Use 'Em or Lose 'Em Credits for Views at Clarendon

The Arlington County Board has put the long-delayed Views at Clarendon project on the fast-track, after approving up to $6.5 million on Saturday in additional loans for the development. This follows a December ruling, wherein the Board of the Virginia Housing Development Authority offered another $700,515 in annual tax credits for the project, adding to the $1.5m of tax credit already available.

While the approval was good news for the project, every silver lining at the Views seems to have a cloud. In accordance with Internal Revenue Service deadlines for the tax credit program, the project’s developer, the Views at Clarendon Corporation (VCC), must have the development "ready for occupancy" by December 31, 2011 - meaning that the developer must turn paper into bricks soon, or face the prospect of losing their $2.3 million in credits.







This is just the latest wrinkle for the much embattled project, which has faced not one but two legal battles in 2004 and 2007, respectively – including one that took them all the way to the Virginia Supreme Court. Additionally, construction delays, legal fees, and the downturn in the economy, have driven the project’s budget from $41.2 million to $49.2 million. With the newly approved addition to their cache of county dollars, the total of the Views’ Affordable Housing Investment Fund loans has now reached $13.1 million – not to mention the aforementioned tax credits.

David Cristeal of the Arlington Department of Community Planning characterized the inclusion of tax credits as "essential" to the project's budget and said without them, it cannot be built. He did, however, confirm that the developer now plans to break ground on September 1st, 2009 and said that "It gives [the development team] a 24 month construction period and some cushion." But not much.

In order to keep the project on target and keep costs down, the First Baptist Church of Clarendon – the entity that owns the proposed site at 1210 North Highland Street and makes up one-half of the VCC development team, along with the Arlington Partnership for Affordable Housing – has elected to defer a portion of its developer fee and accept $500,000 less for the development rights above their church.

At least the road to the Views is paved with good intentions. The 116-unit, mixed-income building promises to add 70 affordable apartments – including 12 reserved for the County Department of Human Services’ Permanent Supportive Housing Program - within earshot of the Clarendon Metro. Arlington County Board Chairman, Walter Tejada, described the county as “committed to increasing the supply of affordable housing” and said that the Board is “working closely…with the [VCC] and their development team…to make this development happen.” Lacey

Redevelopment Coming to Dilapidated Northeast Housing

The Office of the Deputy Mayor for Planning and Economic Development (ODMPED) is now seeking a development team to revitalize two District-owned properties in the vicinity of Northeast’s Deanwood neighborhood, at DC's easternmost point. The District intends to use the two parcels on the block - at 400-14 Eastern Avenue, NE and on the 6100 block of Dix Street, NE, respectively - to bring modern, affordable housing to Ward 7, while other nearby non-residential projects like the Strand Theater, Deanwood Recreation Center and Marvin Gaye Park get 21st century make-overs to call their own.

The 50,644 square foot Eastern Avenue site currently houses 8 four-unit flats - all of which are vacant and uninhabitable, due to years of disrepair and vandalism. According to their Solicitation for Offers, ODMPED plans to demolish those structures, in order to make way for “walk-up apartment buildings.” Their intentions are much the same for their 20,186 square foot stretch of Dix Street, though that property is currently a vacant lot. ODMPED surmises that that parcel could best be re-appropriated as a satellite development of the Eastern Avenue project, or host a stand-alone “townhouse or low-density apartment structure.”

Either way, both projects will be developed under the purview of the District’s Nehemiah Housing Program, which builds homes for households earning between $25,000 and $75,000. One such project developed under that program was DuPont Commons at Ridge Road and C Street, SE – which was built in concert with Enterprise Homes and won a string of awards upon its completion in 2004.

Additionally, both sites are currently governed by two long-range planning initiatives – the Lincoln Heights and Richardson Dwellings New Communities Initiative Revitalization Plan and the Deanwood Strategic Development Plan – that are targeted at undoing the “blight and underinvestment” the community has suffered from over the past 40 or so years.

As such, ODMPED has stipulated their preference for proposals that “build upon the goals” of those plans. That includes developers with the ability to snatch up adjoining parcels to build-out the size of the intended development or who are capable of providing a strategy that allows for a healthy mix of one, two and three bedroom and, especially, family-sized units. Another winning factor is the inclusion of Ward 7 retailers in the proposals, specifically ones that qualify as “Local, Small, and Disadvantaged Business Enterprises” (LSDBE). And, of course, any proposals delivered to ODMPED must emphasize affordable and accessible housing as a chief component.

Proposals are due to ODMPED by 4 pm on February 16, 2009. Presentations to the selection panel and a final announcement will occur the following month.

The Adele Approved in Silver Spring

As expected, Fenton Street Development's mixed-use project in downtown Silver Spring, the Adele, was approved by the Montgomery County Planning Board this afternoon. The development at 8620 Fenton Street will add 96 units of housing - including 15 affordable - 18,200 square feet of office space and 15,020 square feet of retail to the Silver Spring Central Business District. The project is being designed by the SK&I Architectural Design Group and expected to open for business in 2011.

Silver Spring real estate development news

Holladay In for Bethesda

Development of Bethesda's Edgemoor district has been been surprisingly stop-start given its location between the Metro and a thriving town center. But the Holladay Corporation is throwing their hat in the ring, adding to the chorus of developers intending correct to that malady. Alongside projects such as 4917 Hampden Lane, Edgemoor at Arlington North and City Homes of Edgemoor, the self-referential Holladay at Edgemoor will deliver 48 condominiums to the intersection of Montgomery Lane and West Lane - dead center between Bethesda's two main retail areas and just a block from the Bethesda Metro.

Located on a flatiron-shaped, half-acre parcel next to the Chase at Bethesda, the six-story building project will occupy three lots that currently host three office space-converted colonial homes. Comprised mainly of conventional flats, Holladay will also build 4 two-story townhouses on the building’s east side, fronting along Montgomery Lane. Of the units contained in the 71,343 square foot development, 6 units have been earmarked for affordable housing. The residences will all sit atop a 77-space underground parking garage – a measure designed, no doubt, to relieve overcrowding in one of Montgomery County’s most parking-challenged areas. Holladay has taken on Bethesda-based architects, SK&I, to design the project.

The project comes in with especially low density for a Metro site, with 30% open space, and an approved maximum density of 2.5 FAR, the multiplier of buildable space relative to lot size. Of that, 10% will dedicated to publicly accessible areas, while the remaining 20% will go towards "active and passive recreation space" for residents.

The Holladay at Edgemoor was initially denied by the County Planning Board back in April, due to a zoning conflict with the neighboring Villages of Bethesda at the corner of Arlington Road and Edgemoor Lane. After a short round of retooling, the developer rectified their design and the project approved the following month. According to Sami Kirkdil of SK&I, construction is expected to commence in 2010.

JBG's Unrequited Love for 14th Street

It just isn't easy being a developer these days. Don't get us started on the state of the housing market. But developing in a neighborhood where the city government and locals have pushed further development should not be so thankless. Case in point: The JBG Companies went before the DC Board of Zoning Adjustment (BZA) on December 2^nd with their plans to redevelop the current Whitman-Walker Clinic headquarters at the intersection of 14^th and S Streets into a seven-story, mixed-use housing complex with street retail, and received little love from the community for their efforts. Complaints voiced at the BZA meeting fell into two general categories - one being the impact on the community of a mid-rise development on the fast-growing 14th Street corridor, the other being zoning exceptions to the amount of on-site parking offered. Ever since, there’s been buzz about the lack of both community and ANC support for the project – and even speculation that JBG might be forced to be holster the 120-130 unit project for the foreseeable future.

As anyone who has ever dipped their toes into the murky pool of Washington DC development will tell, community objections to projects are a very nearly unavoidable part of the business. But some testimonials at the hearing cut deeper than others, with one witness attacking JBG for “fattening their wallets” at the expense of the neighborhood. The BZA was also forced to consider zoning exemptions allowing JBG to include 18 fewer parking spaces instead of minimum 108. The Cardozo Shaw Neighborhood Association has also voted to forward their list of community grievances onto the Historic Preservation Review Board (HPRB), the project's next stop - probably one of the reasons the developer decided not to get full height out of the space with a P.U.D., which would have taken longer and required more community input.

Furthermore, one month prior to the BZA hearing, JBG also made their first presentation to the local ANC2B – where all four of their requested variances were voted against, despite the initial support of ANC Chair Ramon Estrada, and similar residential projects like Matrix, View 14, and Nehemiah Center, just around the corner. Although the ANC poll is a non-binding advisory vote, a nay from the ANC has traditionally not helped chances with the zoning authorities, and woe betide those that don't have ANC approval in their pocket.

Despite these setbacks, Andrew McIntyre of JBG informs DCMud that the developer is nonetheless on track with their proposal, and that any rumors of the project’s demise are at least somewhat exaggerated. And though a BZA ruling will not be issued until at least January, the development team will go before Mr. Estrada and his ANC board tomorrow, December 11^th at 7 pm, for a second crack at "appeasing the natives." The meeting is to be held at DC Jewish Community Center at 16^th and Q Streets NW and will be open to the public. Following that, the project then goes before the HPRB on December 18th.

Washington DC retail and commercial real estate news

A Walk in the Park for DC Development

If all goes according to plan, 2009 should be a banner year for public parks in the District of Columbia. A bevy of publicly accessible park renovations will either begin or complete construction in the coming months.

One of Washington DC's costliest park renovations will be the newly renamed Marvin Gaye Park (formerly Watts Branch Park) in Northeast will be getting a $7.7 million facelift, beginning in February. The 1.6 mile long park – formerly known as a home to reams of garbage, used syringes, abandoned cars and, at one point, a landfill for refuse from the construction of the MCI Center (not to mention the occasional body)– will be redeveloped as the “Rock Creek Park of Northeast.” With one access point located at Division Avenue and Foot Street NE, the intent is to use Marvin Gaye Park as a catalyst for the revitalization of nearby Nannie Helen Burroughs Avenue and local landmarks, such as the Strand Theater.










Park benefactor Washington Parks & People will also step up their plans for the park in 2009 by placing increased emphasis on their “Down by the Riverside Campaign” and plans to “expand and replicate the Marvin Gaye Park model for inner-city stream valley parks across the city and beyond.” WPP will work in concert with the District’s Department of Parks and Recreation to organize capital improvements to two important park nodes, and even funding to the DC Water and Sewer Authority for the first phase of sewer repairs. Additionally, the two District agencies will continue to develop the park’s bicycle trial and pedestrian bridges, while rejuvenating the local stream bed - which just happens to be a tributary of the polluted Anacostia River. DPP has also included plans for a new Marvin Gaye Recreation Center in their 2009 budget. That project is scheduled to begin construction no sooner than 2013.

The majority of funds for Phase I of the park’s renovations came from government sources, while a small share were raised through private donors and Mayor Fenty’s Great Streets Initiative. The Office of the Deputy Mayor for Planning and Economic Development (ODMPED) are currently seeking a general contractor for the project - bids are due to ODMPED by 2 PM on December 17^th. Construction is scheduled to begin in February. Although ODMPED has yet to formally attach a landscape architect to the project, the University of Virginia School of Architecture has prepared prospective renderings of their vision for a revamped Marvin Gaye Park (pictured).

Meanwhile, over in Northwest's Judiciary Square, the $99 million top-to-bottom renovation of the Old DC Courthouse continues on into 2009. A brief respite from the scaffolding-heavy job is also planned for February as the District of Columbia Courts (DCC) plan to begin construction of new park on the historic building’s southeast corner. Located at the 430 E Street NW, the park is being designed by Beyer Blinder Belle (BBB), the same firm overseeing the courthouse project and that recently completed work on a park on the square's southwestern edge.

"There will be...a fountain in the center of that quadrant. There will also be brick-paved paths that will be diagonally passing through the park and benches for people to rest in that area, primarily around the fountain," says Hany Hassan, Director of BBB's Washington office. "The idea behind the water feature is to compliment the west side with its fountain and existing park."

The primary objective of the western park, according to Hassan, was to conceal the two levels of court parking beneath it; in much the same sense, the eastern park has been designed to occupy the former site of loading docks that have been relocated during the renovation. The end result promises to be a greener, more open, more inviting space for downtown. "In our mind, that's really the benefit that we'll all enjoy when this is completed," says Hassan.

Once work comes to a close, both new public spaces will joined by BBB's new grand 60 by 36 foot entrance pavilion to the building's north side - not to mention other additions to the square, such as the upcoming National Law Enforcement Museum and the recently installed effigy of Fredrick Douglass. DCC is currently seeking general contractors for the project; bids are due to the DCC by 1 PM on December 22^nd.

The projects named above are just a small sampling of the park projects that various District authorities have lined up for the coming year. Large-scale developments like Northwest One, the Pollin Memorial Community Development and the Southwest Waterfront all include a publicly accessible park component, in addition to stand-alone projects like The Park at the Yards, Diamond Teague Park, a new Justice Park and the Anacostia Riverwalk Trail.

Silver Spring's Adele Likely to Get OK This Week

Montgomery County looks ready to approve the Adele, a 96-unit building in the Easley subdivision of downtown Silver Spring. Fenton Street Development LLC (FSD) - a partnership between the Freeman Group and Bloom Builders - will bring a new 9-story, mixed-use project to the intersection of Thayer Avenue and Fenton Street if the team receives final approval from the Montgomery Planning Board (MPD) at a hearing this Thursday.

The Adele would stand at the current site of an auto repair shop at 8260 Fenton Street. The SK&I-designed plans on hand call for 96 units - either apartments or condos - 18,200 square feet of office, and 15,020 square feet of retail stacked atop each other on a half-acre parcel. Fifteen of the apartments and/or condos on site will be reserved as affordable-rate MPDUs – a requirement that sets the Adele apart from other nearby, similarly-scaled (and not yet built) Silver Spring residential projects such 814 Thayer and Moda Vista. Additionally, the development team is throwing in an ever-popular green roof and a public plaza on the northeastern corner (to be furnished with “streetscape improvements” at their own cost) to sweeten the deal.

FSD initially received concept approval for the Adele back in 2006. Since that time, the developer has made some not so minor changes in order to get full authorization, like axing 3-stories off the building’s proposed height. But having received concept approval on its first try and having been signed off by MPD staff, an affirmative decree from the Board seems likely.

That would be just the latest in a string of MPD approvals for downtown Silver Spring. In addition to 814 Thayer and Moda Vista, nearby projects include 8711 Georgia, 8227 Fenton Street and, of course, the MPD’s own new headquarters/residential development, SilverPlace are all within spitting distance of the Easely subdivision. The Adele is scheduled to join its new neighbors by mid-2011.

Marriott Digs in Around DC

Marriott International, Inc. is planning an extended stay of its very own in Crystal City's Potomac Yards. As part of development deal with the JBG Companies, a parcel bounded by Crystal Drive, Potomac Avenue and 29^th Street South will soon be home to not one, but two new Marriott- branded hotels – the Renaissance Inn Crystal City Potomac Yards and the equally tongue-twisting Residence Inn Crystal City Potomac Yards.

Situated just minutes from Ronald Reagan National Airport, the new 13-story, 444,000 square foot facility hopes to attract a healthy stock of business travelers with 625 new rooms and 10,000 of meeting space. The team is also looking to draw locals to the increasingly developed Potomac Yards segment of Alexandria with a 10,000 square foot retail component that will sit atop a 500-space underground parking garage.

Of the new rooms going to market, 325 on the facility’s southern end will be dedicated to extended stay suites, courtesy of Marriott’s “Residence Inn” brand. In keeping with the project’s dual nature, the Residence Inn will have its own individualized entrance on the corner of Potomac Avenue and 29^th Street and front on an “outdoor hearth” planned for an adjoining public park.

The two-in-one project expects to clear the threshold for LEED certification - which, according to JBG, would be a first for Northern Virginia hotels. The project officially broke ground on October 22^nd at a ceremony attended by Congressman Jim Moran and Arlington County Board Member, Chris Zimmerman. At the same event, JBG also went public with news that Wells Fargo would be providing $128.7 million in financing for the project. The development expects to open the doors on the new complex in winter of 2010.

Despite the new Renaissance/Residence Inn’s position as the first new Crystal City hotels in 20 years, both JBG and Marriott aren’t content to keep their focus only the Alexandria area. JBG also owns two other large hotels in the immediate area – the Westin Reston Heights and Westin Arlington Gateway. JBG already owns Washington DC's largest hotel, the Marriott at Wardman Park - which will keep the title of DC's biggest since yet another new Marriott, the Convention Center Marriott, reduced the size and scale of the project that should begin construction next year.

Additionally, the Donohoe Companies’ Hospitality Services division is also currently constructing another Residence Inn in Rosslyn’s Courthouse District at 1425 North Adams Street. That project is significantly smaller – 176 rooms and 141,000 square feet – but is being designed by renowned architect Leo A. Daly and will be completed a bit earlier, in fall of next year. Alas, all too late to be completed in time for the Obama-nation invasion next month.

Arlington Virginia retail leasing and commercial property news

DC Offers $10 Million to New Retail Development

Mayor Adrian Fenty joined Ward 8 Councilmember Marion Barry today to announce that the District of Columbia has granted a total of $10 million worth of tax increment financing (TIF) to three retail-centric real estate projects currently in the pipeline: City Interests, LLC's South Capitol Street SW residential/retail hybrid, Four Points, LLC and W Street Acquisitions' development on Martin Luther King, Jr. Avenue, and the Neighborhood Development Corporation's Heights on Georgia Avenue. According to the Mayor, it’s a calculated move designed to stop Washington DC's loss of retail revenue to suburban shopping outlets.

“Essentially, this is way to make sure that you use additional revenue to help the private sector bridge the gap to where they see great and exciting new projects, but where there may not be right now the right level of financial equity to make the projects happen,” said Fenty. “The District, as everybody knows, loses tons of money to the suburbs every year…If we don’t have economic development right here in the neighborhoods of Ward 8, people will then just take their tax dollars to Maryland. It’s a cyclical problem.”

The first project on the docket is also the largest. City Interests’ development at 4001-4035 South Capitol Street SW – currently a strip mall and the site of today’s press conference – will receive the bulk of the TIF funds announced for a grand total of $8.8 million. Once completed, the project will contain 200 units of housing, 47,000 square feet of retail and 15,000 square foot grocer or pharmacy in the forgotten portion of southwest - a small strip of land just south of Bolling Air Force Base. Construction is planned to begin in late 2009.

The Four Points project on the 2200 block of Martin Luther King, Jr. Avenue SE will receive $1.1 million from the TIF program to supplement its $5.2 million budget. The mixed-use project will bring 11,000 square feet of retail and a “soul jazz café” to the site – numbers regarding the housing component have yet to be disclosed. Construction is also projected to begin sometime in 2009.

The last project announced – and only non-Ward 8 development named – was the Neighborhood Development Company’s The Heights on Georgia Avenue. Located at 3232 Georgia Avenue NW, the $25 million project will receive $742,000 in TIF credits. With 10,000 square feet of retail (possibly to include a hardware store and sit-down restaurant) and 70 residential units, NDC hopes to start building late next year.

These three projects are merely the first recognized projects under the District’s Neighborhood Retail TIF program. Earlier this year, Fenty announced that the District - in conjunction with the Great Streets Initiative - would offer a total of $95 million in financing to local developments with a strong retail component. The Office of the Deputy Mayor for Planning and Economic Development (ODMPED) will continue to accept applications for funds on “a rolling basis.” ODMPED's Project Manager, Derrick Woody, said recipients are judged on a “long list of criteria” that includes “the composition of the development team, the level and amount of retail,” and a 5,000 square foot minimum in order for projects to be considered.

Washington DC retail news

BZA Approves Mixed-Use Project for Barrack’s Row

Just prior to last week’s holiday, Old City Development LLC – the nome de plume of ICP Partners and two of its' principals, Leon Kafele and Michael Hatchett – received approval from the DC Board of Zoning Adjustment for their proposed $6 million, mixed-use project at 801 Virginia Avenue SE, at the foot of Barrack's Row, bridging the gap between the Ballpark District and Capitol Hill.

Originally envisioned as a 4-story, 17-unit condo development with a base of ground floor retail, plans for the so-called “Admiral at Barrack’s Row” have since been redrafted to convert the proposed housing into office space. As it now stands, the Admiral will feature 19,000 square feet of office space, a 3,000 square foot first floor retail center, and an undetermined amount of underground parking – which will be reserved solely for the offices’ work force and not retail clientèle. Designs for the project are being handled by Bonstra Haresign Architects.

The project at 801 Virginia is just one of the three that Kafele and Hatchett announced back in 2005. Along with the Admiral, they were planning to construct a multi-phase, mixed-use development at 810 Potomac Avenue SE and convert four historic townhomes on the 800 block of L Street SE into leasable office space. As of this writing, neither of those projects have yet materialized and, though the Admiral was initially scheduled to begin construction in late 2006 for a projected 2008 delivery, the site at 801 Virginia still houses a derelict auto-body shop and parking lot. No revised timeline for the Admiral was discussed at the hearing - though, according to JDLand.com, the DC Office of Planning, ANC 6B, and the Capitol Hill Restoration Society have all signed off on the project.

Macedonia Invades Arlington

Another 100% affordable housing development is making its way to Arlington, this time in the form of the Macedonia Apartments. Much like the nearby Views at Clarendon project, the Macedonia, too, is the product of a joint venture between a local church - in this case, the Macedonia Baptist Church - and two local development initiatives - AHC, Inc. and the Bonder & Amanda Johnson Community Development Corporation (BAJCDC).

Occupying three neighboring parcels at 2219, 2229 and 2237 Shirlington Road, the Macedonia will be a 36-unit, four-story apartment complex, composed of 19 one-bedroom and 17 two-bedroom units for Arlington residents earning less than 60% of the area median income. The remainder of the building's 40,000 square feet will go toward two sections of commercial office space. One will be dedicated to new offices for the BAJCDC, whose current office stands at 2229 Shirlington Road and will be demolished to make way for the Macedonia; the other will serve as “a small business incubator.”

AHC, Inc.’s Project Manager, Curtis Adams, elaborated on exactly what that means. “Other cities have these economic development programs…where there are shared costs of overhead and sometimes shared administration costs,” says Adams. “[Then], people who have an office space to work out of can hopefully start to create new jobs in Arlington.” The project is being designed by Bonstra Haresign Architects.

Additionally, the County’s Department of Human Services has recommended a grant of $40,000 for “four permanent Supportive Housing units” in the complex - intended to provide accessible housing for the disabled. This is well-worn territory for AHC – they currently own and operate a total of 3,337 apartments throughout 28 rental communities, all of which are designated as “affordable housing" with some especially suited to the needs of the handicapped.

The Macedonia Baptist Church originally acquired the parcels on either side of the BAJCDC back in 1999 with the intent to “revitalize the Nauck neighborhood and provide affordable housing to area residents.” Since that time, the church has taken on AHC as the project’s Development Manager and created a nonprofit entity, the Shirlington Road Development Corporation, to pursue low income tax credits for the Macedonia. Though the development team’s request for permits was unanimously approved by Arlington County Planning Board in May of this year, the timeline is currently contingent on a new round of funding.

“Orginallly, we were hoping to begin construction this summer. We failed to win low income housing tax credits for the project, so we’ll be going in and competing for a whole new round of funding come January,” says Adams. “We hope to begin construction in the late spring of 2009.”

The Macedonia is just the latest in a rash of affordable housing projects under development in the metro area. Other low or mixed-income developments in the pipeline include the aforementioned Views at Clarendon, the Parc Rosslyn, the James Bland revitalization, and the Fort Myer Heights North Plan in Northern Virginia; Northwest One, Hartford Knolls, the Pollin Memorial Community Development, Donatelli's Minnesota-Benning project and Temperance Court in the District; and the Edgemoor project in Bethesda.

Shirlington Crest Beats the Odds (and the Market)

While the rest of the DC development community seems convinced they'll queuing up at the nearest bread line any day now, developer Stanley Martin has more than one reason - 171 actually - to be champagne shopping. The developer's Shirlington Crest project in the Arlington County suburb of Shirlington is selling out of homes faster than they can be built.

According to off-the-record sources at Stanley Martin, when the developer broke ground on the Crest in September 2007, they were anticipating a four year build-out period to complete all of the development's 171 garage townhomes. A little more than a year later, all of the 40 houses completed so far have sold out and the developer now plans to wrap up in under three - a little more than a year ahead of schedule. The project's Phase II component is on-track to deliver in spring of next year and half of those 14 units nearing completion have already been taken off the market by buyers.

Next year’s new units are the developer’s Provence model (pictured) and range from 2,260 to 2,310 square feet. A model unit of the Phase I homes will remain open through mid-December. Prices start in the $600,000 range.

Located at the intersection of South Shirlington Road and South Four Mile Run Drive, the Crest project is latest component of a mini development boom for the Shirlington area. Shirlington Crest stands just across the way from the recently completed Bowman’s Hill Towns 20-unit townhome project, which was completed in summer 2007. Other projects in the area include Monument Realty’s Randolph Square, Windsor Communities’ Io Piazza condominiums, Federal Realty’s newly expanded Village at Shirlington retail center and the upcoming bus station/transportation hub, the Shirlington Transit Center. Fred

Shirlington retail and commercial real estate news

DC's First Green Hotel on the Way

Developers of the "1 Hotel" are finally knocking down the former Nigerian Embassy at 22^nd and M Streets, NW (pictured below, looking not much worse than it has for the last decade). Demolition is courtesy of the Starwood Capital Group and Perseus Realty, LLC to make way for what may become Washington DC's first truly green hotel. In 2010, the development duo intends open the District’s first - a 182 room project that’s being dubbed "Washington’s first green luxury hotel" and the east coast flagship for Starwood’s new "luxe-eco" endeavors.

Coming in at 188,000 square feet, the Chad Oppenheim-designed edifice will consist of three "11-story volumes connected by glass enclosed vertical gardens." Drawing upon Victorian-era botanical gardens for inspiration, the architect claims that this configuration will function as a “living machine” that will serve as a natural air and water purification system. In a natural move for such a verdant project, the hotel will seek LEED certification and feature an organic spa, along with a green roof (with lounge) in the heart of Washington’s West End. Additionally, the development team is seeking to boost their green street cred by allying themselves National Resources Defense Council - to whom they will donate one percent of the profits from DC 1. While the embassy will be missed by few, popular restaurant Asia Nora is also being demolished to make way for green hotel, but the hotel group has plans for an organic restaurant within to replace the loss to the food supply of the West End, a neighborhood that will now have one of the highest concentrations of hotels in the DC area.

The 1 Hotel & Residences brand is Starwood’s attempt at bridging the gap between two equally trendy, yet totally opposite poles: high-class living and environmentally sound building practices. The hoteliers, who bought the land in 2006, will have plenty of competition for elegance - once completed it will stand directly across from the Ritz-Carlton and within a block of several upscale hotels - which may make it a good test case to see if green pays.

Other 1 locations currently in the pipeline include Paris, France; Seattle, WA; Scottsdale, AZ; Mammoth Lakes, CA; and Ft. Lauderdale, FL with further expansions planned for Los Angeles and New York. Construction of the DC location is being overseen be Tompkins Builders and, once open, is sure to be the most Google unfriendly hotel in the metropolitan area.

DC Makes Way for Northwest One

Mayor Adrian Fenty called a press conference in NoMa today to the showcase the demolition of the Temple Courts housing project – an abandoned housing complex that stands at the future site of the William C. Smith & Co. and Jair Lynch Development Partners’ mixed-use Northwest One project. The housing project was purchased by the District in 2007, after years of concerns about the poor educational and medical conditions for residents, as well as an escalating crime rate.

“To most people, this is the site of housing that has long been of condition that is unfit and unsuitable for residents of the District of Columbia, our own neighbors,” said Fenty. “Northwest One [will be]…the first place where you’ll have new communities with all different levels of housing and all different income levels – mixed with great retail, great community centers and great schools.”

The Northwest One project will bring $700 million worth of new development to a five-block chunk of the NoMa corridor – an initiative that will include the construction of 1600 new residential units, 200,000 square feet of office space, 40,000 square feet of ground-level retail and a one-acre public park. The District has pledged that nearly 25% of the on-site housing (570 units) will be reserved as affordable – an amount that Executive Director of the District of Columbia Housing Authority, Michael Kelly, assured the public would be “one-for-one replacement” of all affordable housing lost in demolition. The 172 families initially displaced by the closing of Temple Court were relocated at city expense and will be offered new units in the completed Northwest One complex.

“Today, we're celebrating the demolition of what is –without any kind of exaggeration – a symbol of isolation and socio-economic despair,” said Kelly. “In its place…will be a vibrant mixed-income neighborhood. A neighborhood that will have the lawyer next to the school teacher next to the welfare recipient – and from the outside you can’t tell who’s who.”

Fenty said that he expects a groundbreaking ceremony to be scheduled for early 2010 with construction expected to wrap up the following year. The Temple Court site is the second component of Northwest One currently in some phase of development – the $47 million Walker Jones complex (which includes a 100,000 square foot elementary and middle school) is currently under construction and is scheduled to be open by next August, just in time for the 2009-2010 school year.

Washington DC retail and commercial real estate news

The Views at Clarendon Stumps for Final Approval

After more than four years of legal and financial troubles, the Views at Clarendon seems to be finally be on track for construction and, if their luck holds out, a 2011 delivery. Nonprofit developer the Views at Clarendon Corporation (VCC) - a joint venture between the Arlington Partnership for Affordable Housing (APAH) and the First Baptist Church of Clarendon - still intends to bring a 116-unit mixed-income apartment building to the church's current site at 1210 North Highland Street, a deal that will preserve the existing church.

Perhaps not surprisingly for a religious organization, VCC is aiming their project at providing housing for disadvantaged tenants by way of housing that is both affordable and accessible to the handicapped. The Views will boast 46 market rate units – 6 of which will be “100% accessible” - and 70 "affordable" units – 6 of which will be reserved for families making under 50% of the area median income. Additionally, another 5 units will go towards the “County supportive housing program.” The building's floorplans will range from studios to three bedrooms, coupled with 120-space underground parking garage – just one block from Clarendon Metro. The project is being designed by MTFA Architecture.

Given that its developer is a nonprofit entity, the Views faced serious delays as APAH tracked down funding for the project. Just last week, the development corporation upped their Affordable Housing Investment Fund loan request from $5.3 million up to $6.5 million – on top of the low-income housing tax credits and additional federal loans that have already been secured. According to APAH, “this additional financing will enable construction to be completed by the end of 2011.” The Arlington County Board will decide whether or not that loan goes through at its meeting on December 13^th.

A need for increased funding, however, is not the first hang-up that Views has run into on the rocky road to development. The project was first approved in October 2004, and was then tied up in a zoning dispute that stretched all the way to the Virginia Supreme Court. After two years, a $200,000 lawsuit, and a “technical adjustment” to the applicable zoning ordinance, the county provided salvation to the church by giving approval in February 2007. Locals had filed a lawsuit to reverse the original zoning approval, objecting to the plan that would keep the current church and its 107-foot steeple, and include daycare and "moderately priced" housing. A circuit court judge had ruled against the neighbors in 2005, reversed in 2006 when the Virginia Supremes determined that the zoning board acted against its own zoning ordinance, a decision which begat the February 2007 approval. A further lawsuit to stop the project was dismissed in July, 2007.