to Bert Randolph of ANC 6B, Douglas may not need to go through the Planned Unit Development (PUD) process; when the developer goes before the ANC, the Commission will review the proposal and make recommendations to oppose or approve the project. It will then go to the zoning board, at which time Randolph said neighborhood support becomes very important if the project is to grow wings. As of now, the proposal outlines 6,413 s.f. retail space on the ground floor and 7,085 s.f. office space on the second floor; rising to only about 28 feet in height - not ruffling the feathers of the community. The developer will have to write a Memorandum of Understanding with the neighbors in order to dodge the parking and s.f. zoning requirements. Although the Penn Corridorians are in a position to bargain, the neighbors can’t become too bossy as the developer could easily increase the height or return the site to another KFC or other venue for fried fare. Douglas' game of chicken seems to be working, so far the neighborhood clucking has been mostly positive about the developer's intentions. The next step is for the developer to go before the ANC on June 3rd. The KFC, part of the Yum! brand of restaurants, is one of 32,500 locations in the world. Soon to be 32,499, it seems.

Washington DC commercial property news

Brookland/CUA Metro Station

The DC Office of Planning is working to complete the final draft of a plan for the redevelopment of the Brookland/CUA Metro Station and surrounding area. The OP began a study of the neighborhoods around the metro station in the fall of 2006 and said the neighborhood had been "rediscovered as a desirable place to live, work, and play" and that the neighborhood was under redevelopment pressure. With the help of Smith Group Urban Planners, the city has now divided the site into sub-areas, each with its own outline of what the community would like to see. The OP's role is to make recommendations for height, density and land usage based on neighborhood feedback.

While a final group of developers for has not yet been determined, Catholic University will be involved in the process, and WMATA will select a developer for the land included in their metro station. There is also speculation that Douglas Development will be involved. CUA, WMATA, and Douglas Development are the primary land owners and the organizations that worked with the city on the Small Area Plan.

Plans at this point remain in flux, but the OP is releasing first drafts of what the public can expect. “Our next step is the final draft. We have an outline based on community input, developers can follow it, but they don’t have to. They can develop the land by right based on zoning or submit a PUD,” said Deborah Crain, Ward 5 Planner.

According to the Executive Summary recently released, “The overall concept for the Brookland/ CUA Metro Station Area Plan proposes a neighborhood civic core and arts infrastructure surrounded by transit-oriented mixed-use development at the Metro Station, along Monroe Street, in areas along the railroad tracks north and south of the Metro Station, along a strengthened and revitalized 12th Street, Brookland’s historic Main Street.”

The plans break the area into five subdivided zones, each with its own development agenda. Below are the five areas being developed:

The Metro Station: The plan envisions a transit-oriented mixed-use development at the metro station, with 200 to 250 residential units, 30-35,000 s.f. of retail or residential space, over 200 below-grade parking spaces, and six-story buildings. This area, which is about 4-acres, will include the extension of Otis, Newton, and 9th Streets, a Kiss and Ride with short-term parking along 9th and Newton Streets, and single family residential space along 10th Street. Metro station entries would be relocated along Newton Street and public spaces for community gatherings and farmers’ markets would also be included.



Monroe Street would be featured as a “tree-lined urban street with retail, residential, and cultural uses connecting Brookland from east to west.” There would be over 700 residential units, over 80,000 s.f. of retail, restaurant, and cultural space, 650-850 below-grade parking spaces, and green space at the historic Brooks Mansion. CUA recently selected Abdo Development to develop their 9-acre South Campus on either side of Monroe Street between Michigan Avenue and the Metro. According to Toby Millman at Abdo, they are starting the PUD process.



12th Street would be revitalized as a Historic Main Street with retail, residential, and office space, and improved connectivity to the metro station along Monroe and Newton Streets. There would also be infill opportunities between Monroe and Randolph Streets, and South of Monroe Street.



The Commercial Area North of the Metro Station was outlined as a new residential and office area including 400-500 residential units in the form of condominiums, apartments, and townhouses. Neighbors would like to see 20,000 s.f. of office space and over 200 below-grade parking spaces.




The Commercial Area South of the Metro Station would include 150-200 residential units mixed with cultural uses and only 75-100 below-grade parking spaces. The Metropolitan Branch Trail would be integrated along 8th Street.