Last Chance to Buy a Co-op, Taxes Start October 1st

Considering a co-op for your next home, or getting out of one? Going to settlement this month will be the only way to avoid the hefty taxes that co-op buyers and sellers were once immune to. Thanks to an amendment nestled away in the DC Budget Support Act, the tax benefits of purchasing a co-op will cease to exist as of October 1st. Called the "Economic Interests in Real Property Clarification Amendment Act of 2009," the Act might be better dubbed the co-op killer of 2009. The sale of co-ops, technically a transfer of an economic interest more akin to the purchaser of stock than a transfer in title, is not currently taxed by the District of Columbia. The absence of recordation taxes is one of the few incentives to buying into a cooperative, most of which have more onerous rules than condominiums, carry underlying obligations to the purchaser, and bestow on the Board of Directors the power to reject applicants, all of which tends to suppress the price of co-ops below that of an equivalent condominium. The amendment changes the phrase in the Deed Recordation Tax Act (Section 302b(a) to be specific) from "a transfer of an economic interest in real property" to "a transfer of an economic interest in real property, including shares in a cooperative housing association." Henceforth, co-op buyers, and sellers, will be subject to the same 1.1 % (for properties selling below $400,000) to 1.45% transaction tax that applies to other types of property.

Obama Appoints New NCPC Chair

Yesterday, President Obama appointed L. Preston Bryant Jr. as the new Chairman of the National Capital Planning Commission (NCPC). As Chairman, Bryant will lead the 12-member Commission charged with securing and enhancing the historical, cultural and natural resources of the capital region. NCPC also oversees federal construction projects, long-range planning efforts and planning policies. Bryant currently serves as Virginia's Secretary of Natural Resources.

The NCPC was established by Congress in 1924 (at that time it was known as the National Capital Park Commission). It is the central planning agency for sites on - or adjacent to - federal land in the National Capital Region, a jurisdiction that covers 2,500 square miles in DC, MD and VA. NCPC also provides an advisory role for the District government on certain land use decisions. NCPC focuses on four main principles:

Urban Design and Plan Review- NCPC reviews a wide range of plans and projects from memorials, museums and federal office buildings to communications towers and perimeter security projects. It also reviews District of Columbia public projects, proposed street and alley closings, and Zoning Commission actions, as well as private development in the Pennsylvania Avenue Historic District.

Comprehensive Planning- NCPC developed The Comprehensive Plan for the National Capital: Federal Elements, to guide decisions for long-term development on topics such as transportation, preservation and historic features, parks and open space, among others.

Signature Planning- Long-term plans for the region including security concerns, transportation, and future memorials.

Federal Capital Improvements- NCPC helps set the federal government's development priorities by reviewing agency plans for capital improvements and advising Office of Management and Budget on which plans should move forward.

We hope you read this carefully; expect a quiz next week.

K Street Without Congestion? Perhaps...

In an attempt to wrangle competitive federal transportation stimulus funds, the DC Department of Transportation (DDOT) sped things up over the summer to include a K Street Redesign as part of the application for U.S. Department of Transportation TIGER (Transportation Investment Generating Economic Recovery) funds. The K St Redesign will cost $139 million, which DDOT hopes to cover entirely with TIGER funds. Thanks to the September 15th application deadline, DDOT may finally put an end to the six years of discussion, with interested parties including WMATA and both the Downtown and Golden Triangle BIDs.

DDOT is currently considering two build options to address infrastructure, safety, congestion and access problems in the busy K St corridor. The K Street transit system "serves over 250,000 of the city's approximately 700,000 workers...If workers cannot commute to and through K Street comfortably and efficiently, tenants and jobs will leave the city's core" said Rich Bradley, Executive Director of the Downtown BID in making his case for the K Street redesign.

K St's infrastructure is about 30 years old and the current design is inefficient to say the least. The four center lanes are congested with the various metro buses, commuters buses and cars. The service lanes, separated from the center lanes by medians, are meant for loading, parking and turns, but are more often plagued by parking violations. Beyond the inefficiency and congestion, there is no continuous east-west cross-town transit system to connect Georgetown, Downtown, the Convention Center and Union Station, as stated in the K Street Busway Executive Summary.

The first option includes two center bus/transit lanes, which might allow taxis at certain hours, separated from the general purpose lanes by a median. During rush hour there would be three general purpose lanes and during regular hours the curb lanes might be used for loading and parking. In this alternative, commuter buses would stop in the curb lanes to pick up passengers traveling to the MD and VA suburbs.

The second option includes three center bus lanes at all time (where the road allows). The third lane would act as a passing lane and would switch every few blocks to allow buses in each direction to pass one another. The center lanes would also be separated by a median from the two general purpose lanes. There would not be any parking allowed at any time, but certain locations would be set aside for loading. In this scenario, the commuter buses would use the transit lanes, with Metro and Circulator buses using the center lane to pass.

Bicycle lanes have not been completely ironed out at this point in either alternative.

The project submitted for TIGER funds did not choose an alternative as each would incur the same cost. According to DDOT spokesperson, John Lisle, the EA will be released late this month for a 30 day public comment period. The preferred alternative will be decided after the public comment period ends.

TIGER money is awarded on a competitive basis as "capital investments in surface transportation infrastructure projects that will have a significant impact on the Nation, a metropolitan area, or a region." Final decisions on awards will be granted in February of 2010. DDOT intends to bring the plan to 30% design phase by that time. Assuming the TIGER grants come through, construction for the project could begin by late 2010.

DC Tax Sale Canceled

Washington DC's property sale for unpaid real estate taxes was canceled today. The annual sale was scheduled to begin today, but bidders occupying seats at 941 North Capitol Street were reportedly put on hold several times, only to be told in the afternoon that the tax sale was canceled "indefinitely." DC government officials confirmed that the sale was "postponed," and would be "rescheduled," but gave no timeline for the process.

Registration for the District's tax auction for property in tax arrears began August 31, and the auction was to have started today, lasting until all properties had been disposed of. While District officials would not comment further than to say that a challenge had been filed "to the District's right to set a threshold for the sale of delinquent real property taxes", sources said that the an investor and auction participant had filed a challenge to the process by which the District conducts auctions, seeking an injunction against the auction.

The District had delayed the previous tax sale due to the scandal in the Office of Tax and Revenue.

GSA and DHS Break Ground on Largest Federal Building Project Since Pentagon

Officials broke ground today on the largest federal building project in the Washington metro area since the Pentagon. The $435 million Coast Guard Headquarters is the first of three phases for the unified Department of Homeland Security (DHS) complex on the St. Elizabeths campus in Anacostia, and the first project to move the federal government into the historic neighborhood. In August, the General Services Administration (GSA) awarded the contract to Clark
Design/Build, LLC, WDG Architecture and HOK. The site obtained initial National Capital Planning Commission (NCPC) approval in January of this year, with full blown construction expected to begin early next year.

The new DHS site is funded partially through $650 million from the American Recovery and Reinvestment Act. In total, the Recovery Act allocated $200 million to DHS and $450 million to GSA for construction of a new DHS headquarters at St. Elizabeths, $162 million of which will go to the Coast Guard facility alone. The facility will strive for LEED Silver certification by including green roofs, landscaped courtyards to control surface water runoff, and "innovative" heating and air conditioning systems. Occupancy of the new Coast Guard headquarters is expected by 2013.

The Center Building, pictured at left, will likely house the offices of the Secretary of DHS. Construction and renovation on this and other surrounding buildings will not occur until Phase 2. DHS Secretary Janet Napolitano and GSA Acting Administrator Paul Proty shoveled some serious dirt along with Representative Holmes Norton, Mayor Fenty, Councilmember Barry- as well as Senator Lieberman, for one of the most eclectic and highly paid ditch digging crews Washington DC has ever seen.

The DHS currently has 222,000 employees working at 35 offices throughout the Capitol region, DHS expects the consolidation will save taxpayers $163 million over the next 30 years. Construction of the new complex will produce an estimated 32,000 jobs, with many going to DC residents, especially if Norton has anything to do with it. The Congresswoman gave her own special welcome, saying "the federal government is crossing the Anacostia today, my friends. Come on over!" The residents of Ward 8, where the site is located, have the highest level of poverty in the city, with 35% unemployment, according to Councilmember Barry.

Despite the expected economic benefits for the area, the GSA has been involved in a series of Section 106 conversations, part of the National Historic Preservation Act by which community concerns are formally addressed. The local community and historic preservation groups raised concerns about public access to the land. Under the current Master plan, the public will have access to the cemetery, which includes soldiers from the Civil War, Hitchcock Hall, a large theater that once served the residents and staff at St. Elizabeths, and an area known as "The Point,"which boasts an expansive view of DC. Other concerns included the fate of Bald Eagles that call part of the campus home. The Master plan sets off a large section as "Eagle Zone" to prevent any encroachment.

The historic nature of the campus added a high level of complexity to the design and construction plans. On campus, 62 buildings are classified as "contributing" to the historical significance of St. Elizabeths. Of the 62, 52 will be retained and of the 10 that are scheduled to be demolished, 8 are dilapidated greenhouses. During a campus tour for media, GSA paused to showcase the demolition of one of the non-contributing buildings, the Mechanical and Electrical shop. St. Elizabeths was the first national mental health care facility in the country.

Fenty Announces Developer for Deanwood Affordable Housing

Deanwood has been grabbing headlines left and right this summer. Today, DC Mayor Adrian Fenty announced that Denning Development, Urban Matters Development Partners and Beulah Community Improvement will develop the two parcels at 400-414 Eastern Avenue, NE (now a vacant building) and the empty 6100 block of Dix Street, NE. The Dix Street and Eastern Avenue project, with 56 new, affordable, three bedroom townhomes, joined the pipeline of new projects promising affordable housing and jobs for area residents. Other new Ward 7 redevelopment projects include the Strand Theater, the opening of Marvin Gaye Park and last week's demolition on Hayes Street.

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 per year. According to a press release issued by Washington Interfaith Network, a portion of the units may be made available as workforce housing.

Of the 56 units, 18 will be adaptive re-use and the remainder will be new construction. The townhomes will range in size from 1,484 s.f. to 1,680 s.f. At least 10 of the units will be reserved as replacement housing for families currently living in the Lincoln Heights/Richardson Dwellings community. The Mayor projected groundbreaking in February 2010. With 21 of the units scheduled for completion by "this time next year," the remainder should be completed by October of 2011. Square 134 Architects designed the new buildings.

Both sites are 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 years.

Lincoln Memorial Improvements Get Favorable Review

Much-needed changes are coming soon to the section of the National Mall surrounding the Lincoln Memorial, courtesy of the American Recovery and Reinvestment Act. Improvements will include sidewalks along the reflecting pool, new benches and ADA access but, alas, no changes to the reflecting pool itself.

On Thursday, the National Capital Planning Commission (NCPC) commented favorably on National Park Service (NPS) plans to rehabilitate the grounds on the east side of the Lincoln Memorial and adjacent areas in West Potomac Park, including the Reflecting Pool and Elm Walks. The latter, which extend past the World War II Memorial to 17th Street, will be refurbished with new lighting, benches, and trash receptacles.

Additionally the plan includes ADA accessible curved paths to connect Lincoln Memorial Circle with the Reflecting Pool. Other changes include a security-barrier, with NCPC recommending shorter walls than the 36-inch walls NPS had planned, to provide integrated seating without detracting from historic structures.

"They are pulling back the concrete and steel barriers and opening the vista, said NCPC Chairman John V. Cogbill, III. "The changes will allow for an unobstructed view between the Lincoln Memorial and the Washington Monument."

The project will also eventually address the source and quality of the stagnated water in the reflecting pool, but that portion will be submitted to NCPC at a later date.

Woodson High School to Start Construction, Seek Bidders

Washington DC government officials today opened bids for construction of the $100 million effort to rebuild H.D. Woodson High School. HESS began demolition almost of the post-apocalyptic structure, circa 1973, one year ago. The new High School will be the only one in the District's 7th Ward.

DC Office of Public Education Facilities Modernization (OPEFM) and HESS Construction + Engineering Services will hold a pre-bid conference on Wednesday, September 9th from 10 AM until 12 PM for Division Two Trade Contractors (Site Work, Utility, Excavation), and have issued a Request for Qualifications (RFQ). The conference will be held at The Riverside Center at 5500 Foote Street, NE.

In a press release, OPEFM said they, along with HESS, are "aggressively seeking" "Certified Business Enterprises," especially those in Ward 7, as construction on the new H.D. Woodson High School gets underway, for at least 50 percent of the project’s costs.

In a June press release DC Mayor Adrian Fenty's office said the new Woodson, located at 5500 Eads Street, N.E., will also be among the D.C. Public School system’s most environmentally sensitive facility as it seeks the highest Leadership in Energy and Environmental Design (LEED) certification for “green” building development. The new school is designed by Cox Grae and Spack Architects and SHW Group.

Better DC Coming to a Park Near You

For every 1000 residents in DC there are 16 acres of park land; are you getting your 0.016 acres worth? As soon as October 1st, the public will have access to the CapitalSpace draft recommendations on parks, with 60 days for feedback. The CapitalSpace initiative is a collaboration of local and federal agencies whose goal is to ensure a thriving parks system in DC by facing challenges posed by maintenance, connectivity, accessibility and quality. If you ever wished there were more playing fields (Frisbee anyone?) or a more accessible path to a park near you, now's your chance. A final plan is expected in the beginning of 2010.

The CapitalSpace program began as a District initiative, with the District Office of Planning and Department of Parks and Recreation partnering with the National Capital Planning Commission (NCPC), later adding the National Park Service (NPS), which manages 68% of District park land. The collaboration began in 2006. Julia Koster, Director of Intergovernmental Affairs at NCPC, described the group as people from different organizations "who shared a passion [for] creating, beautiful accessible parks."

CapitalSpace set out "six big ideas" or areas where the organizations intend to cooperate to make changes and improvements. The six are:

1. Linking the Fort Circle Parks: Creating a walkable green space with historic significance by connecting the series of defensive Civil War forts located in upper NE DC and the southeastern part of the city across the Anacostia.

2. Enhancing Center City Parks: With 30 percent of the city’s future housing growth and 70 percent of job growth likely to occur downtown and along the Anacostia River, the parks in these areas add vibrancy and will be in high demand for active uses. Several case studies will provide the best practices to balance historic character with the demand for new and more active uses. Picture, if you will, picnic and live music in McPherson Square.

3. Transforming Small Parks: Of the city's parks, 67% are small (less than one acre) and, while some get a lot of use from neighborhoods, others have fallen into disrepair. Reinvigorating small green spaces with recreational and historic/cultural significance could provide a meaningful identity for the surrounding community.4. Enhancing Urban Natural Area: In addition to providing recreational areas, the parks protect natural features and ecological functions. Current standards are not always sufficient or well enforced. The plan would redouble efforts to repair and improve the natural benefits of parks.

5. Improving Playfields: While Washington has over 1,000 fields, playgrounds and courts, the expected population growth will mean even more demand for the limited fields available. Currently there are 2.17 fields (including soccer, football, baseball and softball) per 10,000 residents. DC compares poorly to other cities - Boston, Philadelphia and even Baltimore average 3.84 fields per 10,000 residents. The plan will improve current fields and may identify one or more locations to create complexes of regulation size fields in the city.

6. Improving Public School Yards: DC Public Schools (DCPS) run 30% of the city's fields, playground and courts. Hours are inconsistent, and, with school closures, the community is losing acreage. The partnership suggests working together to extend hours of operation, provide safer access to facilities and improve quality.

It is still unclear how the various plans will be funded and in what order of priority. Tammy Stidham, Regional GIS Coordinator for the NPS, said there is no collective pot of money because of issues with mixing state and federal funds. But the group hopes to determine funding on a case-by-case basis to see where jurisdictions overlap and create a division of responsibilities.

Images by EDAW AECOM provided courtesy of the National Capital Planning Commission.

Deanwood Swaps Abandoned Apartments for New Housing

In a continuing effort to rejuvenate poverty and crime-ridden areas, Blue Skye Development and DC Mayor Adrian Fenty moved some dirt around a 26-unit housing project at 4427 Hayes Street in Washington's Deanwood neighborhood on Wednesday, a symbolic opening for the project. Having sat vacant for nearly 15 years, the 29,000 s.f. building is now a shell, which Blue Skye has gutted and will renovate. The $5 million project is expected to deliver new homes by summer of 2010.

The District acquired the land in 2005 using federal Housing and Urban Development (HUD) Community Development Block Grants, and has since gone through several aborted development attempts. In March of 2008, the District selected Blue Skye Development to develop the space after a competitive solicitation process. The architects for the project are PGN Architects. PNC Financial Services Group, working with Vornado/Charles E. Smith, contributed $700,000 toward the project as part of a community services benefits package tied to PNC's new downtown building’s zoning approvals. “We are committed to enhancing the quality of life in our city—not just through development downtown, but through transformational projects like this that help make our DC neighborhoods great places to live,” said Mitchell N. Schear, President of Vornado/Charles E. Smith.

These 26 new one and two-bedroom units are part of the District's New Communities Initiative, which aims to replace highly concentrated low-income neighborhoods with mixed-income neighborhoods that still protect low-income residents by offering one-for-one replacement of previous units. The Hayes Street project includes nine replacement housing units for families currently living in the Lincoln Heights/Richardson Dwellings community.

Drug and Crime Infested DC Housing Project Meets Its Match

A formerly crime and drug infested building met its match today as officials marked the final phase of demolition of Capitol View Plaza Towers, a long-vacant public housing eyesore in the District’s Marshall Heights neighborhood. Despite several earlier-contemplated residential and mixed-use plans, the site has no clear future as DC officials continue checking the couch cushions for financing. Initially the District did not even have the financing to demolish the abandoned structure, but a $3 million grant from the Department of Housing and Community Development (DHCD) made it possible. While an empty lot may be more desirable than an eyesore, it is not much of an improvement for land that serves as the gateway to the city from Maryland's Prince George's County, just a block down the road.

Most recently, the plan for the site was to create a new multifamily rental building as well as market-rate condos. However, Kerry Smyser, the Project Manager at DCHA, said that with the finance market and condo market the way they are, that plan is no longer feasible. Smyser added that since the two towers from today's demolition are part of the Capitol Gateway project, A&R Development Corporation and Henson Development Company, as the Gateway's developers, would have first right to develop any plan the government decides on. Failing that, the District could then issue an RFP. According to Cymando Henley, a spokesperson for DCHA, the District will "look at all the options and decide what is best for the community."

In 2000, under the administration of former DC Mayor Anthony Williams, the US Department of Housing and Urban Development (HUD) allotted a $30.8 million grant under its HOPE VI program to the redevelopment of Capitol View Plaza's 12-story tower. The HOPE grants also applied to neighboring public housing which is now the Capitol residential project. In April, Smyser said that phase I of that development has delivered “nearly 240 duplexes, townhouses and single-family homes.” The HOPE grants allow for a combination of mixed income and mixed-use projects, which have in the past included community centers as well as residential buildings.

Today's demolition was a more public display of the slow dismantling of the building which has been underway since July. The local fire department, Engine 30, has been closely watching the progress and will be celebrating the demolition. According to their blog the "buildings when occupied, would average 5-7 medical locals a tour for the companies, with the rare, but spectacular fire." Comments from former residents told horror stories of murders in elevators and crack addicts in the stairwells. No more drugs, no more murders, no more fire engines. Things are looking up.

DC Mayor Adrian Fenty was joined by Michael Kelly, executive director of the District of Columbia Housing Authority (DCHA), and Leila Edmonds, director of the DCHD. Though Fenty was at the helm today, the Wrecking Corporation of America will continue the demolition, which will complete in 2010.


UPDATE: After DCMud published this story on Wednesday, the Washington Business Journal published a conflicting and incorrect account on Thursday, indicating that Capitol View would "ultimately include 761 mixed-income units and a 110,000-square-foot retail center featuring a Shoppers Food Warehouse." Several readers asked us which was right. To clarify, the Capitol View Towers are not currently slated for any defined use. Kerry Smyser of DCHA confirmed that there were no plans for Capitol View, the last time a plan had been established was 2005, but that those were now defunct.

Also, the Shoppers Food Warehouse referred to by WBJ will not be a part of Capitol View, it will be a part of Capitol Gateway, on the north side of East Capitol Street. Behind the Gateway project in northeast are 151 senior-housing units. Add the senior housing to the new townhouses adjacent to Captiol View, and the "Capitol Gateway" area has a total of 371 units built. Smyser indicated that the original HUD report had predicted 761 units for the entire Capitol Gateway Project, including potential units at Capitol View, but that those numbers were no longer accurate.

Bethesda's Battery Park Gets Recharged?

Can large condominium projects improve the aesthetics of an urban park? In the case of Bethesda's Battery Lane Urban Park, the answer may be yes. Montgomery County has approved a plan to renovate and improve the degraded Woodmont Triangle park, at the expense of local condominium developers. Planning is complete, with upgrades that will retain the general feel and facilities of Battery Park, while seeking to "enhance both active and passive recreation opportunities" within. Potential enhancements include a widened bike path, more attractive park entrances, relocation of utilities underground, a new gathering area for picnics, enlargement of the playground, and, less predictably, adding an "art and science theme into the site furnishings." Landscape architect Oculus has already prepared a detailed project plan, which the county approved, though the project would still require construction documents. The wrinkle? The $2.1m price tag for planning and construction. The initial planning documents were picked up by Polinger, Shannon and Luchs, the developer, on paper, of the nearby Rugby Condominium, a 61-unit project at 4851 Rugby Avenue that has yet to break ground, in lieu of public space amenities the developer would have been required to build. The Rugby condo developer had been rebuffed in its efforts to build a 10-story, 71-unit building to the immediate southeast of the park, but a little shrinkage (to 9 stories) and a donation for park love helped cement approval, but construction on the condo shows no signs of commencement. But that still leaves the county to come up with the remainder of the $2.1m, which, according to MNCPPC, the county is not even close to. Perhaps a few more condo projects could overcome the shortfall. Architects envision regrading the layout and replacing weed trees with native hardwoods, while removing some of the trees that block sitelines through the park. The extreme makeover also foresees acquisition of the two properties at the southern end of the park for better frontage along Rugby Avenue. Planners will likely close the park for the duration of construction, but that has yet to be determined. "The trick was to add and improve features to the park without damaging the things that people enjoy" said Justin Aff, a landscape architect with Oculus, who noted "alot of drainage issues" in the park at present. Oculus has also designed southwest waterfront metro plaza, which is in the final stage of construction. Polinger would not comment for this story.

Washington DC commercial real estate

Columbia Pike Apartment Building Gets Ready to Open

Just a 5 minute drive down Columbia Pike from the planned Penrose Square, a new mixed-use project, 55 Hundred, is close to wrapping up construction, putting the finishing touches on and looking for tenants. Formerly known as the Columbia Village Project, the building at 5500 Columbia Pike in Arlington comes in at a not-quite-inspiring 10 stories, but taller than others on that area of the Pike. The new building's plan was approved in 2005 to act as a western "gateway" for the Columbia Pike Special Revitalization District. Fairfield Residential's mixed-use project includes 234 residential units, 308 parking spaces in three levels below grade, and 7,500 s.f. of retail on the first floor. The site plan was originally approved by Arlington for Trammell Crow Residential, which sold the property along with the plan to Fairfield. The building was designed by WDG Architecture. Just last month Fairfield lost its hold on another of its apartment buildings, in southwest DC, when the property was foreclosed. One-bedrooms rent from $1,300 to $2,700 and two-bedrooms range from $2700 to $4000. 55 Hundred offers residents a rooftop swimming pool, a 24-hour athletic center and a club room, with pool tables and a Wii system. Though the building's website boasts its accessibility to the metro, residents would have to take a least one bus, sometimes two, to get to a nearby metro station. With easy access to the highway, residents may opt for the a more Virgina-style commute, i.e. by car.

Virginia commercial real estate news

NoMa's Largest Mixed Use Building Caps Off

All the dust being kicked up in NoMa is finally paying off, with the topping off of Constitution Square, in what will be NoMa's largest mixed-use project, a 7-acre mixed use anchor, one block from the New York Avenue metro, that will deliver by late next year. Having reached its maximum height of 13 stories (in the residential portion), the project is still about a year away from delivering the first of its capacity, which will eventually include a 206-room Hilton hotel, 440 apartments, 340,000 s.f. of office space, and a Harris Teeter to boot - NoMa's first grocery store and first residential building.

The two-phase project kicked off in April of 2008, with the groundbreaking of the first phase. The two million square feet of development is the brainchild of Bethesda-based StonebridgeCarras and Walton Street Capital. The residential and retail portion, designed by SK&I Architects, will be the first to deliver, likely in early 2010, and will be LEED certified. SK&I is also designing the common areas of the apartments and the core and shell of the Hilton. The office space, designed by HOK Architecture, will add the office space in phases one and two, and though it is still a year off it has already scored some major tenants, including the Department of Justice. The office portion aims for a Gold certification from the U.S. Green Building Council for green design.

According to Guclu Durusoy, Project Manager of SK&I, the facade will include extensive floor to ceiling glass to lighten the massing of the building. The residences will include a fitness center, outdoor pool deck, and three courtyards. Bethesda-based Clark Construction, which is performing construction, will hold an event on September 4th to celebrate the construction milestone.

This will be the first mixed-use project to come online, according to Liz Price, Director of the NoMa BID, who cites the neighborhood as "truly walkable" given the incoming density and existing public transportation infrastructure. The 35-block area is expected to see 20m square feet of development over the next ten years.

Industry Insight: Ali Honarkar

Ali Honarkar, an architect and condominium developer, has been a forceful voice for modern architecture in Washington DC. Ali sat down with DCMud to speak about his projects, the state of architecture, design and, of course, shoe design.

DCMud: Tell us about Division 1

AH: Division 1 was something that me and my partner, Mustafa, started, at UMD, back when we were undergrads, it started as a side job, turned into what it is now. At the time we wanted to have something cutting edge. We were at a very conservative university, kind of the same thing we are doing now professionally, we came together we figured it was better to stick together. We started in '94, doing a lot of interior spaces and restaurants, which is the best way to get your work out there. We always wanted to get more into the residential market. It took us 6, 7 years to do that, but after doing a bunch of restaurants we were able to establish ourselves to get some of the larger, better projects.

DCMud: And you did Lima…

AH: Yeah, We’re not doing too many restaurants now. We did some of the more upscale Charlie Chiang's, which is now called Charlie Chiang’s Ping, one is in Shirlington, opened about a year ago, we do about one restaurant a year – by choice. We also did 18th St lounge, Dragonfly, Local 16.

DCMud: Who or what was your inspiration to become an architect?

AH: My family has been in construction for hundreds of years so…

DCMud: Hundreds?

AH: Yeah, back in Iran, where I’m originally from, about 300 years, so its in my blood. The rest of my family went into medicine, I stuck with it. Some of my influence, still, is Thom Mayne, who was an architect from the west coast, with Morphosis. An Austrian firm called coop-Himmelblau, some of the influences in the late 80’s, 90's, when I was in school. What they did - it was at the same time as grunge, it was part of a whole movement, everything was related: art, music, architecture.

DCMud: Why choose DC?

AH: My family moved here, after the revolution. You know, why not DC? I was just having a discussion with another architect, locally, who wasn’t really fond of what we do, in DC.
We’ve always been known have to fight for our clients, for our principals, you know, whether its historic preservation, ANC, etc. We don’t pick a fight, we just feel like there should more be diversity. People always want to label things, ‘this is historic,’ but across the street it's not historic. I think its because we’re such a young nation, we only have a couple hundred years of history. I come from somewhere where there’s thousands of years of history. So the question was asked, ‘why do you have to change DC? Why don’t you go somewhere else?” My answer was, we wanted change. We elected Obama for change, we didn’t ask him to go to another country; change needs to happen here. And we’re not alone, I think DC has great potential. There were a lot of things done, not in a good way, that people label as ‘modern.’ I think people, when they don’t understand, and they see glass, they think, modern architecture, and all architects have to take the blame for that. I like putting our own spin on the city.

DCMud: How do you label yourself?

AH: True modernist. I don’t pull into a colonial house - I live in the house I designed. It’s a whole lifestyle. Modern is being always on the cutting edge of what’s going on. In DC we are more traditionalist. I have no problem with preservation – its great – but you take a lot, and put something that belonged 200 years ago, that’s what I have an issue with. The thing with traditionalists, they always forget, everything was modern at one time, and it takes time for that to mature, like good wine. When the Victorian era came up, it was a departure, and now it’s protected. You’re starting to see things, not even as far back as Frank Lloyd Wright, 50s, 60s, getting historic.

DCMud: Any favorite buildings in DC?

AH: My favorite is the original German embassy, built in, I think 1964, that’s my favorite in DC

DCMud: With the exterior skeleton?

AH: Exactly. Imagine, that was 1964, that’s by far my favorite in DC.

DCMud: Tell us about some of your projects – you're working on the Lacey Condominiums right now.

AH: Yeah, the Lacey was a great opportunity for us, the client found us from our house around the corner, the W Street residence we did. It’s the largest ground-up building we’ve done. We’ve done a full city block in Silver Spring, with a lot of renovation, but this was the first ground-up. The design, inspiration comes from the client. The history that place has, being right next to the Florida Avenue Grill – the parking lot for the Grill. That started in 1944, just the idea of an African American business in 1944, it was so progressive thinking, we wanted a tribute to Lacey Wilson Sr., and Junior, who bought the place from his dad. It doesn’t mimic anything around it, its not contextual, but we found the best way to pay tribute in the same spirit of what he did in 1944, for us to do in 2009, yeah, we wanted to do something that honored that. We need to be able to educate the developer, its okay to do a little more, it will come back to you. We feel that everyone that’s bought there, they’re paying for it because of the design. We designed in some social issues there – you want the neighbors to be able to engage each other, you don’t just walk in to a long corridor, and go into your own space, and never see anybody. This forces people to know each other – the atrium spaces, the common spaces.

DCMud: So its all about the Social Element.

AH: Yeah, absolutely, you engage with your neighbors. Its not for everybody, more of a European feel to it, where people can come right outside and be able to socialize. I think that’s what we do – outdoor spaces push that idea.

DCMud: Tell me how exterior came about.

AH: It looks like a simple building but there’s a lot more to it. A lot of people use zoning and height restrictions as a way of limiting themselves. We went the other way. We looked at all the guidelines, what could or couldn’t be done, we maxed out everything. I hear that a lot, ‘we had to max out the area, so we couldn’t do much with it.’ We made a lot of double story spaces; that was the idea behind having indoor-outdoor spaces coexisting. The exteriors stairs, we made that into part of the design element; you need the two forms of egress, but it became for us the design showcase, it becomes this whole volume of its own and brings a different dimension to the building.

DCMud: Lacey has gotten attention inside DC, but also outside DC. What do you attribute that to?

AH: Yeah, I don’t know! (laughs). We designed it to get attention, that’s what you do. We’re not going to write a hit song and apologize, you want it to be played. Actually we’re getting more national than local attention. I’m a little disappointed with the local media, and I think it may be driven by sponsors, this very conservative southern town. You would think the Washington Post, as local media, should know what’s going on around here. We’ve seen the Lacey in New York blogs, LA blogs, and architecture blogs, and I’m always amazed how they find us. But they don’t have to find you here, we’re here, they should know what’s in their back yard. I‘m a little disappointed, not with smaller magazines, but the Washington Post spends so much time covering other things, they should cover more locally.

DCMud: Thinking about next projects, do you have anything new coming up?

AH: We have some commercial projects, one of the projects I’m very excited about is that we’re doing a single-family in Dupont, a great client that really wanted to do green, but for all the right reasons, not cashbacks, but to do the right thing. They’re not even going to live there, it will be a rental initially. We were very excited by that, it’s a small project, but its already been approved by historic preservation. We’ve gotten to learn so much more about alternative heating, cooling, really incorporates everything into 2000 square feet of space. And we have an office building that’s ready for completion in about 4 or 5 months, very exciting, in Silver Spring, its been about 7 years in the works. Its a complicated design, there were a lot of major modifications, to the point that the county didn’t understand it anymore, they just said, ‘alright, just do it.’ We have an existing shell that we’re keeping, and putting a whole new modern building in it. We also have the Drost, a 4 unit condo building, we’re hoping to start in the spring, we’ll see.

DCMud: If you had an ideal client right now, who would that be, what would they be building?

AH: I’m probably more interested in designing a shoe right now (laughs), that would be the ideal thing, to do something different, we consider ourselves designers not just architects.

DCMud: A shoe?

AH: A different design challenge.

DCMud: I didn’t expect that answer.

AH: I’m being honest, I’d love to do something along that line.

DCMud: So green is not cheap, design is not cheap, how do you combine those two goods, and still make it affordable?

AH: Its hard, there are metropolitan cities, like NY would be the first, Chicago, San Francisco, LA, they have that. You put up a building anywhere in New York, they will still line up if its good. I think the DC culture, within the last 10 years has really changed, you see a lot more emphasis, not just on housing, but the restaurants, you see a lot more design, restaurants, bars, we’re getting there slowly but surely. We’re not very good at that, we just do it. There were so many ways to make the Lacy cheaper. But at the end of the day, the architect, the developer, have to be able to look back and be okay with it. The average life of a building is 25-30 years, we’d like to see the building there in a 100 years. Real estate is a long-term thing; we don’t do things for marketing purposes. With the whole green movement, nobody ever uses bad materials on purpose. Another way the AIA is using – you know when the record companies stopped using vinyl because it was no good – the same with the AIA, we achieved it in the Lacey, we’re doing it in a small residential project, you put a good project out there, people will follow.

DCMud: Any other architect out there in DC you really like?

AH: There are two guys are doing some great things, I guess they’re not really local. Sure, there are a lot of good architects here, many great single family residential architects. But I look to somebody like Jonathan Segal, Sebastian Mariscal, both San Diego architects, they inspire me. About 10 years ago he started, these guys also develop, so they practice what they preach. Its easy to design a $4m house, there’s not much risk. When you play with your own money, there's so much more risk. Developers are risk takers, when somebody has the guts to do that, its not just a business. If you put your name on it and try to sell it, that’s a whole new level.

DCMud: There aren’t a lot of architect-developers in DC.

AH: The way we look at ourselves, its not just the business, there are a lot of people that practice the business of architecture, but its different when you own it.

DCMud: No one local that you like?

AH: [Bill] Bonstra does some good work, but, some I don’t like. Take the Lincoln Condominiums in my neighborhood. Its brutal; it’s a big, stucco building, it represents nothing. I would rather stand for something. As an architect, you’re not sworn in, but you’ve got to give back to the community. I think Eric Colbert designed that, I wouldn’t have. Just don’t take the project. If you do and that's what you deliver, then you have to admit you’re in the business of architecture. You could be making shirts at that point. We get clients that come in and want to do certain things, and sometimes you just say ‘no thank you’, that’s not what we do. You can’t take every project. Especially at that scale – 10, 12 story buildings. You’re taking a big chunk of the block. It’s a crime to not care what you do, when it has such an effect on the city.

DCMud: What do you see as the future of architecture in DC?

AH: I’m always hopeful. When I was going to school there was not a lot of things you could walk up to and see; if you liked modern, you had to go to another city. But with the good, comes the bad, but I’d still take that, the diversity. Its art, you put it out there, its art, you just put it out there and let people decide.

DCMud: How do you compare DC regionally?

Well if you compare us to Wilmington, Delaware, we’re good. New York, well, there’s only one New York. But I’m hopeful. There are a lot of restrictions in DC. What upsets me is that we lose a lot of our talent, because there’s so many restrictions in DC. Some good talent starts here, then move to the west coast, or New York, so we’re pushing a lot of our talent out.

DCMud: Height restrictions and historic preservation?

AH: It’s partly that, but, no offense to attorneys, you do any work in DC, forget the ANC and historic preservation, but every other neighbor is an attorney. Its great to have pride in where you live, but people feel like they get to claim it, we see that all the time, we always feel like we don’t want to deal with it any more, but then we get a good client, who wants to do something different, and we say, okay, lets do this again. Its not historic preservation, I think its more the people in the neighborhoods that want to stop the process.

DCMud: Do you think the height limits are a good thing?

AH: I like them; I think you are most creative when you are challenged. DC is my favorite city, and you have New York for that. London, Paris, the scale is completely different, most European cities are like that. I like the height restriction where it is, we should just be a little more creative. We have suburbs to balance stuff out.

DCMud: Speaking of the process in DC, how would you change it if you could?

AH: If you go through third party review, it still has to go through DCRA at some point, it’s a little frustrating. I don’t see what the point is. Zoning, public space, transportation, should go through DCRA. But as far as electrical, mechanical and plumbing, I don’t see why it has to go back through the city. Third party review should be quicker, the process is very time consuming.

Empty Southeast DC Project Hangs on Longer

The Merion Group, the new owners of 1705-1729 East Capitol St., SE, have asked for a permit to raze the building, the first sign of movement on the eyesores across from Eastern Senior High School near RFK Stadium. The raze permit, filed under the name PYD I LLC, comes after a March 2009 approval by the DC Zoning Commission, which had approved development plans filed Comstock East Capitol LLC in December of 2007. The 2009 approval allowed for modifications by the new owner. Kennedy Place, as the new condos will be called, now has an extension until 2011, when the revised PUD expires.

The site is currently a vacant, 80-unit apartment building (pictured) on East Capitol Street, SE, between 17th and 18th Streets. The 42,629-s.f. plot is just blocks from the Stadium-Amory Metro. The Merion website describes the project as "a redevelopment effort which will create new condominiums in a gentrifying area of Capitol Hill." The ANC must be pleased to hear about their neighborhood finally gentrifying.

In December 2007 Comstock received approval for a consolidated PUD and zoning change from R-4 to R-5B, allowing construction of a 133-unit building. In that same month, Merion acquired the property for $6.2 million from Comstock, which paid $9 million in 2006. Merion Chairman Bill Bensten was formerly a senior executive at Comstock.

In September of 2008, PGN Architects, the project architects throughout the toss up, filed on behalf of the owners for a minor modification to the original PUD, changing the total units from 133 to 141. In January 2009 the counsel for Merion requested a one-year extension to December 2010 in addition to the earlier modification request.

Though the original plan had been to immediately begin construction, as financing realities were pouring cold water on new construction, developers added more one and two bedroom units to the mix, requiring interior changes to the architecture, further slowing the project. The change was intended to increase marketability.

The approved zoning changes and plan modifications give the developers until December of 2010 to file a building permit, and December of 2011 to begin construction. Beyond that, developers would need to start anew.