Ripley District Moving On Up

Silver Spring's Ripley District, once home to a derelict strip of parking garages and auto body shops, has had its share of growing pains in the economic downturn, but signs of progress are sprouting up in the form of construction and design reviews for area projects. The Ripley District, a triangular parcel of downtown Silver Spring between Bonifant Street, Georgia Avenue and the B & O Railroad, is one of Montgomery County's reinvention projects in an effort to bolster real estate development and the growth of Silver Spring. Planned residential and commercial projects are in various stages of development, one building is almost finished, others are waiting on the sidelines.

The County approved designs for the Midtown Silver Spring residential building in September 2008, but developer Home Properties is back with altered plans, a new project name - Ripley Street North - and a new architect - Shalom Baranes Architects. The team submitted amended plans earlier this month, and the developer expects to go before the Planning Board shortly after their February meeting with the Design Review Committee. The new plans, though still tentative, would increase the total number of residential units by 50 to 396 and, of the total, 49 will be moderately priced. Though the team has made several adjustments to areas including public use space and building setbacks, the planned structure maintains a 5.0 FAR density rating. According to Elza Hisel-McCoy a Coordinator within Montgomery County Planning Department's Development Review Division, depending on the comments from the Design Review Committee, the Planning board could review the project six weeks to two months thereafter. More information will be available once the DRB makes recommendations and the Planning Board staff issues a review, likely to come this spring.

Hisel-McCoy added that another planned residential project, the Lessard Group-designed 1150 Ripley, formerly know as 1050 Ripley, has all of its approvals, but there have been no signs of forward motion so far. The approved Washington Property Company plan is for a 306,000- s.f. residential building that will include 318 rental units including 48 moderately priced dwelling units and 7,000 s.f. of commercial space. Evan Feldman, a Development Manager for Washington Properties, indicated that the team is working on financing right now, but expects to begin construction in April of this year, despite the lack of a general contractor. Once construction begins, Feldman expects the first units to be available in 18 months and the entire project to deliver in 21 months. 

For some actual progress in the district, Division One Architects, the minds behind the Lacey, have been working on a brand new headquarters building for ALC, Inc., which will sit on the southwest corner of Ripley Street at Georgia Avenue. The three level building includes a ground floor restaurant and walk up office space with green features like a sodded roof and north and east oriented facades to capture all that natural daylight. The project should deliver by April or May of this year. The County's efforts to re-brand the Ripley District are crawling along, but the development movement so far looks promising for the future. 

Silver Spring real estate development news

NoMa's First Residential Projects

Union Station's finally getting new neighbors as NoMa's very first new residential developments approach completion. The Loree Grand, the first phase of the planned Union Place development, brings 212 new rental units to 250 K St., NE. The building, which began construction in July 2007, is on track to be ready for occupants by March or April. Next door Paradigm Development is hard at work on The Washington Center student housing also slated for April delivery. The new NoMa residents will have gobs of transportation options including the metro, Marc and Amtrak lines, buses, the new bikestation and, if the street cars ever get worked out, a short ride to the H Street/Atlas District. The two new residential elements will be joined by Constitution Square, which is also expected to be finished in 2010. It's looking to be a good year for NoMa. Loree Grand developer, the Cohen Companies, purchased the land for just over $1 million and has spent $45 million on construction costs with ADC Builders and GTM Architects, the general contractor and architect, respectively. The bulk of the 212 units are variations on 1-bedroom apartments with the remaining 30 units built to 2-bedroom configurations. The Loree Grand will also offer 30 affordable apartments, likely to go to artists, arts administrators, and arts educators thanks to a partnership with the Cultural Development Corporation. Though not certified officially green, the building features a green roof with self-sustaining plant life, but makes up for it with 173 parking spaces in two below-grade levels and an additional 39 spaces on an adjoining surface parking lot. The Loree sits on the corner of 3rd and K Streets with 10 stories at 90ft on the corner stepping down to 7 stories at 60ft on the north end. The design features three shades of brick with precast concrete trim-work and detailing. The the first two floors reflect traditional Washington row house designs, with unit entrances fronting K Street and 3rd Street that will also be accessible from the interior. The building includes amenities such as a 2,000-s.f. private fitness center and 1,500-s.f. "party room". On the ground floor at 3rd and K sits approximately 3,700 s.f. of retail space, which Eric Siegel, Executive VP at the Cohen Companies, says he hopes to fill with a food/wine/coffee shop along the lines of Tryst in Adams Morgan. When(ever) the second phase of Union Place finishes, residents will also have access to a child care facility. According to Michelle Pilon, a Sr. Project Manager at the Cohen Companies, Phase II of Union Place is "currently on hold," but will ultimately feature 500 apartment units and 8,400 s.f. of commercial tenant space. 

Siegel indicated the group was working on drawings now for Phase II, but it sounds like neighbors at the Loree Grand won't have to worry about construction noise for a while. Facing the Loree is 1001 3rd St. NE, soon to be home to students of The Washington Center for Internships and Academic Seminars. The 140,000 s.f. project should deliver this April with 95 rental units and 14,000 s.f. for a state of the art auditorium, classroom space and one level of underground parking with 35 spaces for the swarms of interns who hit DC every year. The Washington Center purchased the property in January of last year for $8.2 million from Greenebaum and Rose. The sale also included designs for the six-story building by architects at Davis Carter Scott, whose plans needed only a few interior alterations to accommodate the student housing. According to Steve Griffin of Paradigm, the housing should be home to 1,200 students rotated throughout the year. Most units are two bedrooms, two baths at about 1,000 s.f. each; not too shabby for interns. In 2003 Greenebaum and Rose bought the land which was once home to the Capitol Cab Company. 

The Davis Carter Scott plans, which were sold in 2009 along with the property, originally called for a $20 million, six story, 92,800-s.f. residential building. In May of 2008 Greenebaum and Rose partner, Sam Rose, told DCMud, “For now, it’s a piece of land with a permit. We’re not starting until the world looks prettier." It would seem that $8.2 million looked a lot prettier than a questionable condo project. The two projects are huge improvements over the former cab company and what was at one time a major drug intersection. The Loree Grand is named after Loree Murray, a former area resident who founded Near Northeast Citizens Against Crime and Drugs to organize neighbors against the rampant cocaine trade and violence in the 1980s. The group aided the police in fighting against one of the biggest cocaine drug rings in DC that at one time operated at 2nd and K St NE, future home of urbanites and interns. Liz Price, President of the NoMa BID, said, "all this residential is a new area for us. We're really excited to build residential density in this neighborhood."

Washington DC commercial property news

Waterfront Towers Condos

Waterfront Towers, 1101 3rd St., SW, Washington DC
Waterfront Towers was redeveloped by Centre Square, LLC, Bernstein Companies, Peak Development and Abdo Development. The "tower", at 9 stories, was designed by I.M. Pei, like several of its neighbors, and built in 1960, then converted to a condo in 2009. The 123-unit project underwent a full renovation in 2008 and 2009, with some green (but not LEED-certified) elements. Sales of the new condos began in August of 2009. The building retains the large, gated surface parking lot, with modern interior finishes and, for the larger units only, washers and dryers in the unit; with a common laundry room in the basement.


Waterfront Towers are not actually on the waterfront - the river is a short walk - but is only a block from the Waterfront Metro station. Prices for the condos started in the $200's for a small studio and at $320,000 for one bedroom. Real estate sales by the Mayhood Companies; about a third of the units in the building were pre-sold to existing tenants.

Washington DC real estate news

Tenleytown Safeway Indefinite Postponement

It looks like all the fuss over the Tenleytown Safeway at 4203 Davenport Street is far from over. Last night the DC Zoning Commission approved a request from the Safeway project team to indefinitely postpone the review of the submitted plan, which was scheduled for this Thursday. The team submitted their request indicating they needed more time go back and address some issues brought forth by the Office of Planning and the community. The indefinite nature of the postponement suggests the Safeway team has been nudged into submission by the neighborhood over the past few months; in August a Safeway spokesperson had anticipated plans would be finalized by this past September.

The existing Safeway store is 35,000 s.f. and, according to the plans initially submitted to the Office of Planning, the new store, designed by Torti Gallas, would grow to 58,000 s.f. and include neighborhood retail like a coffee shop, dry cleaners and florist. The project would provide 176 off-street parking spaces, some of which will be on the ground level below the elevated grocery story and some in a surface parking lot. The roof would have 1400 s.f. of green roof elements, the remainder would be a "cool roof," which means a mere 2.6% of the roof is currently designed to be green. Though Craig Muckle, a spokesperson for Safeway, said the building would have other green features and would aim for LEED Silver at minimum.

In October, the Office of Planning expressed concerns about various elements of the plan and requested additional environmental benefits such as an expanded green roof and increased permeability in the surface parking lot. The OP report also cited issues with elements of the site design and building placement. The current plans seeks exemptions including a reduced number of parking spaces, providing 176 when 185 are required, and zoning changes, as several of the included lots are currently zoned for residential uses. Among the more significant requests from Planning was that the applicant better address why the project, given its location, should get zoning exemptions since, unlike many similar projects, the plan does not include any residential density. OP seems to suggest the project has neither demonstrated a need for the requested flexibility nor demonstrated the additional benefits to the community to justify a change in the zoning evaluation from a matter of right to PUD. To paraphrase, what's in it for "us"? A question neighbors have been more than willing to ask.

Neighbors object to a variety of elements about the plan. Certain voices clamor for dense mixed-use development that includes residential space and retail independent of the grocer. Others in the neighborhood prefer the short and squat nature of buildings in the surrounding area and would prefer to see changes come as matter of right development, leaving out the chance of future denser development. Then there are the standard worries about noise, traffic, and lack of community benefits. The community has some reconciling to do and Safeway now has plenty of time to get that feedback.

According to Muckle, the group "had been doing outreach and a number of issues arose" the team requested "more time to explore the issues without the pressure of a pending hearing prohibiting them from examining as fully as needed." Why the indefinite proposal then, why not six months? Muckle said Safeway did not want to be "pigeonholed" by a timeline. In Safeway's request for postponement, the team indicated that they will work with the community and Office of Planning to come to a consensus of sorts at which point the team and Commission will schedule a new hearing.

Washington, DC real estate and development news

Fennessy Lofts

Fennessy Lofts, 1209 13th St., NW, Washington DC
Fennessy Lofts is a 9-story, 38-unit condo building in Logan Circle with 1 and 2-story condos, completed in early 2008, some with balconies and private rooftop space. Upgrade options include tilework for the kitchens and bathrooms, installed sound systems and flat screen TVs, though standard details were not lavish, with features like a laminate lobby floor and plush interior carpeting. Base prices ran initially from $324k (500 s.f. 1 bedroom) to $780k for duplex penthouse units with private decks. Parking available for purchase. Developed by Washington DC-based Ellis Denning, this was the last of the numerous undeveloped lots on 13th Street, now all residential, rising in place of the market formerly on site.

The design by Hickok Cole incorporates the historic livery behind the building that was renovated and turned into 8 two-story units that feature the historic elements of the building. Sales at Fennessy Lofts began in March, 2006, with marketing by McWilliams Ballard; condos were also offered for rent in January 2008. Sales switched to Gallagher and Co in late 2008, which sold the remaining units after a massive price drop, down to $399k for a two-bedroom unit.

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Shaw's Addison Square

Despite skepticism from community members, Metropolitan Development says it is near finality for launching the $54 million Addison Square development in Shaw. The former site of the Kelsey Gardens apartments, the 8-story, mixed-use development will be Metropolitan Development's first DC project. Designed by the Lessard Architectural Group, the 12 townhouses, 278 rental units, and 14,000 s.f. of ground-floor retail are slated to take the place of the 54 subsidized apartments currently on the site, but finally closed and fenced off.

Developers at Metropolitan were granted preliminary PUD approval in March 2009 and according to Metropolitan Construction Manager Jim Wurzel there has every reason to believe they will "have final approval signed in the next few weeks" - a prediction representatives in the DC Office of Zoning also confirmed.

"We're hoping we can start construction this summer," he says, adding that when the development is complete it will fill in some of the "final pieces of renewal for that area." But for a community that has seen its fair share of stalled development projects over the past few years, the hopes and assurances of developers are greeted with a healthy dose of skepticism, especially for a development that was thought to be a year away almost a year and a half ago.

"We're probably talking 2011 or 2012 before anything is even torn down," predicts ANC Commissioner and Shaw Main Streets founder, Alexander Padro who adds ominously, that "the reality is that financing for the project, they needed to get that from the city and with the current economic climate and banks' unwillingness to provide financing - it makes it impossible to move forward." In response to Padro's timeline concerns, Wurzel asserted, "our intent and our efforts are to get things going this summer," adding admittedly, "in this climate who knows what's really going to happen next week, regardless off what we're trying to do." Wurzel said that the two year project might mean residents would not be able to move in until 2012, but that his firm is "working toward ground breaking this summer."

Economic indicators aside, Metropolitan has had an uphill battle developing Addison Square ever since they purchased the Kelsey Gardens property back in 2004. In those days, the developers found themselves embroiled in a legal battle with Kelsey Gardens tenants who had banded together to try to block re-development of the property by attempting to purchase Kelsey Gardens themselves. Metropolitan has since payed $250,000 in relocation assistance to the former tenants who will have first dibs on Addison Square's 54 affordable units when the development is complete.

Today, Padro characterizes Metropolitan Development as "responsive to the neighbors" and sites their willingness to shrink the development from nine stories down to eight, remap the alley to make it wider, and come up with what Padro calls a "substantial community benefits package" as signs that they want what is best for the community.

  

In exchange for the development, the community will receive a $250,000 donation to support neighborhood organizations including Padro's own Shaw Main Streets organization, as well as the Shaw Junior High music program and the local library branch.

With community members now more or less on board with the project, it's only a matter of time before we find out what the future holds for a construction site located just one block away from the O Street Market, another hopeful, yet slow moving re-development project in Shaw. To date, Metropolitan Development has not released the name of a general contractor for the project, an issue Wurzel says is "sensitive."

Washington DC commercial property news

Waterview Condos

Waterview Condos, 1111 19th Street, Arlington VA
Waterview is a new office, hotel and condo project towering over the Potomac in the Rosslyn section of Arlington. Construction for Waterview condos started in March 2005; sales began in January 2007. Prices for the 136 condos ranged from $469k (one bedroom) to $2.5 million; 2-bedroom units started in the high $700k's. Located at 19th & Lynn and overlooking the Potomac and Washington DC, Waterview includes the 160-room Hotel Palomar, with condos rising 17 stories above the hotel, permitting full hotel amenities and concierge, not to mention great views of Washington DC and monuments from the eastern units. Waterview also includes 7,180 s.f. of retail above the Rosslyn Metro, all in two towers: a 24-story office tower (in front) and a 30-story building housing the condos and hotel; connected by a 4th-story terrace.

Development by JBG of Chevy Chase. Designed by James Ingo Freed of Pei/Cobb/Freed, construction by Clark Construction of Bethesda. The first settlements in the building took place in May, 2008, the project was reported sold out in by the sales team in late 2008, but sales continued on into 2010.

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Lacey Condos

The Lacey, 2250 11th Street, NW, Washington DC

The Lacey is a 26-unit condo, the first deliveries began in March, 2009. DC-based Division1 Architects, a DC-based architectural firm, designed The Lacey's contemporary look, with rectangles of glass, steel and concrete, and striking interiors accentuated with sliding glass walls, most have outdoor space (courtyards or decks) and very refined finishes, including Snaidero cabinets - all in all the most contemporary condo in Washington DC. The building includes quiet, low-energy elevator, garage parking, a common roofdeck, and features design elements such as floating hallways that allow light from the roof to filter through the first floor.

Construction of the Lacey started in May 2007. 4 Penthouses have both private rooftop terraces and balconies. The Lacey occupies the lot next to the fabled Florida Avenue Grill, and was named after the Grill's former owner, Lacey Wilson. The condo was developed by the Grill's current owner, Imar Hutchins and Division1 Architects, sales by DCRE.

Washington DC real estate and retail news

Logan Station Condos

Logan Station Condos, 1210 R St., NW, Washington DC 

Logan Station is a 4-story stick-built condo building, taking over the previously vacant lot at R and Vermont in the Shaw neighborhood. The project offers 63 condos, from studios to two-beds plus den, including townhouse style units on the first floor with private entrances from the street, with a 'green' roof. One-beds were priced originally from mid $300k's, two-beds from the high $500k's, with penthouse units in the $700's. Underground parking available, and a wide variety of floorplans. Penthouses at Logan Station condos feature commercial-grade stainless steel Sub-Zero and Wolf appliances and exotic hardwood flooring, lower units have more standard features with Kohler fixtures and plasma TVs. Sales began March, 2006, the first deliveries on the building took place in August, 2007; the project sold out in July of 2008. Developed by Bogdan Builders of Bethesda (which also built Ivy at Harvard, Villaggio, and later, Cityscape at Belmont), architectural design by Eric Colbert. Post your comments below about this condo

Washington DC real estate news

Parker Flats at Gage School

Parker Flats at Gage School is 3-building development - the renovation Washington DC's historic Gage School, built in 1904 and renovated under historic preservation guidelines, and construction of 2 new condo buildings. The new condos are four-story, wood-framed buildings with red brick facades, in keeping with the character of neighborhood. Located just east of Howard University, and set against architecturally appealing, if largely unrenovated, single family homes of the area. The Gage school offers 92 units - 33 in the original structure - priced originally from the upper $200k's for studios and from $339k for two beds (marked down from $445k). Delivery began in the summer of 2007 when the building was completed, with features including maple cabinets, high ceilings (up to 14 ft in some units), balconies, and both underground and above-grade parking available. Developed by Urban Realty Advisors, which was chosen by Howard University to convert the decaying building into housing. URA was later bought out by Monument Realty. Designed by Bonstra Haresign Architects, which oversaw the renovation of the historic school and designed the new buildings. Construction by James G Davis Construction began in March 2006. Real estate sales by McWilliams Ballard began in February 2006, but in 2008 switched to Urban Land, sales are ongoing.

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K Street Redesign: And the Winner Is...

The District Department of Transportation (DDOT) has chosen a plan for remaking K Street downtown into a two-lane center transit way with loading zones, to streamline the lobbying corridor between Washington Circle and Mount Vernon Square. Throughout the fall, DDOT held a series of public meetings to allow interested parties to provide comments regarding the project. DDOT considered two build options to address infrastructure, safety, congestion and access problems in the busy K St corridor. The K St Redesign is estimated to cost $139 million, which DDOT hopes to cover entirely with federal TIGER (Transportation Investment Generating Economic Recovery) funds.

The winning design includes two center bus/transit lanes, which might allow taxis at limited 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. As for cars and pedestrians, the plan would include 200 on-street parking spaces during off-peak hours as well as on-street loading in off-peak hours, and provide a shared lane for bikes with autos and a shared lane with parking in off-peak hours.

TIGER fund recipients will be announced in February.

Washington DC real estate development news

Mark Center Drama in Alexandria

Mass murder, national security, terrorism: the usual stuff of National Capital Planning Commission (NCPC) meetings. Yesterday's review of the Washington Headquarters Services (WHS) at Mark Center, part of the Base Realignment and Closure (BRAC) project had all sorts of unexpected drama. The rare colorful discussion included one Commissioner who cited 9/11 as the reason for his disregard for community complaints about security measures, another sardonically suggested the Army valued employees over citizens, and a neighbor who loudly drew a picture of mass murder in the cul-de-sacs of Alexandria because of the new Mark Center. The two-hour NCPC soap opera belied the stringent federally-mandated design standards for the new behemoth, which leave few design elements up for debate. The 1.7 million s.f. building, developed by Duke Realty, will sit on 16 acres of land located west of Seminary Road and I-395 in Alexandria. Duke is working with project architects HKS and WBA, Clark Construction, as well as the Army Corps of Engineers and the City of Alexandria. The two office towers are 15 and 17 stories, connecting on their first 10 floors, and will house 6,400 DOD personnel. The exteriors will feature materials that meet federally mandated security standards including blast-resistant glass and preventative measures against "progressive collapse." Even with the limited flexibility for design, the Army Corps of Engineers worked closely with the City of Alexandria to accommodate concerns raised about the size and appearance of the buildings - with space for 29,000 employees it will be one of northern Virginia's largest - which will be highly visible from the surrounding community. Updated plans include architectural refinements such as more noticeable curvature on the rooftops and an area for a public art display at the North Parking Garage, though the City remains less than thrilled with the overall design. The planned remote inspection facility (RIF) was the reason for all the shouting and name calling at the NCPC meeting. The facility, which allows for dog inspection of vehicles prior to entering the main campus, will be located in a "secure area of the east campus, over 610 feet away from the office towers," according to the NCPC staff report. 

From the beginning, the City requested this facility be located in an off site location, citing design concerns, traffic issues and worries over the safety of the community. Since the original request the Army has determined that the facility must be located on site, but has made efforts to add screening along adjoining Seminary Road to minimize its visual impact and has added a green roof to the facility. According to Peter Sholz, Senior VP of DC Operations for Duke Realty, the group has adjusted the design significantly, even adding blast-proof features to reassure the community. Sholz said about the overall design that it is "important to note that the government agreed to make some significant modifications in response to comments from the city and citizens." He added that modifications to the RIF and changes in the design such as adding a circular loop access road, pedestrian bridge, and facade changes have increased the cost of the project to the government by between $15 and $18 million. Sholz said the final project costs are hard to estimate and it is "conceivable" that the added costs could be offset through various cost saving measures the group is taking. Despite the hubbub, the designs received NCPC approval, though not unanimous, and Sholz said the project is on schedule for completion in 20 months. On a technical note, the NCPC has an advisory role in reviewing federal projects in Northern Virginia in the "environs" if DC. Generally a project comes before the NCPC and does not begin construction until it receives final review with approval and recommendations. Mark Center is an odd exception to the processes and authorities of the NCPC in that the structure, despite lacking final approval, is already at advanced stages of construction in order to meet the BRAC federally mandated September 2011 timeline. 

David Levy, NCPC Director of Urban Design and Plan Review, said the Commission gave the project foundation approval in February, hence the construction, and that yesterday's meeting addressed the preliminary and final site and building plans. The design elements for the two towers debated at yesterday's meeting have not yet been constructed, though the developers hesitated to bend to the requests from Alexandria for further adjusted building designs; the steel for the structures has already been ordered. Sholz did say that the team spoke with their steel company just yesterday to see if there was a way to change the shape of the ordered product to meet the City's design requests. Sholz's continued efforts support Levy's assertion that the NCPC approval was in part an expression of the Commission's confidence the design issues could be worked out. 

Alexandria real estate and development news

NCPC Approves Coast Guard Headquarters Design

The new United States Coast Guard (USCG) headquarters planned for St. Elizabeths is now on track to begin construction as soon as February. The latest building designs, reviewed again and approved today by the by the National Capital Planning Commission (NCPC), include 1.175 million s.f. of space for upwards of 3,860 employees, addressing concerns raised by NCPC last January. Among those issues are increased traffic on Shepherd Highway, the massing of the USCG building and garage, and the location of the security perimeter with respect to the historic cemetery on the site of the first national mental health facility in the country. Last August GSA awarded the $435 million construction contract to Clark Construction, WDG Architecture and HOK , with concept designs by Perkins and Will. The Coast Guard campus will be the first of 3 phases at the historic hospital. Phase 2, the center building, will house the Department of Homeland Security (DHS) Secretary's office and other "senior" staff. Phase 3 will be largely new construction for storage and other warehouse facilities. The Shepherd Highway issue is a sticky overlap of various federal authorities including the Federal Highway Administration, DHS, the General Services Administration, the National Park Service, the Department of Transportation and the Department of the Interior. DHS and GSA, along with the FHA, have determined that the highway is the best way for construction vehicles to access the West Campus to state construction. The National Park Service, which owns the land, objects because a portion would likely see permanent negative affects, but in the end the group agreed to keep exploring alternatives and continue on schedule for February construction. The Coast Guard HQ and parking garage will be built on a 118 ft slope visible from Haines Point and from Ronald Reagan Washington National Airport. Concerns about the appearance of the HQ as seen from around the city led to reduced massing and planning for additional vegetation. The new plan also adjusts the visibility of the garage which would originally have been five levels above-grade, two below, but now proposes an inversion - only two above-grade and five below, but with an expanded footprint. The garage will provide 1,973 parking spaces and will serve both the USCG and the Department of Homeland Security headquarters. The exterior of the garage on the northern facade now swaps an extended green wall system with the previous zinc-clad frame. Finally, though the original Master Plan created a security perimeter that excluded the historic cemetery, new plans include the cemetery within the security perimeter to restore it "to its place as an integral part of the West Campus." NCPC will hear more plans in March when they review Phase 1B. 

Washington DC commercial real estate news

Office Trends: Condos on K Street

A McPherson Square office building next door to Archibald's Gentleman's Club will soon become 12 office condo units, offering ownership opportunities for businesses or organizations downtown at 1522 K Street, NW.  The 11-story, 1964 office building is undergoing a face lift at the hands the Detroit-based MayfieldGentry Realty Advisors, which purchased the property in May 2008. The office condo option is a new trend, just check out J Street's 111 K St NE building in NOMA; they're all the rage.

MayfieldGentry plans to split the 91,000 s.f. structure into ten 8,500 s.f. units and two 2,500 s.f. units and then sell the space off, floor-by-floor. According to Karen Waldon, Vice President of Asset Managment for MayfieldGentry, the company is "targeting LEED Silver" for the $6.5 million project.

The designers at Group Goetz Architects have a glass façade, updated conference and fitness facilities, and new stairs and elevator cabs in mind for the space. State-of-the-art heating and cooling systems and a 46-car garage will also be part of the finished package.

Marketing by Akridge has just begun for the space, but Waldon assures us that there has been "a lot of interest in the project." With a pitch that emphasizes tax-exempt bond financing to potential buyers as a way to make ownership in DC possible, it's not surprising that Waldon says her company hopes to "bring more of the associations and nonprofits back to downtown DC."

A final construction timeline for the project is still unclear. In mid-December Mayfield awarded the construction contract to Davis Construction to handle the heavy lifting. If all goes according to plan, downtown DC could be welcoming another crystal clear office structure to its brood as early as summer 2011.

The price per s.f. ranges from $526 to $676, which includes a build-out allowance of $60.00 per s.f. and two covered parking spaces.

Renderings provided by MayfieldGentry's brokers at Cushman and Wakefield

Washington, DC real estate and development news

District Council Hands Out Tax Breaks to Developers

Today, the District of Columbia Council approved three bills that would exempt several developers from property taxes throughout the city, with one exemption lasting indefinitely. Yup. Indefinitely. Councilmembers were handing out tax abatements like candy at a parade to Affordable Housing Opportunities Inc., Neighborhood Development Company, and Donatelli Development. The tax abatements come in exchange for residential developments that provide housing at affordable levels in communities ranging from Georgia Avenue to Columbia Heights, Congress Heights to Naylor Road. Though abatements are often offered as a preemptive tool to encourage affordable housing, the Donatelli project delivered last July; the abatement in this case softens the blow of a major condo development that turned rental when the financial headwinds were too strong.

Donatelli's Park Place, which opened atop the Georgia Avenue-Petworth Metro station last summer boasting 156 rental apartments and 5 rowhouses, offered 20% of the units to low-income tenants. Park Place is a $71 million, 200,000 square-foot housing and retail project. The abatement begins FY 2009 and exempts the developer from property taxes for the next 10 years and increases by 10% for the years 11 through 20 until the point at which the developer is paying full property taxes. In 20 years. Though, according to Brian DeBose, Communications Director for Councilmember Jim Graham, this is the an unusual request from Donatelli, whose projects have consistently set aside affordable housing, without any expectation of tax abatement. Graham saw fit to support the developer, a DC resident, and to "better advantage the building" during an economic downturn.

Neighborhood Development Company's The Heights on Georgia Avenue proposes to bring 69 new residential units and ground floor retail with half of the units set aside as affordable. The Georgia Avenue site was acquired by a partnership of NDC and Mi Casa Inc. – a DC-based non-profit that specializes in restoring aging properties and converting them into affordable housing. Architect Graham Parker designed the building, which will come in at a cost of approximately $25 million. The project received the vote of approval from the ANC for the zoning adjustments needed to bring in the development. The abatement for The Heights is the same as the Park Place abatement.

A bill submitted by Councilmember Marion Barry also provides indefinite tax abatement on two properties owned by Affordable Housing Opportunities Inc. (AHO), and even paying back taxes already received from FY 2008. The exempted are the former Wilson Court Apartments at 523-525 Mellon Street SE, purchased in 2008 for $1.5 million, and 2765 Naylor Road in SE, which the developer purchased in July 2008 for $2.8 million. Nelson Architects designed the renovations for both buildings. Plans for the former property include 36 single room units and 15 efficiencies, including two for on-site staff. The units will be made available to special needs single adults all with initial incomes at or below 30 to 50% of the Area Median Income (AMI). Neighbors have objected strongly to the proposed use, but Troy Swan of SOME indicated the project plans may change since the Mellon Street project did not receive any Low Income Housing Tax Credits (LIHTC). The latter AHO property on Naylor Road will include 40 units at or below 60% AMI and received a LIHTC award from the DC Department of Housing and Community Development (DHCD) in August.


The approval of AHO's abatement for Naylor Road and Mellon Street comes despite a June letter from Natwar M. Gandhi, the District's Chief Financial Officer, stating funds are "not sufficient in the FY 2009 budget or the proposed FY 2010 through FY 2013 budget" indicating the total negative fiscal impact through FY 2013 would total $383,700. Though abatement bill also includes an amendment that would supposedly offset the cost of the lost taxes through parking meters.


Washington, DC real estate and development news.

Image of 523 Mellon Street SE Courtesy of South East Socialite.