Transforming Tysons?

Fairfax planners want to flip the image you have of Tysons Corner on its head, transforming a commercial district with acres of traffic, where cars are a must, into a pedestrian friendly, mixed-use residential zone with less congestion and more public transit. In the most recent Tysons Corner Urban Center Draft Plan, planners detail how they will accomplish this makeover, hoping to piggyback on the four planned metro stops on the Silver Line that will fall within the Tysons environs. The plans are ambitious, but then the County is giving itself a forty year time frame for implementing these new strategies.

Today's Tysons has over 100,000 jobs but only 17,000 residents, which translates into Tysons' ubiquitous traffic. Planners hope that encouraging high density mixed-use development within walking distance of future metro stations will mean 100,000 residents and 200,000 jobs, or four jobs per household rather than the current ration of almost 6 to 1. Brian Worthy, Public Information Officer for Fairfax, said the goal is to "make [Tysons] a real place and not just a suburban office park."

The new proposed standards include maximum floor-area ratio (FAR) of 4.75 within one-eighth of a mile of the Metro stop and should be "developed primarily with multi-family housing." In the transit-oriented districts, planners recommend phasing the intensity, so developments from the one-eighth mark to the one-fourth mark will be allowed an FAR of 2.75 and those developments in the one-fourth to one-half mile mark a 2.0 FAR. The greater density closer to the metro would theoretically reduce car usage.

Slightly contentious elements of the draft plan are the proposed density bonuses for developers willing to build to LEED standards. Green bonuses come on top of more traditional bonuses for affordable housing or open public space. "For example, if a developer obtained a 20 percent density bonus for offering 20 percent affordable housing, the additional bonus for LEED certification would be for 10 percent of the resulting density cap, for a total bonus of 32 percent." Some think that's pretty dense - especially when you consider the initial 4.75 FAR. To put it in perspective in the"core area" of Tysons where you find Tysons Corner Center and Galleria at Tysons, the current FAR ranges from 1.0 to 1.65. But Worthy said "density really is the key incentive for development." Worthy added the community has been involved from the beginning in the vision and planning process; the public has had and will continue to have ample opportunity to give feedback on the plan.

To deal with the congestion and car-laden roads, planners suggest reworking superblocks to create a grid system with more streets and to improve connections to major transitways. The draft also recommends creating a new circulator system and local bus routes to serve the Tysons area. The plan suggests creating multi-modal hubs near the metro stations that offer car sharing, bike storage and bus service to allow residents to get to and from their destinations without cars. Just last month the Fairfax County Board of Supervisors authorized the Department of Transportation to apply for a grant from the Federal Transit Administration to support an Urban Circulator Program.

At next week's Planning Commission, Tysons Committee meeting staff will present the Draft Zoning Ordinance Amendment and the Tysons Task Force will provide comments on the Draft Plan Amendment. The public will have two opportunities to comment on the plan, on March 11th and 17th. Worthy said tentatively the Board of Supervisors could approve the plan as soon as this spring. From that point, "it's up to the developers and the market to take advantage of the opportunities" available in Tysons.

Tysons Corner real estate development news

Corcoran Sells Randall School

Yesterday, the Corcoran College of Art and Design announced the sale of the former Randall School for $6.5 million to Telesis Corporation and CACB Holdins LLC. Don and Mera Rubell, owners of CACB, will convert the school at 65 I Street, SW, into a contemporary art museum, hotel and private residence (s?). Corcoran originally purchased the Randall School in November 2006 for $6.2 million to build another College campus, but the bankruptcy of Lehman Brothers forced Monument Realty, Corcoran's then development partner, to "default" in September 2008, according to a Corcoran spokesman. The sale means Corcoran will begin the search again for another location in the District for extending the College's campus.

According to a press release from Corcoran, the new owners, the Rubell Family, are hoteliers and collectors of contemporary art. The southwest museum will serve as a satellite of the Rubell's Miami museum. Corcoran estimates the purchase and sales agreement for the school will take 12 to 18 months for government review and approval.

Corcoran's previous designs by Shalom Baranes Architects included two nine-story residential towers with 420 units of housing and 100,000 s.f. of college facilities. Last month Kristin Guiter, Manager of Media Relations for Corcoran, told DCMud "the Corcoran has entered into negotiations with a potential development partner" and was seeking a PUD extension, which the ANC approved. Today Guiter said that after almost a year and a half of looking for a development partner, it became clear it just would not be "financially feasible." Guiter indicated the College put the property on the market a few months ago and are now working on a partnership with the Rubells where Corcoran will likely still be involved in programming for the planned museum.

In January, ANC 6D Commissioner David Sobelsohn told DCMud "we in the community are anxious to get this project underway. We're very concerned that this building has been sitting vacant and empty all this time." It looks like the community will get something at Randall, just not what it was expecting.

Adams Row Condominiums

Adams Row is a loft-style building jointly developed by PN Hoffman and Adams Investment Group (AIG). Condos originally started selling from $325,000 for open and contemporary loft-style condos. Located just off the main strip of Adams Morgan, the 70,000 s.f. condominium is home to 68 units, with features such as granite countertops, marble baths, stainless steel appliances, and polished chrome fixtures. An underground garage offers parking; most of the units are economically sized, squeezing an extra bedroom into a small space. Architectural design by Georgetown-based Hickok Cole featured a post tension concrete structure with an industrial look on the interiors, and a mixture of brick and glass curtainwall in the facade. Adams Row completed in 2005; sales began in 2004 and sold out in 2006.

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Constitution Square Signs Retailers

NoMa's Constitution Square is filling in nicely. After securing Harris Teeter last year to occupy 50,000 s.f., StonebridgeCarras, Constitution Square's developer, announced the signing of five more retail leases today. A diverse group of tenants will occupy an additional 17,000 s.f., coming online to serve the 5,000 new employees headed for NoMa this year, as well as residents of the 750 apartments set to finish later in the year. TD Bank will be NoMa’s first full-service banking facility with a 5,200 s.f. space. Feeding hungry workers will be Potbelly's and Constitution Café. Keeping them awake will be the responsibility of Tynan Coffee & Tea, which already operates in Columbia Heights. And adding a bit of starch, Georgetown Valet drycleaners are beefing up with yet another store added to its many throughout the District. All retailers are expected to open later this year. Accordingly, Harris Teeter is poised to begin interior upfit of its SK&I Architects-designed store, making it the first grocery store in NoMa. The chain is currently seeking a general contractor to build the interior and should make a selection by the end of February. Clark Construction, the General Contractor for the entire Constitution Square project, is scheduled to finish the exterior and the core of the 50,000 s.f. space in time to turn it over to Harris Teeter for interior construction in late March or early April. According to Glen Thomson of Harris Teeter, the store at the corner of First and M Streets, NE, might open as early as November. The grocery chain signed a 20-year lease for the site with Stonebridge in 2009. The District is providing a tax incentive to assist with the cost of providing 150 parking spaces for the Harris Teeter store, as it did with the DC USA Center in Columbia Heights. The two-phase Constitution Square project kicked off in April of 2008 and will eventually include a 206-room Hilton hotel, 440 apartments, and 340,000 s.f. of office space. 

Washington, DC real estate and development news

Federal Transit Grants: K Street Loses, Maryland Wins

The U.S. Department of Transportation (DOT) announced today the recipients of Transportation Investment Generating Economic Recovery (TIGER) grants. The DC area received just under $59 million in funding for Priority Bus Transit in the National Capital Region, to be distributed among the District, Maryland and Virginia. The estimated total project cost is $83 million for the proposed priority bus transit project. A DOT press release indicated the agency had received 1,400 applications from across the country, requesting funding for almost $60 billion worth of projects – 40 times the amount available through the program. According to the DOT, the DC area project will provide more efficient bus service along 13 transit corridors.

The big loser for the District Department of Transportation (DDOT) is the K Street Redesign. DDOT Spokesperson, John Lisle confirmed for DCMud, "it does not appear any funding was awarded for the K Street Transitway." In September, DDOT officials told DCMud that the proposed K St Redesign will cost $139 million, which the agency hoped to cover entirely with TIGER funds. The District had gone as far as designing options and, just this January, selected a winning design. The redesign was a "sub-package" of the proposed priority bus corridors and was excluded from the approved grant. Lisle did not seem too discouraged saying he expects "there will be other opportunities to apply for federal funding for those projects, which we will pursue."


Though the funds will be distributed among the three entities in the National Capital Region, it would initially appear that Virginia will gain the lion's share with Maryland trailing in second place. A large portion of Maryland's funds will go to the Takoma/Langley Transit center, which will be built at the intersection of University Boulevard and New Hampshire Avenue just on the border of Maryland's Montgomery and Prince George's Counties. According to the DOT, the new center will provide "more efficient and timely access to economically distressed populations." According to Lisle, some priority bus corridors in the District will receive funding from the regional grant. Lisle added that the funding DC received is a "sizable piece of the pie, considering how many requests were made across the country."

DC also applied for TIGER grants that would fund metro improvements and bike sharing programs. Neither request received funding.

Washington DC real estate development news

Habitat Builds Condos in NOVA

Habitat for Humanity of Northern Virginia is completing a 9-unit condo project, its second multi-family project in Fairfax. Though the non-profit builder is known for its single-family homes, the Maple Ridge, just off Lee Highway, sits next to the 12-unit Westbrook Forest condo, which Habitat completed in 2007. Construction on Maple Ridge began in January 2009 and the dedication and handing over of keys will be on March 6th.

The occupants of both buildings are "partner families" who are selected prior to construction, and who then help in the construction of their new home. Families work with the non-profit to pay back their no-interest 20-30 year mortgages that go toward building additional Habitat homes.

Families are selected based on several criteria: the families must have been Northern Virginia residents for at least a year, must currently be living in inadequate or substandard housing and must be willing to partner with Habitat. Partnering means future homeowners must commit between 300 and 500 hours of "sweat equity," meaning families work to build their home and other Habitat homes. Virginia Patton, the Marketing Communications/Media Manager for Habitat of Northern Virginia, said with the condos, families work side by side with their neighbors to help build their homes, making it a "community effort."

The Maple Ridge condos include six three-bedroom units at 1,100 s.f. each and three two-bedroom units at 900 s.f.

Fairfax Virginia real estate development news

Meridian Pint: Building Up to a June Grand Opening (draft)

A June 2010 grand opening is in the works for Meridian Pint, 3DG's much-anticipated Belgian beer hot spot at the site of the old Bi-Rite Super Market at 3400 11th Street, NW, Washington DC in Columbia Heights. 3DG CEO John Goldman tells DCMud, that the $3 million project came out almost exactly as his all-in-one architect, construction, and development team planned. The building "looks almost identical to the rendering," says Goldman, and is a "contemporary architectural statement that's unique for the neighborhood. We hope it will inspire others to think outside the box." Goldman blames "lots of permitting and regulatory delays from the city" as the reason his team was unable to finish exterior construction by their original Summer 2009 deadline, but assures that they have now "delivered the shell to the tenants" whose interior design and renovation is "well underway." Those tenants, by the way, are John Andrade, the current co-owner of Asylum on 18^th Street, NW and his team of managers and contractors. Andrade signed on to a ten year lease of the 9,500 s.f. space two years ago, after Warehouse Theater owner, Paul Ruppert backed out of opening his own live music and food venue at the space. Although Andrade maintains his new place is "not a sports bar," he still plans to coincide what he's calling the "grandiose grand opening" of Meridian Pint and his downstairs bar Joint Chiefs with the start of the 2010 World Cup Games in June. Andrade boasts that he "did the bulk of the [interior] design work myself," and says progress behind the doors is moving at a "blistering" pace. But until the opening, he's keeping his vision for the interior "Top Secret."

  

Washington DC retail and commercial Real Estate News

The Moderno Condominiums

The Moderno, 1939 12th St., NW, Washington DC
Moderno condominium is a 19-unit condo, a joint venture between DC-based Lakritz Adler and Robertson Development, just off few feet off U Street. The Moderno consists of residential as well as (still vacant) ground floor and underground retail, and 12 parking spots, built in one structure that look like two buildings of 4 and 5 stories. Unique features included in some units: 19-foot ceilings, Spanish porcelain tiles and Spanish-built cabinets and some with outdoor showers on penthouse units. One-bedroom condos started originally in the high $300k's and three-bedroom condos stepped just over the $1m line. Construction began in the third quarter of 2007 and finished in early 2009. Designed by CORE Architecture and Design of DC, with Ellis Denning as the General Contractor for the project, this wood-framed building with brick and glass facade is a refreshing addition to the architecture of U Street, with modern interiors that incorporate wood and stone flooring and minimalist interiors as well as large glass bays, located 1 block to the U St. Metro. Phase 1 sales began October 2006 and did not sell out until late 2009, despite some hype about a supersonic sales pace.

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Gales School Delay

The District of Columbia announced last week a delay in its procurement of bids to redo the historic Gales School. Just three weeks ago the District issued a Request for Offers for the property, located near Union Station and once nearly turned into a homeless shelter. The new timeline extends the submission deadline from February 16th to March 18th. Asked about the reason for the delay and whether any applications had been received, staff at the Department of Real Estate Services would only point out that they have a website to answer questions, a likely indication that they have not yet been overwhelmed with interest.

The city had been close to a deal with the Central Union Mission, which wanted to use the property for a homeless shelter, but the agreement was torpedoed by the ACLU.

Washington DC real estate development news

The Connecticut condominiums

The Connecticut, 3883 Connecticut Ave., NW, Washington DC
This 158-unit, 9-story condominium was slipped into the backyard of an apartment building just off Connecticut Avenue, sitting on the edge of Rock Creek Park, offering bucolic views from the rear. The Connecticut is only 3 blocks to Van Ness and Cleveland Park Metro stations, within short range of diverse retail. Layouts and finishes were very standard for its era of development, but the lobby was sufficiently redesigned to make it modern and attractive, and the building does offer a small rooftop deck with pool, fitness center, business center, and 3-level underground garage. Built in 2003 by Clark Realty Capital as a rental building, the brick and zinc-paneled building was designed by Weihe Design Group (now WDG Architecture), using New York based ShoP Architects for the "minimalist" interior design, and built by Clark Construction. The Connecticut was partially rented, but the condo conversion numbers were too good to pass up, and the project was purchased and rebranded by Monument Realty, interior renovation by Coakley & Williams Construction. Individual condos were sold as tenants vacated beginning in early 2005. The Connecticut condos sold out in Spring, 2006.

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The Artisan Condos

The Artisan Condos, 915 E St., NW, Washington DC, 20004
The Artisan was designed by DC's WDG Architecture, and developed by JBG Companies of Chevy Chase, MD. The 12-story condominium was built onto the back of old rowhouses, now incorporated into the condominium facade. Prices for the 160 condos originally started in the mid-$300,000's, 4 units were reserved as artist live/work studios. Located 2 blocks from the MCI Center, and only two blocks to several Metro stations. The Artisan includes the usual amenities: fitness center, e-lounge, 24-hour front desk, underground parking, rooftop deck, and a fairly unassuming lobby. Built by Clark Construction, condo sales by Alexandria-based McWilliams Ballard, and interior design by Brawer & Hauptman of Philadelphia. This was one of the first of Washington DC's downtown real estate residential development, and with most of the lots now fully utilized there won't be many more behind it, since most Penn Quarter real estate is commercial. The Artisan Condos began occupancy in late 2006, but sales did not complete until summer of 2008.
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Have a Say in the Future of the Mall

On February 18th, the National Park Service (NPS) will hold a public meeting to present (in brief) the various alternatives for revamping the National Mall. The NPS released a 600-page draft plan in December with a public comment period that lasts through March 18th. The goal is to create a comprehensive plan for the upkeep and improvement of the National Mall, including the various monuments and parkland within.

The plan has five options: a do-nothing option, a preferred alternative and three other options focusing on either historic landscape and education (signs and trees), a national civic space (think Forrest Gump) or urban recreation and ecology (baseball fields). According to the NPS website, the Agency Preferred Alternative is a combination of the three action alternatives.

See for yourself next week from 5 to 7 PM at the Old Post Office building near Federal Triangle Metro.

Washington DC real estate development news

Beneath Dupont, A Renaissance in the Making

The District could release a request for proposals (RFP) to reuse the Dupont Trolley Station by March. As a pre-RFP requirement, the office of the Deputy Mayor for Planning and Economic Development (DMPED) is seeking community input and preferences for use of the tunnels hidden under some of the District's hottest real estate; community input would be attached as an appendix to any RFP to provide guidelines for responses. Thanks to the snow delay, the ANC2B meeting for community input about the potential RFP was delayed from this week until next Wednesday, the 17th. Those with a long memory or a penchant for random transit knowledge are probably familiar with the Trolley Station sitting dormant under Dupont Circle. For the rest of you, take note: there are two large tunnels running underneath Dupont Circle that, until 1963, served as a station for DC's widespread system of trolley's a.k.a. streetcars. According to sources familiar with the project, the pending RFP will likely be open to any type of use, hopefully encouraging some creative submissions from groups eager to lease the space from the District and reclaim the Dupont underground from the rodents and discarded drug paraphernalia currently there. The underground venue had a short life in the '90's, when it was expensively renovated with a tacky streetcar theme, a project that failed when patrons realized that Dupont Circle had restaurants above ground that didn't require a long walk in a poorly ventilated tunnel. Why hasn't the District tried to find a use for this space sooner? The answer is that it did, but then got a lawsuit for its troubles, one that lasted long enough for (most) people to forget the tunnels existed. The RFP has come back to the forefront, thanks in part to the Arts Coalition for Dupont Underground, spearheaded by architect Julian Hunt and the Washington Project for the Arts.

Along with several other arts groups and galleries in the area, the group proposes a new gallery space below Dupont along the P Street near many existing above-ground galleries. The Arts Coalition will be competing for the RFP when it is released, it is unclear who their competition might be. The RFP will likely only be for a lease of the space, no land disposition, said sources familiar with the project. Though the District Department of Transportation does not have any plans to bring a streetcar to Dupont in the near future (20 years near future), an existing tunnel for a Connecticut or Massachusetts Avenue line would be a costly thing to give away, a fact the RFP is likely to keep in mind. 

Washington DC real estate development news

Improvement Coming to King Street Metro?

Commuters tired of unsafe pedestrian walkways, confusing traffic patterns and inconvenient bike facilities at the King Street Metro have the chance to let the Alexandria planners know and to possibly change some of those little, or not so little, irksome details of the daily commute. The City of Alexandria and WMATA will use $4.3 million in grant funding to improve safety and accessibility for pedestrians, transit vehicles and taxis at the King Street Metro. The stakeholders presented the King Street Metro Station Access Improvements design in late January and, after the public comment period ends on March 1st, the group will reconsider aspects of the design based on community feedback.

The planners sought to address the cramped and unsafe pedestrian areas, especially the narrow walkways between the station entrance and the Duke Street Tunnel. The new design expands the walkways and creates pedestrian barriers to reduce the number of crossings at the Kiss and Ride area and protect walkers from traffic. However, several people in attendance at the January argued the design does not focus enough on pedestrian access and fails to create the fastest and most direct routes possible. City planners indicated they were open to reworking the pedestrian options, but had safety in mind over efficiency. Another questioner suggested removing all or at least some of the surface parking to increase pedestrian access, something the planners were also open to considering.

Planners also seek to improve problems with vehicular access and circulation, currently there is no re-circulation available for buses or autos. The new plan would allow re-circulation for cars, move the taxi stand farther from the station but would increase the amount of space. The design also attempted to fix problems for bike commuters by increasing the number of racks and moving the bike storage lockers to a more convenient location.

Public comments are due March 1st, email wanda.cudzilo-smith@ alexandriava.gov. The team will take comments into consideration and come up with a final design. With the money already in hand, construction could begin soon thereafter.

Alexandria Virginia real estate development news

DC's Overlapping Authorities: Not Just a Developer's Headache

If there's one thing the ridiculous amount of snow has taught DCMud, other than developers love any excuse not to answer their phones, it's that the many overarching authorities that rule the District apparently cause headaches in areas other than development, such as snow removal. Just as massive developments like the St. Elizabeths Campus require developers to go before the Historic Preservation Review Board, the National Capital Planning Commission, the National Park Service (NPS) and the District Department of Transportation (DDOT), among other authorities, the recent snowstorm brought to the forefront the web of agencies responsible for District public space and sidewalks.

Tuesday, Councilmember Tommy Wells tweeted at the NPS and DDOT about uncleared sidewalks on several blocks of Pennsylvania Avenue SE. DDOT promptly tweeted back that it was not responsible for the 800 block of Pennsylvania and suggested the sidewalks might belong to the NPS. Other twitter followers suggested contacting Department of Parks and Recreation for good measure. If you can get over the fact that all these conversations occurred on twitter (you are reading a blog, err online journal), then you might get a feel for the confusion that is public space in the District...during a snowstorm.

Though District law requires property owners to clear snow and ice from sidewalks, handicap ramps and steps abutting their property within the first 8 daylight hours after snow, sleet or ice stop falling, District Agencies have their own priorities. As Charles Allen, Chief of Staff for Councilmember Wells, explained about the Pennsylvania Avenue situation "some of the parks are DC managed parks while many others are managed by the National Park Service...NPS [is] putting it on their radar to get out and clear, but their priority is around the monument and federal areas."

How many authorities overlap in snow removal for public space? Well, Allen was not certain but listed "the AOC for the US Capitol grounds, National Park Service for the Mall, national parks and a lot of the “pocket parks” throughout the city, and then the DC Government manages all the other local parks."

Another high-profile example of conflicting authorities and priorities is the street car debate.
In a September review of the 11th Street bridge project, the NCPC stated that it "does not support a street car system with overhead wires in the L'Enfant City" and encouraged DDOT "to pursue alternative propulsion technologies...that do not require overhead wires." The NCPC ban on overhead wires in the downtown area means DDOT will either have to find a way to power the street cars without overhead wires or have the law changed to allow them. Headache.

Whether you're trudging through snow or trudging through bureaucratic red tape, at some point you'll likely get stuck in the mire of District and federal agencies that govern DC. Oh yeah, you can follow us on twitter @TheDCMud.

Washington, DC real estate development news

Arts vs. Parking Lot in Mt. Vernon

The District and the Deputy Mayor for Planning and Economic Development (DMPED) are, at least for now, giving up on the Arts at 5th and Eye, the Donohoe Companies and Holland Development project, and installing a parking lot on the undeveloped District-owned site. Though the project team won the right to develop the promised high-end hotel, retail outlets and jazz club in September of 2008, no final agreement has been reached on the land exchange with the District Government since that time. The District Council is scheduled to review the revised project plan in March or April of this year, though that will not happen without an agreed upon land value.

In August, Memphis Holland, a Partner at Holland Development, told DCMud that the group hoped to have a resolution to their negotiations by the end of September. More than four months later, Holland indicates the developers are continuing to meet with the District in order to finalize a contract for the land and determine an appropriate land value. It would seem the District grew tired of underutilized land, opting for a paid parking lot in the meanwhile (not that Mount Vernon really needs more of those). The ANC had resoundingly supported the development during the RFP process, but the protracted negotiations and new surface parking lot have set some neighbors on edge. ANC Commissioner Keith Silver is protesting the DMPED's parking lot decision and the District's alleged exclusion of the community from conversations with the developers about the proposed development. According to Holland the developers had "absolutely nothing to do with the final decision by the District to have a parking lot as the temporary use for the site," but "we have been told this will not impede our objectives to develop the site, as planned, for a mixed-use development." Holland added that the group is continuing to work with project partners including Sol Melia and Boisdale as well as the neighborhood retail mix including Zenith Gallery. That said, the parking lot decision shows a lack of faith by the District government for the near future of construction and development at 5th and I Streets in Mount Vernon. 

Washington DC real estate development news

That New Condo Smell: Coming Soon to a Parking Lot Near U

According to Bonstra/Haresign Architects, construction will soon begin on a 31 or 32-unit, mixed-use condo development at 1638 14th Street in the 14th Street Historic District. This yet-unnamed, 7-story, 30,000 s.f. condominium will be built atop a 6,000 s.f. parking lot at the corner of R and 14th Street NW.

Bonstra/Haresign architect David Baker tells DCMud the project was "on hold for over a year, but now it's moving forward thanks to a new owner." That would be Habte Sequar, officially Loford LLC, who also built Renaissance Condos near Logan Circle in 2008 and the Josephine at 440 Rhode Island Avenue, which were intended to be completed by now but have not yet begun settlements.

The condos are "in the permit stage right now. I guess [the groundbreaking date] all depends on when we get final approval," but, says Baker, "the owner is interviewing general contractors" and has an optimistic "early spring" groundbreaking in mind.

Assuming April showers bring May condominiums, 14th Street residents are in store for 3,000 s.f. of ground floor encased behind "a highly symmetrical" facade of glass and buff limestone. These design details are meant to play up 14th Street's automobile row legacy by invoking the look and feel of a new car showroom. On the R Street side, the height will be scaled back and a "warmer pallet with red brick" will help to integrate the residential and business identities of the building with the larger neighborhood.







Plans for the condos "were submitted before the IZ [the District's Inclusionary Zoning (IZ) Program] went into effect" last August, and although Baker can't say for certain that none of the units will be offered below market-rate, he doesn't believe there will be an affordable component to the project. The project may also have some direct competition from JBG one block north, which has plans for its own, much larger condo on 14th Street.

If you (ahem) check under the hood of this work in progress, you'll find plans for an underground, one-level, 18-space garage built into the vault space along R Street. Rounding out the top of the building are either one or two spacious penthouse-style condos. But while the penthouse unit(s) might feel quite spacious, the one and two-bedroom units making up the rest of the building will have to be squeezed into what's left of the 30,000 s.f. of space. Baker admits that "none" of these remaining 30+ condos will be "very large units" and most will fall into the "roughly 1,000 s.f." category.

Washington, DC Real Estate and Development News

Arts Group Wants to Reinvigorate Stalled Developments

Developers who have been sitting on an unproductive lot or design for transit-oriented, mixed-use development might find a compelling impetus in an offer from Cultural Development Corporation (CuDC). The arts-oriented, non-profit broker, involved in project like Source and Atlas Performing Arts Center, is seeking "strategic partners" to create two projects, a commercial arts space and visiting artist housing, and is accepting applications from developers looking to utilize the resources and reputation of CuDC to create a sustainable arts space and catalyze neighborhood development. The Request for Expressions of Interest is the non-profit's first effort to formalize the type of development partnerships into which it invests time and resources.

Anne Corbett, Executive Director for CuDC, said the group receives calls "regularly" from developers with random lots or project ideas, and that the new direction is as much an exercise in embracing offers that work as in being able to "say no" to projects that do not fit. With the plethora of "stalled and underutilized projects" in the DC region, Corbett said the partnerships could provide the extra oomph to get projects moving that would "otherwise be sitting on the shelf."

The Commercial Arts Space would combine artists' work space with private arts organizations - meaning retail, restaurant, graphic design firm or even a law firm - while providing space for artists to work. Corbett said the ideal commercial project would offer 100,000 s.f. of space, 20,000 s.f. of which would be dedicated to artists' work space to create a "critical mass" between artists and related businesses.

The Visiting Artists Housing would provide both long term (multiple months) and short-term (overnight) housing in a hostel-like setting capable of holding a minimum of 35 artists each night. Corbett said this project needs to be centrally located and close to a metro, but also needs to be in an area that would "substantially benefit from the spillover effect". In the RFEI, the non-profit points to the Atlas District and the dramatic change that came over the H Street Corridor and its renaissance. So Dupont is probably out, but Brookland or Petworth could be in.

To apply, a developer needs "development expertise, capital, and/or property for development." CuDC is willing to act in various roles within a project including acting as the lead developer, minority development partner, master lessee or as a facilities manager. The ideal projects would rehabilitation of an existing structure at an infill location.

And CuDC must have a strong voice in the development process. Corbett said "people who have worked with us know that we are not shy, regardless of the financial relationship we strike in a project; we're very forthright with our opinions."

Got a stalled project near the metro? Have an underutilized lot in a neighborhood in need of a cultural boon? Don't mind being bossed around by a non-profit? Responses are due March 26th.

Washington DC real estate development news

DC Bond: Back in Action?

By late February or early March, lenders and buyers may again have the option of pursuing the DC Bond, thanks in part to a $193 million award from the Obama administration to the DC Housing Finance Agency (DCHFA), $25 million of which has been set aside for Single Family Mortgage Program.

In the past the bond program was designed to make home ownership affordable to buyers in DC. Not all buyers mind you, but a pool of buyers who might not otherwise qualify for a loan. The past program was aimed at first time buyers, those who had not previously owned a primary residence in the past three years, and even repeat buyers if they purchased in "certain targeted neighborhoods." The benefits of the program? Again, in the past there had been a 4% grant that could be used towards a down payment or closing costs. The interest rates on the loans were compatible with the conventional rates. There had been and presumably will be, maximum income limits and purchase prices that will determine final qualifications.

While yesterday's "soft release" meeting remains shrouded in mystery, DCMud has acquired tentative details on the new bond from sources familiar with the proceedings, which was an opportunity for bond lenders to dig into the details of the new bond, ask questions and offer suggestions about getting the word out to potential buyers, before the bond hits the market in the next few weeks. Though the details can and very well may change here's the gist:

The new bond rate will likely be set at 5.25% and would initially only be available as an FHA loan, with a conventional release potentially expected anywhere from 30 to 60 days later. The new bond may offer a $10,000 soft second to go towards a down payment or closing costs for buyers with little to no cash upfront. Income stipulations will probably remain the same, so buyers who qualify with FHA would qualify for the DC Bond. With interest rates on conventional loans expected to rise by the year's end, the DC Bond looks like an attractive option for many first-time home buyers.

The potential 5.25% rate on the bond is competitive with rates available in the local market and will become more so if rates do increase to the rumored 6% by year's end. The DCHFA is still working out the details of conventional loans with both Fannie and Freddie, negotiating rates and trying to determine whether to choose one or the other or both. The initial bond release could potentially be good through December 2010 with $25 million backed by the U.S. Treasury set aside to cover bonds during that time period.

The DC Bond presumably could sell quickly to the benefit of the industry and first time home buyers. If the spirit of the previous bond remains, this will be a huge boon for those first time home buyers who either have little or no cash to put towards a deposit, or simply couldn't qualify for a traditional loan. And the potential $10,000 for a down payment and closing cost help is a no-brainer.

The possibilities for the bond sound pretty good, but we'll have to wait a few weeks until the DCHFA releases official numbers to know for sure.

Washington, DC real estate development news

DC Preservation League Seeks Historic Site Nominations

Know a historic property that needs protection? The DC Preservation League is seeking nominations for DC's most endangered buildings, parks, or vistas, in an effort to save historic sites facing demolition, "inappropriate alteration," or just plain neglect. Interested parties have until tomorrow to submit the site they would like saved.