Land Dispositions Receive Council Approval

A series of Land Disposition Agreements related to three major developments planned across Washington DC all received City Council approval this week. The Council previously reviewed the proposals and heard community comments during a July session, and issued their decisions publicly. 1. Donatelli Development and Blue Skye Development's Minnesota-Benning Phase 2 Redevelopment, the planned low-income housing and retail space adjacent to the Minnesota Avenue metro station. The 5-acre, $108m project will bring 375 affordable and 60 market-rate units to Ward 7, with completion as early as 2011. 2. Denning Development, UrbanMatters Development Partners and Beulah Community Improvement will redevelop properties located at 400-414 Eastern Avenue, NE and the 6100 block of Dix Street NE. The selected plan will offer 56 affordable for sale 3-bedroom townhouses, ideally completing in late 2011. 3. Washington Community Development Corporation (WCDC) and Banneker Ventures LLC's Strand Theatre development will transform the 80-year-old former movie theater into the new home of an 18,000-s.f. restaurant and 18,000 square feet of “affordable” office space. The LDA was announced exactly one year after Mayor Adrian Fenty chose the developers for the long-neglected Deanwood project.

Washington DC commercial real estate news

Mission Says "Maybe" to Park Morton

After Wednesday's press conference announcing the DC government's award of the enormous Park Morton contract to Landex Corp., Warrenton Group, and Spectrum Management, DCMud promptly reported the more surprising revelation by Councilman Jim Graham that the District would roll the controversial Central Union Mission site into the Park Morton project - a win for the Park View Partners (Landex, et. al.), who get more area to work with, for the Mission, which gets bought out of a neighborhood that has fought the project from the beginning, and for the neighborhood, which slams the door on an unwanted neighbor. The problem? Neither the Park Mortonians nor the District of Columbia ever quite finalized any such agreement with the Mission. While officials have been working closely with owners of the Mission to reach such an agreement for "some time," sources at the DC government say the Mission is continuing to pursue its own zoning approval to relocate to the site, as we reported earlier, but also to negotiate with other suitors. While things may fall into place, they're not there yet.

Washington DC commercial property news

Arlington Park Replaces Industrial Site

Arlington County will break ground in the new year on lighted athletic fields, more than a mile of walking trails, a public river overlook, and new rain garden among other amenities planned for the first phase of work on the 46-acre Long Bridge Park. The Park borders the Potomac River, Crystal City, I-395, the Pentagon, Roaches Run Wildfowl Sanctuary and Reagan National Airport. One of the few new public parks to come to Arlington in several years, Long Bridge Park will fill an increasing demand for open space and recreational facilities on land once utilized for commercial and industrial activities. The County is currently seeking contractors for site work, with construction slated to begin as soon as January.

In a June 2002 Arlington Parks and Recreation Resident Survey, trails and indoor swimming pools were the number 1 and 2 items respectively Arlingtonians felt were needed most in the County. The overall plan calls for trails for pedestrians and bikers, full-size grass fields with lighting, and esplanade with public event area, and a building housing a 50-meter pool for lap swimming, classes and competitions, therapy pool, exercise rooms with weights, cardio equipment and classes.

The first phase of development will include three full size, lighted athletic fields, trails, Esplanade (a broad, half-mile long, raised walkway), overlook, picnic areas, restrooms, and on-site parking for 180 vehicles. Additionally the county will begin improvements to Old Jefferson Davis Highway, which will change from being a simple two-lane road to include up to 100 spaces of on-street parking, two lanes, painted bike lanes and of course, fewer potholes. Environmental remediation efforts for the site center on removing lead from the county property the had formerly seen industrial use.

In 2004, Arlington voters approved $50 million for construction of the first phase of the park through bond issuance which will go toward the outdoor features with some funds reserved for the aquatic and fitness center. Plans for all indoor facilities on the site will be designed to achieve a LEED Silver rating. Currently, the county is exploring options to fund the remaining expenses of the indoor facility and will not begin construction until a solution is found.

According to Erik Beach, a Planner at the Arlington Department of Parks, Recreation and Cultural Resources, the county will award the construction contract in December and hopes to have construction start shortly thereafter. Beach anticipated that the park would be open to the public approximately 18 months after construction begins. Beach said officials are "looking forward to having one of the first new large parks in the county, serving multiple ages...with the ability to meet a large need."

Arlington is initially seeking upwards of $20m worth of general contracting for development of three soccer / lacrosse fields with synthetic turf and dark sky lighting, parking, support buildings, bio-retention gardens, landscaping, a raised mechanically-stabilized earthen esplanade, remediation of contaminated soils, utility relocation, and reconstruction of an existing road. The entire project is expected to cost $90 million depending on phasing and funding sources. The pre-bid conference will be held on October 27, 2009 at 10 A.M. and bids are due by November 17, 2009 at 2 P.M.

Images Designed by Hughes Group Architects.

District Gov Adds More Time for West End Development Offers

The DC government has postponed the deadline for three West End parcels now on the block for redevelopment. In July, the city sought proposals to redevelop the West End Library, fire station, and special operations police unit, each of which would have to be rebuilt on or off-site. The DC government initially set a due date of October 2, but changed the date in mid September to October 30th. No bids have been received to date. The District is seeking "creative proposals" that thoughtfully address the neighborhood's overall vision for the neighborhood - a plan that foresees safe, lively streets with a local retail center, and livelier Washington Circle, revamped to be more of a meeting place. The process began with legislation in the summer of 2007 with an attempted sale to Eastbanc Development, which developed the Ritz Carlton hotel and condo and 22 West condos, but which stirred the ire of residents for its non-competitiveness.

Congress Heights Project to Stimulate Neighborhood "On the Edge"

Yet another project, originally planned as condominiums, will now be developed as affordable rentals, this time in the Congress Heights neighborhood. William C. Smith & Co. (WCS Development) will soon begin the interior fit of 82 units in three apartment buildings at 13th and Mississippi Ave SE, across from Oxon Run Park and walking distance from the Congress Heights Metro Station. The developer expects construction to begin by March 2010 after financing issues delayed the project initially slated for completion in Spring 2008. Jeffrey Smith, Project Manager at WCS, said the switch to rental, with 50 of the 82 units slotted to be 975 s.f. two-bedroom, two-bath rental apartment homes, will make available spacious apartments "not really equaled" in the neighborhood. The condos will total 98,000 s.f. with an added 429-square-foot bump-out to accommodate the two-bedrooms. An original surface parking lot and an additional new lot will provide 56 parking spaces total for the property. Smith said the area of Congress Heights is "on the edge" of a lot of new development with several projects in pre-development and completed projects like Savoy Court delivering new units. He said the community is looking forward to the infusion to "help stabilize their neighborhood." All of the units will be affordable for individuals making 60 percent or less of Area Median Income in accordance with Department of Housing and Community Development's (DHCD) 9 percent Low Income Housing Tax Credits. To comply with DHCD's standards for the tax credits, the building is designed to meet and exceed DC's Green Communities standards, featuring roofs with Energy Star reflectivity standards, low-flush plumbing fixtures and even green (not the color) carpeting. Gutting the interior, the first phase of construction which began quite some time ago, is now 95% complete. Describing the project as "almost like new construction" Smith indicated that the only remaining elements of the original structure are the external walls and the floors. Smith said the developers are "anxious" to get moving on the next phase of construction and that they have all of their permits lined up. Now if that financing would just come through... The project architect is Eric Colbert and Associates and WCS Construction, LLC is the General Contractor, but the project is still in the planning phase for subcontractor bidding for around $4 million worth of work. According to Smith the total cost of the project is estimated at $19 million.

Washington DC commercial real estate news

DC Ponders Resuscitating Franklin School

The Deputy Mayor for Planning and Economic Development (DMPED) has released a Request for Proposals (RFP) to redevelop the historic, Adolf Cluss-designed Franklin School. According to the RFP, the District seeks to enter into either a land disposition agreement or lease with a qualified developer, though there is a "strong preference" to enter into a "long-term ground lease." The three story building is centrally located off of Franklin Square on the southeastern corner of 13th and K Streets NW.

Currently zoned for high density business and retail, the RFP indicates the developer may vary from this use and plan to request a zoning variance, special exception or Planned Unit Development (PUD). Both the interior and exterior have been designated as "historic," so the developer will have to work around both DC and federal laws, as well as the numerous DC historic preservation advocates that have long eyeballed this project, when considering the design. But, be prepared to hire on 35% LSDBE entities while requiring no more than 20% in capital from same.

The storied school is nothing if not historic, completed in 1869 by one of DC's best known architects, the site of Alexander Graham Bell's first "photophone" wireless message, and has since been used as a homeless shelter and office building. The thought to match the majestic architecture to a proper use is not new; in 2003 Mayor Anthony Williams' administration led an effort to revamp the school with an RFP, and selected Western Development to turn the property into a hotel. But the plan foundered on the shoals of realpolitik when the nearly evicted homeless men had nowhere to go.

Then-Councilmember Adrian Fenty supported keeping the building dedicated to housing the homeless, but upon ascension as mayor resolved to clear up the issue immediately.

Park Morton Gets a Two-For

Just over a year after DC announced the Request for Proposals (RFP) concerning the $130 million initiative to redevelop Columbia Height's Park Morton public housing complex, DC Mayor Adrian Fenty chose Park View Partners (Landex Corp., Warrenton Group and Spectrum Management) to move forward with their plan for 500 new units of affordable, work force and market-rate housing and a 10,000 s.f. park. The architect for the project is Wiencek and Associates. In a surprise move officials described as a"two-for," the Park Morton developers will also absorb the land on Georgia Avenue currently owned by the Central Union Mission to bring a wealth of mixed-use development to the Georgia Avenue Corridor. A ground breaking date was not announced. The Park View team won out over the narrowed down field of teams named in March including the Park Morton Partners (Pennrose Properties, LLC, FM Atlantic, LLC, and Harrison Adaoha, LLC) and the other Park Morton Partners (Neighborhood Development Company and Community Builders, Inc.). Deputy Mayor for Planning and Economic Development, Valerie Santos, praised Landex for it's experience in successfully completing redevelopment projects of distressed urban housing, including HOPE VI projects, in cities along the East Coast. The announcement about Central Union Mission came as a surprise, as the group recently went before the Board of Zoning Adjustment (BZA) and carried out a series of community meetings about their planned development at Georgia Avenue and Newton Place. According to Catherine Fennell, a consultant working as the Project Manager with the Warrenton Group, the Mission continued moving forward while the award for Landex was pending. But Fennell indicated the two groups have been working on their agreement and will make the purchase official now that the award for Park Morton was announced. The Park Morton project is one of four designated New Communities, an initiative begun by Former Mayor Anthony Williams. Others include Barry Farm, Northwest One, and Lincoln Heights/Richardson Dwellings, all of which, the Mayor today promised, would continue forward with a guarantee of "no displacement" for current residents.

Washington DC commercial real estate news

DC Seeks Developers for Georgia Avenue in Takoma

DC's Takoma neighborhood may be on the receiving end of new development, thanks to a Solicitation for Offers from the Deputy Mayor for Planning and Economic Development (DMPED). The solicitation is for the 15,000 s.f. parcel at 6925-6929 Georgia Avenue, NW, across from the Walter Reed Army Medical Center. The district seeks a group to plan, finance, build and operate a project that may include mixed-income housing, community-serving retail, and cultural amenities. Responses are due January 15, 2010 at 3PM.

Currently, the property is unimproved and zoned for R-5-B, with height limits set at 50 ft and maximum lot occupancy at 60%. In the solicitation documents (PDF), the District boasts of the property's location on Georgia Avenue, "ubiquitous mass transit" in the form of a "highly-trafficked arterial" road and its relatively short distance from the Takoma Park Metro, a little more than half a mile away.

Community preferences for the parcel include residential (apartments or condominiums), child care facilities, green space (particularly setbacks), LEED standards and appealing architecture. Big no-nos are commercial uses and clubs and liquor stores; probably strip-clubs and check-cashing stores too. Hint: the solicitation indicated that these preferences should be taken into strong consideration by developers.

Grocery Store and Apartments Coming to H St NE

The H Street corridor may soon have a new 6-story apartment building and full service grocery store, a boon for the up-and-coming neighborhood in northeast Washington DC. Steuart Investment Company has owned several of the lots on the northeast corner of 3rd and H Streets, and in 2005 assembled a developable site by acquiring the remaining portion from BP AMOCO (BP) for $1.5 million, scotching BP's plans for a giant filling station and truck depot. The developer plans to build a six-story building with over 200,000 s.f. of residential and 46,500 s.f. of retail designed by Torti Gallas. The mixed-use building, with neighborhood approval, calls for an anchor grocer and LEED- certified rental units, and will continue the reinvigoration of a corridor already known for its burgeoning restaurant, bar and entertainment scene.

 

Things have not always been so peachy at 3rd and H. BP once had plans for a "BP Connect" gas station megaplex, but the company met severe opposition from the community and, after knocking down historic houses on the site in favor of gas pumps and a truck stop, abandoned plans. The Steuart acquisition was welcomed with relief when its PUD application for zoning changes was first approved in 2006, with local ANC and community groups supporting the application. Steuart will go back before the Zoning Commission November 30th to request several changes to the original plans, reducing the number of stories from eight to six and removing one level of parking. The new proposed application includes 212 residential rental units, featuring studios, one-bedrooms and a few two-bedrooms, as well as two levels of below-grade parking. The first level of parking will service the grocery store with 152 planned spaces and the second level would be reserved for residents with 146 spaces (0.7 spaces per unit). Pending Commission approval, Guy Steuart, Sr., Vice President of Steuart Investment Company, said he hopes "all the pieces will come together" and will be digging by "mid-summer or fall of next year." Construction now underway is Steuart's consolidation of the lot and installation of storm sewer and water connections. 

As DDOT executes the H Street Great Streets Plan, the developer decided to take advantage of the "mess" and install utilities now to avoid future expense and inconveniences for area residents later. However, Steuart said his group will not move forward with construction until a grocer is signed on for the retail space. He affirmed discussions with a full-service grocer, but was unwilling to disclose which one. Previous discussions had fallen through with a grocer that had decided to locate on the other side of NOMA, referring to the Harris Teeter coming to Constitution Square. So residents might be looking at yet another Safeway (which would be consistent with Torti Gallas's extensive work with the grocer throughout the DC area) or perhaps a Giant or even, dare we say, Whole Foods on H Street? No one would have thought that was likely in Logan Circle ten years ago. Meanwhile, the Dreyfus property group plans for a similar-sized apartment building just across the street that has yet to start construction. Hopefully both will rent more quickly than the painfully slow pace of occupancy next door at Senate Square.

Washington DC retail and commercial real estate news

Housing Authority Director's Departure for NYC Miffs Some, Changes Nothing

Former Executive Director of the DC Housing Authority (DCHA) Michael Kelly assumed his new position as the new General Manager of the New York Housing Authority (NYCHA) today.

Kelly's last day in his position with DCHA was last Wednesday; DCHA announced his departure as a chance for Kelly to “explore other opportunities in the affordable housing industry.” To New Yorkers, leaving DC for The City is a promotional no-brainer, while those of us remaining feel no pangs of being dumped, or need to justify why DC is every bit the city New York is. Because it just is. Really, its obvious.

So why is New York pilfering from its smaller but not inferior neighbor? In a New York City press conference held last Thursday, Mayor Michael Bloomberg announced Kelly’s appointment as NYCHA’s new General Manager. "During his tenure in Washington he oversaw a significant modernization of public housing in that city. Under his leadership the housing authority there also received the highest possible ratings for quality of its financial and management operations."

So do New Yorkers tip their hats to DC as something to emulate? Don't count on it. When asked about which part of Kelly’s almost decade of work in DC impressed the New York powers-that-be, New York City Council spokesman Howard Marder told DCMud that the decision had less to do with DC and “more to do with his overall career.” Though, as Marder pointed out with evident contentment, “I was just reading that Marion Berry didn’t want to give him up and thinks DC shouldn’t have let him go.”

Despite that faint praise, Marder added “I think he’s going to fit in very nicely here,” adding that in addition to his service in DC, Kelly served as “President of the Council of Large Public Housing Authorities, brings an incredible academic record, and has 28 years of experience in the public housing sector.”

Since beginning his position with the Housing Authority in DC in 2000, Kelly, according to DCHA's website, secured "over $786 million in public and private funding for public housing" in the District and helped DC win an additional $105.7 million in the form of HOPE VI Grants.

Asked about whether the DCHA would suffer from Kelly's absence, DCHA spokeswoman, Dena Michaelson said “I doubt it,” adding that there will be “sadness, but no big changes are in the works yet.”

In his new role, Kelly will be responsible for the day-to-day NYCHA operations as well as helping implement strategies to expand New York’s public housing while making it more cost-effective; a tall order from a housing system that serves over 403,000 people (1 in 20 New Yorkers), has a $3.2 billion dollar budget and carries over $130 million in annual deficits.

Back in DC, a national search for a permanent DCHA director marches forward. Adrianne Todman, former deputy executive director for administration and external affairs, will serve as the interim Executive Director until Kelly’s permanent replacement is named. Maybe we should check out how Baltimore's Housing Authority is being run. Not that coming to DC would be a step up or anything.

Liberty Market Open in Mt. Vernon Triangle

Mt. Vernon Triangle's new Liberty Market, a farmer's market, has opened for business. The market located at 7th and K Streets, NW on the grounds of the old Carnegie Library, now home to The Historical Society of Washington, DC, will be open every Tuesday afternoon from 2:30-6:30 p.m. Producers expect that vendors will offer fresh produce as well as prepared food, beverages, art work, and live music.

Liberty Market is produced in cooperation with The Historical Society of Washington, DC by Michael Berman of Diverse Markets Management, which also runs the Sunday Eastern Market and the downtown holiday market.

Though last week's inaugural debut saw only six vendors and one musician, the market managers are eagerly expecting to add new vendors. Bill McLeod Executive Director of Mount Vernon Triangle Community Improvement District (CID) said " We hope the market will grow as word gets out and vendors tell other vendors." And musicians tell other musicians...

"This exciting neighborhood keeps getting better and our substantial population of residents and office workers are continuing to benefit from the focus of the area's retailers and service providers," said Jeff Miller, Chairman of the Mt. Vernon Triangle CIDs. Interested vendors can contact Diversified Markets Management at (202) 543-3370 or info@diversemarkets.net. Now if they can just figure out how to resolve DC's most odious traffic circle that surrounds it.

WWI Memorial Refurbishment Approved

The National Capital Planning Commission (NCPC) met Thursday to review several project that fall under its purview, ultimately "commenting favorably" on all. One of the bigger items on the agenda was improvements to the District's World War I Memorial on the National Mall. The National Park Service (NPS) plans to restore the District of Columbia World War I Memorial, located on the Mall just above Independence Avenue, SW. It is the only District monument on the National Mall and honors residents of the District who fought in the war. Originally dedicated by President Herbert Hoover on November 11, 1931, the 47-foot tall memorial was used as a band stand, able to hold an 80-person band with space enough on the surrounding lawn to seat 300 people. It's last recorded use for public music was in 1960, since that time, the memorial has fallen victim to wear, tear, and obscurity. The NPS will clean and repair the memorial by adding bluestone and Elm trees, replacing non-historic paving with granite, and removing "non-historic trees." When completed, the memorial could once again be used as a bandstand. Restoration is expected to be complete by September 2012 and will cost an estimated $5.2 million, funded by the American Recovery and Reinvestment Act. But that won't remedy the security fences and lack of parking that make visiting the memorial difficult, and comparatively rare.

Washington DC commercial real estate news

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