DC’s Newest Development District is…the Florida Avenue Market?

Just around the corner from the ongoing revitalization effort that is NoMa, the Office of Planning (OP) is setting its sights on a similarly minded redevelopment initiative: transforming DC’s wholesaler haven, the Florida Avenue Market, into a “vibrant, mixed-use neighborhood that protects the look and feel of the historic retail markets” while also bring new residential, retail and office projects to the Northeast site.

With the aid of CORE Architecture and Design, EHT Traceries, Inc. and Economic Research Associates, OP released their findings on just how to achieve that seemingly insurmountable task (the surrounding area includes two of the District’s most notorious neighborhoods: Trinidad and Ivy City) late last month in the Florida Avenue Market Small Area Plan. The report details an impressive list of obstacles in the way of redevelopment – even for a city with as many impressive redevelopment challenges as Washington.

Though the crime rate in the surrounding communities goes unmentioned, here’s what OP sees as its primary concerns. Firstly, current zoning statutes prohibit residential development in the industrial zone - a problem that two nearby developments, the Washington Gateway and the Gateway Market and Residences, have been able to circumvent through the PUD process. Secondly, the Market area is comprised of 120 lots with 68 different owners – a ratio that will make acquisition by the city a costly, confusing and time consuming proposition. Lastly, of those lots, many are, in the words of OP, “underdeveloped” or vacant, which gives potential developers little or nothing to work with.

However, OP hopes to relieve that burden somewhat with their framework for potential redevelopment. Taking into account the site’s historic significance (the Center Market first opened in 1802; the flagship Union Terminal Market in 1928), current conditions and infrastructure, current economic and real estate analyses, and community input – “achieved through a series of community planning sessions, property ownership workshops, and through an Advisory Committee” that included City Councilmembers Tommy Wells and Harry Thomas, Jr., the ANCs 5 and 6, Gallaudet University, and Apollo Development – OP has arrived at a preferred mix of commercial and residential uses for the market area (pictured). In an ideal scenario, the Florida Avenue Market will become a new destination by linking NoMa, the New York/Florida Avenue Metro and the neighboring Gallaudet campus into cohesive, walkable and, yes, friendly, whole.

To that effect, the plan outlines extensive overhauls for each prime thoroughfare in the Market area - including the to-be-reopened 3^rd Street – with rehabilitated historic buildings, public parks, new signage and linkage to the Metropolitan Branch Trail. All of this would be done according to “Deaf Design Space principles,” in order to make the area welcoming for Gallaudet’s 1500 strong student population. Sound like a challenge? It will be, but OP hopes to relieve some of the burden from developers by encouraging a 20% tax credit towards the renovation of historic buildings on site.

Presumably to fill in the many remaining question marks (and gear up for an oncoming onslaught of RFPs), OP will be hosting a “Mayoral Hearing” concerning the Market on May 18, 2009 from 6:30 PM - 8:30 PM at Gallaudet’s Merrill Learning Center Building . The meeting will be open to the public - with questions and comments on the Area Plan encouraged. OP’s two-part plan for the Market can be read in its entirety here.

Airport Residential on Approach in Crystal City

Gould Property Company, with the Abbott Development Group and CORE Architecture and Design, are readying for the fourth and final installment of their Airport Plaza development in Crystal City. Approved way back in 1981, Gould first delivered the two office tower components of the project in the early years of the Reagan era, but number four will bear a more striking resemblance to Airport Plaza III, also known as the Concord Residences - a 680,000 square foot, 412-unit "luxury" rental high-rise at 2600 Crystal Drive that delivered in 2007 and, as of this week, boasts a 93% occupancy rate.

"We don't have a name yet, but [Airport Plaza IV] will be linked with the Concord," said Doug Abbott, President of the Abbott Development Company. "It's designed as a stand-alone building, but, for our purposes, we’ll be managing and marketing it as one complex…It will have a Clark Street address, but they will share the amenities and management team."

Measuring in at roughly half the size of its neighbor, the as-of-yet untitled project will bring another 205-rental units to a resurgent Crystal City – itself slated for some major infrastructural improvements in the coming years. In accordance with those plans, the Gould-led development team will be outfitting the space between the two residential towers with "a multi-level outdoor plaza with landscaping" – a project already provided for in Crystal City Planning Task Force’s Framework Plan.

“That is part of the Crystal City redevelopment plan, so that can’t happen until the traffic circle is put in at 26^th Street,” said Abbott. However, he says, work on Airport Plaza IV is proceeding at a much brisker pace and that his team is confident that the project will be a successful addition to a well-situated site less than a mile from National Airport.

“We’ve been working on schematics and we’re actually before the County with a minor site plan amendment. If that is approved, which I anticipate it will be, we’ll go ahead with design. For office buildings, we think that the market is kind of on hold, but I noticed during the last recession that the demand for rental is never slim to none."

Arlington, VA, real estate development news

Condos Get Affordable (and Green) in Columbia Heights

District-based affordable housing providers Manna Inc. will soon begin work on the latest residential endeavor for the increasingly crowded Columbia Heights neighborhood: the Cardozo Court Condominiums. Located steps from 14^th Street at 1343 Clifton Street, NW, the 15-unit, low-cost condo development is being developed, designed and constructed in-house by Manna and will overtake a vacant lot once owned by the city, but long envisioned as a potential home for low-income families.

“We acquired the lot back in the mid-90s from the DC government under the Homestead Program. The exchange was that we got the property and would develop it affordably,” said Karen Williams, Project Manager at Manna, Inc. “We have to get approved by [the Office of Housing and Community Development] because it is a Homestead project. That program no longer exists…but is now administered by the Property Acquisition and Disposition Division.”

The three-story project’s units will start at 551 square feet for a one bedroom with the largest, two-bedroom units measuring in at 1025 square feet. All will be available to area residents making less than 60% AMI, and, though there’s no word on what types of amenities are planned for the site, the project will be built according Enterprise Community Partners’ “Green Communities Criteria” – a LEED “aligned” program specifically aimed at certifying eco-friendly, affordable housing. Given the project’s ties the recent flurry of similarly minded DC developments, Cardozo Court looks to be on the fast track to breaking ground by summer’s end.

“We’re two steps away from getting our building permit,” said Williams. “Right now it’s in [the Washington Area Sewer Authority] and then it’ll go to structural, but, with permitting, you can hardly guess at [a solid date]. Ideally, we would start later this summer or in the early fall.”

Prices at Cardozo Court will start at $175,000 and, once completed, the development will join two other two other District-sponsored, brand-new, affordable residential developments: Somerset Development’s Hubbard Place redevelopment at 3500 14^th Street, NW and Jubilee Inc.’s refurbished Ontario Court apartments at 2525 Ontario Road, NW in Adams Morgan.

Washington DC real estate development news

"Historic" Cleveland Park Pharmacy Set for Summer Opening

After more than two years of deliberation, Cleveland Park's new "historic" Walgreens at 3524 Connecticut Avenue will be opening this summer. Best known as the former site of the Yenching Palace restaurant, where intermediaries for President John F. Kennedy and Soviet Premier Nikita Khrushchev negotiated the end of the Cuban Missile Crisis in 1962, the site is currently is the midst of a commercial conversion, courtesy of Mid-Atlantic Commercial Properties (MACP) and Rust Orling Architecture.

"Construction started a couple of months ago. We’re hoping that’ll be completed this summer," said Randall Clarke, MACP Vice President. Construction is being overseen by the Dietze Construction Group.

Since purchasing the building in 2006, Walgreens reps have made numerous presentations of (and revisions to) their plans for the landmarked, 8,600 square foot site at the behest of the local ANC 3C and the Historic Preservation Review Board. In doing so, the development team arrived at a retro-esque design that recalls its original 1945 facade and will certainly make it one of the swankiest pharmacies in the District – but at the expense of a brief construction timeline.

“We went through the HPRB process and, as a result of that, we had to be careful in the demo and do some extra things, so it’s taking a little longer than it would have otherwise. But it’s plugging along,” said Clarke.

The Cleveland Park site will be Walgreen’s second location in the District; the first, at 22^nd and M Streets, NW, opened in March. A third location is planned for Connecticut Avenue and Veazey Terrace, NW in Van Ness, and won zoning approval early April. In all, the drugstore chain plans to open 495 new locations in North America this year.

Blighted Brightwood Apartments Born Again

Mayor Adrian Fenty and Ward 4 Councilmember Muriel Bowser made their second joint appearance of the week in Brightwood today, this time to announce the commencement of major renovation procedures at 6425 14^th Street, NW – a long empty, dilapidated apartment building formerly owned notorious DC landlord, Vincent Abell.

"After essentially two decades of inactivity, frustration and blight…the District of Columbia government finally seized control of the property [in 2008]," said Fenty. "Don’t forget, it had been owned by countless private sector landlords [and] slum lords…People who just had no interest at all in making this the type of fantastic residential apartment building that it was once was and that it will be again.”

To that effect, the District has teamed with Blue Skye Development to repurpose the now-gutted apartment complex for the Tewkesbury Condominiums - a 30,000 square foot, 26-unit condo building that will, according to the Office of the Deputy Mayor for Planning and Economic Development, be comprised of 51% affordable housing.

“We want to promote home ownership,” Deputy Mayor Neil Albert told DCmud of the decision to make the building a for-sale property for the first time in its fifty plus years of existence. “It was originally conceived as a condo project and we were able to get financing for it. Again, there’s a level of affordability that’s going into this building. It’s not a luxury condo building…It’s easier to get that financed than your mid-level and high-priced condos”

Purchased by the DC government early last year for $3 million, after filing suit against its owner for “numerous building code violations,” the total cost of the renovation will come in at $4.6 million. New amenities slated for the complex, as outlined by PGN Architects, include “a community room, roof deck, energy-efficient aluminum windows...as well as outdoor spaces directly behind the building.” With selective demolition already underway inside the complex, the development is scheduled to be open by March 2010 – a full year later than the District initially anticipated when they acquired the property.

“[These] haven’t been easy projects. The reason some of these projects have taken a long time is because there’s a lot of trouble and legal trouble that the city’s been dealing with,” said Muriel Bowser of the numerous concurrent, affordable housing initiatives under way in her ward. “But this administration has taken a ‘can do’ approach. Not 'we can’t,' not 'we won’t,' but that we’ll figure out how to get it done.”

Fenty and Bowser teamed-up earlier these week to oversee demolition at 3910 Georgia Avenue, NW, future site of the 130-unit Georgia Commons project, and for the opening of the Neighborhood Development Company's Residences at Georgia Avenue in March.

Historic Hill Hospital Going under the Knife

The Old Naval Hospital Foundation (ONHF), working in tandem with the Office of Property Management (OPM), is growing closer to a final design concept for the restoration of one of the District’s oldest medical facilities, the Old Naval Hospital at 921 Pennsylvania Avenue, SE. If all goes according to plan, the 145-year-old, Civil War-era institution, which has gone largely unused since 1999, will re-emerge as the Hill Center - a non-profit educational facility for "lifelong learning, cultural enrichment and community life."

Part and parcel with the Hill Center’s mission statement will be a complete refurbishment of the hospital and its grounds. BELL Architects is planning, since condos are probably out of the question, that the building’s top floor will be devoted to office space for community organizations, while the remainder of rooms will be retrofitted for all-purpose uses, capable of hosting “meetings, workshops, lectures, recitals, after-school tutoring, art exhibits, receptions and the many other functions and events that make a neighborhood a community.”

The ONHF has already secured sponsorship from the Capitol Hill Arts Workshop and Capitol Hill Computer Center for select events. Meanwhile, the carriage house adjoining the main building will converted into “a family-friendly café.” According to architect David Bell, the “project’s goal is to create a community center that doubles a commercial building, in keeping with the scale and shape of the original building.”

But similar plans have appeared - and evaporated - before. OPM first announced their intent to restore the property in 2002 and have vetted several projects, but some area residents expressed concerns that the project is now moving too fast at last month’s meeting of the ANC 6B and cited the need for more community input. Members of the project team, however, were quick to disagree.

“Take a look around. This building is deteriorating,” Bell told the commission. “I’m concerned [that the longer we wait] the more difficult and expensive this will be.”

The ANC subsequently approved the design. However, according to Ann Brockett of the Historic Preservation Review Board, the project has yet to be scheduled for HPRB review – a process that can take anywhere from weeks to (gulp) years. Nonetheless, the ONHF is optimistic that they will soon be making headway on the renovation. “If all goes as planned with leasing, permitting and construction,” reads their project plan, “the Center will be open and operating at the beginning of 2011.”

Builder Selected for New SW DC Crime Lab

The Office of the Deputy Mayor for Planning and Economic Development announced yesterday that is has awarded Whiting-Turner a $133 million contract to construct the District's new Consolidated Forensics Laboratory (CFL) at the former site of the Metropolitan Police Department's at 415 4th Street, SW. Designed by HOK Architects, the six-story, 287,000 square foot crime lab will house the forensic arms of not only the police department, but the Department of Health and the Office of the Chief Medical Examiner as well. According to ODMPED, the new CFL will "coordinate crime, public safety and health investigations to help law enforcement solve crimes quickly without having to rely on other laboratories with competing priorities." Coming in at a total cost of $220 million (including “specialized equipment”), ODMPED states that the “firm-fixed price contract includes abatement and demolition of the old building as well as a 35 percent set-aside for Certified Business Enterprises.” A date for the demolition has yet to be scheduled, but work continues abreast just around the corner from the CFL site. Early last month, the District officials selected Potomac Investment Properties, City Partners and Adams Investment Group to construct to two, new mixed-use buildings – including a new fire station – just a few hundred yards away on two parcels adjoining 450 6th Street, SW.

Washington DC real estate development news

Planned Community for PG County Line

Bethesda developer The Artery Group will be back before the Montgomery County Planning Board tomorrow afternoon to vie for final approval of a sprawling 314-acre "planned community" at the Prince George’s County line in Burtonsville.

Bounded by Sandy Spring, Greentree and Old Gunpowder Roads, the so-called Fairland Community will bring 365 homes, a community center, public open space, "an extensive trail system," and a new, 11-acre elementary school site intended to divert students from currently overcrowded Burtonsville Elementary. A dramatic metamorphosis from its genesis as a golf-centered townhouse community, the project will include 46 moderately priced dwelling units of affordable townhouse and duplex residences, according to Lisa S. Schwarz, Senior Planning Specialist for the Montgomery County Department of Housing and Community Affairs. The rest of the homes on site will be detached, single-family units, to be built in three phases.

The history of the development dates back to 2004, when it was first approved by the Planning Board with a plan calling for a golf course and 400 homes on the Montgomery side of the county line. Despite support from area residents and inroads on a proposed land swap with Montgomery County for construction of the golf course, the project’s encroachment into a neighboring jurisdiction led to a veto from the Prince George’s County Council. With the developer getting a mulligan for the golf plan, tomorrow’s hearing concerns Artery’s recently amended, links-free development scheme; Planning Board staff have already lent their approval to the proposal - a move usually indicative of an impending green light from the Board itself.

The Fairland Community is precisely the kind of large-scale development Artery typically pursues in the metro area's far-outlying suburbs. In conjunction with Clark Capital Realty, they were responsible for The Pinnacle, a $55 million, 328-unit garden apartment complex in Germantown. The developer is also currently working on Arora Hills, another 1330-unit “neo-traditional” planned community in Clarksburg, with Beazer Homes and NVR.

JBG Discusses Plans for Bethesda Row

With preliminary approvals from the Montgomery County Planning Board in place as of last Thursday, the JBG Companies say they are now actively in development on Woodmont East, the large-scale, mixed-use project set to usurp the last vacant parcel adjoining Bethesda Row. Since first going public with the project in 2007, the project has lost one key component - a planned hotel that has since been revised as 208,579 square feet of office space. Meanwhile, the Capital Crescent Trail that bisects the site will remain open for, at the very least, most of the construction period.

"The amendment to the project and preliminary plan amended the use of that southern bit from hotel to office. Otherwise, not much changed…We did some modifications to the open space based on comments from the community. We did some modifications to the building, but not much. The envelope and the height have been pretty much intact from 2007 on,” said Matt Blocher, Senior Vice President at JBG. “It’s within the same density. They’re both commercial use and they’re both the same size buildings. It was purely market driven. “

Located at the intersection of Woodmont and Bethesda Avenues, Woodmont East will feature one tower of office space and a second with 250 residential units and 9,000 square feet of retail. Dividing them will be a landmark well-known to area outdoor aficionados - the Capital Crescent Trail.

“The trail will come right through the two of them,” said Blocher. “As far as what happened at the hearing, [the approval] permits us to close the trail for up to five days at a time if there is significant construction procedures. At this point, we’re not sure if we'll need to close it, except for at the end of the job when we have to do the paving.”

Joining JBG on the development team are Shalom Baranes Architects, as well the developers of neighboring Bethesda Row and owners of half of the Woodmont site, Federal Realty Investment Trust (FRT). Though both developers had initially filed separate site plans for the project in 2007, Kai Reynolds, a Partner at JBG, tells DCmud that the two have been working closely together since the development was first proposed.

“It was the same site plan [that was filed]. That’s just part of the venture. We have been together with FRIT on these efforts for about nine years now. It’s definitely a joint venture,” said Reynolds.

While Bethesda-ites and the developers alike are certainly hoping for repeat of the success of Bethesda Row, both will have to wait for development to get physical. Though nearing the end of the formal approval process, JBG concedes that there are still several key components that need to be worked out before construction can proceed.

"It’s still pretty far off because we haven’t yet begun to design the building beyond the site plan guidelines required by Montgomery County. Design and permitting is anywhere from 12 to 24 months, and then construction is 24 months,” said Reynolds.

Bethesda, MD, real estate development news

Georgia Commons Starts Up in Petworth

The contractors of Meridian Builders joined Mayor Adrian Fenty and Ward 4 Councilmember Muriel Bowser yesterday to oversee the demolition of an old Petworth carpet store at 3910-3912 Georgia Avenue, NW. It’s a site that will soon host the Georgia Commons – a 30,000 square foot, mixed-use project from Jair Lynch Development Partners and Affordable Housing Partners with 119 out of its 130 new apartments geared towards working families. But the developer stresses that this is not your typical affordable housing project.

"It’s generally for families of four making 50, 60, 70 thousand dollars – that’s the market we’re talking about. It’s much different than the general impression of what people think low-income means," said developer Jair Lynch. "We think the remainder may be higher in the 80 to 90 thousand range. It’s not a drastic change.” 

 

The Office of the Deputy Mayor for Planning and Economic Development (ODMPED) selected the development team – which also includes EDG Architects and Frank Schlesinger Associates - two years ago following a competitive solicitation process. With features including a green roof, high efficiency heating and cooling systems, and "green screen" shielding, the project received an extra boost courtesy of the LEED Neighborhood Development pilot program, which acknowledges green and neighborhood-building features for buildings that fall short of traditional certification. "This is one of the few projects in the country that was admitted into it," said Lynch. "They're moving towards acknowledging and certifying projects that are beneficial to neighborhoods, rather than just giving ratings for a building's efficiency...I think there are only three or four [such projects] in the District versus a pool of under of fifty across the country."

The seven-story, $35 million development will also feature a new ground-floor location for Mary’s Center for Maternal and Child Care– its third in the Washington area – that will provide physical, mental and oral health services. With “guaranteed care” and twice the patient capability of their current locations, the new facility will not be just a free clinic, but a primary care center for both middle and working class residents alike. Sharon Baskerville, CEO of the DC Primary Care Association described it as “a means of leveraging the city’s investment with private dollars.”

Apart from gathering those community benefiting features together under one roof, the past 18 months did provide some other unique obstacles for the development team. While ODMPED had to provide $5 million in gap financing to get the project moving, a laundry list of issues had to be addressed before construction could proceed. Said Lynch:

Whether it was the 18 lawsuits that the Deputy Mayor’s office worked diligently on for a year and a half, whether it was getting the permits out of [the Department of Consumer and Regulatory Affairs] with Councilmember Bowser, whether it was the mandatory exclusionary zoning that we anticipated coming, whether it was the collapse of the financial systems for the last six months, this project has persevered time and time again. We’re not quite there yet, but we hope in the next month, now that [the Housing Finance Agency] has their board members, [the Department of Housing and Community Development] is committed and the rest of our partners are here…we’ll start be able to this wonderful new project.

Georgia Commons is just one of numerous Georgia Avenue projects that have steamrolled ahead in recent months. This past March, the Neighborhood Development Company opened the 72-unit Residences at Georgia Avenue, while, in approximately a month and half, Donatelli Development will hold a ribbon cutting for highly the anticipated Park Place project. To Mayor Fenty, himself a former Ward 4 councilmember, it’s evidence that change has taken hold on the prominent Northwest thoroughfare and in the surrounding Petworth neighborhood.

“On this four block stretch, you’re probably talking about 400 new apartments…For seventy years, not one new apartment was built on Georgia Avenue,” said Fenty. “Just in the past couple years and leading into the near future, there has been lots of development…When [this project] is finished, it won’t only be attractive. It’ll be a fantastic asset and resource for the community.” Georgia Commons is tentatively scheduled for a fall 2010 opening.

Washington DC commercial real estate news

Live/Work for Alexandria's Main Drag

Virginia architect-cum-developer Gaver Nichols is gearing up to begin work on a new trend for Alexandria’s main drag, a project he is calling live/work housing. The Lofts at Del Ray Village - a three-story, 14,096 square foot development that will resuscitate a vacant lot at 2707-2711 Mount Vernon Avenue - will add much needed rental apartments, and offer tenants the opportunity to work from home from ground floor office space.

"It’s a unique mixed-use structure and the first form-based, code-designed building on Mount Vernon Avenue with a living/working space concept. It’s a brick structure with aluminum...roofs, aluminum panels at the top and rooftop decks," said Nichols. “Conceptually, it’s like the traditional neighborhood warehouse that’s been renovated with a modern top.” Residents of the apartments are not required, however, to utilize the commercial space below them.

Standing on The Lofts’ top two floors, the four rental units will range in size from 2,053 to 2,949 square feet and each include two bedrooms. The ground-floor will include 4,500 square feet of office space (plus basements) that Nichols says would be well-suited to a small office or bank, a corner plaza at Raymond and Del Ray Avenues and a 16-space surface parking lot. It’s a development scheme that Nichols has been pursuing since initially acquiring the property in 2005.

“We took an empty lot that none of my developer clients wanted,” he said. “I decided to buy it with a couple of guys, took them through the development process and the city rewrote the zoning concept for us to allow for the live/work use concept.”

Having already been awarded approval by the Alexandria Planning and Zoning Board, Nichols now awaits building permits, at which point his in-house general contractor will begin construction. “I could have them as soon as two weeks from now, if everything goes well…All these permutations make [the project] very unique, but it's very difficult to get through the process,” he said. The build-out is expected to be underway by July with construction slated to take at least a year.

Alexandria Virginia real estate development news

Financing Trouble Adds Woes to Troubled Southeast Neighborhood

Residents of the beleaguered Washington Highlands neighborhood in Southeast will have to wait at least a little longer for the DC Housing Authority’s (DCHA) planned reinvigoration of the Highland Dwellings public housing complex. In 2007, DCHA selected New Market Investors and Southeast developers Crawford Edgewood Managers Inc. (CEMI) to construct the Highlands Addition – a project that would utilize a vacant 300,000 square lot as the site of a new “physically and socially vibrant neighborhood” with 138 units of mixed-income housing. With the project’s planned summer 2008 start date having come and gone, HR Crawford, President of CEMI and a forty year veteran of District redevelopment initiatives, tells DCmud that project is now locked in a holding pattern.

“It’s all over the place. We need to decide what's getting built and how we’re going to get there,” said Crawford. “Everyone is suffering right now…We have to re-ignite things a bit.”

Crawford, who previously succeeded in luring middle class residents back to Far Southeast with the gated Walter E. Washington Estates project in 1998, chalks the delays up to a lack of readily available financing and the need for infrastructural improvements in the surrounding neighborhood before work can begin. Nonetheless, he says that though the project may be in stasis, his development team – which also includes architects Torti Gallas and Partners and Hamel Builders – is ready to commence construction once those pieces fall into place.

“We had to go through the ritual of getting [US Department of Housing and Urban Development] approval and all the public hearings and those kinds of things…It’s fully approved. We’re ready to go. You might say we’re shovel ready,” said Crawford.

However, Crawford went onto describe the project’s timeline as “questionable” – an unwelcome piece of news for Washington Highlands residents and DC policymakers alike. In the intervening years since the Highlands Addition was first announced, the surrounding community has had to battle some of the District’s highest rates of both unemployment and violence; in 2007, the neighborhood accounted for one-third of all homicides in the District. Media scrutiny of the area only intensified when, that same year, 14-year-old DeOnte Rawlings was shot to death by police inside the very same Highland Dwellings that DCHA has targeted for redevelopment. Despite its' troubled past, Crawford is confident that the area will be in for an image makeover (if and) when the Highlands Addition begins to draw in new neighbors.

“[We’ll be offering] both rental and for sale units. We’ll be a relatively innovative property, in that you won’t be able to tell who the renters are versus the owners,” said Crawford. “We’re going to integrate everyone socio-economically.”

N Street Hotel Prolongs the Agony

If Development Hell is a real place, surely the planned renovation of the former Gralyn Hotel and Woodbine Apartments at 1743-1755 N Street, NW holds a place in its ninth circle. Since purchasing the stately and historic Dupont Circle properties in 1988, Washington DC real estate tycoon Morton Bender and his N Street Follies Ltd. (NSF) corporation have pursued a variety of redevelopment schemes for the buildings - all of which have been vacant for more than a decade. First, it was going to be an office building and apartment complex - but, since that attempt fell apart in the late-1990s, NSF has been pursuing a hotel for the site. It’s not going well.

This week, NSF was back before the DC Board of Zoning Adjustment (their fifth appearance in two years) to request several variances for the project. Once again, the Board postponed their hearing, this time until October. According to ANC 2B05 Commissioner Victor Wexler, the BZA hearing is just the latest in an eternity of changes and stay requests that Bender and company have wrangled out of the system.

“It’s been going on for many years and I just walked into it,” said Wexler. “I don’t know what this Bender wants, but he’s been turned down by the Federal Court, he came back on appeal and now they want an extension. It’s beyond me…I think Bender would like it to go on forever, so he doesn’t have to pay taxes.”

And The Washington Post agrees. According to that outlet – which in 2006 described Bender as “a litigious developer” and “not a man who likes to negotiate” – the hullabaloo surrounding the N Street site is, in fact, based on Bender’s contention that the District has overvalued the property and charges him a tax rate far in excess of its intrinsic worth. It can't help the District recently raised its tax rate on vacant property from 5% to 10% of the appraised value; according to DC tax assessment records, they're currently valued at $12.5 million. In 2004, he told the Washington City Paper, he wasn't even sure if they had ever been added to the city's vacant property registry.

“What difference does it make?” said Bender. "The bills come in, they get paid.”

Perhaps to prove a point, NSF consequently let the six historic buildings at the site lapse into disrepair over the past decade. Since purchasing the century-old buildings for $8 million in cash in 1988 and finally vacating the final tenants from the 1755 N Street Apartments in 1998 (reportedly by slashing the tires on the last remaining occupant's car), next to no upkeep has been performed on the properties – leading to a 2005 citation for “demolition-by-neglect” from the DC Board of Condemnation for Insanitary Buildings and the site’s inclusion on DC Preservation League’s 2007 list of Washington’s "Most Endangered Places."

"They're not endangered," Bender told the Post following the site's inclusion on the list. "I maintain them." In the same article, he laid blame for the delays afflicting the project at the feet of "unreasonable preservation protections." Nonetheless, the buildings' windows were subsequently boarded up.

But while the properties themselves have seen better days, that hasn’t stopped NSF from continually tweaking their redevelopment plans. Said Bender at a January 2006 BZA hearing:

We were going to [do] an office building [and] apartment house and that didn’t receive too much acceptance. We then have been working on it and have come up with doing a hotel…After going to the ANC and the Office of Planning and hearing all the negative comments, I went back to the architects and said…what can we do?…So we cut the building back from 117 hotel units to 77. We cut the garage to 96 from 127 and minimized whatever issues would be questionable by anybody.

The reduction of the scope of the project, however, hasn’t put its critics to bed. Over the past two years, the Dupont Circle Conservancy, the Historic Preservation Board, the local ANC and host of area businesses and office tenants - including the Tabard Inn, Science Services Inc., United Auto Workers, the Penn Art Ladies, the Middle East Institute and Johns Hopkins University – have all voiced their disapproval of the planned hotel's design scheme. In the meantime, NSF has traded up architects for the project – from JSA Inc. to HAA Architects – and legal counsel. Only after the project’s next BZA appearance this coming October 13th will we know when (and if) N Street will be seeing ever being seeing a new hotel.

For what it's worth, the N Street "folly" is one of the numerous legal battles Bender has immersed himself in over the years. In 2006 alone, he was engaged in two concurrent lawsuits. The first against Independence Federal Savings Bank, where, as the majority shareholder, he waged an unsuccessful take over the District-based financial institution. In the second, he was drawn into a bitter dispute with residents of Northwest's Palisades neighborhood - including former Federal Reserve Chairman Alan Greenspan and his wife, NBC News correspondent Andrea Mitchell - when he sought to build thirteen "mansions" on thirteen acres adjoining Chain Bridge Road. For one of the few times in a conflict-studded career, he lost. Said Mitchell of her opponent: "[He's] a developer with the deepest of pockets and no sense of community obligation."

JBG Seeks Approval for Bethesda Row Development Tonight

The JBG Companies will make a return appearance before the Montgomery County Planning Board tonight to seek Preliminary Project Plan approval for both phases of their Woodmont East mixed-used development in the Bethesda Central Business District. Located at the northeast side of Woodmont and Bethesda Avenues and wedged directly on one of the last vacant parcel adjoining the Bethesda Row development, the project had previously been approved for 78,300 square feet of office space, 40,350 square feet of retail, a 225 room hotel, and 250 multi-family residential units in two towers.

In the first news to come of the project since it was first announced in 2007, JBG has apparently scrapped plans for the hotel and is seeking consent for a re-jiggered development scheme with a whopping 208,579 square feet of office space, a diminutive 9,000 square feet of retail, and 250 residential units that will, in the words of the Planning Board, continue “the successful theme of mixed retail, restaurant and office uses along ‘Bethesda Row.’” The building once intended to house the hotel will instead be utilized as an office tower and the Thymes Square restaurant next door to the site at 4735 Bethesda Avenue will be razed to make way for the development.

Planning Board staff has already granted pre-approval to all three of portions of the plan. The scenario was much the same – staff approval included – when JBG presented their plan to the Board in November 2007, shortly after leasing the property from Bethesda Row developer Federal Realty Trust. In surprise move, the Board wound up denying their application, following complaints from the community about detrimental affects to the Capital Crescent Trail system and encroachment upon the neighboring movie theater. Federal Realty Trust also tried but failed to get approval for a nearly identical project at the site just weeks before that fateful turn of events.

JBG representatives would not comment on the development until after the scheduled April 30th hearing.

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FDA Office Gets Residential Revamp in Rockville

Developers AvalonBay Communities are nearing the end of two years plus of planning for the redevelopment of the US Food and Drug Administration offices at 12720 Twinbrook Parkway in Rockville. The 32-year-old, 50, 235 square foot "office/flex industrial building" currently on site will soon be razed to make way for the Avalon at Twinbrook Station – a new, SK&I-designed residential complex that will add 240 units to the rental market.

"We've been presenting this plan to the neighborhood for the past two years and, essentially, now we’re [entering] the formal approval process. The City of Rockville was going through an entire…master plan recreation for Twinbrook neighborhood,” said John Cox, a Senior Vice President at AvalonBay, of the project’s origins. “When they created the new Twinbrook neighborhood plan, [the City] endorsed our use on the site.”

With the backing of both the local community and city planners, the development team will deliver more than two hundred apartments – ranging in size from 450 square foot studios to 1200 square foot two-bedroom "lofts" – with 12.5% set aside for affordable housing. The bulk of Twinbrook Station will top out at four-stories, but also include a portion that steps down to a three-story “townhome façade along the majority of Halpine Road.” It’s a design scheme that has allowed the developers to conceal the project’s parking garage by surrounding it with residential units on three sides – with the exception being a portion abutting the future site of 7-story office building currently in development by Uniwest Commercial Realty.

AvalonBay will soon be submitting their final site plan to the Rockville City Council for approval and is planning for construction to get underway late next summer. “I don’t believe there is a scheduled hearing date yet, but, obviously, we’ve had numerous meetings with [City Council] staff and public committees,” said Cox. “We’re thinking [we’ll start in] probably the third quarter of 2010.”