Manna's Latest Condos Open This Weekend in Southeast

Affordable Housing provider Manna will host the Grand Opening of its latest new condo project, the newly-renovated Belgrove Condominiums. Just across from the Good Hope Marketplace, at 2760 Naylor Road, Belgrove offers affordable one and two bedroom units, starting at $143,500 for one bedrooms and $179,500 for two bedroom homes, but unlike many of Manna's projects will not be subject to income qualifications. Not walking-distance to a Metro, parking will be available to purchase.

But don't expect concierge service. In keeping with the profile of no-frills, affordable condos, the three-story walkup offers features like modern energy efficiency, low-flow toilets and shower heads, "resilient tile floors", individually-metered electric and gas, common laundry room, secure controlled entry, and private storage bins. Condos will be open from 1-4 pm this Saturday and Sunday. Manna acquired the property with a LISC loan in February of 2007.

Washington DC real estate development news

DC's Canal Park Gets Federal OK

The National Capital Planning Commission (NCPC) on Thursday approved final plans for Canal Park in Southeast DC. Canal Park, in the Capitol Riverfront neighborhood, will encompass approximately 2 acres of federal land under District jurisdiction - three city blocks of parkland between 2nd Place and 2nd Street, and from I to M Streets. Each park block will have a distinctive design, including a linear rain garden, combination of large and small open spaces, three pavilions, an urban plaza, and a prominent water feature. The rain garden will act as an on-site water collection, treatment and reuse of stormwater runoff. The larger flexible green space between K and I Streets could be used for movies or concerts, with seating room for 500 and standing room for 1,200. The water feature is envisioned as supporting "interactive use" in the summer and skating rink in the winter. In March of this year the city announced the choice of OLIN, a Philadelphia-based landscape architectural firm, to design the park. Studios Architecture, a consultant of OLIN, designed the planned pavilions for the park as pictured above.

To close out the meeting, the NCPC also agreed to release their CapitalSpace plan for public comment.

Washington DC commercial property news

Giant Controversy on Wisconsin Ave Development

On Thursday, the Zoning Commission reconsidered several elements of the previously approved application for the planned Giant grocery store and surrounding redevelopment. The Commission approved the Planned Unit Development (PUD) for Friendship-McComb SC, Inc. along with their developer, Street-Works, in July, but both the community and the developer took issue with parts of the Commission's decision. Prior to last night's hearing, the Wisconsin-Newark Neighbors Coalition (WNNC) had filed a lawsuit to prevent the project, challenging, as they had previously, the Zoning Commission's authority to make the zoning amendment. The development will replace the abandoned 1950's era G.C. Murphy Co. store and existing Giant, which will yield to a proposed 55,000-s.f. grocery and additional retail, residential, and office component. Parent company Stop & Shop owns the site bounded by Idaho Avenue, Wisconsin Avenue, and Macomb Street and divided by Newark Street, all of which now contains a mostly-abandoned, one-story retail and surface parking. According to Sharon Robinson, a Consultant for the Giant Team, Giant requested more "specific language that would facilitate evaluation of compliance" with the approval. In July the Commission order stated, "the applicant shall also fulfill any other commitment or promise it made as referenced in the findings of facts above, even if not specifically stated in one of the above conditions." Surprisingly, developers found that language vague. The request was deferred until the October 19th meeting, with the Commission asking the applicant and the community to define “off peak hours” in relation to a parking discrepancy. WNNC's beef with the Commission, besides its alleged lack of authority, has to do with

residential parking permits. The group requested that the Commission consider, again, the amount of planned parking. Previously, the District Department of Transportation, the Office of Planning and the Zoning Commission staff all agreed that the residential parking provided (1 per unit in the multi-family residential and 2 per townhouse) was more than adequate. But the appeal received a big ole "Denied" stamp last night. In response to the lawsuit, Giant posted a statement on its website saying they were not surprised a suit was filed, given the contentious nature of the PUD process. They say the appeal is subject to a judicial process that could take"two or more years to complete." Giant reaffirmed its commitment to the new store as well as to the large group within the community who supports the new development.

Washington DC retail and commercial property news

Adams Morgan Safeway Facelift Revealed

With the supermarket battles having long since become a mainstay of development, not to mention indicator of neighborhood revitalization, we feel obliged to point out the existence of new grocery stores. And sometimes even old ones with a nip - tuck, as in the case of the Adams Morgan Safeway at 1747 Columbia Road. City officials will be marking the occasion too, at 2pm tomorrow (Friday), when DC Mayor Adrian Fenty cuts the ribbon on the newly minted Safeway.

The store has remained open for the past four months during construction, an attempt to bring it up to speed with the newish Harris Teeter around the corner. Safeway spokesman Craig Muckle told DCMud that although the re-do would not entail the start-over makeover given several other area Safeways, this would at least "a complete interior renovation and decorum upgrade,” he promised. “It will look like…our other upgraded Safeways, of which there are now nine or ten in the area.” We'll see if its enough to make the mayor stay and shop.

Shaw Main Streets Development Woes

At the annual Shaw Main Streets (SMS) Development Forum Wednesday night, representatives from developers were invited to present the current status of their plans for major renovation and new construction in the area. The status, unsurprisingly, was "more of the same," leaving community members to resign themselves to continued hopeful waiting. SMS Executive Director, Alexander M. Padro, made excuses for several invited developers who were unable to attend. Quadrangle Development was a no-show because of the recently publicized litigation over their Marriott Marquis Convention Center Hotel deal, though Padro said Quadrangle indicated that financing is now secured. Banneker Ventures, slated to build The Jazz on Florida Avenue, declined to attend as their Land Disposition Agreement with WMATA has not been finalized. And Hines-Archstone, developers of the planned City Center cited scheduling issues. 1. Paul Millstein of Douglas Development, certainly does not sugarcoat anything. About the Wonder Bread Factory development Millstein said it was a "victim of the times...stuck in a trench" and "could be stuck for a while." As for Squares 450 and 451 on the 1100 block of 7th St, Millstein announced that though the original plan was to redevelop the site, the group will now remove window boards, put some lipstick on them, and lease them out for the time being. On the positive side, Douglas secured a NY-based restaurant, Carmine's, to fill the 18,000 square feet of their Penn Quarter property near the Clara Barton Condos and Wooly Mammoth Theater. As for their 7th and Florida Ave. project, Douglas is seeking tenants, but according to Millstein the group is being picky, refusing to go the "fast and ugly" way of cell phone stores or fast food. Neighbors gave a round of applause for that one. 2. Next came 1501 9th ST NW a smaller development by a small business, Inle Development. According to the property owner/developer, the space will be leased to a single tenant, Mandalay Restaurant and Cafe, a Burmese restaurant currently based in Silver Spring. Mandalay will have a ground floor restaurant with outdoor seating, a second floor bar and the remainder will be residential space for the restaurant owner and family members. The developer cited a few financing "hiccups" but estimated the project should break ground in three to four months, delivering late 2010. The project takes up a single lot and will likely be 50 ft in height. 3. On their Addison Square project Metropolitan Development had hoped to be into the ground by now, but it's looking more like summer 2010, at which point the 4-5 weeks of demolition will commence, followed directly by construction. The group received their final PUD two weeks ago, and a few changes mean the 54 units of affordable housing will be distributed among the 224 market-rate units, for a total of 278 rental units in the main building. The ground floor retail plans are largely unchanged with the group looking to have both a white table cloth restaurant as well as a faster, less formal restaurant. 4. Ellis Development Group and Four Points, erstwhile developers of Howard Theatre and Media Center One, formerly Broadcast Center One, said the financing for the projects, which have been repeatedly punted down the road, hit a "road bump," but the group expects the project to move forward, breaking ground on Media Center's 300,000 s. f. mixed-use development on 7th and S Streets NW before the new year. Construction will take approximately 24 months for Media Center to finish and, as the developer noted, they are one of the few lucky projects to actually have a tenant secured. Over at the Howard Theatre, demolition of the 1940s facade has already begun, ground breaking may still happen this year, and the developers are, of course, talking with prospective tenants. 5. Roadside Development's City Market at O finally has some legs and a timeline. In an agreement with several DC Council members, Roadside received a $2.5 million grant, enabling them to "put the architects back to work." The big day will be September 3, 2010, when the group starts work on stabilization of the historic market. The next big date is January 15, 2011, when the current Giant will close its doors and from which date Roadside will have 24 months to finish construction of the new Giant location. The takeaway from the evening, with projects stuck in trenches, hitting road bumps or just plain falling victim to the economic climate, was that Shaw developers seem to be in a regular war zone these days. With so many groups blaming the current "financial situation" for development and construction delays, we are beginning to wonder what they'll blame whenever the financial situation improves...

Washington DC commercial real estate

Ballston Bus Garage Gets Final OK for Founders Square

The Arlington County Board and WMATA agreed last week on final terms of sale for the former WMATA bus garage site for the final piece of the Founders Square puzzle in Ballston. The site, at 675 North Randolph Street in Arlington, will be sold to Ashton Park Associates, LLC (APA). Though APA was chosen as the developer and executed a sale agreement in June 2007 for the entire property, the developer had since requested a phased purchase due to financing issues. Under the amended sale agreement APA, along with its managing affiliate The Shooshan Company, can purchase the property in two or three phases as long as the sale is complete as of December 23, 2011 for the agreed upon $25 million. The parties will close on the first phase in mid-November with Clark Construction set to dig-in before the new year.

The first phase, sold for an undisclosed amount, will be the home of the Defense Advanced Research Projects Agency (DARPA) when construction finishes on the 355,530-square-foot, 13-story, secure office building in 2012. To land the agency, Shooshan worked with architect RTKL Associates, Inc. to design a building that will meet LEED Silver requirements and the Department of Defense’s (DOD) Minimum Antiterrorism Standards for Buildings. It will be the first in Arlington to meet DoD’s new standards, featuring force protection, 82’ standoff distance and controlled parking.

According to John Shooshan, while most of the project will be financed through APA's own equity, the state of Virgina is providing a $10m grant to help defray the development and construction costs attributable to the force protection requirements under the DARPA lease. Tally another project to the list of those lubricated with government dollars, whether for leases, stimulus, or subsidies to keep development on track.

The DARPA building will be the first of the planned buildings for Founders Square, which is intended to house 26,000 square feet of retail space (8,000 of which is a standalone building that will be owned by a separate investment group and constructed by Paradigm Development), 730,000 square feet of office space in two towers, and another two housing towers with 378 residential units.

Arlington Virginia real estate development news

SW Developer Seeks Another Extension on SW Church

Tomorrow, the Zoning Commission considers magnanimously granting a second three-year extension to developer Steve Tanner and his Square 643 Associates for the Old Friendship Baptist Church in southwest Washington DC. The Commission's decision will determine whether the developer, who bought the property for $550,000 in 2003, can continue waiting with fingers crossed for dramatic change in the SW neighborhood, or whether a denied extension and defunct PUD will mean a renewed effort or the end of the line. Tanner has a bit more at stake than just the PUD; the property, advertised as 800 Delaware Avenue, has been on the market for over a year with an asking price of $3.5 million. Certainly denying the PUD would put a damper on the price for a property that has not changed in an area that, according to the developer, has not seen much change either. The development, designed by Shalom Baranes Architects (rendering pictured at left), may someday incorporate the Old Friendship Baptist Church, built in 1886-1887, into a mixed-use building, preserving the historic landmark as non-profit office space and constructing between 18 and 27 new condominiums, with one set aside as an affordable rental unit. The site will provide a minimum of 32 parking spaces with at least 23 for residents and 9 for a future but undetermined non-profit tenant. The L-shaped building will be four stories high on the east side of the church and seven stories high on the north, with no more than 10,000 s.f. set aside for non-profit office space. The ZC set limitations on the non-profit tenant, ordering that no more than 40 employees and volunteers can work on site during work hours limited to 7 A.M. to 8 P.M., which seems to mean they would need a court order to work overtime. Hm. The Zoning Commission (ZC) originally approved the Planned Unit Development (PUD) September 15, 2005 and the current extension, granted in 2007, expired September 15, 2009. In 2007 the ZC granted a three-year extension to the PUD, meaning it would remain valid as long as the developer filed for a building permit within two years, and began construction within three. The developer failed to file a building permit and now the PUD is back before the ZC. In 2007, Tanner claimed the "current market conditions in the immediate neighborhood...made it impossible to attract a non-profit office tenant." The developer had been banking on the nearby redevelopment of Randall School by Corcoran College of Art and Design and Monument Realty, a partnership which ended last spring. Potential non-profit tenants apparently hesitated to sign on without the reassurance that the area would be changing for the better in the near future. In 2007 the ZC said the extension was "justified by the uncertainty of market conditions" near the project - mind you this was in 2007, before the Big Mess. According to Office of Zoning records, between Jan. 2007 and October 2008 only seven time extension applications came before the Commission, one of which belonged to Tanner. Maybe the ZC will feel generous again.

Washington DC commercial real estate news

Velocity Condos Opens in Southeast DC

The Cohen Companies’ Velocity Condos, near the SE Navy Yard Metro and Nationals Stadium, hopes to entice buyers with their October 3rd and 4th "Grand Opening" event to celebrate completion of construction. Developers worked with ADC builders to create a condominium complex that promises to give on-the-go DC-types a taste of “downtown Manhattan in the middle of DC.” Boasting standard "luxury" features like stainless steel and granite, Velocity hopes to entice very patient buyers to invest in the Capitol Riverfront's only new condo for sale.

The 200-unit, 14-story Velocity features standard amenities like the 24-hour concierge service and underground garage parking. But the sales team hopes other touches like Velocity’s rooftop pool deck, private balconies, full-height granite backsplashes, and built-in lazy Susans will go a long way toward separating these units from the pack. Residents may even have a manicured central courtyard to look forward to next year, if plans coalesce for construction of an identical, 200-unit, Phase 2 condominium next door; but that looks unlikely, and the lot is still vacant. 

  Sales Manager Vicki Johnston explains that some of the condo's finer details like extra walk-in storage space and deeper-than-standard bath tubs can be attributed to a woman’s touch as they were envisioned “by the amazing, completely female design team at GTM Architects.” And according to Johnston, Southeast DC condo shoppers might be "surprised" to learn these are “the only condos in the ballpark area. All the other units around here are co-ops and rental units.” Of course that may be by default - since JPI's three nearby condo projects turned rental thanks to the market (JPI fizzled as well), as did Faison's Onyx, all of which are now substantially leased (ok, thanks to giving away months of free rent). Then there's Velocity. Since beginning sales in 2007, only 58 of the available 200 units have been purchased—so it might be premature to rule out rental units in Velocity's future. Despite these modest sales numbers, Johnston sounds confident that the right potential buyer could rake in big bucks on resale, assuming he or she is “willing to hold out for a little while.” Prices for Velocity units begin at $317,900 ($295 condo fee) for a 644 s.f. studio and run the gamut up to $784,900 ($683 condo fee) for a 1,492 s.f. 2BR/2BA/Den combo. The one bedroom, two bath, den condo has been the most popular among buyers thus far and runs $483,900 ($488 condo fee). If you are willing to take the risk while the units are still plentiful, the rewards include a $1,000 credit towards customizing your own closets and a free parking space worth $35,000 (the garage holds an unusually high ratio of 1.5 spaces for condo). Now, it’s only that small matter of the neighborhood building up around it.

District of Columbia retail and real estate development news

Marriott & Donohoe Team Again to Open Courthouse Hotel

Marriott has opened yet another link in its impressive chain of DC area hotels, a Residence Inn hotel at the Courthouse Metro in Arlington at 1425 North Adams Street. The Residence Inn Arlington Courthouse hotel's 176 suites replace what had been a vacant lot for almost 20 years. Marriott won the RFP in 2004, began construction in September of 2007 and opened its first rooms for business in August.

The hotel is the newest in the Rosslyn-Ballston corridor. Donohoe Construction company built the project, which was developed by Donohoe Development, designed by Leo A Daly Architects, and is managed by Donohoe Hospitality.

The new Residence Inn has LEED building features certified to meet Arlington County environmental standards boasting a green roof and chemical-free cleaning solutions - made through an in-house process that mixes tap water with salt and electricity, a process used in many hospitals and throughout Europe for, like, years.

As for economic benefits to Arlington, Chris Bruch of Donohoe highlighted the estimated $2 million in tax revenues to be generated annually and the creation of 42 new hospitality jobs, 90% of which are for Virgina residents.

Fire Works restaurant will occupy approximately 5,500 square feet at the street level on Clarendon Boulevard and open up to the Western end of Courthouse Plaza for patio dining. The 240 seat (160 indoor, 80 outdoor) restaurant will offer "upscale casual dining featuring local, fresh and organic ingredients" and is expected to open in Spring 2010. And by the way, it's a pizza place. Bruch indicated that there is still over 3,700 s.f. of ground floor retail space available and ready for a tenant.

Central Union Mission's Development Blues

The hotly contested Central Union Mission property on the corner of Georgia Avenue and Newton Street in northwest DC had its day at the DC Board of Zoning Adjustment (BZA) last Tuesday. Original plans to move the Christian men's residential facility (read: homeless shelter) from its dated digs in Logan Circle to Georgia Avenue met significant community resistance, leaving the Mission to scrap the homeless shelter idea and design a new building with mixed-use residential and office space instead. The BZA ultimately approved the new plans for a mixed-use project, on the condition that the Mission not modify its approved use. Having relented to community pressure over the proposed shelter and without any prospective buyers or development partners, the Mission worked with designers at Cox, Graae + Spack Architects to develop a more conformist project. The new plan calls for 37 residential units affordable to residents with incomes of 50% - 80% AMI (about $45,000 - $80,000). The building will include a small bay of ground floor retail on Georgia Ave., an additional 3,700 s.f. of office space, which may be reserved for Mission administrative uses, and 27 parking spaces in a below-grade garage. The community has vociferously opposed building a homeless shelter on the site. At a September ANC meeting, the Mission assured residents that the project would no longer include the shelter, but would rather provide low-income housing and retail/office space. ANC-1A08 Commissioner Cliff Valenti appeared at the BZA meeting to reiterate that the ANC's approval was conditioned on removal of the homeless shelter from the Mission plans. The ANC remains anxious over the property, despite the Mission's assurances, largely because the proposed alternate location for the shelter at Gales School (pictured, at right) near Union Station has now become a legal issue. Originally, the plan was for a land swap in which the city would gain the Georgia Avenue property and the Mission would get use of the school as a shelter. But the exchange was derailed by an America Civil Liberties Union law suit claiming an Establishment Clause violation - i.e. separation of church and state - because the property swap would result in a net gain of $12 million for the Mission, which requires homeless men to participate in religious services in return for room, board and counseling services. With the swap in doubt, the ANC demanded, and now received, a formal prohibition of the shelter. With their tenancy in Logan up and their Mass Ave location in doubt, it seems the Mission itself may now be in need of a home.

Washington DC commercial real estate news

Sheridan Terrace Redevelopment Brings Hope to Ward 8

Big changes are in the works in Washington DC's Ward 8 beginning this winter. Phase 1 of the highly anticipated Sheridan Terrace public housing redevelopment is slated to begin construction in January or February 2010 - depending on when the D.C. Housing Authority finally closes on financing for the project.

Located east of Sheridan Road and bounded by Howard Road, Sayles Place, Stanton Road, and Pomeroy Road, Sheridan Terrace’s 11 acres in Anacostia are owned jointly by the DC wHousing Authority and William C. Smith & Co. As lead developer, Smith partnered with Union Temple CDC and Jackson Investment Co. to form Sheridan Terrace Redevelopment LLC. Sheridan Terrace will comprise a small piece of the Barry Farm/Park Chester/Wade Road redevelopment planned for Ward 8. Smith will also work with the Housing Authority on a master plan for these surrounding communities. The project was designed by Bethesda's SK&I Architects, which furnished the seven different building designs that will include landscaped greenspace and a pedestrian trail.

  

Phase 1 of the 344-unit Sheridan Terrace construction will revolve around an initial 122 units. One hundred and fourteen Phase 1 units will be allotted as low-income rentals and eight will be available for home ownership. Look for a completed Phase 1 in August of 2011. Phases 2 and 3 of the redevelopment will begin once all units in Phase 1 are filled, but the entire project is expected to be complete by 2015. When all three phases of Sheridan Terrace development are entirely completed, the 344 units will be almost double the amount of the original Sheridan Terrace - a troubled project that was torn down in 1997. As with the original, the new-and-improved Sheridan Terrace will contain 183 public housing rental units. An additional 161 units will go up for sale; 117 of these will be sold at market rate and another 44 will be sold as affordable units. Units will consist of a mix of townhouses, "manor houses" (i.e. three-bedrooms), and apartments with anywhere from one to three bedrooms. At the completion of the project, Sheridan Terrace Redevelopment LLC will be reimbursed with a Low Income Housing Tax Credit equal to the cost incurred for the development of 73 of the low income housing units. Housing Authority Project Manager Kerry Smyser estimates the cost of the entire redevelopment at $21,477,853 - although this number has been on the rise ever since the DC Housing Authority won a nearly $6 million Hope VI Grant for the project back in March of 2008. As a requirement of the Hope VI Grant, former residents will have first dibs on public housing units offered in this reincarnation. But as Ward 8 Commissioner William Ellis explains, luring old tenants back may not be easy. “The Sheridan Terrace community was really displaced” by the 1997 razing of the dilapidated, crime-ridden housing project. "It’s been a long time since many people from the original Sheridan Terrace have actually even lived in the neighborhood.” The city has taken steps to avoid repeat circumstances by ensuring that at least 25 of the public housing units available in Phase 1 will be reserved for current Barry Farm residents—another Ward 8 redevelopment project on the horizon. Other changes in the Ward 8 community, like the new Savoy Elementary School and planned renovations of neighborhood parks and recreation centers, are going a long way in reassuring Ward 8 residents that the newly developed Sheridan Terrace will play a positive part in changing the landscape of their community. “Now,” says Commissioner Ellis hopefully, “if we could just get some more restaurants.”

Washington DC commercial real estate

Progress on Stalled Dumont

Mt. Vernon Triangle's DuMont Condominium's 559 units at 401 Massachusetts Avenue, NW, have sat lonely and vacant since the project was substantially completed a year ago. Lender PB Capital issued a foreclosure notice in December when the developer, The Broadway Group, failed to secure enough deposits to meet the lender's demand. Mt. Vernon blog The Triangle first reported resolution in the form of a sale to Ideal Realty Group (IRG), which specializes in multifamily and distressed/bank owned properties.

The IRG website lists the 559-units at the Dumont as "under agreement." According to one commenter on the Triangle, at a Mount Vernon Square Neighborhood Association meeting, Bill McLeod of the Mount Vernon Business Improvement District (MVBID) confirmed the sale. You can bet all those new tenants (whether owners or renters) and the potential for retail would be welcome news to the MVBID.

No one at IRG was available or willing to comment or confirm the sale. While there is currently no sale recorded, the September 18th release of a mechanics lien is further evidence of a deal. A representative at Custom Glass Services Inc. was unwilling to comment about any sale agreement, but confirmed the company had a lien on the property that was resolved through a payment from the general contractor, James G. Davis Construction Corporation.

It is unclear if the Dumont, designed by Esocoff & Associates as condominiums, would be sold as such or rented as apartments.

Federal Tax Credit: Extension? Expansion? Extinction?

Recently we wrote that the $8,000 first-time home-buyer tax credit is set to expire November 30th. It still is, but there are at least 21 separate bills sitting in various Congressional committees that would extend the deadline, and then some. Industry professionals have expressed concerns that recent gains (or mitigated losses) have been largely bolstered by the tax credit, without which the market may again falter.

All the bills all have the shared goal of extending the current tax credit, before it expires, some aim to expand it. Several bills seek merely to extend the life of the credit (at the $8,000 mark) for another six months or a year. In addition to the extension, other bills propose an increase in the value of the credit to 10% of the purchase price, up to $15,000, and make the credit available to any home purchaser, as long as the property is a "primary residence" within 24 months of purchase.

Craig Sacks, Title Attorney for National Capital Title and Escrow opined the $8,000 tax credit did not have much effect on the DC market because of the lack of first-time home buyers and the price point for real estate in the DC area. To have a significant effect in DC, a bill would need to extend the timeline, expand the credit to $15,000 and include all home-buyers. It would be a "boon to real estate agents and the rest of the industry," said Sacks.

No bills are scheduled for votes in either the Senate or the House, and Congressional sources say that the health care reform debate is sucking the energy out of other legislation. The most likely way we'll see some sort of extension or expansion is as an amendment to another bill already scheduled for a vote.

Real Estate Financial Modeling Seminar

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In conjunction with its exhibiting at the Urban Land Institute Washington’s DC Conference, Arlington-based Real Estate Financial Modeling (REFM) officially launched its company yesterday to meet the growing demand in the real estate professional and educational realms for fundamentals-based, quantitative real estate development financial modeling resources.

As real estate professionals and students worldwide have returned to conservative underwriting standards, there has been a strong increase in demand for analytical, investment and educational resources to help the real estate community better analyze and present their development transactions in this rigorous way.

REFM was founded by Wharton MBA and DC metro area real estate developer Bruce Kirsch. Through REFM’s Live Group Training Sessions, Bruce imparts the wisdom, techniques and shortcuts learned through more than 10,000 hours of Excel modeling and real estate development experience. The next Training Session is on Saturday, September 26th at George Washington University, and in an innovative twist, all Training Session attendees will also get the REFM Financial Model and Video Tutorial Module downloads, which contain sophisticated Excel-based models as plug-and-play tools ready for transaction analysis, as well as videos of the Training Session content as a permanent reference. Those who are unable to get tickets to a Training Session can purchase the Modules as a standalone product at REFM’s website, www.realestatefinancialmodeling.com.

By providing this novel, detailed learn-at-your-own-pace Video Tutorial component, REFM not only empowers its customers with the ability to customize the Financial Models to their particular needs, but also saves university professors and students valuable class time for more nuanced teaching and learning of these critically important technical skills. Additionally, a Case Study offered by REFM is already on a syllabus at the University of Southern California, and more than 15 other major universities worldwide are currently evaluating the Case Study product.

“Now, more than ever, meticulous quantitative analysis of real estate transactions is critical,” stated Bruce Kirsch, Principal of REFM.

Down the Rabbit Hole at National Park Seminary

With a mix of decaying and revamped historic buildings tucked among cookie-cutter suburban dreams, Maryland's National Park Seminary, an adventurous attempt at adaptive reuse, is surely the most unique new community regionally, if not nationally. The collaborative development team of The Alexander Company and EYA will sponsor a "ribbon cutting" today, highlighting the new construction and first stages of historic renovations ready for tenants, particularly the newly finished Ballroom condos.

A surreal, 32-acre conservation area is the setting for 280 new and rehabbed residences culled from an international showcase of homes - think Swiss mountain lodge next to Dutch windmill, astride American colonial. Shopping for a Japanese Pagoda? Yes, but you will have to wait, Alexander is still using it as office space.

The beltway-hugging Silver Spring site includes new townhomes, historic condominiums, rental apartments and historic single-family homes, formerly an elite girls finishing school and the United States Army quarters (an exemplar of mixed-use). The land extends to I-495 and a few new townhomes have back porch access to Rock Creek Park. The nearest metro, Forest Glen, is about a mile from the site, so residents working in DC will be stuck commuting up 16th street, the most direct route to downtown.

The Seminary has an interesting recent history as well: having identified the property as surplus, in 2001, the U.S. Army tried to raze the historic structures, but local preservationist Save Our Seminary banded together to prevent the historic loss. The federal government then turned the land over to Montgomery County, which selected Alexander as the developer in 2004 after a competitive RFP. Alexander, both the developer and architect, worked with EYA as a local partner for the new construction and hired Struever Bros. Eccles & Rouse as general contractor. The historic preservation is valued at over $150 million, which Alexander hopes to offset through sales of the new construction.

Dan Peters, Director of Communications for Alexander, highlighted the unique buying opportunity of historic units, "not one of the condos or apartments has the same floor plan...the site is the most unique residential development in the country." No argument here. The single-family historic homes designed to look like international dwellings and the hodgepodge designs of the condos are unexampled, one part World Fair, one part Alice in Wonderland. Interspersed are the mostly-standard townhomes of EYA - generally the epitome of architectural sameness at home in any suburban cul de sac, for one of the most eclectic juxtapositions outside of a museum.

Since sales began in January 2006, all but 4 of the 90 new EYA townhomes have sold and the 66 historic rental apartments are fully leased, though only 20 of the 50 historic condos, which began delivering in late 2007, are spoken for at present. Only two of the historic single-family homes have sold so far.

The one, two and three-bedroom EYA townhomes range from $400,000 to $900,000. The 90 new townhomes and courtyard homes feature Spanish Mission, English Tudor, and Arts & Crafts architectural styles.

With only 4 new townhomes left for sale, buyers may want to fix their gaze on the condos or the historic single-family homes. The condo, pictured at right, features stained glass throughout, a lofted bedroom and reportedly sold for nearly $1.5 million. The first phase of historic condos is just about entirely complete and the second phase, which will tackle historic buildings including the gymnasium, the stables, the servants quarters and carpenter's shop, is set to begin in spring of 2010. Peters indicated construction would take between 12 and 18 months to complete.

Peters notes that historic single-family homes will demand a knack for historic preservation to meet the county's standards. Though to date only two of the homes have sold, the developer was optimistic that sales of historic condos would pick up with the progression of construction - a benefit of selling a concept versus a finished product. But with an entire phase of construction remaining, buyers may still need an active imagination.

Tenley Library Construction to Start

Years into discussions about the fate of Tenleytown Library, DC officials have announced that construction, or at least a ceremonial pretense, will at last begin this morning at 10:30am. After an embarrassingly nasty brawl over the fate of the postage stamp-sized parcel at Albemarle and Wisconsin, the fate of the library seems at long last decided. Sort of. Following the long term loss of the library in 2005, everything has gone according to plan, excepting, that is, the lack of plan for a new library, the city's belated selection of a developer for the site, the public outcry over the city's selection thereof, the battle over the right to build housing above a Metro (gasp!), a subsequent war between the DC Council, locals, and DMPED over control of the project, DMPED's decision to lead its own charge and issue an RFP for the project on its own, DMPED's mysterious shift in qualifications for the site - after submission of bids - which it shared with only 2 of the 3 applicants, DMPED's decision and hire LCOR, Inc. as the developer in July of 2008, the community's rejection of LCOR's plans, DMPED's pronouncement of a "rare opportunity" to bring subsidized housing to the "underserved (retail-challenged) Wisconsin Avenue," the quiet dropping of LCOR from the project in March of 2009, the Mayor's decision to build the library and then figure out if apartments should go on top of it, and his final pledge that the building would - damn the torpedoes - be completed in 2010. Did we miss anything? Water under the bridge though. 

Now work begins on the new library, and one thing is for sure, Forrester Construction will build it. Even if "it" is still undetermined. As of August, the city had not committed on a plan for the residences supposed to sit on top of the library, but rather had planned to build the library in the hopes that someone could somehow put a building on top of library shortly thereafter, consigning the project to permanent construction site status. Nor had the District selected an architect to design the library (now technically under construction), basing its plans instead on simple conceptual designs by the Freelon Group (see rendering at left) and R. McGhee & Associates. And Janney parent groups, which opposed the plan as a taking of its green space, will now lose its field as a construction staging ground for up to two years. And then construction may start all over again. Wow, glad that's all settled.

Washington DC commercial real estate news