Georgia Avenue Groundbreaking Delayed Again

Groundbreaking for Guardian Realty's 13-story residential tower at 8711 Georgia Avenue in Silver Spring was delayed yet again because of the developer's indecision in choosing a general contractor, according to multiple (frustrated) sources. The project had been set to break ground at the end of January, but fell victim to Guardian's protracted pursuit of lower bids.

Guardian had no comment when contacted for this story.

Described as far back as 2008 as being on the "fast track," the project has flagged in recent years. Originally conceived as a 13-story Class A office tower, with ground-floor retail space, the project was switched to residential after the down economy made leasing difficult. (Location might also have been a factor - potential tenants who declined to lease at 8711 include corporate titans Northrup Grumman, Siemens, and Hilton, who all took offices elsewhere in the area.)

Developers anticipate a heightened demand for housing in the area after Walter Reed merges with the National Naval Medical Center in Bethesda. The site plan amendment, which left the original building's footprint almost entirely unchanged, was approved by Montgomery County planners in April 2011.

The new plan calls for 160 units in a thirteen story, 143-foot tall building on the 0.87 acre parcel, plus a bit of retail space (halved from 4,500 in the original plan). The WDG-designed building, which will open onto the forthcoming Fenton Street extension, also features a laudably adventurous "public arts plaza" designed by local artist Martha Jackson-Jarvis. The main feature of the plaza is a 75-foot "wave wall," a sort of flowing mosaic sculpture of varied textures that will "undulate like waves." Another, smaller, mosaic wall and a series of three-dimensional sculptures rounds out the space, and a mid-block pedestrian mall will connect the plaza to nearby Georgia Avenue.

At the April 2011 hearing for the site plan amendment, Brian Lang, representative of 8711 Georgia Avenue Parking Lot LLC, described the project as "liven[ing] up" a particularly "dark and dreary" stretch of Georgia Avenue. But before that happens, they'll have to actually build it.

Silver Spring real estate development news

"Louis at 14th" Development Unveiled

In a heated tent at the end of a long crushed velvet carpet on 14^th St. today, JBG, Georgetown Strategic Capital and city officials symbolically (but not literally) broke ground on the long-discussed “Louis at 14^th”, a 267-unit, 42,000-square foot mixed-use megadevelopment.
Formerly called "Utopia" and in the works since 2006, entitlements are finally in place and demolition has begun for a dramatic makeover of what developers called “the greatest intersection in the District.” According to today’s press release, the Eric Colbert and Associates-designed building will offer amenities including a rooftop terrace with grilling stations and fire pits, a rooftop pool (with bar), a fitness center, and a 24-hour concierge. Historic facades along U Street will be preserved, though many (but not all) facades along 14^th are slated for imminent demolition. Surely developers were buoyed by the high rents and recent high sales price of the Ellington apartments almost across the street.

If the prestige of a project is in direct proportion to the swank factor of its groundbreaking ceremony, the Louis should be very swank indeed. Aside from the aforementioned velvet carpet (and ropes), there was an open bar (so forgive any typos), as well as a solo saxophonist providing ubersmooth accompaniment as various development titans rubbed elbows with Councilmembers Michael Brown and Jim Graham, as well as Mayor Vincent Gray. When it was time to unveil the new renderings, a male model done up as Louis the XIV (get it?), complete with powdered wig, hose, and lace waistcoat, entered stage left.

But although the ceremony was long on flash, it was short on specifics. Mayor Gray made a vague, campaign-trail-ish speech, made frequent reference to his local roots, and arched his eyebrows a lot, Councilman Brown did his Obama thing (in fairness, he does a great Obama), made even more frequent reference to his local roots, and called for a comical number of rounds of applause (this blogger might have been the only person in attendance who did not, at some point, get applauded), and Councilman Graham regaled the crowd with reminiscences from his days at Whitman-Walker, and how volunteers used to refuse to set foot on the mean streets of 14^th and S Streets.

But there was little talk of future retailers. Though there were vague murmurs of unsubstantiated rumors – Trader Joe’s? – firm information was in short supply. This blogger circulated to try and confirm a rumor about a possible flagship tenant, but no one could confirm or deny. In fact, by 5 o’clock, most of the attention was on the open bar, and on snapping iPhone pics of the guy dressed like Louis the 14^th.

Washington D.C. real estate development news

AvalonBay's "Hipster" Apartment Building Aims for December Move-In

AvalonBay's latest real estate development, the "AVA H Street" apartment building (which is not technically on H Street - it's at 318 I Street, NE) is set to go vertical any day now, a critical milestone for one of the more unique projects in the booming H Street corridor.

"All the dirt's out of the hole, and they're pouring slabs," said Jeff Wood, development manager at AvalonBay. "We're on schedule for first occupancy in December of this year." The building will be entirely residential, with no ground floor retail.

AVA H Street will offer 140 rental units of "pretty sick apartments," according to the project's Facebook page. Jonathan B. Cox, Senior Vice President of Development at AvalonBay, previously told DCMud the building would be "more contemporary and a more unique architectural style than what's now on the market." Though he was coy at the time about the architect behind the building, it's since emerged that KTGY Group is spearheading the design, and the latest renderings, with their colorful facades and prominent branding, do indeed look more unique that most of what's on the market right now. Blake Dickson represented Avalon in the purchase.

AvalonBay acquired 318 I Street through a lender sale, after original owner Broadway Development lost the property (as well as the adjacent Senate Square) through foreclosure in 2009. AvalonBay, a Ballston-based real estate investment trust (REIT), has posted huge profits in recent quarters by taking advantage of depressed property values to accumulate parcels, and by catering to a rental market that remains strong due to the flagging economy. A recent Wall Street Journal story described AvalonBay's strategy as "hipsters and suburbia" - and if the H Street NE address wasn't a giveaway, AVA's Facebook postings ("so rad!" "awesome!" "sick!") make it eminently clear that this building targets the former group.

AvalonBay had planned to build two more apartment buildings near the future Tysons West metro station, but that project ground to a halt after county officials' request for transportation improvement funds were deemed too high by AvalonBay management. (They did proceed with another Tysons project, the 354-unit Avalon Park Crest.)

AVA H Street broke ground back in November, and is just one of a dizzying number of projects in the immediate area, the biggest of which is the Steuart Investments mixed-use behemoth. It's hard to believe, when you see the flurry of construction on H Street today, that just a handful of years ago over twenty percent of H Street storefronts were vacant - a rate that has been reduced nearly to zero in less than a decade. And when the long-discussed streetcar is up and running, the boom will kick into another, even higher, gear.

Washington D.C. real estate development news

JBG Celebrates 14th & U Street Groundbreaking on Tuesday

JBG Companies' Utopia Project at the corner of 14th Street and U Streets, will be commissioned tomorrow, beginning what all parties hope will be imminent construction.

City dignitaries, including Mayor Vincent Gray, Councilmembers Jack Evans, Jim Graham and Michael Brown, plan a public unveiling of the development, which will be known as The Louis at 14th, beginning 4pm on Tuesday at 1920 14th Street, NW.

JBG, in conjunction with Georgetown Strategic Capital, will include more than 200 rental units and 20,000 s.f. of new retail along the 1900 block of 14th Street, amid the fast-growing Logan Circle/U Street neighborhood, replacing a low-slung series of fast-food chain restaurants while preserving retail along U Street.

Georgetown Strategic Capital originally got zoning approval for the project back in November 2008, but the economy dashed plans for any quick construction. GSC was granted a two-year extension for the site, as principal Robert Moore sought to wrap up more than $93.5 million needed to finance the project.

The design, by Eric Colbert & Associates, will also include a rooftop pool, nearly 150 parking spaces and will be 90 feet high at its tallest point. The historic facades along U Street will be saved while the buildings along 14th Street will be demolished.

Washington D.C. real estate development news

Your Next Place

By Franklin Schneider

This Capitol Hill rowhouse looks like your standard issue rowhouse from the outside, and then you walk in and you're all like “whoa.” I felt really bad about judging this book by its cover, but then I remembered that the other nine times out of every ten it's a totally accurate, legitimate life strategy, and then I felt better.

Architecturally redesigned in 2007, this home really took a quantum leap forward aesthetically. The main addition was the conversion of the living room into a huge, amphitheater-like space that goes up two full levels. With plenty of windows letting in light, this is a totally unique and fantastic space, especially for a rowhouse. The renovation also added a very nice roof terrace – you can see halfway across the city from up there, or so it seems – and a small balcony. Basically they put in everything you always wished rowhouses had – larger exterior spaces, larger interior spaces - but almost never do. Add in a fireman's pole and a “Star Trek: the Next Generation” pinball machine and this would be the perfect house.

Aside from all that, the house boasts fine hardwood floors, exposed brick, recessed lighting, and large, beautiful bedrooms. Located on a serene Capitol Hill block that was so outrageously picturesque on the day I visited, with loads of mature trees in front of the pristine houses, that it was downright ridiculous. I was about to point and laugh contemptuously at this little panorama but there was an attractive woman right there, walking her dog, so instead I just sucked in my cheeks and squinted off into the distance. I'm pretty sure she was impressed.

318 16th Street SE
4 Bedrooms, 3.5 Baths
$799,000

Earth Finally Moving at Rhode Island Avenue Office Building

The Center for Strategic and International Studies is finally doing a lot less thinking and a lot more digging, as dirt is finally moving at their site for a new headquarters at 1616 Rhode Island Avenue NW.

The new $100-million think-tank headquarters, which was to break ground in September 2011, was delayed several times as HITT Contracting, the general contractor worked out key technical issues for the building's underground levels, Ryan Sickles, a CSIS spokesman, said.

The new CSIS space will share the neighborhood with the new University of California Washington Center and the Human Rights Campaign headquarters.

Designed by Hickok Cole Architects, the CSIS headquarters will be nine stories, 130,000 s.f., and should achieve LEED-Silver certification, with substantial help from a green roof.

The light, open space is a substantial contrast to its fortress-like location at 1800 K Street, NW, where it has been for more than 50 years. CSIS will move when the project completes in the fall of 2013.

CSIS bought its 15,400-sf property in the Golden Triangle in 2007, for what was reported to be just over $31 million.

(photos courtesy Hickok Cole)

Washington D.C. real estate development news

Today in Pictures - Meridian at Mt. Vernon Triangle

Paradigm and Steuart Investments are nearing completion on the Meridian at Mt. Vernon Triangle, a 390-unit rental building at 425 L St, NW. The apartment building rises fourteen stories above three levels of below-grade parking. Along with the typical amenities like a gym, roof deck, common rooms, the building will also feature a hybrid and electric car refueling stations. The building broke ground in October of 2010.

The apartment building was designed by Architecture Collaborative, Inc., while Collins & Kronstadt of Silver Spring holds the title of architecture of record. Developers expect final completion by this fall, but will have competition from the new Donohoe apartment building just across the street.








Washington D.C. real estate development news

Will Old Post Office Deal Accelerate Hoover Building's Demise and FTC's Move From Apex?

The General Services Administration's controversial nod to billionaire Donald Trump's bid for underutilized Old Post Office has refocused attention on the eastern end of Pennsylvania Ave. where several key government buildings could be in play.

Top of the list is the J. Edgar Hoover Building between Ninth and Tenth Street.

In November 2011, the Government Accountability Office released a report detailing what to do with the tired and unpopular J. Edgar Hoover FBI building on Pennsylvania Avenue. The Hoover Building, a Brutalist piece of concrete completed in 1974, has few current fans, even among the District's vocal preservationist crowd.

"Nobody will shed a tear when it goes," said Steve Calcott of the District's Historic Preservation Review Board. It's also much maligned as a "block-killer" for Penn Quarter as security considerations nixed any plans for street level retail. "We're just waiting for the day when the bulldozers arrive," said Karyn LeBlanc of the Downtown DC Business Improvement District.

The structure is equally unloved by the G-men as well, apparently. According to the GAO report, leaks, lack of windows, and poor access make the Hoover Building despised by its inhabitants, many of whom are now farmed out to other buildings in the D.C. area post-9/11 for security reasons.

The FBI desperately needs to centralize those agents to streamline operations and react more swiftly to threats. That's compounded by the fact that since 9/11, the number of FBI personnel working in and around Washington has nearly doubled, from 9,600 in 2001 to more than 17,600 in 2010. Given too that the FBI building and its agents are a prime terrorist target, the GAO's report also references key security weaknesses in the building (the specifics of which are classified in this report) that make it a prime candidate for replacement outside of the aesthetics.

The GAO's recommendations should cheer anybody eagerly awaiting a wrecking ball for the old structure. The government watchdog agency noted that at 2007 prices, remodeling the existing Hoover Building to come into compliance with EnergyStar and LEED certification would top $1.9 billion and take nearly a decade and half of work to complete.

Conversely, demolishing the unloved building and replacing it with another at the same site would cost a relative pittance, just $850 million, completed over nine years. Meanwhile, building the FBI a new headquarters somewhere else in the Washington metro area would cost about $1.2 billion and take seven years.

The rapid appreciation of real estate prices on Pennsylvania Avenue could make selling the land to a private developer an incentive for the GSA to find a new home for the FBI. The land that was $41 a square foot in 1963, when the GSA purchased 233,000 s.f. to build the FBI building, is now worth more than one hundred times that, says Gerry Widdicombe, director of economic development at the Downtown DC BID.

That would mean a windfall for the GSA of $500 million to $800 million, (minus $20 million or so for demolition) -- half the cost of building a new FBI building on a new site, Widdicome said.

It would also create a prime spot for a developer to bring more retail, given that Donald Trump plans a luxury hotel and restaurant across the street. "You knock down the FBI building, you can have a serious conversation with a department store like Harrods, or Bloomingdales, or Selfridges, since you would have the necessary volume," he said. "There's no doubt that the Trump deal for the Old Post Office will move the conversation about the FBI building forward."

While a suburban campus location for the FBI might appear the ideal choice, if only to free up the

real estate beneath the building, Britain's FBI equivalent, MI5 has stayed in Central London as the agency has grown, moving into a rehabbed government building, Thames House (right) in 1994.

Towards the same end of Pennsylvania Avenue, the Art Deco Apex building, built in 1938 and currently occupied by the U.S. Federal Trade Commission is also being sought after as an expansion for the National Gallery of Art. Rep. John Mica, a Florida Republican who heads the House Transportation and Infrastructure Committee and oversees the GSA's plan of disposing federal buildings, has made it clear he wants the FTC out of the Apex Building and the National Gallery of Art in. "One way or another we are going to get that building," he told GSA head Robert Peck in a recent hearing on Capitol Hill.

Despite criticism of the Donald Trump deal for the Old Post Office Pavilion, the GSA has had recent success in transforming dormant federal

properties into vibrant spaces. In 2002, the GSA partnered with San Francisco-based Kimpton Hotels to open the Hotel Monaco in Penn Quarter in the former Tariff Building which had stood empty since 1987. The opening of the hotel was soon followed by the Spy Museum and Zola restaurant in the 800 block of F Street.

Widdicome said that demolishing the block-killing Hoover Building, as well as re-purposing the Federal Trade Commission building as a museum, together with the new 250-room Trump Hotel at the site of the Old Post Office Building would go a long way towards improving the Eastern end of Pennsylvania Avenue, which columnist Russell Baker called "a marble graveyard" after dark.

Next up, says Widdicome, will be repurposing the underused Pershing Park and Freedom Plaza, as well as relighting Pennsylvania Avenue to make it more amenable to pedestrians. "Things are finally falling into place for Pennsylvania Avenue," he said.

Washington D.C. real estate redevelopment news.

District's Northeast Neighborhood Library to Get Facelift

The District's Northeast Neighborhood Library, the fourth-oldest library in the city, is getting a $10 million makeover.

The D.C. Public Library announced it had selected Baltimore-based Whiting-Turner Construction, builder of Rockville Town Square and RBK Construction, with BELL Architects and Vines Architecture, as the design/build team for its Georgian-style Capitol Hill facility.

The library, at 330 7th Street NE, first opened in 1932. It will get its original woodwork restored, as well as new plumbing and lighting, along with more space for meetings, and a new elevator and restrooms. Existing furnishings and fixtures will be rehabbed as well.

Design plans will take six months, and the project, which will shoot for a LEED Silver Certification once complete, is expected to begin in fall 2012 and will take about a year to finish, the D.C. Public Library said.

(photo courtesy DC Public Library)

Washington D.C. real estate development news

As Streetcar Construction Lifts, J Street Companies Unveils H Street Restaurant

Now that the District has finished street-scaping along H Street NE, including laying tracks for eventual streetcar service, expect more announcements of restaurant and retail openings and re-openings, deals and closings as construction equipment thankfully disappears.

One of those is J Street Companies announcement that Boundary Road restaurant at 414 H Street NE is open for business. The 4,000 s.f. two-story bistro, owned by Karlos Leopold and Brad Walker, was a former barber shop, and now offers 75 seats, including a 20-seat bar along the part of H Street corridor that likes to call itself "Atlas District West" nearest Union Station.

Atlanta-based woodworker, Steve Evans used 150 year-old reclaimed wood beams to help set off exposed brick walls. A Corehaus chandelier from District artist James Kern, sprung literally from a bedspring mattress, hangs in the two-story high atrium.

Boundary Road opens just at the moment when the block wakes up from a two-year plus construction and parking nightmare known as Great Streets.

While many current retail owners complained about the impact of the Great Streets streetscaping improvements and streetcar tracks were having on their business, it turned out to be a perfect time for remodeling of vacant space, including the owners of Boundary Road.

"It was purely coincidental, but it turned out to be good timing," said Anastasia Kharchenko, J Street's vice president for retail leasing, who said the streetcar plans made a difference in where to locate. "The trolley car service was always part of our decision," she said. "Finding a charming street with life on it was key and the streetcar will create a neighborhood and connect neighborhoods." The struggle of H Street to emerge from the ruins of the 1968 riots, which devastated the historically-black neighborhood, is well-known and well-covered, especially when it comes to the familiar District fault lines of race and class.

But in the past decade, once then-Mayor Anthony Williams announced in 2003 a massive plan to redevelop the avenue, key parts of H Street have finally turned a corner. Steuart Investment broke ground last July on its 286,000 s.f. mixed-use project at 3rd and H, which will include a 42, 000 s.f. Giant and 1,500 s.f. of retail.

Still, Boundary Road, along with the other projects, does little to improve H Street's center where unlike the thriving Arts District at 13th and H NE, near the Atlas Theatre, and nearer in, where Boundary Road and the Giant will be, the middle of H Street still lacks development.

J Street's Kharchenko said that may soon change as soon as the District's long-awaited streetcars finally start running in 2013 and Steuart's 360 H Street 215 unit, mixed-use complex completes, forming one retail-centric zone at the western end of H Street and another surrounding the Atlas Theatre along the east end.

The District recently unveiled a study that argued that its $1.5 billion streetcar investment plan would increase District property values by $8 billion over 10 years, including those in the H Street corridor. "(H Street) is a lot like a mall, with two anchors at either end now," Kharchenko said. "Some parts of H Street have turned the corner, others have not. But when you spend millions of dollars on the transportation infrastructure, it's bound to have results, and that will help the rest of the pockets fill in."

Washington D.C. real estate redevelopment news.