Friday, August 27, 2010

Mount Vernon Triangle Scores Another Development

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Already a presence in the blossoming NoMa district next door, Paradigm looks to extend their influence into the neighboring Mount Vernon Triangle with the construction of a commodious 390-unit rental building at 425 L St, NW. Paradigm's nearby student-housed Washington Center opened a few months ago, and the company continues to manage the imposing Meridian at Gallery Place just down the street. According to Paradigm project manager Jimmy Dotson the new property is intended to be a "bold, urban building with all the modern comforts of home." The building will rise fourteen stories above ground, and root itself three levels deep into the earth to provide below grade parking for residents.


Like the majority of newly built rental buildings these days, amenities include a top level pool and club room, as well as an expansive lobby and fitness center. Dotson conceded that sustainable aspects are not a major focus on this project, and that the building will not be credentialed as green, but at least a few unique, environmentally conscious features like hybrid and electric car refueling stations in the parking garage are being worked into their plans. Few travelers up New York Avenue will miss the surface parking lots that will be replaced, or the warehouse at eastern corner that has sat unused for years.

Parc Rosslyn
Collins & Kronstadt of Silver Spring, MD is the architecture of record, but responsibilities for the design have been mostly shouldered by the team at Architecture Collaborative, Inc. in Elliot City, MD. Collins & Krondstat and Paradigm are familiar partners; as the firms collaborated in an effort to bring to life Parc Rosslyn in Arlington, VA, completed in 2008. This most recent design process was at least partially governed by the aesthetics of their soon-to-be neighbors like CityVista Apartments to the west and Yale Steam Laundry to the north on New York Avenue. Inspired by their surroundings, designers have forged an angular but sleek amalgamation of brick and glass, with accents of steel, granite, and metal paneling. The color scheme will wedge its way into the middle of the spectrum, somewhere between the light-tan bricks of City Vista and Yale's richer-toned burgundy bricks. Paradigm Construction will undertake general contracting responsibilities, and is in the process of awarding subcontracts.

Building permits are to be finalized soon, and although developers have not yet officially closed on the pending financing, Dotson says team is in "very good shape" to square away the remaining logistics and put a shovel in the ground by mid to late September. If things go smoothly, developers expect their first delivery in the spring of 2012, with completion of the building wrapping up later that fall.

Washington D.C. Real Estate Development News

Thursday, August 26, 2010

Argos Rescues Firehouse, Brightens HPRB's Day

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The D.C. Preservation League, which annually issues a list of the District's most endangered properties in hopes of scaring developers into action, and preservationists into sign-painting and check-writing, has recently issued its new list for the year. This year the Preservation Leauge has focused it's 2010-attention on the preservation and renovation of the District's neglected firehouses. A special emphasis was placed on pre-WWII firehouses and police stations. Thankfully, two years ago Argos hammered out a deal with the District to redevelop two foresaken buildings: Firehouse No. 10 at 1341 Maryland Avenue, NE and Police Precinct No. 9 Station at 525 9th Street, NE. Developers refer to the two renovations as the Capitol Hill Condominiums, "The Station" and "The Engine House" respectively. In 2008 the Historic Preservation Review Board designate Engine House No. 10 as a Historic Landmark. While the 115-year history of public use of the firehouse will be sacrificed for the purpose of private residences, the character of both buildings, and their attractive, storied facades will be maintained for the enjoyment of passers by and history-lovers alike.

Designed by architect and firehouse specialist Leon Emile Dessez (1858-1919), erected in 1894, and completed in 1895, HPRB claimed in 2008 that the structure "is probably the best and most characteristic example of a Victorian-era firehouse still owned by the District." Sorg Architects has tackled the challenge of retrofitting the building with two market rate condos and two smaller affordable units. The former police station on 9th Street will be an almost identical project, with just enough room for an additional condo. The footprint of both the Engine House and the Station will be strictly maintained, with both facades to be restored with masonry refurbishment, various touch-ups, and only the slightest of noticeable augmentations. Windows and doors will be replaced, fading paint of old will be stripped away, and the addition of a few small second floor awnings will ready the building for residents. The interiors on the other hand will be completely gutted and overhauled - the roof, walls, flooring, HVAC, plumbing, electricity, and the works will all be replaced.

An unusual occurrence in the development world, construction on both projects began exactly on time, breaking ground two months ago as originally promised. Work is now chugging along with completion of each building expected in April of next year.

Washington D.C. Real Estate Development News

Canal Park Party Scheduled for Tuesday

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Wayne Dickson, Blake Dickson Real Estate, Washington DC retailWork on southeast DC's grand Canal Park will be set in motion on Tuesday, at least officially, when the District holds a formal ceremony to celebrate the new park that will grace the Capitol Riverfront neighborhood a few blocks from Nationals Stadium. Actual construction has not yet been scheduled, but the park's caretakers are showing progress, having just selected Davis Construction to build it and Blake Dickson Real Estate to locate a suitable Canal Park design, Washington DC, Blake Dickson Real Estaterestaurateur for the pavilion on the park's southern end. The 3-acre park will offer a variety of water features, but its most iconic feature will be the pavilion designed by Studios Architecture. Wayne Dickson of Blake Dickson Real Estate notes that Canal Park will be an environmental improvement as well as an aesthetic one, and projects that the Canal Park Development Association will select a "family-oriented" restaurant that offers positive synergy with its green locale. Despite the lack of hard start dates, promoters are sticking to a late 2011 completion date . The design incorporates a boardwalk, "rain garden," three pavilions, ponds, a large fountain, sunken amphitheater, and seasonal ice rink Blake Dickson Real Estate - Wayne Dickson, retail for leaseThe District is picking up a $13.5m tab to ensure the success of the park in what is destined to become the centerpiece of the neighborhood. The bill is a relative steal compared to what DC spent on the stadium next door, and the Lerners can't even charge for admission. Total costs for the project have not yet been determined. William C. Smith & Co., one of the early developers in the area, is an organizer of and contributor to the park development association. Philadelphia-based OLIN is the landscape architect for the project. The federal government still owns the land in arrangement that gives full control to the District, which in turn has a 20-year agreement with the Canal Park Development Association to develop and manage the land. The canal that once ran across the site connected the Anacostia to Tiber Creek (now buried under Constitution Avenue), which ran to the C&O canal. 

Washington DC real estate development news

Wednesday, August 25, 2010

Northwest One Project Aims to be First New Residence in Northwest One

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Northwest One's race for the first residential project is showing some contest. The development team for the SeVerna had forecasted earlier this year that their 60-unit affordable housing project would get moving this summer, which DCMud reported last spring, but construction has not yet taken place, and now William C. Smith & Co claims their $80 million, 314-unit "classy, rental building" will in fact be the first to break ground - next spring. But not so, says Jose Sousa, a spokesman with Mayor Adrian Fenty's office, the SeVerna's developers settled on their property August 12 and will be breaking ground, at least officially, "in the next couple of weeks."

The District has already built the Walker Jones Education Campus, a school and recreation center, officially the first successful portion of the redevelopment plan, but it remains unclear where its next students will come from, as neither the Severna developers ( MissionFirst Development, The Henson Development Company and Golden Rule Apartments, Inc.) nor William C. Smith have offered a definitive date for actual construction. William C. Smith's proposed building will stand twelve stories tall upon completion,
with a small ground-floor retail component, a first installment on the larger Northwest One Initiative (part of the New Communities Project), a $700 million redevelopment project in Ward 6, providing a makeover for the scarred, crime-infested real estate extending from K Street in the
south to New York Avenue in the north, and stretching from North Capitol Street in the east to New Jersey Avenue in the west. In 2007, the Mayor and DMPED awarded the rights to the redevelopment project to One Vision Development Partners headed by William C. Smith & Co in partnership with Jair Lynch, with Banneker Ventures and affordable housing provider Community Preservation and Development Corporation also involved with portions of the larger project. As promised, the building will offer 93 affordable units, 30% of the total apartments.

The first parcel (out of a total of 5 or 6) will be situated on the corner of North Capitol and M Street, NE, technically in NoMa. Architectural designs are courtesy of Eric Colbert & Associates; William C. Smith-affiliated WCS Construction will build the structure. Architect Brian Bukowski says the industrial nature of this part of DC was the major inspiration for a unifying aesthetic theme. "We wanted to give the building an updated post-industrial flavor," Bukowski explained. The exposed fixed post steel, generous use of red brick, and angular, geometric fenestration seem to bear out his claim. But if on whole the building brings to mind a downtown warehouse, the ten two-level townhouses serve as a friendlier introduction to the large facade on the M Street side of the building. The townhomes and accompanying courtyard will help relate to the residential-nature of the immediate neighborhoods. Loading and and parking access will be relegated to the opposite site of the building on Patterson Avenue. A roof penthouse will crown the building.

The main rooftop will not only provide panoramic views, but will also be ornamented with a landscaped green terrace and lap pool. A rain harvesting cistern on the roof will conserve run-off and curb water consumption; low-flow showers will further aid the conservation effort. On what will likely be a crowded roof are several solar panels, funneling electricity to the building's energy grid. In the end, residents will be able to brag about one of the greenest roofs in the city, collecting water, converting the sun's rays into usable energy, and deflecting thermal load with it's organic plant life, all aspects in an effort to earn a LEED Silver certification, with the possibility of becoming the first LEED Gold-rated multifamily residential building in the District.

William C. Smith is in the final steps of negotiating the lease agreement with the District, and although financing is not in place, developers are working toward securing funds, still optimistic that groundbreaking will happen in the late first quarter or early second quarter of next year. A request for subcontracting bids has been issued by WCS, a sign that the developers and teammates are serious about moving forward. The estimated 20-24 month construction time places delivery in the early part of 2013.

Washington D.C. Real Estate Development News

Tuesday, August 24, 2010

Rhode Island Avenue Northeast: Development "Hotspot"

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The corner of 4th and Rhode Island Avenue, NE, may be one of the District's least celebrated corners, but an area hitherto untapped by real estate developers, is finally getting attention. Thanks to PERS Development, a plan to remodel an abandoned 32-unit building at 329 Rhode Island Avenue NE will soon be underway, making way for "hip, boutique, luxury condominium homes." Just a few blocks east of the Rhode Island Ave - Brentwood Metro, the project will build off the local momentum of Baltimore-based A&R Development Corp's 8.5 acre, $108 million project (including 274 new residential rental units and 70,000 s.f. of ground floor retail) that broke ground this spring on the former WMATA parking lot, making the vicinity a "transit oriented developer hot spot." PERS Development is a young and ambitious team with four completed projects under their belts, and now two more in the works. All four of their finished developments have sold out, the last being Sky DC in Randall Highlands. On their four previous projects, PERS has specialized in small, moderately-priced condos. But as advertised, this endeavor seems destined to be slightly more high end than the units sold in Randall Heights for $200,000. However, while PERS President and CEO, Ramin Bassam is promising a "very, high-end boutique product," a price point between high $200,000s and $350,000 proves value also remains a priority. Marty Zupancic of Marcus & Millichap brokered the deal that sees the property travel from the reluctant hands of the previous owner Byung S. Shin of BSS Partnership to the more purposeful and enterprising hands of the developer.

The development will come as welcome news to local residents, but especially so for neighbor Steven Conn who several months ago compiled a slide show of evidence in an effort to convince DCRA that the building at 329 Rhode Island was a hindrance and hazard to the community, and therefore should be classified as "blighted." Local blogger Dan Silverman gave voice to Conn and his cause by highlighting the property with the honorable distinction of the Horse's Ass Award. The District was in the midst of designating the building as blighted and condemned only two months ago, but PERS was able to step in, usher through the necessary building improvements, and remove said designations, enabling the financing and property transaction to go through, and development plans to move forward. The top floors of the building were significantly damaged by a fire that raged in the evening hours of July 31st last summer. While the neglected building, singed, dirty, and windows boarded, is an eyesore at the moment, its proximity to the metro and its location on a highly visible island-like street corner, makes the property apparently attractive to real estate developers. In a press release, Bassam stressed that: “This project represents a great opportunity to fulfill the growing demand for luxury condominiums in the District of Columbia by delivering a high end product in an under-served submarket at a time when supply is getting tight. It has just the type of character and location that we have been looking for.”

SGA Arcitects have been contracted for the design, and initial renderings should be finalized later this week. The building will transform from a sordid blemish of a property into ultramodern, highly-wired chic condos. Each unit will be outfitted with wi-fi and iPad docking stations. Other amenities include a state-of-the-art glass-enclosed gym, a rooftop deck outfitted with a European shower, and various community lounges. Units will be planked with natural bamboo flooring. The bottom floor will reserve room for five retail tenants, an amenity that new owner Bassam says is desperately needed in the neighborhood. "A late weeknight trip to the McDonald's across the street is an at least twenty minute wait in line, there are not enough retail options at the moment," explains Bassam. The often elusive project financing of the acquisition and needed construction, normally the last piece of the development puzzle, is already in place, compliments of Bethesda-based Monument Bank.

Washington D.C. Real Estate Development News

Monday, August 23, 2010

Zen and the Art of Prison Design

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by Beth Herman

In a toney Boston hotel bar officially and affectionately known as "The Clink," imbibers toast a promotion, an engagement or a vacation, but steps away the ghosts of storied inmates such as Malcolm X and Sacco and Vanzetti have far less to celebrate.

Located inside the city’s plush Liberty Hotel, The Clink, along with the rest of the property, was part of a $150 million acquisition, renovation and construction process that turned the pre-Civil War era Charles Street Jail into a 300-room luxury hotel, opening in 2007, and retaining some of the former correctional facility’s ambience such as the tiers which guards would patrol and a 90-foot central rotunda.

Prior to the Liberty Hotel venture, however, and about 130 years after the Charles Street Jail opened, a somewhat unprecedented inmate class-action suit had resulted in Federal Judge W. Arthur Garrity Jr.’s findings that the facility, with amenities that included an “exercise” yard where inmates simply marched in a circle, did not meet “constitutional minima,” meaning it did not conform to the prohibition against cruel and unusual punishment. In 1980, Judge Garrity ordered a new jail built on the premises, and newly-minted Washington D.C.-based HOK architect James Kessler, now a senior principal, began an unwitting journey into justice design that to date has spanned 30 years.

Working in conjunction with Boston-based architects Stull and Lee Inc., Kessler recalled the design of a new Charles Street Jail was a situation that involved five parties: the mayor and city council, which had diametrically opposed agendas; the Commonwealth of Massachusetts; the Department of Corrections; the plaintiffs or inmates. “All five parties came to every design meeting,” Kessler said, adding there was little or no trust among the entities. In the end, the HOK/Stull and Lee, Inc.-envisioned project was never built, with the Commonwealth taking over responsibility from the city and building another design at a different site. “It was very unusual. I’ve never had a situation like that since,” he reflected, calling it a great learning experience and most “formative” for him as a young architect, especially in the realm of prison design. “There’s the architect, the technical side, the operational side – all complex and important – all key to its success – but they exist in a world of politics and larger priorities…,” Kessler said.

2010: A Video Odyssey

Increasingly, in the late 20th and early 21st centuries, with issues such as sustainability and skyrocketing operating costs at the forefront of holistic justice design, Kessler and HOK colleagues, credited nationally for prison reform of the design kind, and who count among their more regional achievements the Montgomery County Correctional Facility near Clarksburg, Md., Prince William-Manassas Regional Adult Detention Center and Virginia’s Fluvanna Women’s Correctional Center, look for ways to expedite and streamline operational components such as inmate/visitor communications. Because a correctional facility operates 24/7, 365 days a year, much like a hospital, and with 90 percent of the budget spent on operations and 75 percent of that on staffing alone, concepts such as inmate video conferencing with visitors are swiftly replacing conventional face-to-face visitation and resulting in lower operating costs.

In the past, according to Kessler, when someone came to visit an inmate, movement of the inmate through the secure facility was exceptionally time consuming and staff-intensive. In more modern facilities like Prince William-Manassas detention center, visitors entering the facility interact with inmates via video, precluding the need for the latter’s procession through the building and prolonged staff involvement. In the event of an attorney, psychologist or social worker visit where privacy is paramount, the professional can go to an isolated booth also equipped with video capabilities. “Maybe you lose a little something,” Kessler conceded, referring to more personal interaction, “but we know information can be conveyed quite well with video: it’s not just a phone call.”

1785: A View to a Kill (or not)

From earliest times and by popular literary example in Dickensian times, when prisons were essentially dungeons with populations randomly consisting of men, women and children thrown together to fend for themselves with no supervision, little thought was given to matters of crowd control. In 1785, Age of Reason English philosopher and social theorist Jeremy Bentham had famously conceptualized the Panopticon, a prison concept that went through 40 years of machinations but which, mostly for political reasons, was never built. Largely by virtue of its circular design, the Panopticon would have allowed officials to consistently observe prisoners from key vantage points without their knowledge. In this regard, operating costs would decrease because fewer staff would be required to be on duty as inmates would never be sure who, how many, or if anyone at all was watching (but they’d surmise it was better not to take a chance). Subsequent prisons throughout the world have reportedly been based on the Panopticon principle, which espouses the theory that “observation is control.”

According to Kessler, in prison life observation clearly is control, something he recalls an HOK colleague, formerly with the Federal Bureau of Prisons, explaining to him at an evolutionary time in his own career. Widely self-educated in prison history and inmate psychology (he calls upon experts such as cultural anthropologist Anita Wilson, an expert in prison subcultures), the confluence of both is integral to creating modern facilities that address the needs of changing prison populations that include men, women, juveniles, the mentally and physically challenged, violent criminals and an elderly component.

1998: You’ve Come A Long Way, Baby

Incarcerated women, for example, are more likely to change, or want to change, Kessler said, noting “an incredibly high percentage – more than 50 percent – have been abused as children.” Statistically they also have more health issues than men, and 75 percent are mothers with the added burden of being away from their children, exacerbated by having been abandoned by their own parents in similar situations. “They are in that cycle,” Kessler affirmed, adding that they characteristically suffer from low self-esteem, which essentially indentures them to men, and are also generally the sole support of their families (often parents as well as children). When they serve time, in an interesting twist, they are relieved of all of those constraints and responsibilities with time to spend on their own health and development, so they adjust much better to prison life.

In the past, and sometimes at present, Kessler said parity issues arise vis-à-vis men’s prisons, with fewer opportunities and programs available to women who comprise a much smaller percentage of the prison population. When he and his team embarked on a $38 million design of Virginia’s Fluvanna Correctional Center for Women, which opened in 1998, included in its context were a large medical facility, a computer center where inmates do actual data processing and receive money for their families and an area where they can learn to repair motors and small appliances. In correctional facilities such as Shakopee (Minn.) Women’s Prison,
also an HOK project, in-cell trundle beds exist so children can occasionally spend the night with their mothers to preserve or deepen the parenting bond.

One of the goals during incarceration, Kessler explained, is to ameliorate the anger that defines inmates. According to Kessler, because research has determined women have a much greater need for privacy than men, requiring them to live in open dormitories would very possibly build on that anger rather than helping to relieve it. At Fluvanna, though the initial concept identified 50-person dormitories, Kessler fought to build double cells, though tethered to a dormitory budget which was much less. “We arranged a design where we used four day rooms (surrounded by double cells) and made a very simple, inexpensive cross-shaped housing unit,” he said. Cells were “dry,” with toilets located in common bathrooms, which is better by sustainable standards. With a toilet in each cell, according to Kessler, by code 100 percent of the air must be expelled, and with it the heating and cooling. Without in-cell plumbing, air can be re-circulated out into dayrooms with savings on ductwork.

2003: Field of Dreams

Near Clarksburg, Maryland, the creation of the modern 900-bed (notably expandable to 1,100) Montgomery County Correctional Facility, opened in 2003 with an emphasis on sustainability, presented design challenges that included addressing environmental issues inherent in its rural 300-acre site while providing what officials called a humane environment for inmates. Located at the headwaters of Ten Mile Creek, a registered trout stream, Kessler and his team tipped the site so all the runoff was collected in one area and allowed to cool before it was discharged into the stream. Constructed on the site of a sludge entrenchment area, sludge was tested and found to have aged to the point of zero-toxicity; it was retrieved and stockpiled for organic topsoil.

Inside the facility, which utilizes recycled rubber flooring in parts, low-VOC paint and sealants, a day room made of sustainable oak and 30 small pulse boilers instead of one large boiler for hot water conservation, tiers of glass allow natural light to permeate the space from an outdoor recreation yard. Each cell has a window, something Kessler’s research and experience reveals is critical to an inmate’s emotional well-being and resulting behavior, which consequently affects the need for special staffing measures that can translate into dollars. Double cells do contain toilets, which Kessler said “…is a very important administrative tool: It means they can lock them in their cells.” Direct supervision, a modern metamorphosis of “observation is control,” means the guard is situated at a desk right in the middle of things. “It’s not based on physical force,” Kessler explained. “It’s based on authority and psychological authority. It’s based on mutual respect, and that’s from where the authority derives.”

Kessler summarized his work in justice design by affirming that the first priority is to make the facility as efficient as possible, because that’s where the “big dollars” are. He maintains this is balanced with keeping it safe and secure, keeping the staff safe, keeping inmates, visitors and the community safe. “As architects,” Kessler said, “we have social responsibilities and certain sensitivities, perceptions and skills to deal with unusual situations for the people that work in them, the people that visit them and for the people that are in them, because they are still human.”

Sunday, August 22, 2010

CityVista Apartments Sells to Gables

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Gables Residential has announced it has purchased The CityVista apartment building in Mt. Vernon Triangle from Lowe Enterprises. The 244-unit "V at CityVista" was completed in August of 2008 but had been on the market before its completion, with numerous suitors having come close to reaching an agreement to purchase from Lowe. The sales price of the building was undisclosed.

The CityVista complex, developed through a partnership with the DC government, which still owns the land with a long-term lease, was the most successful of the residential developments in Mt. Vernon Triangle. The 441-unit condominium is also selling its last few units this month, the retail section is now almost fully leased.

Atlanta-based Gables Residential owns numerous large apartment buildings throughout the greater Washington DC area, as well as nationally, with over 38,000 apartment units under management, according to its website.

Washington DC real estate development news

Friday, August 20, 2010

Abdo Gets Equity Injection, Catholic Plans to Demo University Buildings

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This past winter the Zoning Commission exchanged self-congratulatory pats on the back and awkward hugs with Jim Abdo as they approved plans for a large mixed use development project in Brookland. In late July the Greenbelt-based Bozzuto Group announced it was pairing up with Pritzker Realty Group LLC of Chicago to form a $75 million joint investment fund in multifamily housing; and early this week the joint-venture revealed that a significant portion of that fund was being invested in Abdo's plans to develop Catholic University's South Campus. The new partners would not reveal the exact amount of their equity investment, but it's deemed healthy enough to move forward with plans for the $200 million development to break ground in spring of next year. As part of the brokered agreement, Bozzuto Construction will operate as general contractor and Bozzuto Development will partner with Abdo as co-developer of the site. While the rest of the working world has gone on August vacation, and projects across the metro area have petered out and evaporated in the sultry summer sun, the Catholic University project offers hope that the market is showing small signs of life.
Starving artists will be well fed with high-end studio space.
The center piece of the new project and first phase of construction will be the Arts Walk buildings across from the Brookland Metro Station. The 15,000 s.f. ground floor will consist of 27 studio spaces where artists can work on, display, and sell their pieces. The wide, open public space between the two structures (the "arts walk" itself) will allow this creativity to spill out of the studios and onto the sidewalks, and will also be a place to feature sculptures, public art exhibits, and kiosks for rotating studio-less artists. The arts walk will dead end into a public piazza with a bubbling water fountain and more public space for artsy festivities. The tree-lined Monroe Street, beginning at the Michigan Avenue intersection and running to the Monroe Street Bridge, will serve as the main street of the campus, the backbone of the development. The wide thoroughfare will be home to 83,000 square feet of diverse, pedestrian-friendly street-level retail, much of it student-oriented: coffee shops, pubs, book shops, bike shops, you name it. On top of all this, the development team will stack several floors of residencies, 720 apartments units in all (approximately 63,000 s.f. will be reserved as "workforce" housing). Also included in the works are 45 townhomes to be marketed for purchase. The townhouses will help transition the taller Monroe Street and Arts Walk apartment buildings into the abutting lower-rising neighborhoods of Brookland and Edgewood. A total of 850 below-grade parking spaces will accommodate residents and shoppers alike.
New South Campus main street: a place to shop, and tailgate?
On Wednesday, the District received raze applications for three South Campus buildings (Spalding, Spellman, and Conaty Halls), showing concrete efforts to make way for the development, and further proof that these guys weren't joking around and real progress is being made. Catholic University requested the permission to destroy the three dormitories, writing: "CUA's expectation is that the South Campus development project will provide a financial return to support the renovation and construction of residence halls on its main campus, [and] will provide amenities that will benefit both the neighborhood and the students and employees of the university." Although ground will not officially break until 2011, The Berg Corporation, experts in the art of destruction, have been contracted to demolish these three buildings in the near future. 

Washington D.C. Real Estate Development News

Thursday, August 19, 2010

Centex Feeling Confident in Wheaton

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Planners have been busy working on all the new developments getting ready to launch near the Wheaton Metro station, but walk a half mile north to the intersection of Georgia Avenue and Arcola Avenue and you'll find a busy construction site. Where eager students once sat glued to their physics texts at Our Lady of Good Counsel High School (since relocated to Olney), bulldozers now rule as townhouses rise to completion. The high school was demolished in 2007, with the Rafferty gymnasium the only original structure remaining. Centex Homes of Dallas, TX began building on the 14-acre site in 2008, and have now completed 85 of the originally proposed 190 homes. But in late July, the Montgomery County Planning Board approved Centex's request to raze the Rafferty Center to make way for an elaborate open field, intended for the "general play" of their new residents. The total approved number homes will now soar from 190 to 194, as Centex proposes to add new townhouses to abut the new parkland. As now planned and approved, the completed Leesborough Townhomes will consist of 143 townhomes, 45 condominiums or "garden units," and six single family homes.



Local residents were holding out hope that the county would maintain the gymnasium as a recreational facility or that Centex would develop the building into a mixed use space involving community amenities and additional office space. But the County announced in June that is was scrapping its plans for renovation of the Rafferty Center, and clearly Centex wants nothing to do with it as well. However, the County does have plans to develop another full service community recreation center on the southwest quadrant of the Georgia Avenue and Randolph Road intersection. The $20 million project will be fully stocked with basketball courts, a state-of-the-art gym and other recreational amenities. But as expected, there will be a significant time lapse separating the leveling of Rafferty and the opening of the new facility; planners can't begin the project for at least another four years, when the Randolph Road site, now serving as staging area for Inter-County Connector highway construction, opens up.

Looks ready for a pick up soccer game.
All in all, this is a positive sign that Centex is confident in demand for more housing. With development plans stalled across the metro area, it remains one of the few active site. It is a welcome reverse from the direction Centex was forced into several years ago, as it pulled the plug on a few large projects scattered about the metro area. The completed townhouses are currently being offered from the upper $300's.

Wheaton Maryland real estate development news

Capital One Proposes a Remake of Tysons Campus

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Following on the heels of Fairfax County's plan to transform Tysons Corner from a beltway exit to a citified, walkable community, financial giant Capital One has filed new plans for its Tysons Corner development, embracing the shift by proposing to turn its planned office park into a mixed-use model of urban planning. Capital One ensured future value of the land when it donated 3 of its 29 acres for an upcoming Metrorail station expected to open in 2013, a move it now seems ready to take advantage of.
Capital One had been approved for a 4-building office park on the 26-acre site just inside the beltway that it bought in 2000, but has built only one tower; in its place the company has now designed a mix of offices, parks, retail, residential and public spaces for what might someday be a live-work-walk community. No definitive time frame has been established. Capital One acknowledges that the economic outlook doesn't yet justify much of the construction, saying it has "no immediate plans" to develop the site. But "should the need arise," the bank wants an approved model in place and has stretched out its implementation over years as the climate in both financial institutions and real estate world improve.

Consolidation of Capital One's headquarters began back in 2002, when it built a 14-story headquarters on its newly acquired site. But rather than build out the remaining 3 buildings with their combined 560,000 s.f. of space, despite finally nearing capacity with 1000 employees, McLean based Capital One proposes to build on the new Tysons redevelopment plan and take the campus "in an entirely different direction" with a daunting 5 million s.f. of development. If approved by the county, the "vibrant urban center" would hold 2.1m s.f. of office space rising up to 392 feet (though just 28 stories), 980 to 1230 residential units rising 20 stories, as well as hotels, parks, plazas and retail, all connected to the Tysons East Metro station.

Few others have opted to launch similar projects; Quadrangle Development delivered the only new office building in 2009 and has held back on its approved residential development. But Capital One may have at least something in their wallet, since it is proposing a 15-story office building adjacent to the current headquarters and connected by an elevated walkway. It calls the building "the most likely to be constructed in the near term." The streetscape will be entirely reconfigured in what it calls an "urban grid system." Because the site is within a quarter of a mile of the new Metro station, density limits are eliminated, giving the region perhaps its best chance at a building that sets a new record for the area's tallest, possibly exceeding, just barely, Rosslyn's planned 390-foot Central Place tower. Capital One's application to the county will shoot for the USGBC's green building certification on each of its buildings by using green or reflective roofs, rainwater retention systems, pervious pedestrian paths, and a preference of foot traffic over vehicular access. Despite the nod to sustainability, the development will extend Scotts Crossing Road over the beltway and connect to Jones Bridge Drive on the west side of I-495, better connecting the overly wide roads that criss-cross the area.
County officials would not estimate the time frame for evaluating the application, a process that would include public hearings and studies, and presumably a series concessions between the county and Capital One; officials say they have not yet given input on the development plan.

Architects and planners envisioning the urban context include Bonstra Haresign as Urban Planner and Architect and William H. Gordon Associates as Civil Engineer and Landscape Architect. David Haresign, then Principal and Director of Architecture for Ai, assisted Capital One with initial site selection and designed the original master plan and the headquarters building, now iconic to the beltway bound as a curving "billboard" facing Tysons with the financier's logo. Like its planned successors, the first tower employed infrastructural adaptations to environmentalism, such as water-reducing plumbing, underfloor air distribution systems, pervious paving and local sourcing of materials, features not yet common at its inception.

Fairfax County real estate development news

Wednesday, August 18, 2010

Southwest's Big Day

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Can anyone finance this?
District officials began demolition yesterday of Hogate's Restaurant on the Southwest waterfront, the first step of what will be a billion-dollar renovation of the area that will usher in a new neighborhood in a city-changing endeavor to connect DC to the river. Or, to the cynically inclined, it was a short-lived photo op for a project that has zero chance of starting soon.

Putting healthy skepticism aside, a completed project would be transformative, replacing careless architecture, mediocre food establishments and parking lots, all segregated by anti-pedestrian design, with an urban worthy mixed-use neighborhood featuring 14 acres of parks and "open space," 780,000 square feet of office and retail space, 3 new hotels, entertainment venues and 770 condos and apartments. Just picture throngs of happy pedestrians gazing over the marina while dropping Hamiltons like crazy at waterfront retailers. Add 3,000 new jobs and you have a minor stimulus plan in the works.

So just how close is the team, comprised of PN Hoffman, Madison Marquette, Struever Bros. Eccles & Rouse, McCormack Baron Salazar, ER Bacon Development, Triden Development, Paramount Development, Gotham Development and City Partners, to getting real progress? The ambitious project, first approved by the DC Council back in 2003, was never on fast-track. But despite the development team having been selected in September of 2006, the District's approval of $198m in revenue bonds supported by tax increment financing (TIF) in July of 2008, and ratification of the land agreement in December of 2008, numerous obstacles remain. District officials say that a master plan will be submitted in October, and though they acknowledge there has been no major headway on financing, actual construction is now estimated for a comfortably distant 2012. But in January of 2008 developer Monty Hoffman predicted that "District residents can see a shovel in the ground by 2010;" not a surprising miscalculation given, well, everything, but one that gives pause in relying on current estimates. PN Hoffman would not comment on the significance of the groundbreaking. It seems that for the near future it will remain simply a good spot to get cheap fish.

Washington DC real estate development news

Marbury Plaza: 1500 Tenants End Two-Year Rent Strike

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Real trouble began about five years ago. A young girl and her mother were killed by an explosion at Marbury Plaza in Southeast Washington, DC, and several people were injured. Investigators believed that thieves had tampered with natural gas lines leading to laundry equipment inside one of the two highrises in the otherwise garden-style residential complex. In response, the management company, The Lightstone Group, put all laundry off limits to residents, who reacted by forming a tenants' association to respond to the crisis, prevent future recurrences and improve quality of life at the apartment building. Then in October of 2008, they staged a rent strike, placing their rent money in an escrow account in the city's charge. Now, five years later, a new management company is taking over, and a $5 million capital budget will be available to restore the complex to normalcy with rent checks once again rolling in.

Despite the agreement announced yesterday, April Goggans, President of the MPCTA (Marbury Plaza Concerned Citizens - Tenants Association) is only vaguely optimistic. In her four year struggle to bring tenants to the forefront of concern, she has been disappointed repeatedly. Now that Urban Investment Partners (UIP) has reached an agreement with the MPCTA to manage the 672 rental units and their 1500 disgruntled residents, Ms. Goggans remains skeptical and more than slightly on the defense. "Just give it 6 months. When UIP attempts to purchase the building again, the Association will be 110% ready to exercise their TOPA [Tenant Opportunity of Purchase Act] rights," she wrote in a November 2009 letter published on the MPCTA's blog. In her letter she cites previous attempts by UIP to buy the property, which affords views of downtown Washington and spacious floor plans. At the same time, according to East River Magazine, Ms. Goggans noticed that the property really began to deteriorate when the owner, A&A Marbury, LLC , stopped trying to sell it in 2007.

In her testimony against A&A Marbury and the Lightstone Group, Cassandra Payne, a Marbury Plaza tenant as of 2004 stated that when she first moved into her apartment "(1) The hot water was sporadic and would often be turned off without any notice to the tenants. (2) Her apartment had holes in the walls. (3) The 'plumbing was bad.' (4) There were roaches and 'rodents' in the hallways. (5) When she moved into the apartment there was no carpet on the floor and a stink that provoked an allergy attack. (6) The building had holes in the hallway walls." After a 17% rent increase, she sued the company under a claim of a violation of the The Rental Housing Act of 1985 but failed to bring documentation of the reported issues to the hearing. The Act places nearly all rental units built before 1975 in the District of Columbia under rent control regulations, which do not allow spikes of more than 10% in annual rent in most cases.

The Office of Administrative Hearings (OHA) ruled in favor of the housing provider because the rental ceiling adjustment corresponded to the CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers), and Payne failed to provide sufficient evidence to support her claims. Tenants were not the only ones suing; the owner also unsuccessfully sued tenants when they refused to pay rent.

"I've sacrificed tremendously. It can be a 24-hour a day job advocating for justice. Tenants will start seeing some relief, and the Attorney General will oversee the whole process. We have worked so hard to get here, and the outlook is finally promising." Goggans talked to reporters, community agencies, and even bought law books to navigate the complexities of housing advocacy. "It's been a learning experience," she reflected. Voicing concerns about elderly, disabled or single parent members of the Marbury community, she said she is glad she has had the energy to pursue solutions to the problems that have been plaguing the residential complex over the past four years.

But with the support of Peter Nickles, DC Attorney General, Ward 7 Councilmember Yvette Alexander, as well as Councilmembers Muriel Bowser and Kwame Brown, Chief Tenant Advocate Johanna Shreve and Bread for the City Legal Clinic Director, Vytas Vergeer, the tenants are finally being vindicated.

The Lightstone Group lost ownership over Marbury Plaza when it defaulted on a $41.1 million loan from New York Community Bank in 2004. Since then it has not been making mortgage payments on the property and has been generating operating losses. A refinancing of the property took place in 2005, generating $14.1 million in revenue. A sizable chunk - $10.2 million - went to investors. Overall the company has been operating at a loss averaging approximately $2 million per year on Marbury with additional losses in the millions on its other residential and commercial properties and coming close to foreclosure.

"We are committed to working with them" stated April Goggans about UIP's new management in a recent interview. "They came into a hard situation, but ultimately, the owner holds the purse straps." Negotiations between the MPCTA and A&A Marbury have yielded an agreement, announced on Tuesday, of $5 million in capital improvements to the property, which consists of two apartment towers and seven garden-style buildings. In an August 17th press release, Wout Coster of UIP said "We could not accept the assignment until we were assured that the owner was prepared to provide the funds necessary to improve the property." For now, at least, life will get a little better for everyone involved.

Washington DC real estate news

Tuesday, August 17, 2010

Costco Tantalizing DC's Gateway

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Twenty years in the making, and plans to develop Washington DC's first Costco at Dakota Crossing are still trudging along. The stage set is a remote patch of forested land in the Fort Lincoln neighborhood, better recognized as the land opposite the Washington Times on Route 50. The players are likely to be Costco and Target, potentially Shoppers Food Warehouse and Staples, even Walmart was once in the lineup. The director is Fort Lincoln New Town Corporation, which brought in Peterson Companies to develop retail as part of a mixed-use, suburban-style shopping center with housing, offices, retail and acres of parking lots. When Peterson bowed out in 2007, Trammell Crow Companies stepped in to oversee its stock and store - big box power centers. All that is missing is the financing and wetland remediation plan approval from the city. And, of course, final commitment from at least one of the big retailers.

The site seems a developer's dream: 42 empty, contiguous acres, flanking one of DC's main migratory routes. Because it is situated in the residential Fort Lincoln neighborhood and nearby industrial uses are mostly defunct, residents pine for a major retail center somewhere, anywhere, in their quadrant. The plan shows 430,000 s.f. of retail served by 2500 surface parking spaces, connected to a 362-acre housing development planned across the street - The Village at Dakota Crossing, with 537 townhouses, 30 affordable workforce units, 500 more parking spaces and a pedestrian-friendly layout with wide sidewalks, tot-lots and community spaces. The land is a stone's throw away from the National Arboretum and within a 5-minute walk of the Anacostia River But development has hit two main obstacles. The first is getting retailers to commit to a large project in a suburban setting, which tests current financing models, although Costco has signed a non-binding Letter of Intent to occupy the property. The other is the dated nature of the plans: 20 years ago, paving over a large, unused plot in the city to build a regional shopping center would have easily passed city government hurdles, whatever the environmental or historic implications. But the contentious, yet sought-after site is now entirely forested and home to wetlands, filtering nearby industrial waste and acting as a natural barrier against flooding. "Our plans call for creating new, high quality wetlands near the retail center as mitigation for taking away the existing wetlands, which have been documented as very low quality, marginally functioning wetlands. 

 These plans are currently being reviewed by the U.S. Army Corps of Engineers and the EPA, and will be reviewed by D.C. DOE once the federal regulators finish," said Cel Bernardino of Fort Lincoln New Town Corp. He also noted that the current plan "envisions a model 'green' shopping center with cisterns, green roofs, green walls, and other LID (Low Impact Development) measures." Costco has been eying this site for the past ten years. Target and Shoppers do not lag far behind in enthusiasm. They might all benefit from TIF (tax increment financing) subsidies from the District, which has supported the development as a neighborhood improvement initiative. Costco alone expects $15 million in TIF financing. But the District must mediate between the environment, small business owners who have fought the behemoth onslaught of all-in-one-for-a-portion-of-the-price big boxes, and competing revitalization projects throughout the city. "The Office of Planning has worked very closely with the development team to ensure the project is green and pedestrian friendly," reported Victoria Leonard, Director of Policy and Strategic Communications in the office of Ward 5 Councilmember Harry Thomas, Jr. The District likes it so much it plans on paying $3 million upfront to build retention ponds to offset the 3000 new parking spaces. The funding would come out of the D.C. libraries capital budget, an initiative spearheaded by Council Member Thomas, who noted that "the Shops at Dakota Crossing have been in the books for a decade" back in April of 2009. The funds are being transferred from a Ward 7 libraries project, which should begin to see repayment in 2011. Ward 5 library services will remain unaffected.

According to data on the Deputy Mayor's website, Dakota Crossing envisions that residents would walk to the shops from the Villages, suspending disbelief that shoppers at Costco and Target could buy anything that could be carried by hand. An additional wrinkle is that HUD approved an Urban Renewal version of the Fort Lincoln Redevelopment Plan in 1972; amended in 1990, the plan requires 3000 units of housing, 2463 units more than Fort Lincoln New Town's current proposal. Cel Bernardino recounted the various phases of housing that have already been built under the 1970s Urban Renewal Plan for the Dakota Crossing site. About 1370 residential units, including condos and rentals were built at Fort Lincoln New Town during the 1980’s and 1990’s, with most of the rental units built for senior citizens. The 127-unit Wesley House seniors apartments opened early last summer, and 209 "Dakota Crossing" town homes were completed last month. "We have two additional planned residential developments (town homes and condos) that construction hasn’t started on yet – the 334-unit 'Village at Dakota Crossing' across from the shopping center, and the 50-unit 'City Homes' development at the corner of Bladensburg Road and Eastern Ave." Robert King, Commissioner on ANC 5A12 (Advisory Neighborhood Commission), has been involved in planning Dakota Crossing since the 1970's. He's seen developers come and go, and has remained a reliable supporter of the plan, representing the leading voice of the commission he heads: "The project is finally on track. Some of the first residential units to break ground will be dedicated to firefighters and school teachers, and I am happy about that. The neighborhood is bracing itself for the development of Costco, which is expected to bring jobs, but also increase traffic." He believes the 1970's plan calling for 3000 units of housing was too ambitious and needed to be scaled back in a neighborhood of just 4000. "There is a significant retirement community in Fort Lincoln, and I am concerned about access to the retail site." Mr. King said he has been trying to organize a bus service to transport seniors across Fort Lincoln Dr. and 33rd Place. Although a contender for a Dakota Crossing spot a few years ago, Walmart is out. The city refuses to provide subsidies to the union-shunning employer. Nevertheless, word on the street is that Walmart may yet settle into the neighborhood, but now on triangular site bounded by New York Ave., Blandensburg Road and Montana Ave., the site of the Abdo project that fell apart earlier this year. From a traffic perspective, the development of two big box retail sites in such proximity could produce a tangle at what is already a busy thoroughfare. In an area that lacks Metrorail, the arrival of the big boxers and all the parking infrastructure that comes with them does not foreshadow a favorable future for TODs (transit oriented developments). The architects of the proposed retail development at Dakota Crossing, Bignell Watkins Hasser, with offices in Annapolis, MD and Vienna, VA, have built several local retail centers at both the neighborhood and regional scales. The big box retailers would create what is estimated at 800 new jobs by establishing what developers hope becomes a regional destination, capturing incoming and outgoing DC traffic at the entrance of the Baltimore-Washington corridor. "I want everybody to know from here to Timbuktu that Fort Lincoln is getting ready to complete plans for Costco. We want to make sure we can tap into every dollar for the city and create as many construction and other jobs as possible" said King, who echoed concerns about the wetlands and retention ponds on the new development site. Area residents seem enthused. "I think its hard to argue against development in one of the last development holdouts in DC" said Hans Posey, who moved to the neighborhood recently. "Its a very established neighborhood, but everybody, everybody, in the neighborhood is gunning for something bigger, something more than the kind of stores that are there now." Cel Bernardino estimates an August 2011 groundbreaking for the retail part of the development. "I’d say Spring 2011 would be the soonest we are likely to break ground on the shopping center. We have 'solid' commitments from our anchor tenants. No leases signed yet." The current site plan/design for the shopping center received concept design approval from NCPC on June 3, 2010. 

Washington DC real estate development news

Sunday, August 15, 2010

JBG Announces Partner, Groundbreaking on 14th Street

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Grosvenor, JBGSmith, 14th Street, Cecconi Simone, Metropolis Development, Scott Pannick, UDR Development, Shalom BaranesJBG announced on Friday that it will partner with Grosvenor, an international real estate firm, to develop its condominium project in the Logan Circle neighborhood of DC, with site work to start as early as next month. It was unclear what Grosvenor, JBGSmith, 14th Street, Cecconi Simone, Metropolis Development, Scott Pannick, UDR Development, Shalom Baranesrole London-based Grosvenor would play in the joint venture on a site JBG has controlled since 2008, but JBG described Grosvenor as a "capital partner." The project will offer 125 condominium units available in early 2012 and a full level of retail. The 14th Street site, home to the Whitman-Walker Clinic, is among DC's more vibrant retail scenes, but has not scored the start of a new residential project in four years since Citta 50 was built, which only recently sold out. JBG will incorporate the century-old, 4-story clinic into the 7 story building, but had previously been only tentative that construction would be underway this year. It now says demolition will begin "within the next month," with construction to follow in October. DC-based Shalom Baranes is the architect, and JBG announced earlier this year that Toronto-based Cecconi Simone would design the interiors (a revised rendering just released is above). Grosvenor, JBGSmith, 14th Street, Cecconi Simone, Metropolis Development, Scott Pannick, UDR Development, Shalom Baranes, apartment buildings, retail for leaseDevelopers described the new building as a "five-story projecting glazed bays on a terra cotta and brick façade" and have promised a "highly-amenitized" condominium. This is the first project in the area for Grosvenor, unlike JBG, which is based out of Chevy Chase and has extensive residential development experience. "We wanted to bring our expertise and vision for vibrant mixed-use urban development to Washington, D.C., part of Grosvenor’s focus for future development projects," said Mark Darley, Senior Vice President and General Manager of Grosvenor. Local developers have shied away from starting projects in the neighborhood; developer Scott Pannick of Metropolis Development backed out of the Whitman-Walker site in 2007 over concerns of a market gone south, and others projects like UDR's Nehemiah Center project and Georgetown Strategic Capital's apartment building one block north have been stalled indeterminately. Update: In response to a request for comment on this article, JBG submitted the following statement:
JBG has a breadth of experience developing projects in the DC area, including other luxury residential projects. However, the 14th & S project will be somewhat unique for JBG in that it will be more of a boutique building with a more modern European design aesthetic and smaller, more efficient units. The project is now fully entitled and designed, but JBG believes it can still learn a great deal from Grosvenor’s extensive worldwide experience investing in and designing similar urban luxury projects.
Washington DC commercial real estate news
 

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