DC Commits to (Modest) Ivy City Redevelopment

The District government today announced that it is aiming to "transform" one of the city's most beleaguered neighborhoods by overseeing the redevelopment of 37 vacant properties within a six-blocks radius in Northeast's Ivy City enclave. Best known, if at all, for its ramshackle homes, illegal dumping sites and high crime rate, Ivy City will now host new construction and renovation projects awarded to four non-profit developers: Mi Casa, Inc., Manna, Inc., DC Habitat for Humanity and MissionFirst. It’s a move calculated to increase homeownership in a neighborhood weighed down by a glut of vacancies and a foreclosure rate twice that of the rest of Washington, DC.

"Just 12% of Ivy City’s residents own their homes," said Mayor Adrian Fenty, who referred to Ivy City's abandoned properties as "places to deal drugs and dump trash." Fenty noted "That’s one of the lowest homeownership rates in the city, but when these projects are finished, we can double that – which would be a fantastic statement about this city’s commitment to homeownership and neighborhood stabilization.”

Despite the uplifting mood of the press conference, expectations were not set high for the neighborhood that is isolated by Mt. Olivet Cemetery, New York Avenue, and the railyard, yet nowhere near a Metro station, and where many single family homes still list under $200,000 - without much interest.

Mi Casa will be moving ahead first with renovations of three buildings at 1302 and 1304 Gallaudet Street, NE and 1917 Capitol Avenue, NE. During Phase I, the developer plans to revamp 6 condos in the first property, with the intent of offering them to “seniors and extended families.” Four will available to those making less than 30% of the Area Median Income (AMI), while all have been reserved for area residents making less than 50% of the AMI. The second property, 1917 Capitol, will feature 2 affordable two-bedroom condos for those at less than 50% of the AMI. Mi Casa will be giving preference current eligible residents who have pre-qualified for a mortgage and “are committed to living in the neighborhood long-term.”

The remainder is expected to follow suit shortly after the completion of the first phase, with Manna planning 20 units, 15 for MissionFirst, and 8 for Habitat for Humatity. Together, that amounts to 58 new units for Ivy City – only 6 of which will be priced at market-rate. The projects will be combine renovations and new, from-scratch developments on vacant lots.

The Ivy City project is being partly funded by combining the $1 million value of District-owned parcels with $3 million from the federal Neighborhood Stabilization Program. The total cost is projected to be roughly $15 million and the neighborhood is still scheduled to begin receiving upwards of $3 million in infrastructural improvements beginning in May of next year.

The last time the District took a stake in Ivy City was when the DC City Council voted to relocate several Navy Yard strip clubs to the dilapidated neighborhood in order to make way for Nationals Park. William Shelton, chair of the ANC 5B was quick to credit the citizens of Ivy City with leading the charge to get District officials to take a second look at the state of their neighborhood.

"The tenants there, led by the Ivy City Citizens Association, have been at the forefront of this…It’s a very positive experience to see them determine their own destiny in terms of what the community ought to become,” said Shelton. “And, for our part, we’re enthusiastic to see that part of the city have an opportunity to have some those abandoned houses… renovated and restored." And for the fine folks of Ivy City, the modest announcement may not be a new stadium, but its a start.

Purple Line Leaves Trails Black and Blue?

Much like the long-gestating InterCounty Connector (ICC), the addition of the so-called Purple Line to the Metro system has enough supporters and detractors to fuel debate far past its proposed 2015 completion. Ideally, the Purple Line would entail a light rail encircling DC - a mass transit alternate to the beltway - though in its current phase the metro addition would link the disparate Red, Green and Orange lines and run through suburban Maryland, from Bethesda to New Carrollton - a project some supporters say would be of great advantage to low-income commuters. Curiously, however, it's not the usual developer versus preservationist argument that has led to Purple Line partisanship, but an unusually divided contingent of trail users who can't agree whether the new Metro line will be a godsend or unholy mess for Montgomery County’s Capital Crescent Trail (CCT) system - an 11 mile long trail running from Georgetown almost to Silver Spring. Final plans for trail and transit have not yet been finalized, and could include either light rail or bus service, a decision yet to be made, but supporters say that a transit line would enable the incomplete trail to finally connect Silver Spring and Bethesda, pay to upgrade the path from dirt to pavement, and provide rights-of-way at intersections now less friendly to bikers. The debate was initially kicked off by the efforts of Save the Trail – a local group that’s circulated a petition claiming that the Purple Line would be the only railway in the country to run next to “a popular trail and homes” and, furthermore, that “the existing trail and all of the trees surrounding the trail…would be bulldozed and leveled.” The group claims to have assembled 15,000 signatures for their petition and has suggested alternatives to the expansion – including a new rapid transit bus system and/or an alternative Purple Line route that would run to the National Institute of Health, instead of Bethesda proper, as is currently proposed.

Yet the governor-appointed, statewide advisory panel known as the Maryland Bicycle and Pedestrian Advisory Committee MBPAC) has now issued a rejoinder to the claims of negative impact on the trail, and is aligned with groups like the Washington Bicyclists Association (WABA) and Sierra Club in support of the new line. In a meeting yesterday, the 21 members of the MBPAC panel voted unanimously in favor of the project’s current New Carrollton to Bethesda route. “It is clear to us that the Purple Line will benefit the trail by creating grade-separated crossings at many intersections and extending the trail into downtown Silver Spring,” said Eric Gilliland, Executive Director of WABA, in a MBPAC-released statement regarding the matter.

But Gilliland notes that while WABA - one of the largest trail advocates in the area - is adamant in their support for the project, Save the Trail has otherwise not been involved in any other sort of trail advocacy, and that some property advocates have been against the line from the beginning. "I don't think they represent the interests of the cyclists" says Gilliland, commenting that "the Purple Line would also allow us to complete and upgrade the trail, now dirt, all the way to the Silver Spring transit center."

MBPAC further claims to have “debunked” the theory that the Purple Line will destroy the forested areas surround the trail, in concert with the Montgomery Bicycle Advocates and the CCCT. According to material supplied through links in their e-release, a minimum amount of trees will be lost due to the laying of any track and, even then, new ones will be planted to provide a buffer between track and trail. Furthermore, they argue that up to six times as many people will be using the light rail system as opposed to the trail and, even then, the increased spotlight on the CCT system will allow for expansion not only into Silver Spring, but Rock Creek Park as well.

While the Purple Line concept has already been signed off by Governor Martin O’Malley (who allocated $100 million in state funds for the project) and the Washington Metropolitan Area Transit Authority, and received a favorable environmental impact analysis, Montgomery County is still accepting written comments on the proposal until January 14, 2009. The State of Maryland is expected to announce further details concerning the project’s future in mid-2009.

Montgomery County real estate development news

New Residential Nixed in Adams Morgan

While some DC area developers of late have been forced to convert condos to rental apartments in the face of mounting economic woes, others have abandoned the residential component of their upcoming projects altogether. No surprise there, but counting the toll on the lost housing supply is patchy. But one such casualty is Combined Properties, Inc.'s proposed redevelopment of an Adams Morgan retail strip at 1755-59 Columbia Road, NW.

After acquiring the property in 2004, the developer initially planned to demolish the 5,000 square foot facility currently on the site and build a new five-story, mixed-use building in its stead. The untitled project was said to include a level of ground-floor retail (possibly a restaurant), along with four-stories of new residential housing and an underground parking garage at the intersection of Columbia Road and Champlain Street, NW. Dorsky Hodgson Parrish Yue had been named as architects for the development.

Now, it would appear that the FootLocker and Popeye’s locations currently embedded have received a stay of execution. A source within Combined Properties tells DCMud that the “project has been downsized to retail only” and that details concerning the newly-rejiggered project “should be available in about six weeks."

The project would have been a homecoming of sorts for Combined Properties, as the development corporation that was founded by entrepreneur Herbert H. Haft, who began his real estate empire with a single drug store once located in Adams Morgan, just a few blocks away at the intersection of Columbia Road and 18^th Street, NW. Haft also founded a number of recognizable national enterprises before his death in 2004, including Trak Auto and Crown Books.

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