M.M. Washington Goes to Urban Matters and Mission First

Today D.C. Mayor Adrian Fenty made the not-entirely-surprising announcement that the winning group to redevelop the M.M. Washington Career High School at 27 O Street N.W. will be a team made up of UrbanMatters, Mission First Development, Mt. Lebanon Community Development Corporation and Square 134 Architects. Responses to the RFP for M.M. Washington, one of many excess schools offered up in 2009, were due March 27, 2009. The winning team submitted one of only two responses; the other coming from the Cultural Development Corporation (CuDC). The school will be developed into 90+ units of affordable senior housing, The House of Lebanon, and 15,000 s.f. of community space with an estimated project cost of $25 to $30 million. CuDC's project would have brought mixed-use office and artists' studios to the neighborhood.
Also involved in the 94,000 s.f. project is the Mt. Lebanon Baptist Church, which sits just a few blocks away from the project site and is part of the Washington Interfaith Network (WIN). WIN also received the development rights for the Dix Street properties recently. Fenty reminisced about WIN saying the group "has come a long way"since he first began meeting with them, adding that WIN is now a "full-fledged community partner and developer."

The story here may be more in what will not be developed. The CuDC's plan is similar to the RFP the group released seeking development partners to build arts-oriented projects to catalyze neighborhood development. When reached for comment this morning about the pending announcement in favor of the opposing team, Anne Corbett, Executive Director for CuDC, had some revelations about the project. CuDC had not heard anything formally from DMPED's office about the RFP application in almost six months, and Corbett said she was "frustrated that a media advisory went out" without the District notifying her she had lost the bid. Oops.

Corbett described the project her team submitted as a mix of artists studios and creative commercial office spaces for "folks craving something with a rougher, more industrial aesthetic with more affordable price tags." Significant about the arts project, Corbett added, was that it required only an initial seed contribution from the District government, but would not need "ongoing public subsidy. "It was a sustainable plan," explained Corbett, that would have created "a fair amount of tax revenue [for] the District; but apparently that was not the preference."

The House of Lebanon, according to Pastor Edmunds of Mt. Lebanon Baptist Church, will require $6 to $8 million in low-income housing tax credits, the "rest will be private." Edmunds and the development group estimate a mid-2011 ground breaking and a late 2012 finish date.

Corbett, however, was skeptical on a project requiring so much in financing that is not available. About the plans to use the low-income housing tax credits, Corbett said, "right now the District does not have any to distribute" and she worries that this plan will require "a whole lot of public money; or it will sit on the shelf until there is a substantial rebound in the market." At the end of the day Corbett says, "it's not to say they needed to pick me," but she worries that "the project will sit for five more years."

In the RFP for the site, like others including the recently awarded Hine School, the District indicated it was seeking experienced developers with creative visions for utilizing the land and/or buildings. It is not entirely clear that either of those criteria was met.

Washington, DC real estate development news

Skyland's Supreme Challenge

Real estate development is sometimes an agreeable collaboration, sometimes a struggle, and all too often a wordy brawl, but seldomly is it constitutionally challenging. But that may well be the case in southeast DC's Skyland Town Center project, now in its 8th year of development. What began as a plan to redevelop a needy southeast neighborhood, a benefit most agreed was overdue, has morphed into a property rights battle that tests the U.S. Supreme Court's decisions on property rights.
Eight years ago, the National Capital Revitalization Corporation (NCRC) began planning a makeover of the strip mall, proposing 450-500 residential units and 280,000 s.f. of retail at the intersection Alabama Avenue and Good Hope Road, an area that saw none of the rejuvenation that occurred downtown over the last decade. The District-funded NCRC recognized the spot as a bullseye to spur development, one where private industry alone might not be tempted. The choice seems apt; shuttered beauty salons accompany a check-cashing outlet, a Discount Mart offers faded displays in the window, and the mismatched storefronts are united as much by their nearly-matching green awnings as by their peeling paint and disrepair. On a warm day, car traffic is heavy but the few pedestrians seem more inclined to linger on one of the park benches in front than patronize the stores.

Promoters have a vision: "A 20-year old dream, conceived by Ward 7 residents when this 16-acre site in southeast Washington, D.C. was declared a redevelopment zone in the late 1980's...will transform a disjointed retail area with limited offerings into a cohesive, well-designed, prominent living, shopping, and gathering place." Planners presented at a meeting to the ANC in February, promising a new retail experience for southeast: concentrated retail, multi-family residences, three above-ground parking garages, a 5-story streetfront presence, and reducing vehicular access points for less interrupted pedestrian traffic. As a bribe to locals, builders will throw several million dollars at homeowner counseling services, retail build-out subsidies, park improvements, sidewalk and road enhancements, and job preparedness.

The project was initiated during Mayor Williams' term, but the Fenty administration has gotten squarely behind the project, helping bring together the parties and promoting the project. The Council has even offered a $40 million Tax Increment Financing (TIF) package to provide gap financing to the team, a consortium including Rappaport Companies, William C. Smith & Co., Harrison Malone Development LLC, the Marshall Heights Community Development Organization (MHCDO) and the Washington East Foundation. The Feds, for their part, threw in $28m of funding to show their support. Even the ANC, which usually love development as long as its not in their district, voted to support the project.

With all the economic incentives and mutual bonhomie, what could stop such a beloved juggernaut? The people who own the land. A not-so-small detail in the rehash is that neither the development team nor the city owns most of the property; private owners (originally 15, predominantly retailers) still claim title to the land. And with concerns about displacement and the possibility that once the site is emptied developers will not have financing to build up again, owners fret that selling out means closing down, for good.

The District government is sympathetic, but not very. In view of the greater good for the area, the economic development that will ensue and tax revenue that will one day flow, District planners have opted to proceed with or without the owners' approval. In May of 2004, the District passed "emergency" legislation authorizing NCRC to use eminent domain proceedings - where the government determines and pays a fair market value and takes over the land - to acquire the 40 parcels it needed "in order to show the commitment of the D.C. government to the project." As the argument went at the time, if the District could not pull together a united front, financiers and an anchor store would be hard to come by.

That gave gastric reflux to at least some of the owners, who filed a counter suit to prevent the taking. The owners had two primary arguments: that the original PUD filed with the Zoning Commission was filed by a group that did not include the owners - an issue that is still outstanding - and that the eminent domain proceeding was unconstitutional, i.e., that the land was being taken for private use, not "public use" as required for eminent domain.

At this point forgive us for a brief Constitutional digression. The 5th Amendment to the Constitution reads, in part: "nor shall private property be taken for public use, without just compensation." Characteristically simple language for the foundation of U.S. law, but one that has caused recent debate. Until recently, it was obvious that sole authority for snatching land had to spring from a "public use" (building a new road or sidewalk, laying electric cables, forming a park, or even laying a railroad which served without exclusivity) - one where the government could take the land to further provision of a community service.

All that changed dramatically in 2005, when the U.S. Supreme Court issued its decision in Kelo, et al. v. New London, CT, et al. In the Kelo decision, the city of New London created a development plan for a waterfront neighborhood around an upcoming Pfizer research center. The plan was for parks, office space, retail and parking that would enhance the Pfizer site, one that was “projected to create in excess of 1,000 jobs, to increase tax and other revenues, and to revitalize an economically distressed city..." Some lifelong homeowners, however, resisted giving up their waterfront homes, so the city and a private entity called the New London Development Corporation (NLDC), used eminent domain proceedings to oust the residents.

The Court found for the city, arguing that although much of the space would not go to "public use", the Court decided it "had long ago abandoned any literal requirement" for reading the 5th Amendment, literalism being "impractical given the diverse and always evolving needs of society." So much for the 5th Amendment. The court abandoned the "public use" requirement in favor of a "public purpose" requirement; in other words, if the local government found a generalized benefit of some sort (such as "economic development") to the community, it was free to authorize the seizure of one party's land by another party. In addition to getting value-enhancing development next door, Pfizer received corporate subsidies to encourage it to build, while the shore-front owners were soon evicted and had their homes razed.

Kelo remains the Court's official position, and the Skyland project has nearly identical circumstances. But owners here see even less public use than in Kelo - no parks or public waterfront - distinctions that helped the court reach its decision. With the Court having lost Justice Souter, a key liberal vote in the 5-4 opinion, another look at the same issue might find a distinction in the circumstances that warrants a different outcome. (Conservatives, more furious with Souter than ever after this decision, later proposed an eminent domain proceeding against his private New Hampshire home for the "public benefit" of turning his family home into a museum dedicated to individual liberties and the study of the Constitution. Property rights activists used the decision to launch national speaking tours).

While the ruling is a bitter pill to retailers at Skyland, the worse aspect may be the knowledge of what took place after the decision. In New London, the city removed the homeowners and bulldozed historic homes, only to have the development plan fail for lack of financing. The former neighborhood remains flattened and unused. Pfizer later announced that it will pull out of its research center, just as its tax incentives reach their 10-year expiration.

Dana Berliner, Attorney with the Institute for Justice, was co-counsel on the Kelo case. In a conversation with DCMud, Berliner said the instance of eviction without subsequent development is a very common one. "What you are talking about here [at Skyand] is really speculative. Its a big development in a difficult part of town...that project could easily end up destroying the jobs that already do exist at Skyland. They could spend tens of millions of dollars and end up with nothing. Now, the project actually does employ people and raise tax dollars." Zina D. Williams, ANC Commissioner for ANC7B is more sanguine. "We have worked carefully with the developers to ensure there will be a space for the old tenants." Will the developers have the money to proceed with construction? "Yes, they definitely do. Rappaport and the development team have been working with assisting [owners]. ANC7B and the developers have been working very hard to accomplish what's best for the project; we are confident this project will go forward, we definitely support the development team."

In the wake of Kelo, many states revised their eminent domain laws to prevent such abuse, but the District did not. Elaine Mittleman, an attorney representing several of the parties in litigation with the District and aware of the Kelo fallout, refutes the notion that owners and tenants have been well cared for, and notes that this development is "highly speculative." Mittleman believes the developers have neither sufficient financing nor any substantial tenants, despite having previously teased the community with the promise of a Target. Representatives at Target have repeatedly denied they have any plans to open a store there, and the Skyland website says only that "the site is being marketed to prospective tenants."

Mittlement notes a change for the worse once NCRC was abolished and negotiations shifted to District attorneys, claiming that the District has never negotiated in good faith with the current owners, some of whom have come to agreements on a buy-out, only to have the offer reneged when the District took over from NCRC. But others may have it still worse. "While the owners have a right to 'just compensation,' tenants don't have such rights and have never received an offer to be made whole...and while homeowners must be relocated, businesses have no such right, and the District has done very little to help them."

The Mayor's office says only that "there are several outstanding legal issues associated with the project that have complicated the development process, but the District is working closely with the development team...to accelerate the pre-development work so the project moves on a parallel track with the legal process." Mittleman contends that fighting eviction during a recession has pushed several of her clients close to bankruptcy. "Some of the business that are now shuttered were operating when the this plan became known, this process has already forced some to close." Berliner supports that contention. "Many, if not most, condemned business do not reopen. They almost never get enough to start over" she said, citing the Nationals Ballpark as an example of eminent domain that cost alot more and produced less development than predicted.

Councilmember Kwame Brown, who may have the last word on the subject, told DCMud that property owners are at fault for not listening to the community and allowing their businesses and Skyland to become blighted. Brown said neighbors want to be able to shop in their community, but have had to watch as other neighborhoods throughout the city have been redeveloped, some of which came about through eminent domain. "The community is sympathetic toward the owners, but it's hard to attract an anchor tenant when you are mired in a lawsuit...We are going to move forward and get this done. We will develop Skyland shopping center."

Washington, DC real estate development news

Eastbanc Wins West End

Life is a circle, of course. To underscore that point, the District government announced today that Eastbanc won its bid to redevelop three underused properties in the West End. The D.C. government issued the RFP last July, after a contentious process in which Eastbanc had been awarded the rights to develop the land in 2007, only to have a public outcry over no-bid contracts stop the process, and give the Council a morning-after moment and, shocked at what it had done, recall the land sale to Eastbanc. That, in turn, led to the Deputy Mayor for Planning and Economic Development to issue a fair and balanced solicitation last July, which received two offers, one from an Eastbanc partnership, the other from Toll Brothers, Paramount Development and Torti Gallas. Now, two and a half years after the Council pulled the plug on Eastbanc, the city has given it the official nod to develop the three sites. To those few unfamiliar with the sites, the properties include the West End Library, fire station, and special operations police unit, all low-rise relics in a sea of pricey condominiums. EastBanc had said in its initial proposal that Square 37, the current site of the library, would sport a 20,765 s.f. ground floor library with a 10-story residence above (rendering below). Designed by Ten Arquitectos, the plans call for approximately 153 market-rate residential units on the 2nd through 10th floors, 235 parking spaces and 10,000 s.f. of ground floor retail. LeMay Erickson Wilcox Architects will be the architects for the fire station and WDG Architecture will be the architect of record. Eastbanc's designs for Square 50 - the fire station - include a replacement fire station and mezzanine with 52 affordable residential units on the 2nd through 4th floors. Eastbanc's Anthony Lanier predicted a renaissance, thanks to the $150 million project, saying "we want to make a community...not just a street with 10-story buildings." Asked about how the new plans differed from those he proposed more than 2 years ago, which could possibly have been built by now, Lanier responded "not much." Eastbanc had earlier said it "can and would build a supermarket on site if the community and city united to support it," but has voiced skepticism about the need for one. The Toll Brother's plan for the library called for 48,000 s.f. of retail, including a 40,000 s.f. grocery store. The library would remain in place; 21,300 s.f. on two levels. To top it off, the building would have been LEED Silver and would have included as many as 220 residential condos. The group did not submit a plan for the site of the fire station. Eastbanc's partners on the project also include the Warrenton Group, Dantes Partners, TEN Arquitectos, and WDG Architecture. Eastbanc also recently won the rights to develop a highly visible Capitol Hill property late last year. Deputy Mayor Valerie Santos said the District would work hard to "ensure what has been proposed moves forward as quickly as possible." Mayor Adrian Fenty added that he expects groundbreaking for the project "at the end of 2012, at the very latest." Washington, DC real estate development news

Metropolitan's Other Options for Shaw's Kelsey Gardens

Now that Metropolitan Development has a zoning approval and a sweet $18 million tax abatement in hand for Addison Square/Kelsey Gardens, the developer is working with Ideal Realty Group (IRG) to either find an investment partner or sell the whole project outright. The Shaw project recently appeared on IRG's website, though no asking price is currently listed. The proposed eight-story, mixed-use project would have been (and could still be) Metropolitan Development's first DC project.

Craig London, VP of IRG, confirmed that his company was working with Metropolitan to find investment partners/a buyer. When reached by phone, London was surprised (scoff!) that DCMud knew about Kelsey Gardens' status. Our secret source was, alas, the internet; the information having been posted "on, umm, your website." IRG's relationship with Metropolitan started quite recently; London said his company has yet to officially release any investment materials for interested parties, but that the project should be "released to market "in the next couple days."

For now, IRG's site indicates investors interested in Kelsey Gardens have two different opportunities available: a JV/Equity Investment in which the investor would become a development partner or to acquire the fee simple interest on the property and then redevelop it, without Metropolitan. London described it as a fairly safe investment. IRG is setting up the package so that "the investor has no debt financing risk. The investor is not going to be asked to invest any money until the debt is secured," explained London.

Back in January, Metropolitan Construction Manager Jim Wurzel told DCMud, "our intent and our efforts are to get things going this summer," admitting that "in this climate who knows what's really going to happen next week, regardless of what we're trying to do." Touche.

Washington, DC real estate development news

Archstone Pushes the Envelope with NoMa Residential

Archstone says it will break ground in April on one of the first new developments to do so in the "downtown core" this year, increasing residential space in NoMa by over 50 percent. Archstone's 469 rental residential units, which will replace a surface parking lot at 1st and M Streets, NE, will be the first of two phases; the total project will bring 1.5 million s.f. If everything goes according to plan, the first phase should deliver in spring 2012, the second phase, also residential, does not yet have a start date.

When Archstone Senior Vice President Rob Seldin began working with his architects at Davis Carter Scott, the team realized they had a blank slate and could make a statement that would set the tone for the area with their design. As Doug Carter, a founding Principal at Davis Carter Scott, said about Seldin, "he has a record of trying to push the envelope and this building is no different."

Carter said the challenge of a large, phased project is to make something that is "interesting all the way around" and to avoid making the structure look "entirely long and boring." So his team changed the massing and the color and texture of the materials by detailing the masonry horizontally, using the precast concrete to create a wavy element in the facade and designing striking glass corner towers. Carter added that the design is meant to draw people in to want to live there and to be a "fixture of the urban landscape" that never bores passersby. Rather than design a traditional, conservative "plain Jane" building often found in DC, said Carter, his team strove to make Archstone's NoMa building "a little more forward looking" with a design that is "exciting and stimulating."

The 500,000 s.f. building will be almost entirely residential save one small ground-floor retail area at the corner of M and First Streets, NE. A parking garage, not included in the s.f. calculation, will provide 421 spots on three levels below grade. The ground floor will include 20,000 s.f. of amenities for residents, including a library, meeting rooms, kitchen, movie theater and even an outside movie area for up to 20 people. Then there's the rooftop pool, a hot commodity to be certain.

The new building will deliver in time for residents to take advantage of what will then be a fully operational Harris Teeter across the street. Liz Price, President of the NoMa BID, said the new residential is "key to the next wave" of commercial development and will help NoMa "continue to attract new retail and restaurants."

Archstone's Seldin said he has been "encouraged by the continuing construction and leasing" in other properties in NoMa. "Ours will be an outstanding addition to a great area." The general contractor for the project is Forrester Construction.

Washington, DC real estate development news

West End Marriott Coming Soon, Maybe...

In the heart of the George Washington/West End neighborhood, a Marriott Courtyard Hotel could soon replace a parking garage, sandwiching a new nine-story building between offices and residences on an already crowded block. Designed by WDG Architecture and developed by Allstate Hotel Partnership, the project received original approval in 2006, but has since faced a lawsuit from an unhappy ANC chair and, of course, an extended finance drought. Recent efforts to obtain a general contractor, however, suggest the project team is gearing up to begin construction in the near future. But then again, maybe not. The 125,000 s.f. hotel will bring upwards of 150 suites to the GW neighborhood. Project Architect/ Manager at WDG, Nelson Lobo, said the hotel is "a very urban project, unlike other Courtyards...it's not a little three-story building in the middle of nowhere." The building has a "contemporary design," added Lobo, and "fits in with the GW area." That's not what many a Foggy Bottom neighbor thought during the zoning process. The ANC and other Foggy Bottom civic organizations opposed the development, expressing concerns about the increased traffic and the likelihood of blocked streets during construction. 

After the project received zoning approval in 2006, Dorothy Miller, an ANC Chair and active member of the Foggy Bottom civic community, filed a suit in the D.C. Court of Appeals against the Board of Zoning Adjustment's (BZA) approval of the hotel plan. The suit halted any planned progress on the hotel despite its completed review. But in May 2008, the Court sided with the BZA. The win for the developers started the two-year clock given to developers during which they must take clear steps to execute the planned development, by starting demolition and construction. Coming up on that two-year mark, the development team either needs to get digging or head back for a zoning extension. The group is currently deciding on a general contractor, but architect Lobo said right now the timeline depends on the financing. "It might happen in the next four months, it might happen in the next three years," Lobo said with little certainty. Our money is on the developers seeking an extension to their approved plans. For now, neighbors can continue to enjoy the lovely 420-car parking garage with the knowledge that the Marriott's future is uncertain.

Washington, DC real estate and development news

Friendship Heights' Newest Condos Underway

Not every project in Friendship Heights / Tenleytown is jinxed. Exhibit A: the neighborhood is about to get its first residential project in recent memory, as Ellisdale Construction gets to work on their project at the corner of Wisconsin Avenue and Harrison Street. The Harrison, at 5201 Wisconsin Avenue, will become a 49-unit condominium two blocks south of the Friendship Heights Metro station when construction completes late this year. With numerous neighborhood projects having been shelved recently, The Harrison will be the first residential project on the DC side of the border since Chase Point kicked off in 2005 (though developers have been much more prolific on the Maryland side). The 4 to 5-story, 50-foot residence includes a single-level, 40-car parking garage on the first floor topped by a 4-floor, wood-framed residence, crowding out what had been a Bank of America parking lot. Project Architect Ronald Schneck of Square 134 Architects says the building will merge the need for two disparate contexts - the busy Wisconsin Avenue corridor and the single-family residential neighborhood that it bisects. Schneck, who designed Fennessy Lofts in Logan Circle, describes a building that is "definitely contemporary in architectural style," with "metal panels in a 3-different color tone palate using copper panels." But according to the architect, the best feature of the u-shaped building will be easy to miss: its large interior courtyard providing patios to first-floor residents and tranquil space to higher units. Not to mention a fire pit and water fountain. "The building will consist mainly of one-bedroom, market rate condos. There's not alot coming out of the ground right now, and with careful planning we've been able to control costs...we were able to get what looks to be a pretty high-end building but making it affordable to build, an important factor in one of of the worst markets, ever." The development team, an affiliation known as Chase View Arts, came together in February of last year to buy the property that Bank of America shaved off from its bank, shelling out $3,360,000 for the paved lot. The condominium is being built as matter-of-right development; the team did not try for any environmental ratings. Newly rebranded Ellisdale Construction, formerly Ellis Denning, is the general contractor and an equity partner in the project. (Dave Clark of Ellisdale says the name reflects an ownership split several years ago that became legally effective just a few weeks ago, and that both sides will continue their construction pursuits.) Ellisdale hired Davis Construction as the subcontractor. Schneck says the project will appeal to a market of young professionals that have hitherto been ignored in the pricey neighborhood, with most of the 49 condos built as smallish one-bedroom units. "There's an untapped potential of people living there and metroing into the city." To reach that crowd, the development team brought in Paul Robertson of Robertson Development to further hone the interiors. Robertson says he redesigned about 85% of the units, and will have a controlling presence in the "marketing, design and interface with the customers" for the condominium. Robertson is a known factor in the U Street area, where he spearheaded such projects as the Moderno, Beauregard, Murano and Visio condominiums. Effusive about the style, Robertson nonetheless had a more conservative take on the form that would prove "warm and natural," with a brick, copper and stucco exterior. Robertson promised "minimalist interiors" with slate and bamboo, European porcelain bathroom tiles, quartz countertops, Waterworks tile, dual-headed showers, Kitchenaid appliances, and 9-foot ceilings. "We tried to do something warm with natural materials that would blend; we didn't want something uber-contemporary." But not to alienate, Robertson's marketing pitch includes options for a "zen," "luxe," and "edge" package. The building is expected to complete late this year. 

Washington DC commercial real estate development news

Loss of Anchor Means Back to Basics for Shaw Development

After the recent revelation that Radio One will no longer relocate to the District, Ellis Development Group, Jarvis Company, LLC and Four Points, the developers of the planned Media Center One project in DC's Shaw neighborhood, are modifying their plans and seeking official permission to extend their development timeline. The current approved Planned Unit Development is coming up on its two-year deadline, the requested two-year extension would give the developers time to regroup after recent setbacks.

The loss of Radio One for Media Center's 300,000 s. f. mixed-use development on 7th and S Streets, NW, forced the developers to revert to their "original" plan, a less grandiose proposal planned before Radio One swooped in and then bowed out. According to "Chip" Ellis of Ellis Development, the "new" plan is for 94,000 s.f. of office space with anywhere from 180 to 200 residential units. The units will be rentals "at this time," said Ellis. The change drops 25,000 s.f. of retail space and reduces the amount of office space by about 10,000 s.f. Construction could begin this July, though after years of delays and extended construction time lines, color us skeptical.

The United Negro College Fund will (likely) occupy the majority of the office space, but the development team is working to secure additional tenants, according to Ellis.
In January the Mayor's office proposed $3.8 million in tax breaks to assist the UNCF and entice their move to the District from Virginia. The District Council is set to review the proposal this week. In 2008, DC approved $23 million in subsidies for Media Center One, including $6 million in TIF financing which is now up in the air given the changed project, the massive budget shortfall facing the city and competing development plans elsewhere.

The moves come despite the developers' assertions in late September at the Shaw Main Streets (SMS) Development Forum that Media Center One would move forward and break ground before the new year (2010). On a rather bitter note, the developers had noted that they were one of the few "lucky" projects to actually have a tenant secured. Ouch.

Washington, DC real estate development news

Cityline at Tenley Condominiums

Cityline at Tenley, 4101 Albemarle St., NW, Washington DC, 20016
The Cityline at Tenley is a new condo project, with 204 units above the (previously) ever-failing 1940's retail building in Tenleytown, formerly a Sears, now a successful Best Buy. The project also added new retail space to the old Sears site, including hardware store, making it a big box destination, on top of the Metro station, with Whole Foods just across the street. The residential portion included 4 additional stories above above a parking garage that sits on the old rooftop, while preserving the art deco facade. Cityline sits on one of the highest points in DC - with a clear view over the city and even beyond Tysons Corner - from every floor. Developed by Roadside Development in partnership with Madison Marquette. Real estate sales began in March, 2004, and mostly sold out in 2005, just before construction completed. The building offers a small gym and conference room, as well as private garage parking, but the best feature may be the interior courtyard that seems a great distance from adjacent Wisconsin Avenue. Interiors are contemporary, with many having more than ample windows and private balconies. The Shalom Baranes building was designed to appear to "hover" above the retail, separated by parking.

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Mass Court Apartments

Mass Court, 300 Massachusetts Avenue, NW, Washington DC
Mass Court is a relative newcomer, having been designed by SK&I Architects and built in 2004, one of the larger buildings in the area despite the abundance of vacant lots. No more - the last of the lots have been filled in, and Mass Court sits just 3 blocks from the Judiciary Square Metro and at I-395 ramp, making travel easy, and Penn Quarter is only a few blocks away. The Capitol is a 10-minute walk.

The exterior might seem a tad stiff and imposing, but the 14-story Mass Court, 371-unit apartment offers has surprisingly cool interiors - polished concrete floors, sisal carpet in the Bedrooms, barn doors, big windows and loft spaces on two levels. But if you want the more traditional layout (say, a door on your bedroom) they have that too. Services include: heated rooftop pool with jacuzzi, rooftop track, 24 hour fitness center, clubroom, aerobics/yoga studio, business center, concierge and attended parking garage.

Green Light for Canal Parc

Today, the Zoning Commission issued its final order approving plans for Canal Parc, 34 new single-family townhouses that will take the place of the aging Riverside Hospital. The decision should serve to dispel recent rumors circulating around the Palisades neighborhood and the Local ANC3D Chapter that the residential development was flat-lining. Developed through the LEED Neighborhood Development program to replace the hospital at 4460 MacArthur Boulevard, the homes are being built by Willco Residential, LLC and New York-based The Athena Group.

In September of 2009, Washington DC's Office of Zoning (DCOZ) drafted its final approval for the Lessard Group-designed development. But six months have passed and the final order had not been released. "It's not supposed to take this long," Willco Residential President, Gary S. Cohen lamented earlier this week. "Usually after the Zoning Commission approves [a PUD], it only takes a few months" for a project to garner its final official approval. The delays have left community members scratching their heads.

ANC3D Chair Betsy Sandza says she has "heard rumors that the developer has cooled off." Canal Parc "has fallen off the face of the map," says Palisades Citizens' Association President Spence Spencer, who speculates based on conversations he had with Cohen that money for construction may have dried up and that Willco and development partner, Athena, may have parted ways.

But according to Cohen, rumors about financing and a developer split are "absolutely false." Cohen told DCMud, "Bottom line: every thing is in the District's hands, "adding that he and Athena are still partners on Canal Parc and that the "project is still moving forward as planned."

So even if the project hasn't changed development hands, the Palisades community would like to know: What was the hold up?

Though Cohen had a draft approval, he could not apply for permits until the DCOZ issued a final order. And before that could happen, the Office of the Attorney General reviewed the draft order, provided by the developers, to make sure the legal language expressed the decisions of the DCOZ. The AG looks for inconsistencies, vague language and loopholes to ensure the developers' promised park benches and scholarship funds are included in the final order.



Prior to today's official green light, Cohen admitted that the project has been a sensitive issue within the community, but he said he was hopeful that the DCOZ was just working to "make sure all the i's are dotted and the t's are crossed." Consider them dotted and crossed.

As ANC3D Chair Betsy Sandza tells it, "density and height were our two biggest concerns" within the neighborhood surrounding the development. In light of these concerns, Willco and Athena changed their design to reduce the number of brick townhouse units from 41 to 34.

But in August of 2009, Sandza combined forces with Spencer and submitted a letter to the Zoning Commission, arguing that the reduction of units was not enough to bring Athena and Willco in line with the designated Floor Area Ratio (FAR) (i.e. density) on their lot. In the letter, Sandza and Spencer further charged Athena and Willco with miscalculating the FAR for the project so that it appeared to be within the limits allowed by law, arguing that "the Zoning Commission should approve this project only with the condition that the applicant eliminate at least 7,220 square feet of gross floor area...to bring the FAR into appropriate scale."

The good news for Cohen could be overshadowed by an appeal concerning the FAR. Cornish Hitchcock, an attorney representing two families on the SE corner of the project, expected today's approval, but could make things difficult for Cohen. An appeal would delay Cohen's ability to apply for permits and start construction.

For now, though, Canal Parc has momentum behind it and, according to Cohen, he will forge ahead.

Washington DC Real Estate and Development News

Brightwood Church Gets Mixed-Use Upgrade

With government approval now in hand, Emory United Methodist Church is beginning its designs for the Beacon Center, a mixed-use development on Georgia Avenue in Brightwood that would envelop the quasi-historic church in a cocoon of new housing. The Church (tagline: "real church for real people") will offer its residences as affordable, naturally - that being what gets built on Georgia Avenue - and should be underway by next year. The rear of Beacon's hilltop property abuts Fort Stevens and a previous iteration of the church building served as a hospital and barracks during the Civil War. The new development, designed by PGN Architects, will include 67 residential units, street-level retail and 58,000 s.f. of new church space, to include an expanded worship area, administrative offices and church-operated residential uses. Above the church offices, Beacon Center will offer two floors of "transitional" housing for families, totaling 24 units. The other residential building will sit four stories high on top of the hill, but will appear as a five-story building from the Georgia Avenue street-level retail. The 67-unit residential development will contain 34 units for seniors, 17 units set aside for veterans and 16 affordable rentals. Each floor will have a common area and a common laundry facility. Tucked beneath the residential building in the hillside will be two levels of parking for just under 100 cars, with a few bicycle racks thrown in for good measure. Sean Pichon, a Partner at PGN Architects, said design challenges such as addressing the grade of the property, preserving the "view corridors" and maintaining the affordability of the project compelled his firm to be flexible. The result? Unique features like "curved green roofs" over the retail space to create and "continue the imagery of the hillside." Though the materials are mostly affordable, PGN tried to vary the color and use a mix of materials in the wood-framed structures to "create a dynamic design" within the financial constraints of the church's budget. Pichon said the team's efforts to maintain the views from Georgia Avenue lead them to create a main entrance from a side road, Quackenbos, and to provide multiple access points to maintain the historic stairs leading up to the old church. The Beacon plan did not gain approval without its share of complications. Two Board of Zoning Adjustment (BZA) members recused themselves from the case, one because of personal contributions to the project, and another because he is a representative of the National Park Service (NPS), which submitted a letter in opposition. The recusals made for a more stressful zoning process: with only three board members left and a majority approval needed, there was not much wiggle room for the development team. According to Pichon, it put "a lot of pressure" on the team to get "all the support you can across the board." The NPS expressed concerns that the requested height variance, which brings the building in at over 63 feet, would obstruct views of Fort Stevens from Georgia Avenue - despite the fact that you can't see Fort Stevens from Georgia Avenue now, less'n you are two stories tall - and that the development is too close in proximity to the park property line. The community largely spoke out against the NPS objections. To make amends, the applicants suggested erecting a memorial to the Fort on site and even using some of the retail space as a souvenir shop (souvenir shops; now that will improve Georgia Avenue). The height variance along with the souvenir shop ultimately received approval. With the zoning approval in hand, Emory selected the Bozzutto Group to serve as general contractor for both pre-construction and construction. Neighbors can expect work to start by next year. 

Washington, DC real estate development news

555 Mass Condos

555 Mass | 555 Massachusetts Avenue, NW, Washington DC, 20001
555 Mass was built in 2004 as an apartment building, a project that was mostly a success as the units leased quickly. But with market changes in the winds, the 14-story, 235,000 s.f., 264-unit building was converted to condos in 2005, just one year after the building began leasing. Condo sales at 555 Mass began in early 2005, selling out finally in mid 2008, with efficiencies that started in the high $200s, one-bedrooms from the low $300s, and two-bedroom layouts priced from the low $500s.

555 Mass includes 24-hour front desk, fitness center, e-lounge and roof top pool and deck with great city views; floor layouts are very standard, but interior finishes less than imaginative owing to its real estate roots as an apartment building. Developed by JBG Group of Chevy Chase, which holds a large stock of rental and condo units throughout the DC area. The Mt. Vernon Triangle neighborhood could, until this project, be described only as desolate, soon saw one of DC's biggest development booms - though much work remains frozen - and sits across from Penn Quarter. Designed by Wiehe Design Group (now WDG), built by Clark Construction.

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H Street: Another Retail Spot?

The flow of development making its way down H Street, NE, will soon reach 13th and H Streets, a condemned two-story "office" structure at 1381 H Street that its owners hope to tear down to make room for something better. What, we don't yet know. Owner Clifford Utley has filed for a raze permit; once approved, NSD&E Inc. will pull down the dilapidated building, and Utley can set to work revitalizing his lot with a new mixed-use building, likely composed of ground floor retail with office space above. By the time a new development emerges, H Street might even have a functioning street car (legal disclaimer: don't count on that).

Utley, owner of construction company Utley Mechanical Inc., told DCMud he had previously tried to obtain permits to renovate the structure, but there was just "too much red tape" required to save the deteriorating building. Utley said his decision to raze and rebuild was partly due to what he called "exorbitant taxes" he had to pay on the property last year. The property's tax assessed value is $190,000 and has been taxed under 10% vacant property rate. According to records from the Office of Tax and Revenue, in 2009, Utley paid over $28,000 in taxes, including some back taxes and related charges.

Though his plans are still rather vague, the erstwhile developer said he is moving forward with his efforts to raze and start over. Over the next few months, Utley indicated he would figure out the financing. Then find an architect, then create a development and building design, then proceed. Seems to us as good as done. Utley assures us he will do something with the property pretty soon.

Washington, DC real estate and development news

14th Street YMCA: Short on the Dough

Despite the mini-boom taking hold on the 14th Street corridor - View 14, Room & Board, JBG's large condo project, and a surfeit of new retail - not all projects are having an easy time of digging up money. In addition to UDR's iced over plans up the hill for the Nehemiah Center, the latest financing casualty is the redevelopment of the Anthony Bowen YMCA into a large apartment building. The planned mixed use development at 14th and W Streets has not disturbed any earth since the project "broke ground" in September 2008, nor does it look like it will make any progress soon. The 231-unit project was planned by Perseus Realty LLC in conjunction with Capmark Investments LP and the minority owned DC-based FLGA Real Estate Group. In 2008, the team optimistically estimated a 2010 finish date; now an optimistic view would be a 2010 start date.

Brian DeBose, spokesperson for Councilmember Jim Graham, whose ward the project sits in, told DCMud, "The project is stalled. There is no financing and there has not been a breakthrough." In short, DeBose surmised, "Nothing is going on."

DeBose added that the District does not have the money to provide a TIF or any seed money to help bolster the stalled development, even if the will was there. To be fair, the District has already done its share during more flush times, including the District Council's 2008 decision to grant a hefty 20 years of tax abatement and $1 million in forgone sales taxes on construction materials for the project's development.

Clark Construction is the general contractor, if it comes to that, for the planned 236,000-s.f. apartment building with 18 affordable units. The project is also supposed to include a new 46,000-s.f. YMCA and 12,200 s.f. of retail space. Designs for the project are by Davis Carter Scott and HOK. The Anthony Bowen YMCA was named for a Prince George’s County slave who relocated to Washington after purchasing his freedom. Bowen went on to co-found the nation’s first African-American YMCA in 1853. Developers for the project were either unwilling to comment or did not return phone calls requesting additional information.

Washington, DC real estate and development news

Mayfair Mansions: Condos No More

Despite the economic climate, government financed low-income housing projects have largely marched forward, but the condo bust is now hitting home in the subsidized low-income market, too. In November 2007, development partners Community Preservation and Development Corporation (CPDC) and Marshall Heights Community Development Organization (MHCDO) broke ground on the planned renovation of Mayfair Mansions - almost 600 units of affordable housing. Of the 17 buildings, 12 rental buildings were slated for interior renovation, and 5 buildings were to be renovated and converted to condos. Today the 12 rental buildings are fully renovated and occupied, but the planned 160-unit condo element of the Mayfair Mansions has now been pigeonholed permanently.

In 2005 the Mayfair Mansions Tenant Association organized a purchase of the property, selecting CPDC and MHCDO to assist with the acquisition, rehabilitate the buildings and maintain the Mansions as affordable housing - affordable mansions, technically.

The rental renovations began in 2007 and completed this past September. But, according to Paul Brown at CPDC, the condominium project, originally scheduled to deliver first quarter of 2010, is not "going to deliver this year. It probably is not ever going to deliver as a condo." Brown said the conversion to condo never happened and the building, sans renovation, still serves tenants. Brown said CPDC is working closely with MHCDO to figure out how to finish the renovations.

The partners did complete the a new LEED-eligible community center, which delivered just in time this past summer for the community to enjoy a new pool facility, computer labs, an assembly room and classrooms for services such as literacy programs.

The non-profit developers purchased the property with a $24.2 million loan provided by the District's Department of Housing and Community Development (DHCD). Additional funds for the residential renovations and the construction of a new community center came from the DHCD Housing Production Trust Fund (HPTF), Federal Historic Tax Credits, as well as Tax Exempt Bond financing and Low Income Housing Tax Credit allocations provided by DC Housing Finance Agency (HFA). Of the funds, $23 million went towards successfully revitalizing the 410 rental units. The $6.9 million set aside for undelivered condos, however, equates to lots of public money for development, which never happened. Kind of like Lehman Brothers.

Mayfair received a Federal Historic Rehabilitation Tax Credit because of its historic status; the Mayfair Mansions were originally constructed in the 1940s specifically for the African-American community in a time when racially restrictive covenants had a stranglehold on housing practices. The community was designed by Albert Cassell, a renowned African American architect who designed numerous milestone structures for Howard University.

Wiencek + Associates and McDonald Williams Banks Architects served as the design team. Gilford Construction Corporation and Hamel Builders Inc. served as general contractors in a joint venture.

Washington DC real estate development news