Ballpark: Build It and They Will Come, They Might Even Stay

It's a good thing that the Nationals' standing as perhaps baseball's worst team ever will likely have no effect the residences of the surrounding neighborhood. The Capitol Riverfront Business Improvement District (BID) has issued its second quarter residential statistics for 2009, showing how desirable the area is to reside in, and it looks like the cliched Costner-ism of "build it and they will come" is working...for some more than others. EYA's Capitol Quarter townhome development appears to be the leader of the pack of with "88 of 113 (market rate) units sold" - though sales began in the fall of 2006. With prices starting at $630,000, EYA can be content with its position as the only new single-family home project in the area, and their only competition in the area are the dreaded c-word – condominiums – and its Capitol Quarter has generated a slew of favorable media coverage for its tre trendy green construction practices and subsequent “LEED for Homes” certification. Proof positive that condos are indeed still on the sluggish side, Texas-based developer JPI’s pair of Capitol Riverfront condos. Or at least they were considered as condos before the Big Crash - The Axiom at Capitol Yards, The Jefferson at Capitol Yards and Faison's Onyx on First (pictured) – are now all renting as apartments. But according to the BID, the buildings have achieved 60% occupancy of their collective 960 units. That leaves approximately 384 empty units on the market, despite the fact the first completed building, The Jefferson opened its doors one year ago this month. It’s presumably that same dearth of buyers that made JPI go rental with their third area building, 909 at Capitol Yards; so far with less success than its predecessors. According to the BID report, only “25% of the 237 units” at 909 – but the project began renting only in the spring of this year. The developer has been trying to court the young, urbanista demographic for the building by advertising amenities like yoga studios, communal Nintendo Wiis and a residents-only bar/pub. JPI's tentative plans for a fifth and final 415-unit apartment building at 23 Eye Street still remain on the table, at least officially. Valhal Corporation’s Capitol Hill Tower Condo-op is still trudging along with "80% of 344 units sold." That would seem an admirable rate of occupancy had the building not opened early in 2006, with sales almost a year before that. Not mentioned in the BID stats is the Cohen Companies' Velocity condo project, the 200 unit condo nearing completion, but for which sales are reportedly not, well, high velocity. Nonetheless, the BID reports that, in total, there are now “an estimated 1,863 residents living in the Capitol Riverfront , with over 2,000 residents expected by the end of the year.” You could be one of the lucky 137 by year's end. Ghost town or boom town? You be the judge. 

UPDATE: Says Ted Skirbunt, Director of Research & Information Systems at the BID: "JPI’s buildings were always going to be rental from the beginning. The only building thus far to convert from condos to rental apartments is the Onyx."

Washington DC commercial retail and real estate news

The Monty Makes (Another) Go of It in Bethesda

The would-be developers Monty, LLC will head back to the Montgomery County Planning Board on Thursday, July 2nd to shore up their final site plan for The Monty - a high-rise residential project on a 1-acre lot in Bethesda that currently hosts several vacant storefronts from 4915-4917 Fairmont Avenue and 4914-4918 St. Elmo Avenue in the Woodmont Triangle. Since its initial approval in May 2007, the 17-story residential development has grown (via an update to the developer's plans this past March) from 133 apartments to include "a maximum of 200 units" for a total of 210,188 square feet of new Bethesda real estate. Described by Planning Board staff as "an attractive urban infill redevelopment project,” the project is still planned to subsidize 30 moderately priced dwelling units, 7,700 square feet of ground floor retail and 211 underground garage spaces. One of the Monty’s more interesting flourishes will be the 5,480 square feet of (mandatory) public use space. A so-called “pedestrian promenade” on the building’s south side will include art installation, composed of a chain link backdrop and live bamboo, by artist Dan Steinhilber and the landscape architects of Parker Rodriguez. Once complete, the piece will “provide an animated experience as a person moves through the space” for a quasi-hallucinogenic stroll that would seem more Burning Man than Bethesda (and make it a sure-fire destination for area Zendik pamphleteers. Eew.) SK & I is performing the architectural design for the building. Since the first of this year, both the County’s Transportation and Environmental Planning divisions have both lent their final approval to the re-jiggered development scheme, as have Planning Board staff. Though the developer has not stipulated a final timeline for construction, once complete, it will stand directly across from the site of another Woodmont Triangle high-rise, the also delayed 4900 Fairmont development. The project has been approved in the past, but just might possibly happen this time. 

Montgomery County commercial real estate news

Capitol Hill's Eastern Market Reopens

Mayor Adrian Fenty and DC officials will cut the ribbon on the new Eastern Market tomorrow (Friday) at 10:30 am. The $22m renovation was completed just over two years after the market was destroyed in a fire in April 2007. The development team - led by OPM, along with Quinn Evans Architects, the Minkoff Company, Keystone Plus Construction, FEI Construction and The Temple Group, led the construction efforts so that each of market's original vendors can return to their former locations in the building’s Southern Hall, while their temporary domicile across the street is repurposed for community use. The new Eastern Market will feature, in a first for the 138-year-old building, air conditioning, Wi-Fi, and separate men's and women’s restrooms, not to mention a newly-installed sprinkler system, with the hope that it will prevent the type of incident that led to the market’s shuttering for two plus years.  Another celebration will be held on Saturday, June 27th along an improved 7th Street streetscape, which will be open to traffic Monday through Friday, but closed on weekends for pedestrian use.

Washington DC commercial property news

DC Officials Pitch New Plan for Convention Center Hotel

The DC City Council’s Committee on Economic Development was briefed today on a new scheme devised to underwrite the fully-approved and shovel-ready, if financing challenged, Marriott Marquis Hotel. The city's newest plan for the mostly vacant property next to the Walter E. Washington Convention Center would get construction going by mid-October.

Today’s hearing was spurred by legislation introduced by Mayor Adrian Fenty, himself described as "tired of waiting" on the project, this past spring that would have effectively removed the project’s developer, Quadrangle Development Corporation, and made the new Marriott wholly city-sponsored. In the intervening weeks, officials from the Washington Convention Center Authority (WCCA), the Office of the Deputy Mayor for Planning and Economic Development and the Office of the Chief Financial Officer (OCF) have been feverishly working on a fiscal reconciliation that would preserve the public-private partnership.

"Given current economic conditions and the lack of liquidity in the capital markets…the District, led by the Washington Convention Center Authority and its partners at Marriott and Quadrangle, was forced to pursue alternative plans, including an option whereby the Authority would finance 100% of the hotel by selling bonds,” said recently appointed (though still unconfirmed) Deputy Mayor Valerie Santos. “We’ve made considerable progress on a new financing proposal, such that the new hotel would once again be largely privately financed.”

The crux of the proposal depends of the Committee’s authorization of an additional $22 million in city-backed debt to get the project going. This deal, presented to the District by the development team only last Thursday, would ensure that more than 60% of the hotel’s $537 million budget come from private funds, with DC footing the bill for the remaining costs. At present, lawyers from the OCF are currently exploring whether the project could also qualify for stimulus funds under the American Investment and Recovery Act, thereby offsetting the District’s burden in a year of record high spending.

The sense of urgency behind the proceedings is well founded, as Greg O’Dell, head of WCSA, said his operation is continually losing business to other comparably-sized convention centers, such as those in Denver and Indianapolis, which have on-site hotels and hospitality amenities. Furthermore, city officials also view continued development at Prince George’s County’s National Harbor as a direct threat to the Convention Center’s revenue stream – a feeling that has only been exacerbated by Disney’s recent announcement that they’ll be building their own mega-hotel/meeting space just across the river. That leaves the District, in the words of Councilman-at-Large Michael Brown, directly “behind the eight ball.”

Both the public and private sides of the development team will now spend the next two weeks finalizing the in-and-outs of their proposal before returning to the Committee on July 14th for a final vote. In the meantime, Committee members repeatedly stressed that the project’s fast track status will not delay other city development in the pipeline or cause any fiscal belt tightening.

“This will not cause us to postpone any projects that are already authorized…Nor will this require expenditures from the general fund. This is not going to be publicly financed deal,” said Committee co-chair and Ward 2 Councilman Jack Evans. This would not be the first partnership for Marriott and the developer, Quadrangle and Marriott jointly built a 224 room hotel together in Bethesda in 2004.

Washington DC real estate development news

W Hotel Debuts in DC July 8

Washington DC's first W Hotel will open to the public on July 8th, the first local opening for the hip hotelier. The international pop luxury chain, operated by Starwood Capital Group, takes the place of the Hotel Washington, once a grande dame of DC hotels but that had become faded and tired before selling in 2006, first for $120 million and then to Istithmar Hotels for $150 million, then closing for renovation in 2007 and selling yet again to Nakheel Hotels. Both Istithmar and Nakheel are partly owned by the government of Dubai.

Starwood will provide 317 rooms and suites, stretched out from the original 400 rooms, retaining the famed 11th-floor rooftop terrace that overlooks Tim Geithner's office, not to mention the White House, in a decidedly more upscale setting - the word "swanky" being all but ubiquitous in reviews of the hotel chain. In keeping with its "category buster" profile, the hotel was re-designed by architect Dianna Wong, a Los Angeleno, who kept many of the original architectural elements while adding such must-haves as a DJ and "digital fireplace," for an appearance that will be "sophisticated and sleek but never trendy."

The hotel renovation, which took 18 months to complete, entailed a complete gut and overhaul, and the new owners "gutted it to the girders," according to Barbara Martin, Director of the Patton Group, a public relations firm. Some original elements of the building such as chandaliers, check-in desks, and archways were taken out, restored and returned to the building, but the rest will be new. The POV (point of view) Lounge on the top floor will operate year-round, with drop-down screens and raised awnings for yet better views of the executive office.

Opening within the hotel will be J&G Steakhouse. Rates available on the W's website start at $289 per night single-occupancy. The hotel was built in 1888 as department store and renovated in 1917 to become the fabled Hotel Washington. The July 8th event will be open to the public.

Bottom rendering courtesy Dianna Wong.

Update: It should also be noted that BBG-BBGM was the architect of record for the redesign of the hotel. BBG-BBGM has designed numerous hotels both locally and internationally, and designed the W Hotel in New York City.

DC Receives Stimulus Funds for Affordable Housing

The District’s Department of Housing and Community Development (DHCD) announced yesterday that their application to the Department of the Treasury for American Recovery and Reinvestment Act funds has been granted. As a result, the District will be on the receiving end of some $33.7 million worth of stimulus funds that will, in the words of DHCD, "spur the continued development of affordable housing units."

"This new stimulus funding will have an immediate and critical impact on the development and rehabilitation of affordable housing in the District of Columbia. It will help us move forward with affordable housing projects, and it will generate much needed jobs for District residents,” said Mayor Adrian Fenty via press release.

More surprising than the grant its self was the quick turn around on DHCD’s application, which was filed less than two weeks ago on June 9th. However, per the terms of the quickie federal payout, the District has agreed to receive the lump sum grant “to finance construction or acquisition and rehabilitation of…low-income housing in lieu of low-income tax credits.”

DHCD Director Leila Edmonds didn’t specify which projects would be receiving the federal monies, only stating that “funds like these are especially necessary in this difficult financing market.” Probable recipients, however, are likely to include the soon-to-be redeveloped Park Morton public housing complex and the long in-the-works 1600 unit Northwest One development. Expect the subject of the latter to be broached at next month’s meeting of the City Council’s Committee on Economic Development, where the project will be subject to disposition approval resolutions.

Canal Parc Seeks PUD Approval in July

Willco Residential, LLC and New York-based developers Athena Group will head back before the District of Columbia Zoning Commission next month to hammer out the lingering entitlements stalling their planned residential redevelopment of the Riverside Hospital - an aging psychiatric facility at 4460 MacArthur Boulevard in Northwest DC's Palisades neighborhood.

Long viewed as undesirable element in the affluent community (the hospital last made the news when it was faulted with abuse of a minor in 2007), the development team is hoping to demolish the site and start anew with Canal Parc - 37 brick townhomes, developed via the LEED Neighborhood Development program, to replace the long-term care facility. Little, though, has been heard of the project since a raze application for the hospital was filed last August and Willco Residential President, Gary S. Cohen tells DCmud that his team is still in the midst of negotiating the planned unit development process with city authorities.

“[Right now], we’re trying to get the PUD. When we get the PUD, we’ll move ahead. Right now, we’re still working on the entitlements,” he said. “There’s been action, but the Zoning Commission hasn’t voted on it yet…We’re hoping that at the hearing in July they’ll take the vote. We’ve also been working with the neighborhood and trying to resolve some issues.”

The Office of Planning threw their support behind the project in November 2008, but stopped short of a full-on approval of the site plan due to in-progress talks with the DC Fire and Emergency Medical Department about a turn-around area within the development. Additional issues, mostly stemming from the economy, have kept Canal Parc from heading down the fast track, but Cohen is confident that once the project’s finer details are in place, the market will be receptive to a another residential project.

“I’m looking forward to getting off the ground and starting. I do think that by the time we deliver, the market will be at a better place and there won’t be as much supply because there’s not much between now and the next few years. So I think the timing could work out really well. It’s just a question of getting some the pieces that I don’t necessarily control in their proper place,” he said.

As such, a schedule for demolition and construction of the Lessard Group-designed development has yet to be set in stone, but should be much clearer following next month’s Zoning Commission hearing. “I’m hoping it’s on the sooner side,” said Cohen.

Industry Insight: Paul Robertson of Robertson Development

With his firm’s tenth anniversary coming up this August, Paul Robertson, the enterprising developer behind such U Street area condominium projects as Moderno, VISIO and MURANO, spoke to DCmud about what it takes to last a decade in the DC development game.

In addition to detailing Robertson Development projects past and present, the company’s founder and president shared his thoughts on butting heads with the DC Water and Sewer Authority (WASA), divulged his newest project and revealed how his firm has just forged a new partnership that will take their work out of the for-sale market and into some surprising new arenas.

How did Robertson Development initially come together?

I started Robertson Development in August of 1999. I had been working for Sallie Mae for about 13 years prior to that, during which time I renovated some DC town homes on the side. Having lived the past 23 years in the U Street corridor, I have seen tremendous development opportunity and progress. I always loved design, real estate, and construction, and I majored in finance so it made sense to get in the business.

In doing my first full renovations, which I ended up living in, I did the plans, pulled the permits and acted as my own general contractor. I just kind of learned things on the fly. I also used to go look at a lot of open houses in the area – still do. I saw a void there and thought there were some things that I could bring the market I didn’t necessarily see.

I networked a lot and found an agent, Ken Taylor, who helped identify two large brick townhomes on the 1400 block of N Street. I ended up buying them and turning them into eight units. That was The Rocco and The Capece. I designed the majority of the floor plans and was the GC and the developer for the project. Terry Sellheim joined the team as VP of Operations and we hired construction staff. It was a tough project to build because we added a floor to the top of each one, and did massive excavation and underpinning to create basement units the full depth of the buildings. It was a very tight sight and a very, very challenging first condo project.

Can you detail some of the projects you have done?

Prior to the completion of The Rocco and Capece, I started The Highland project, which is at 1531-1535 P Street. It is three town homes that we converted into eight units…Then we did our first new construction – again, still operating as the developer and general contractor. I have a Class A general contractor’s license from Virginia – and built Woodson Row on 12^th Street, just south of U St. That’s, coincidentally, another eight unit project, but was all new construction – triplexes over duplexes – which was very successful.

At the same time…we put together the two parcels for The Beauregard and bought property to build what became VISIO. The Beauregard was finished a couple of years ago. It’s a 45-unit building with underground parking. Tompkins Builders was the GC. We built VISIO and are now just finishing up MURANO, which is the sister building to VISIO.

Recently, we’ve co-developed Moderno, with Lakritz Adler Development who asked us to join the team early in the design phase. Prior to construction, we assumed the majority of responsibility for the project. My personal residence at the time - in Woodson Row, which is across the street - was used as a model to sell some of the units in pre-construction. The project is complete, and sales have gone amazingly well. Now I’m working as co-developer with Collins Lange Development on a new project called Truxton Row.

Can you tell us a bit more about Truxton Row? Will it be condos as well?

Truxton Row is a 16-unit condo project. Collins Lange asked me to participate, again, in all phases of the development and construction. The first thing was to re-work the floor plans to enhance their functionality and style, which I’m confident added significant value to every unit. The great thing about good design is that it doesn’t really cost anything. It takes effort, time, experience and imagination but the dividends are huge.

The project will be done in two phases; construction has now started on Phase 1. The project has eight town homes, 7 new and 1 renovated. Each home contains two units, most of which are duplexes with a few flats. Many are similar to units at Woodson Row. There are terraces and double-height living rooms and so forth. The exteriors will be very traditional. Despite the trend toward doing “lofts” and ulta-contemporary, the interior finishes will lean more toward a “transitional” and traditional look. It’s going to be very exciting project.

Why the attraction to traditional architecture over say, the glass and steel look that’s so prevalent these days?

We wanted to follow the look of the exteriors and to offer a more refined sophisticated look. It will be great to offer some classic, upscale finishes in new construction. Currently, almost all new construction has a very “contemporary” aesthetic, but that doesn’t appeal to all buyers.

Given that are you are a condo developer, how has the condo decline affected business? Is the DC market as insulated as public perception makes it out to be?

Well, I don’t think it’s insulated because certainly virtually all projects have seen price reductions – although Moderno has fared very well in that regard. But because of the high desirability and significant job creation of the metro area, we haven’t been hurt as badly as some other locations. Washington is still one of the best places to live.

What attracted you to condos? Have you ever considered pursuing a rental project?

Yes, but everything that I have looked at to this point, and actually embarked on, has lent itself more to condominium than it did to rental. Although rental has been hotter in the past year or two, we see small signs that potential new condo projects are becoming more viable again.

Which neighborhoods do you see as ripe for redevelopment? You’ve fared well in some emerging areas, like U Street and Logan Circle.

There’s still plenty of opportunity in the U Street and Shaw area, and certainly Columbia Heights, Brookland and Petworth – that’s where I see it going. But there’s still infill in better neighborhoods. It’s harder to find and certainly harder to find at a price that makes sense, but it’s there.

What are your thoughts on DC development process as a whole? Is there anything you’d like to see change?

I would take whatever steps necessary to significantly reduce the time it takes to get a building permit. They are making strides at DCRA, but, if I were the mayor, that would be a priority because it would really facilitate more development and therefore generate more tax revenue for the city.…Also, I would start an initiative to work the utilities – WASA, Pepco and Washington Gas – even though they’re not governmental agencies…because one still needs to get approvals from those utilities and often times that is a greater challenge than working with DCRA. People tend to focus on the DC government, but what they don’t often realize is the complexity and the time consuming nature of dealing with Pepco, WASA and Washington Gas.

What’s next for Robertson Development?

I’m in talks with a couple of developers about additional co-development projects. One is a mixed-use and the other 100% residential…Both will be in DC. We are really pleased that others seem to recognize the value we can bring to all phases of a project. Of course, we’ve made lots of mistakes, but it helps our partners because we try to help them avoid them in the future.

I should mention also that Robertson Development is branching out and starting another company called Robertson Walsh Design. I’ve partnered with an architect, Brandon Walsh, to start the company. We both love design, space planning, cool materials, et cetera. We are currently doing several projects including designing a vacation home in the mountains of West Virginia and doing a rooftop terrace for the local nightclub, Town. We’ll be launching a website announcing those projects and services very shortly.

If you had a dream project, what would it be? What would satisfy you the most in terms of future development?

I would like to do another project like The Beauregard because, although it is terrific, I have learned lessons from it and other projects that I would love to apply to another “large” building. It’s the challenge of doing something better than the last time, of continuing improvement and refinement. But what is most satisfying is hearing the positive response we get from the people who have bought homes from Robertson Development.

Washington DC commercial real estate news

Debonair Development Coming to Woodley Park

Woodley Park may soon become still more debonair now that the owners of the Debonair Cleaners at 2610 Connecticut Avenue, NW, Shahram and Maria Taginya, have taken on Annapolis-based developers Ashbourne Developments LLC to construct a four-story residential building directly behind their storefront. Entitled, surprisingly enough, the Debonair Residences, the project will include "up to" 14 residential units and span the length of the existing one-story commercial outlets on site - Fusion's Alley restaurant and Baskin Robbins, to name a few - from 2608-2612 Connecticut Avenue, NW, directly next to the Woodley Park-Zoo/Adams Morgan Metro. A rear-entry garage will be built at basement level for residents coping with the scarcity of parking along the retail strip and be accessible from 24th Street. Plans by Studio 27 Architecture include balconies overlooking 24th, with a fourth-story roof terrace, but the historically protected commercial building facing Connecticut will be simultaneously “renovated and restored to a condition respectful of the original architecture” - i.e. the original height and roofline will remain along Connecticut Avenue. According to Ashbourne President Crispin Etherington, a June 15th meeting with the local ANC 3C went “swimmingly,” though the project’s scheduled appearance before the District’s Historic Preservation Review Board (HPRB) has been pushed back to July for unspecified reasons. Ashbourne is currently projecting a third quarter 2009 start date for the Debonair “with delivery in the spring of 2010,” though a final construction schedule is contingent on HPRB approval. Monarc Construction will serve as general contractor.

Washington DC commercial real estate news

Shovel-Ready for 2010: CityCenter?

With the economy slowing real estate development (just a touch), developers are finding themselves on the defensive about projects in the planning stage. A skeptical public might think it a case of protesting too much, but promoters seem compelled to assuage public doubt while struggling to convince once-bitten investors. Case in point, the rumor mill was rife recently with reports that Archstone and Hines Interests’ redevelopment of the old Convention Center - the important and hugely visible CityCenter – was being taken off the table. Not so, says Ken Miller, a Senior Vice President at Archstone. In fact, despite issues with financing and retail partnering, according to Miller, DC might just be seeing the project sooner than cynics expect.

"We are within a year of breaking ground," said Miller. "We are continuously meeting and speaking with retailers that expressed interest."

And yet the project has missed several projected groundbreakings since the developers' first estimate of a groundbreaking by last January, and despite numerous assurances that the delay isn't affecting retail interest in CityCenter, no major retailers have been announced. The multi-phase, mixed-use development will commandeer 10-acres of vacant downtown property to eventually realize 400,000 square feet of retail space, more than a million square feet of office space, 670 residential units and a 400-room “high-end” hotel with its own 100,000 square foot retail plaza, under a 99 year lease from the city. It may sound a little on the ambitious side, but Archstone claims they have more than enough time – and resources – to see it through.

"At this point in time, we still have months to complete our construction documents and get our final permits and entitlements. We’re busy meeting with potential investors and banks that have expressed interest,” said Miller. “By year’s end, even though we’re in a challenging state with capital markets, we’ll be able to get the financing lined up and be able to break ground.”

The last time DCmud reported on the status of CityCenter last September, a Hines representative relayed that the project was “85% ready to go” and that the development team would seek a general contractor “in the next few weeks.” Though neither has yet transpired, there was recently one sign that wheels are again turning after a dour Spring; on April 28th, the development team met with potential contractors at a pre-bid "requirement conference."

The District Government swapped land in 2007 with Kingdon Gould, who gave up land on the site of the future Convention Center Marriott to get the northeast parcel of CityCenter from the District government (labeled 'District Parcel' in the rendering). Gould will be developing his land separately, but has also not committed in time or in scope, nor has the much discussed Convention Center Marriott broken ground yet.

Purple Line Vote Affirms Maryland "Rail on the Trail"

The metro area's arbiters of all things transit, the National Capital Transportation Planning Board (NCTPB), today voted unanimously to endorse light-rail as the preferred mode of transport for the 16-mile Purple Line project between Bethesda and New Carrollton. The light-rail option, which has already received the support of both the Montgomery and Prince George's County Executives and County Councils, along with the Coalition for Smart Growth and the Washington Area Bicyclist Association, has faced a long string of criticisms from Bethesda/Chevy Chase area residents who fear that the project will render their three-mile spur of the Capital Crescent Trail system both physically and environmentally unsound.

Trail supporters lobbed various critiques at the Purple Line prior to the vote, including claims that it would make the area unsafe for schoolchildren, lead to the deforestation of Bethesda’s last remaining green space and the system will amount to little more than a “two billion dollar trolley line.” Others reasoned that the planned location of the Purple Line’s Bethesda depot at Woodmont East is too far away from the Metro, the National Institutes of Health and the soon-to-be relocated Walter Reed Army Medical Center to have any impact on traffic in the area. Anti-light rail advocates instead proffered that the NCTPB should endorse rapid bus service from Bethesda to Silver Spring as the Purple Line’s preferred mode of transport.

“Some of my constituents in Chevy Chase will advocate…bus rapid transit on Jones Bridge Road - [an alternative that] is not supported by the residents of Jones Bridge Road,” said Montgomery County Councilmember and Purple Line Now! founder, George Leventhal. “The difficulty that we have in proposing an alternative that is preferred by both counties, and that is likely to be endorsed imminently by Governor O’Malley, is that anywhere you try to move this transitway, you encounter other problems…This alternative, which is included in our master plan and has been endorsed by both counties, is indeed the right transitway for our congested, urban, inside-the-Beltway corridor.”

Leventhal went onto to point out that his county initially acquired the Capital Crescent Trail for the express purpose of having both a “recreational hiker/biker trail” and future transit line at the same site.

“There would not be a trail today had not Montgomery County, back in 1990, acquired that right-of-way for the purpose of building what is now called the Purple Line,” he said.

Though some area organizations- most notably the Bethesda Civic Coalition's Save the Trail campaign, which collected some 18,000 signatures in support of their cause – opposed the plan, the majority of testimony submitted to the NCTPB was overwhelmingly favorable. With an estimated daily ridership of between 42,000 and 46,000, many believe that the “Rail on the Trail” will provide a crucial east-west link between Montgomery and Prince George’s Counties, resulting in an economic boom for outlying communities and a more efficient Metro system. Even frequent trail users spoke out in support of the plan, illustrating just how multifaceted the Purple Line debate had become.

“The media, unfortunately, portrays the issue of the Purple Line as black and white. You either support the Capital Crescent Trail or you support the Purple Line, but not both. That’s not the case with WABA,” said the cyclist organization's Executive Director, Eric Gilliand. “When finally constructed, the Purple Line will include a direct bike-ped link with the Silver Spring Transit Center, where it will eventually link with the Metropolitan Branch Trail coming out of DC. This is a critical bike/pedestrian transit project that must move forward.”

With NCTPB approval now in hand, the Purple Line’s next stop is with Maryland governor Martin O’Malley, who is expected to endorse the light-rail option and announce a timetable for construction by year’s end. In the meantime, NIMBYs on the other side of the Potomac can get ready for another Metro-centric debate now that plans for a proposed Silver Line, running from downtown Washington to Dulles Airport, are being openly discussed.

Founders Square Readies for Demo in Ballston

It looks like Old Man Economy might have finally started taking his pills again. After gaining approval from the Arlington County Board in July of last year, the Shooshan Company's ambitious plans for Founders Square, a five-building, mega mixed-use development in Ballston, seemed about as promising as a GM-backed pension plan. But despite slippery start dates in all types of construction, Shooshan's Vice President of Development, Kelly Shooshan, tells DCmud the project is still on track for its originally scheduled 2009 groundbreaking and that the company will be seeking a general contractor before the summer is out. "We're looking to probably be bidding the project in the middle of the summer and will probably start construction sometime in the fall or early winter," said Shooshan. Located on 4.6-acre parcel bounded by North Randolph Street, Wilson Boulevard and North Quincy Street in Ballston, the RTKL Associates-designed development will replace the industrial and non-tax paying bus lot known simply as the WMATA site, a gas station, a recycling center and a tre chi-chi Super Pollo chicken joint. Founders Square is intended to house 26,000 square feet of retail space (8,000 of which the Shooshan Company has since farmed out to Paradigm Development), 730,000 square feet of office space in two towers, and another two worth of housing for a total of 378 residential units. “The buses have been gone since March 27th,” said Shooshan. “When we start the project, it’ll start with demo…the site is just a one-story building, so it’s a very small portion of the construction timeline.” “Super Pollo will be relocating to the new retail building and there are several other tenants that have expressed interest in the other two spaces in the retail building. It’s very small retail, only 8,000 square feet. The first office building is a secured office building, so it won’t have any retail in it." The secure building will, though, have enhanced security features suitable for defense-related businesses. The development’s residential units are tentatively scheduled to hit the market as rentals and all five Founders' buildings will aim for a LEED certification. In the meantime, the developer has yet to definitively budget the project, as it is, in the words of Shooshan, “evolving over time with the present market conditions.” "There’s such a large spread right now with construction prices decreasing every minute, it’s really hard to give a formula on the whole entire project,” she said. In 2008, Shooshan completed Liberty Center in Ballston, a 21-story, 469-unit residential building. Despite continued development, the rough and tumble Arlington 'hood has somehow managed to keep its street cred intact.

Arlington Virginia commercial property news

The Dirt on...14th and U

Pawn shops no more
As any casual observer of the area can tell you, the post-riot 14^th Street that used to host DC’s finest peep shows and open-air drug markets (RIP Shop Express) is long gone. True, there are probably a dozen dollar stores hocking Obama t-shirts and incense at any one time, but the retail scene has expanded beyond just Footlocker and tattoo artistry of Pinz-N-Needlez. While Whole Foods isn't too far way, the newly-opened boutique grocer, Yes! Organic, should satisfy the immediate needs of hummus-starved newcomers. In fact, the neighborhood today boasts DC’s most impressive array of niche-centric retail with everything from gourmet confectionery (Cake Love) to pricey custom furniture (Vastu) to comic books (Big Monkey) and hand-made jewelry (DC Stem), within walking distance of the U Street/Cardozo Metro station.

Real estate’s best bet
Two blocks north of the famed 14^th and U interchange, DC's largest concentration of new condos and apartments is brewing, with more than 1000 new units of housing going up within a stone’s throw of 14th and W. Among those completed are PN Hoffman’s Union Row and Jair Lynch’s Solea condos, while Level 2’s View 14, UDR’s Nehemiah Center residential tower are under construction, and Perseus Realty’s 14W is scheduled to begin shortly. And, unlike, say, the area surrounding Nationals Park in Southeast, where neighborhood amenities are still absent after the residential building boom, U Street is already loaded with restaurants and nightlife of all stripes. And with Room & Board scheduled to open more than 30,000 s.f. of retail space next year, expect much more visibility for the neighborhood.

Eating out: it’s not just half-smokes anymore

While Taco Bell and McDonald's might be the most popular dining establishments (at least at 2 am), the inroads made by funky restaurants like Busboys and Poets, Marvin (country fried chicken and waffles--who knew?) and Tabaq have gone a long way to bringing some flavor to the neighborhood. In the past months, newly opened establishments like cajun/soul food eatery, Eatonville, and The Gibson, where mixologists design the perfect cocktail, have been abuzz in the press and are the newly-minted, go-to destinations for urbanistas city- (and suburb) wide. Even greasy spoon and DC dive landmark Ben’s Chili Bowl has moved upscale by opening a white table cloth eatery, Ben’s Next Door.  After you've over-indulged, you can work it off with an Urban Funk Class at Results Gym.


Adams Morgan ain’t got nothing on U Street
While nearby Adam’s Morgan may have one thing going for it (read: boozed-up college kids), U Street’s approach to nightlife is more diversified with culture: The Lincoln Theater and Source Theater, DC's most eccentric sports bar, Nellie's, and a laundry list of music venues (The 9:30 Club, Black Cat, DC9, and the Velvet Lounge) share space next to bars that (gasp) don’t specialize in jell-o shots and specials on Miller Lite…not that there’s anything wrong with that.

But it’s still has that old school DC charm

But if you’re really attached to the iPod adapter you keep in your tape deck, it might still be good idea to take it inside before sacking out for the night. Area car thieves have made the old smash-and-grab a fact of daily life at 14^th and U, much like five o’clock congestion or sidewalk sermons from Greenpeace. Whether it is women’s clothing, a half-empty pack of cigarettes or the kids’ car seat, literally nothing is too inconsequential a target for area miscreants. For a closer look, check out the MPD's crime map.

Nonetheless, don't be afraid to chill out. This is a neighborhood with not one, not two, but three yoga studios after all. Santa Monica, here we come.

Washington DC retail and real estate news

Architects’ Institute LEEDs the Way Downtown

Finally leading by example, The American Institute of Architects (AIA) has gotten the go-ahead from the National Capital Planning Commission (NCPC) to pursue an extensive renovation of their headquarters at 1735 New York Avenue, NW that would see the 36-year-old office building become a LEED-platinum certified facility - making it the first such eco-friendly "do-over" in the history of the District. In the words of NCPC, it would allow the AIA's national headquarters to serve as a "national model of sustainable design and construction."

Located just a few blocks west of the White House, directly behind the historic Octagon House, the AIA’s aging HQ would make the jump from standard downtown office complex to the apex of green design by "installing three building ventilation shafts, using recycled building materials, installing cisterns [for the collection of rainwater], creating a green roof, installing operational windows, and by installing both solar thermal equipment and photovoltaic array on the roof." With those modifications in place, it’s the AIA’s belief that their rehabbed facility will be 100% carbon neutral by 2030.

One facet of the proposed renovation, however, has earned the architects a surprising thumbs down from the local West End Advisory Neighborhood Commission, the ANC 2A. As part of their PUD application, the AIA had been hoping to relocate their in-house book and gift shop to a new street-accessible location, adjoining their building’s front plaza. The ANC sees this as a misappropriation of the PUD process because, according to ANC 2A Chair Armando Irizarry, the “proposed public benefits and community amenities package is inconsistent with the DC law since it fails to include any amenities for the immediately impacted Foggy Bottom-West End community.”

Nonetheless, the NCPC recommended that the AIA pursue a variance from the District’s Board of Zoning Adjustment to see that their plans for a newly relocated storefront can proceed unimpeded. A hearing on the matter has yet to scheduled, but if and when the AIA is successful, their newly re-modeled headquarters will join just a handful of LEED-plantinum certified developments in Washington DC. At present, there are only three: PNC Financial Services Group Inc. / Vornado/Charles E. Smith’s Gensler-designed office building at 800 17^th Street NW, Sidwell Friends' Middle School addition in Cleveland Park and the US Green Building Council’s (who themselves administrate the LEED program) 22,000-square foot office suite in Dupont Circle.

Mount Pleasant's Raven Gets Expansion, Upgrade

On the heels of a renovation to the three-story residences that wrapped up last year, one of DC's best dive bars, the Raven Grill at 3125 Mount Pleasant Street, NW, is now working on getting a new rear addition, plus an upgraded exterior, courtesy of Washington affordable housing developers, Manna, Inc.

"We're trying to make it look like the original. If you look around the Raven and the [neighboring Mount Pleasant Dry Cleaners], you can see that there are still cracks. We need a new coating that looks like original," said George Rothman, President and CEO of Manna, Inc.

Manna’s in-house development, design and construction teams worked with the Raven’s owner, Merid Admassu, for the build-out of the Antonatl Condominiums - a name invoking an El Salvadoran war hero, which you already knew. Manna resurrected the 12-unit, affordable condo out of the charred remains of 13 fire-gutted apartments above the fabled watering hole, built in 1928 and gutted by fire in 2003. Work on the Raven itself will include a 300 to 500 square foot addition to the bar’s rear, primarily for storage space. Both projects should be completed in one fell swoop.

“The [condo] construction was probably completed in December and people have been living in it…We haven’t finished the front of the building yet because we’re finding a sub-contractor to do the specialized work with those windows,” said Rothman. “Everything inside is finished and the outside, we’ll probably do that when we’re doing the addition in the rear to the Raven.”

For those fearful that their designated hangout for three dollar PBR’s might lose some of its old-school DC charm, Rothman emphasized that the bar won’t be going anywhere and should be keeping normal business hours when work gets underway in the next four to six months.

“The Raven is an institution. It will stay. That’s always been important to us” he said.