DC Announces New Convention Center Site Agreement

Mayor Adrian Fenty announced plans today for one of the last remaining parcels of land on the site of the old convention center. Under a new agreement, the city will allow development of a 400-room "high-end" hotel and 100,000 s.f. of additional retail space on the 53,000 s.f. plot of land now known simply as "Parcel B". This portion of the site had previously been reserved for construction of a library, but the District had not made any final decisions on the facility and did not want to further delay what is being designed as a "new city center."

(Dcmud's information on "Parcel B" is too new to have renderings - the rendering shown is of the southern parcel.)

Standing in a corner of the current Convention Center, overlooking the site of the old one, Fenty said the District reached a deal with developers Hines Archstone to lease the site for 99 years. The District had previously cemented a deal with Hines Archstone for the southern half of the site - a project estimated at $850 million that will add 350,000 s.f. of retail space, over 670 apartment and condominiums with at least 134 affordable units, and 465,000 s.f. of office space between New York Avenue, 11th, H, and 9th Streets NW.

“The one thing the District is missing that so many other large cities have is a bustling area where people come after work to shop or eat or to hang out, a city center.” Fenty said. In addition to the office, retail, and residential space, the project will include an additional 1.5 acres of public open space. There will be a park in the northwest corner as well as a central plaza between the residential buildings on the corner of 9^th and H streets.

The “B parcel", bound by New York, 9th, and what will be 10th Street, was originally considered as a potential site for a museum or library in order to attract more families. Today, however, Fenty said that while the District is still “working aggressively” with the Library Board, there is a significant amount of programming under the current plan to attract DC residents to the site."

As the master developer, Hines Archstone had the first right of refusal to lease the B parcel from the District if the city chose not to locate a library on the site.

“This area is surrounded by museums; the Newseum just opened a few blocks away, the Portrait Gallery, the Spy Museum…we want this place to provide a social atmosphere outside their homes where residents can come and sit without having to sit at a café or pay to eat or drink,” Fenty said.

Kingdon Gould III acquired a parcel on the Northeast corner of the site - the last site to reveal development plans - in a land swap that the city conducted to facilitate construction of the Marriott next to the new Convention Center. The Parking Management, Inc. president has his own plan for the site, but it must be "consistent with the entire site's master plan."

While retailers have not yet been announced, the developer has committed to devoting thirty percent of retail space to merchants with six or fewer stores in the United States, but will focus on a wide range of grocery stores, restaurants, fashion stores, and entertainment or performance venues. There are also plans for one larger retailer like Nordstroms or Macy’s; Fenty and the development teams will be meeting with companies in the coming weeks, but a final announcement is not likely for about six months.

The project will generate 3,000 development-related jobs and 2,500 direct permanent jobs. It will also generate a projected $32 million a year in annual direct tax revenues. According to developers, the District will receive more than $200 million in consideration for the land as part of the land lease including a minimum of $28.5 million in lease payments, $55 million to provide affordable housing on site, and $48 million in payments for new infrastructure. Two new streets, I and 10th, will be constructed through the site.

When asked about the likelihood of delivering the project in a timely manner given the not-so-exuberant state of the economy, Councilmember Jack Evans, D-Ward 2, said the District has not been affected by the economy and that this project’s success would be no different than that of other D.C. projects like the Nationals Stadium.

“The Southwest waterfront looks pretty good. Poplar Point is off in the distance, but Clark, the main developer hasn’t had problems getting the money they need. There is such a strong interest in the development of the District that as long as that interest remains, these projects will stay on schedule,” Evans said.

The first phase of the project, which includes the office, apartments, and condominiums, will begin in the second quarter of 2009, while the entire project will be completed by the end of 2011.

Evans added that this summer the city is planning to set up a large screen in the parking lot on-site to continually broadcast the Olympic Games. He said the city’s goal is to use the backdrop of the Chinatown arch to attract families and residents to the area.

“This is the most exciting property on the East Coast,” he said.

Slow and Steady for Rhode Island Station

Construction will begin in July for Rhode Island Station, a 370,000 s.f. mixed-use development planned for the current Rhode Island Avenue Metro Station. The project, by Rhode Island Avenue Metro, LLC - a partnership of Mid-City Urban LLC and A&R Development - formerly known as Brentwood Town Center, won final zoning approval in April 2007, but will not finally close and begin construction until July.

Rhode Island Station will include a series of four-story buildings with three floors of residential rental apartments above one, ground floor of retail. At its completion, the project will have 274 rental apartments and 70,000 s.f. of retail space in what is now the Metro station’s parking lot.

As DCmud reported in June of last year, the developers have launched retail-leasing efforts, but have not yet announced final tenants.

“We really spent the last year permitting and finalizing. There were two approval processes to go through because it was a joint development with Metro, so it did take a bit longer,” said Caroline Kenney, a development associate for Mid-City Urban, LLC.

She added that commuters will not be inconvenienced by the construction as protected sidewalks will keep the Metro station fully accessible.






“We are currently focusing on getting to the construction,” Kenney said. “We want to give it a vibrant feel, but be pedestrian-oriented and friendly. We want it to blend into the surrounding area.”

That may be a challenge given the somewhat decrepit buildings across from the current Metro driveway. A February 2008 Ward 5 Development Report based on records from the Councilmember’s office did show eight projects within a mile of the station, including Macy Development’s Basilica Lofts, and Menkiti Group Development’s Illora Condos, but most of the new buildings are or will be on the other side of the tracks, behind the station. Given the nature of DC’s development, however, the rest of Rhode Island Ave. probably won’t be far behind.

Upon completion in July 2010, Metro users, shoppers, and residents will also have access to 400 parking spaces in the parking garage planned for the project.

Howard Town Center to Finally Take Place of Bond Bread Building

One of the District's oldest property struggles may soon see resolution, ending a dispute that began with a promise by Mayor Walter Washington, DC's first elected mayor. Last week, current Mayor Adrian Fenty signed an agreement saying the District will at long last swap land with Howard University, a deal that will give Howard the property it has eyed since beginning its LeDroit Park Initiative for redevelopment more than a decade ago.

This exchange means Howard will receive the former Bond Bread Building at 2146 Georgia Avenue, NW. The lot provides redevelopment space for the long-planned Howard Town Center: 300+ residence units, 70,000+ s.f. of commercial property, a supermarket, and parking. The District will receive in exchange, the site at Florida and Sherman Avenues, and will solicit bids for a mixed-use project to include at least 300 housing units (30 percent affordable). Both Howard University and the District have wanted to complete this seemingly simple exchange but had been foiled by a legal conundrum dating back to Mayor Washington's promise to the Peoples Involvement Corporation (PIC), a 30-year tenant in the Bond Bread Building.

PIC, a federally funded nonprofit focused on community development, was founded in 1968, the year after DC Mayor-Commissioner Walter Washington took office. Washington, who became the first Mayor of the District under home rule, supported PIC, and verbally promised the organization that if it retained tenancy for two decades and made improvements to the property, the District would turn over its ownership of the Bond Bread Building. But, as any first year law student will attest, exchanges of lands do not meet the Statute of Frauds if not in writing.

In relying on the District's promise, PIC renovated the crusty digs, somewhat, and occupied the building for the requisite term. When the District announced its intention to swap the Bond Bread Building with a property belonging to Howard University, the PIC learned that it risked losing what it had seen as a multi-decade investment. The organization sought and received from Mayor Washington a written statement from the former mayor confirming his verbal promise to give away the site. In 2003, to protect its interests, PIC filed a lawsuit with the D.C. Superior Court against the District.

If PIC won its suit, Howard University stood to lose its planned project. The university had already hired Trammell Crow Company’s subsidiary, High Street Residential, and alumna Michelle Hagans to develop the property. The Howard Town Center project had received press coverage from the Washington Business Journal and other local publications as part of its plan to transform the neighborhoods surrounding the university. But Hagans, High Street, the architects, the construction firm, and planned lessees such as Fresh Grocer were now all put on indefinite (or potentially permanent) hold as they waited for the Bread Building dispute to rise.

And rise it did, doubling in size; the District decide to instigate its own suit, and it sued PIC to establish itself as the rightful owner of the property. Legally, Washington’s verbal property promise did not pass muster with the courts. In what would make a picture-perfect law school exam over tenancy rights and verbal promises for land subsequently written, PIC lost both cases, concluding that a Mayor's verbal promises could not be relied upon (duh).

In 2006, the D.C. Council considered the issue, first in a bill sponsored by Councilmember Jack Evans that would have halted the swap, but finally approving the exchange of the Bond Bread Building with Howard University’s 63,400-s.f. property at Sherman and Florida Avenues.

As DCMud reported in June 2007, legislation sponsored by D.C. Councilmember Jim Graham was supposed to get Town Center construction moving that year, with possible completion projected for 2010. Now, almost halfway through 2008, it looks like Howard Town Center may soon get out of its jam and into the Bread Building. The Mayor has said he intends to issue the solicitation for a development partner later this year.

Takoma Park Condos Go Rental

Ecco Park Condominiums, planned as Takoma Park's only new condominium project, will now go forward as an apartment building. The 85-unit condominium had been designed and was to be developed by SGA Architects of Bethesda, but SGA began returning money to purchasers several weeks ago. The site, two blocks from the Takoma Park Metro Station, was a brownfield and former gas station, a condition the developer remedied last year by removing and replacing the soil, but construction and excavation had not yet begun.


According to the developer, the lack of financing for a new condominium building became the insurmountable hurdle in the development process, requiring a new financing agreement that precluded condo sales. Domus Realty had presold 35 of the 85 units as of last fall, when the sales center closed. "I'm really excited that the project is still moving forward despite the turmoil in the markets." said Sas Gharai, the architect and developer of the project. But Gharai also suggested that with the dwindling condo construction the decision may not be irreversible, "At some point, we may re-evaluate when the market changes."

Ecco Park is designed to include 6,500 s.f. of retail, and at one time was mentioning a Trader Joe's Express as a possible tenant. It would also feature underground parking, and patios or balconies for most of the units. Prices started at $180k for a studio and in the high $200k's for a one-bedroom, and at $495k for a two-bedroom. SGA recently completed and is selling the last few units at the Butterfield House on Capitol Hill.

Will Montgomery County Put the Brakes on Bethesda's Parking Garage?

On Tuesday morning, the Montgomery County Council will vote on whether to move forward with a planned $89-million, 1,150-space parking garage in downtown Bethesda. If the vote passes, developers PN Hoffman and Stonebridge Associates would be able to proceed with their mixed-use project planned for the current Bethesda Lot 31, at the intersection of Bethesda and Woodmont Avenues (across from the Barnes and Noble). But the project has some concerned organizations urging the Council to apply the brakes and postpone the vote to allow time to consider alternatives to the garage.

In a press release put out today, the Coalition for Smarter Growth and the Montgomery County Sierra Club did the math: by their calculation, each individual parking space costs close to $80,000. “It’s cheaper to just pay people $45 to park [at a nearby lot] and walk five minutes,” says Cheryl Cort, Policy Director of the Coalition. While Cort praises the overall mixed-use project, she and her organization have concerns about the cost of the garage—and whether there’s really a lack of parking in Bethesda.

To prove her point, Cort went out on a Saturday night several weeks ago during prime dinner hour (between about 9 and 10 p.m.) to investigate Bethesda’s parking availability. According to Cort, while Lot 31 fills at peak hours, Bethesda has plenty of other public parking garages with whole floors of open parking within a five-minute walk of downtown Bethesda. It’s just a matter of people knowing where to look.

The proposed mixed-use project would take the place of the two lots now owned by the county, replacing surface parking with up to 250 residential units in LEED-certified buildings designed by SK&I. Stonebridge-Hoffman would realign the interchange of Bethesda and Woodmont, and add as much as 40,000 s.f. of ground floor retail, all of which is generally supported by smart growth advocates as being transit-oriented.

But rather than add such massive garage space, the Coalition for Smarter Growth recommends that Bethesda consider making use of a “smart parking” system, similar to those used in Rockville Town Center and at the Baltimore/Washington International Airport. A digital readout at the entrance to a garage or floor of parking displays the number of available parking spaces to approaching motorists, reducing the time, traffic, and frustration used in circling for spots. As Cort puts it, “Bethesda was just a suburban outpost 30 years ago…[Now] Bethesda has grown up…The question is, how do we treat automobiles in this context?”

David Hauck, Chair of the Montgomery County Sierra Club, has a suggestion for how to assess this situation. “Step back, take a breath, and think about it,” he advises, “What will Bethesda look like five years from now?” If the pedestrian-, bike-, and Metro- supporting contingent has its way, says Hauck, the proposed parking garage will be a “white elephant.”

The County would fund the initial parking structure, which is designed as below-ground public parking, hence the high cost. The rub, in part, is the financing of the deal. The county would issue a bond to cover the construction costs, part of which would be repaid by the developers as part of the purchase of the land, but that still leaves public money going to support admittedly un-green vehicular traffic.

Hauck credits the county’s commitment to taking steps toward transit-oriented development and more walkable communities, noting that Bethesda could be and has been an ideal testing ground for these changes. He cites the promise of a new south entrance to the Bethesda Metro station and the proposed Purple Line. But when it comes to funding environmentally friendly measures, “Energy efficiency and global warming get crumbs off the table,” says Hauck, “and the parking garage gets the steak.”
Update, May 7: According to a representative from the Montgomery County Council, at its work session today, the full Council tentatively approved the parking garage planned for Bethesda's Lot 31. While a few council members did raise concerns about the project, no one introduced a motion to overturn or alter granting approval. On May 22, the project is expected to receive the final go-ahead when the Council officially votes on the county government's capital budget. Any changes to the plan between now and then are unlikely.

5th & I: The Final Four

March Madness it isn't, but the teams may be competing every bit as hard, and now its down to the final four. The District has narrowed its list of developers for its project at 5th and I Streets down to four: JBG, Buccini/Pollin, Potomac Investment Properties, and a group comprised of Holland Development, Donohoe Development, Spectrum Management, and Harris Development. 463 I Street, the half-acre site in Mt. Vernon Triangle, had attracted seven bids by the March 7 deadline, but three got voted off the island.

Since we now only had to research four proposals, instead of seven, we thought we would show you a preview of what to expect:

The Arts at 5th and I (Holland-Donohoe): A Shalom Baranes-designed creation (rendering below) that would reach 120 feet in height, with a swanky ME by Melia, a Spanish hotel chain opening their first venue in the States. Sitting on top of the 174-unit hotel would be a 96 unit residence, and underground (alleviating noise issues) would sport Boisdale, a London-based live jazz club.













Buccini/Pollin: With master Architect Sorg & Associates, BPG is planning a 130-foot, 12-story building that would house not just one but two hotels: A 186-room Aloft hotel and 128-bed Element hotel, sitting on top of a two-story, 30,000-s.f. entertainment venue called World Cafe Live.

JBG: No catchy name yet, but with design by New York-based FXFOWLE (we're not being obnoxious, they spell it in all caps), the project would include a 230-bed hotel, 187 market rate residences, 34 subsidized residential units, and 44,000 s.f. of retail/commercial space "appropriately scaled to serve the community" with "priority to local retailers." In addition to the subject parcel, JBG will add its contract negotiations with the sellers of adjacent parcels, upping the space that could be developed.

i5 (Potomac Investment Properties): And since it looks like a hotel is destined to occupy the site, PIP is proposing a 79-room Avalon hotel - an independent four-star hotel now in Portland and, it claims, only the 7th LEED certified hotel on the planet. Capping the hotel would be 84 units of mixed income apartments, some of which would be dedicated to artists who would live, work, and just plain be creative on site. Designed by Martinez & Johnson Architecture, the whole building would be designed to achieve a LEED Gold rating. But forget environmentalism, Constantine Stavropolous - owner of Tryst, Open City, and the Diner - would open a fourth retail venue on site (we don't want to bias the decision makers, but they make the only good cappuccino in the city). The scrupulous reader has already realized that PIP has a far smaller total unit count, an intentional decision that building the project as Matter of Right, rather than seeking zoning changes, would allow it to start the project 'within a year' of gaining control of the site.

New Condo in Columbia Heights

There's a new condo in town. Though that wouldn't have been so newsworthy a few years ago, the dearth of new construction makes us happy to be able to report that inventory doesn't just shrink. Drummond Development has come out of the ground with Privado, its most recent project, a 16-unit building on Chapin Street in Columbia Heights.

The project will sit on the crest of the Hill overlooking DC, reportedly providing rare views across the city from the upper floors. Developers hope that adjacent Meridian Hill Park, as well as the recently opened DC USA and newly revived Columbia Heights center, will be an attractant for condo sales, but aren't taking chances. According to Steve Schwat of Drummond, the condominium will feature "real wood stained entry doors, solid real wood floors...dove tail drawers, and Siedle full color video/audio entry systems with biometric fingerprint access." Not mincing words, Schwat says that interior details permeate the thought behind the building, including "super-silent powerful bath fans - not those cheap noise makers everyone else uses...even our garbage disposals are better. Its designed for those that appreciate true quality."

Drummond has seemingly not lost its footing in the current market, completing numerous apartment renovations throughout DC as well as having recently completed Meridian Heights, The Drummond, Archbold, Providence Square, and Penn Circle, all condo projects in or near downtown DC. The project is designed by PGN Architects., and should be complete late this year; the units will range in price from the high $300's to the $900's.

Restoration to Rejuvenate Aging Eyesore in Shaw

One of the city's more historic rowhouses will soon get a renovation and conversion to a multi-family building, now that the Historic Preservation Review Board has approved Community Three Development, LLC’s conceptual design for a rear addition to a historic row house at 444 M St. NW.

The house was built in the late 1870s and had fallen into disrepair (see picture); as a result, the Board had “previously determined that [the property did] not contribute to the character of the historic district.” After complaints from neighbors, in May 2007, 444 M St. became the subject of one of Mayor Adrian Fenty’s Ward 2 “Operation: Fix It” projects, wherein government agencies devote several days to improving a particular neighborhood. Representatives of the Department of Consumer and Regulatory Affairs built a temporary blockade to prevent use of the garage. But first, the Department of Public Works had to tow an equally abandoned truck from the property, apparently used solely for “illicit criminal activity”.

Now, Grant Epstein, the President of Community Three Development, LLC, intends to make Bob Vila proud. Besides renovating the gutted, deteriorating original row house, he plans to take advantage of the depth of the lot (194) by building a four-story addition behind the original house. Epstein describes the project as “one structure with a courtyard in the middle… in order to provide light to all the units.” His current plan calls for eight units that would be designed for use as either condo or rental units.

Given that the Review Board has given the go-ahead, Epstein projects that creation of architectural drawings will last approximately six months, the process of receiving a permit will take two to six months, and construction should last about a year.

814 Thayer Street Seeks Approval

Tomorrow, the Montgomery County Planning Board will hold a hearing on a proposal to tear down the former site of the National Association of the Deaf (NAD) in Silver Spring and construct in its place a modernist five-story condominium building.

The plan calls for a 52-unit residence at 814 Thayer Avenue, between Fenton and Grove Streets, a five-story building with shifting floorplates to create overlapping residences (see above rendering). The new condos, replacing the NAD building and adjacent parking lot, would include 45 market-rate residences and seven Moderately Priced Dwelling Units. In building residences, the project will address concerns of the Silver Spring Central Business District Sector Plan, which notes that currently the "disjointed pattern of commercial activity and the lack of a residential population [in Fenton Village] dilute pedestrian traffic - a key component of retail activity."

Because of regulations mandating that 20 percent of the project's area be developed as public-use space, the proposed condos would be set back 17 feet from Thayer Avenue, allowing for a 4,2620-s.f. public plaza, with plans for trees and other greenery, game tables, and two county-mandated art projects

Since its last reviewed submission in November, planners have consulted with an artist and can now provide more details about one of the proposed - well, mandated - displays, designed in honor of the NAD (now half a mile away, on Fenton Street): "Down-lit glass columns separate the work into panels of inspirational quotes to add color and vibrancy. The free-standing piece on the northeast side of the plaza will be a historic teletype machine...A glass piece of 'paper' will serve as an artistic intervention and show how Braille text was created by the machine."

814 Thayer LLC purchased the $4-million property, which currently houses an office building, in May 2006, and its development plan was first reviewed by the Montgomery County Planning Board in November 2007. The original NAD building dates back to 1965, and was purchased by the Association in 1971 for $640,000.

UPDATE: This project is a joint venture between owner/developer Banneker Ventures and co-developer Four Points, LLC. Banneker projects the project will break ground in fall of 2008 and complete construction the following year.

Parkside Terrace Apartment Renovation to Begin

The Community Preservation and Development Corporation (CPDC), Washington DC's largest affordable housing developer, will announce on Monday the beginning of the reconstruction of the failed Parkside Terrace housing project. The renovation marks what District officials hope will be a watershed in the provision of affordable housing, many of which began amid utopian dreams of lifting up the working poor into self-sustaining communities, and ended as crime-ridden enclaves in dilapidated buildings. Officials expect to ready the building for occupancy by the summer of next year.


The twelve-story high-rise at 3700 9th St., SE, vacant since 2005, will be converted into 316 units of "affordable" rental housing, with seven floors of housing for low-income seniors with rental assistance by the DC Housing Authority. The remaining five floors will become "workforce housing" targeting small families, in all a $73 million project financed entirely by the city through the DC Housing Finance Agency through a bond program.

CPDC's own press release called Parkside Terrace Apartments, built in the late 1960's as a Section 8 housing provider, "a major source of blight" in Ward 8, despite early visions of a new era for occupants. Monday's ceremony will mark the beginning of a complete gut of the building by Harkins Builders, with hopes of a new start for working families, and of improving the general community. Let's hope the plan works out better this time.

Fenty Announces Petworth Metro Development Opportunities

At a Friday morning press conference just north of the Georgia Ave-Petworth Metro Station, Mayor Adrian Fenty announced the District's intention to solicit development bids for three government-owned properties on the 3800 block of Georgia Avenue NW. Properties for bid are 3813, formerly Caribbean Cuisine, now empty; 3815, an empty storefront; and 3925-29, a vacant lot. The former two properties will be offered as one development unit.

Mayor Fenty gave a brief, grim history of the properties prior to their purchase by the District, highlights of which included foreclosure, the demolition of a half-standing and decrepit photo lab, and the discovery of a dead body. (Incidentally, one of the only operational businesses on the block is Latney’s Funeral Home.)

What will fill the decaying block? With bids due this summer and the District’s decision not coming until fall, no one knows yet. But Ward 4 Councilmember Muriel Bowser, also in attendance at the press conference, spoke of “quality retail, quality dining, and places for our residents to gather and stop taking their dollars out of our city.” Any residential development would include the requisite 30 percent affordable housing, and all projects would have to meet green building standards. Former President Clinton may belatedly get his wish for a revitalized Georgia Avenue.

Just steps away from the conference, Donatelli Development was hard at work on Park Place, its $60 million mixed-use project above the Metro. Donatelli has also purchased an empty lot with 10,000+ developable s.f. on the corner of the 3800 block. In addition, Fenty intimated that the Safeway Food & Drug across the street would undergo renovation or redevelopment of some kind.

Councilmember Bowser hopes this block of Petworth will serve as a “model for what we want to do along this entire corridor.” Mayor Fenty has long voiced support for Ward 4 development. As Bowser put it, “I like to think of this as the mayor putting the people’s money where his mouth is.”

Basilica Lofts

Sponsored Announcement


Final phase: Beautiful new condominiums starting at $299,500 for spacious condos with two-bedroom plus den, with a three-bedroom, three-bath, three-level penthouse available. Basilica Lofts, the conversion of a historic row of storefronts into two and three-level lofts, named after the ideal vistas of the nearby Dome of the Immaculate Conception at Catholic University. Classically traditional on the outside, interiors evoke the best of true loft living - large, open spaces, long expanses of hardwood floors, Close to Metro, Catholic, and Trinity College, Basilica Lofts borders the booming NoMa neighborhood, now realizing the long-planned development of massive commercial space that makes it the fastest-growing neighborhood of DC. Only 3 units remaining.

Lincoln Theatre's Development Debut

This morning, Mayor Adrian Fenty held a press conference to raise the curtain on the city's plan to save and develop U Street's historic Lincoln Theatre. The project will entail development of the parking lot behind the historic D.C. theater, with some of the resulting profits being earmarked to save the beleaguered venue. The 88 year old District-owned theater had received much press as of late, issuing warnings of closure unless it receives funding sufficient to cover its operating expense shortfall.

The Deputy Mayor's Office for Planning and Economic Development has now issued a Request for Proposals (RFP) for developers interested in the space, located in back of 1215 U Street NW. We're guessing that few people will miss the 40 surface parking spaces; the Mayor opined that, when developed, the lot could hold a 90,000-s.f. building, possibly occupied by a hotel, offices, or residences.

Among the requirements for any potential developer: the stipulation that at least 30 percent of any housing units be set aside as affordable housing, as would be obligatory in any DC-owned property. Also, projects must include "at least 7,500 square feet of flexible event space, including a restaurant-quality kitchen, which would be managed by the theater management."

Ward 1 Councilmember Jim Graham, also in attendance, expressed his obvious excitement that the project has begun “moving and shaking.” He and Mayor Fenty both emphasized the importance of the lot’s development to the continued economic growth of the U Street area —and its benefit to Lincoln Theatre. As Mayor Fenty put it, “This is and was black Broadway” - and he wants to keep it that way - and by combining affordable housing, some needed development on U Street, and saving the theatre all in one act, we're guessing he'll get a standing ovation.

Washington DC commercial property news

Washington Adventist Hospital Presents Silver Spring Move

On Thursday, the Montgomery County Planning Board is considering the Washington Adventist Hospital's request to develop a 49-acre property in the White Oak region of Silver Spring. The hospital purchased the land in 2007 for $11 million after determining it had outgrown its century-old home at 7600 Carroll Avenue in Takoma Park, a 294-bed, 14-acre campus with 13 of those developable.

The hospital describes its current facilities as “crowded,” "difficult to access,” “aging,” and “inefficient.” Geoffrey Morgan, Vice-President of Washington Adventist’s Vision for Expanded Access, WAH's strategic planning group, spins it more professionally, citing “a host of physical challenges related to a constrained campus.” The hospital’s property used to be bounded by woods, which have since been developed into a residential area leery of helicopter noise and confined by neighborhood- sized roads; i.e., slower route to the ER.

The new property is located about six miles north of its current location, on Plum Orchard Drive just off of Cherry Hill Road, less than a mile from the intersection with Route 29. The development plan calls for growth in two phases. The first includes construction of the main eight-story hospital, an ambulatory services center, two parking structures, and a medical office building; and later, construction of a second medical office building. Morgan’s theoretical timeline has the project breaking ground in 2010, with the first phase estimated to take three years.

Vision for Expanded Access has consulted RTKL Associates throughout the site planning and master planning process. According to plans, while the new facility will have approximately the same number of beds as the old, the increase in space means that most of them will be private, rather than shared. The hospital will feature “state-of-the-art equipment and technology, and more space for clinical services, including cardiac care, emergency medicine, oncology services, behavioral health care and other medical services. The new design also incorporates enhanced patient safety and improved visitor and patient flow throughout the facility.”

True to its Adventist founders, the hospital emphasizes its “holistic approach to community health care, which focuses on the well-being of mind, body and spirit of patients, visitors and staff.” In keeping with these beliefs, it is planning to build green and achieve LEED certification.

If the Planning Board recommends approval, the process will move to the Hearing Examiner and Board of Appeals for consideration, followed by the Planning Board. Morgan expects that zoning approval will take the rest of 2008. To move, the hospital must also apply for a certificate of need, administered by the Maryland Health Care Commission.

Good luck, Washington Adventist Hospital. We hope you get approval stat.

A Giant Project on Wisconsin

The long-awaited Giant grocery store and surrounding redevelopment, expected to bring life back to its location on Wisconsin Avenue near the National Cathedral, is a bit closer to becoming reality. Street-Works, the development and consulting firm heading the project, has said it is ready to move forward on the project and will file its zoning application within the next 60 days.

The development (rendering above) will replace the abandoned 1950's era G.C. Murphy Co. store and existing Giant, which will yield to a proposed 55,000-s.f. grocery and additional retail, residential, and office component. Parent company Stop & Shop owns the site bounded by Idaho Avenue, Wisconsin Avenue, and Macomb Street and divided by Newark Street, all of which now contains one-story retail, albeit partially abandoned, and surface parking.

"This project redevelops the site, which is pretty much functionally obsolete," Richard Heapes, principal at Street-Works, said. "It turns it into a pedestrian-oriented part of the neighborhood with wide sidewalks, trees, public spaces, and most importantly, a state-of-the-art grocery store. At the end of the day, it completes what is already there and brings it up to date."

The site is divided into two parcels: On the south side of Newark, developers will tear down the current Giant and construct a more modern facility in its place, as well as add 42,000 s.f. of small retail shops and office space. The block will also receive 21 residential units; 13 above the retail and eight townhouses along Idaho Ave. On the north side of Newark, developers are planning 30,000 s.f. of street-level retail with 124 residential units on the four upper floors. The retail will most likely be similar to what currently exists: service and convenience stores as well as neighborhood- serving restaurants. According to the developers, some of the current retailers will relocate to these new building. 400 new underground parking spots will serve the whole site.

Sizes and costs of the individual residential units are premature, but 10% will most likely be designated as affordable housing. And what new development would be complete without some green? Pedestrian- friendly public spaces are being designed to grace Idaho Ave. and Newark St. with trees, fountains, and places to sit. Street-Works is still deciding which green components to add to their buildings, which could include green roofs on the residential units. According to George Idelson, president of the Cleveland Park Citizens Association, "One of the things the community wanted was a lively streetscape. That is what the plan calls for, and it seems to be doing a pretty good job with that."

The old neon Giant sign will be incorporated into the new construction - a condition of the neighborhood association, reflecting their opinion that it has become an icon for the area. Developers are also aiming to fit the project in, architecturally speaking, with the existing buildings. "The design came from picking up the style that is already there in the adjoining neighborhood," Heapes said. "It is contextual. My goal for the project is to make sure people aren't going to look at the site as a project that is sitting in the middle of Cleveland Park."

The existing 18,500-s.f. Giant will stay open as long as possible until construction of the actual grocery store begins. After the application process, formal public hearings will take place, along with an open house meeting for any interested neighbors that will be hosted by Street-Works on the site itself. Idelson said this is just what the neighborhood needs: another chance to weigh-in. "I think generally speaking based on the public meetings, the neighborhood is anxious to have a new store," he said.

Street-Works hopes to have approval from the District by the end of the year with construction beginning in mid-2009. Construction will be phased, with the south parcel finishing before the north begins, altogether lasting 24 to 36 months.

Harris Teeter To Open First DC Store

Harris Teeter, the North Carolina-based grocer whose very name seems to augur up-and-coming real estate development the way Whole Foods once did, will open their first Washington DC store Wednesday morning in Adams Morgan. The chain will open in the Citadel building at the intersection of 17th Street and Kalorama, between Meridian Hill Park and the Adams Morgan strip, in what has hitherto been a relatively residential section of the District.

The 37,000 s.f. building, owned by DC-based Douglas Development, was an old roller rink built in 1947, and had been vacant prior to the occupancy by HT. The Honorable Adrian Fenty will be on hand at the 10:00am ceremony to honor the city's newest taxpayer; the first of three Harris Teeters to eventually stock the District's shelves. Jenkins Row, JPI's new 247-unit condominium at 1390 Pennsylvania Ave., SE, has long been marketing the bourgeoise market, which was slated to occupy the first floor of the building in mid 2007, but has yet to open its doors. And just two weeks ago, the Mayor was at the mike at Constitution Square to announce that a lease for a 50,000 square foot version would open in NoMa in early 2011.

But meeting deadlines may not be HT's forte; the Adams Morgan store was originally scheduled to open in the fall of 2006, but issues such as delivery through the narrow and one-way streets that surround the building held the project at bay for some time. Jennifer Panetta, Director of Communications for HT, would only say that the delay stemmed from the company "trying to be a good neighbor," saying that specific requests took "alot of development."

But the grocer will make up for lost hours, shoppers will be able to obtain their Angus Reserve or choose from the "extensive selection of seafood" from 7am to 11pm. Which, coincidentally, beats Whole Foods.

Glenmont MetroCenter Facing Roadblocks

The Montgomery County Council's traffic concerns may have put the brakes on—or at least stalled — a JBG Companies plan for Glenmont MetroCenter, a mixed-use development in Silver Spring. If approved, the project would be built on Glenallen Avenue between Layhill Road and Georgia Avenue, at the eastern end of the DC Metro's Red Line, the Glenmont Metro Station.

JBG intends to demolish Privacy World's 352 garden apartment units and replace them with new construction: 90,000 s.f. of retail space and 1,550 residential and live-work units. In June 2007, the Montgomery County Planning Board voted in favor of rezoning the project. But the MoCoCo gets the final say in whether the project can proceed, and it fears overburdening local roads; though JBG has offered to fund road overhauls, an agreement with the Council has not been reached. In January 2008, the Council remanded the project to the Hearing Examiner. A representative from the Council said it's now up to JBG to submit a revised proposal, at which point a new public hearing can be scheduled as early as June.

According to a representative from JBG, the company does not plan to make any fundamental changes to its proposal. Rather, they are putting together “additional traffic analysis,” which they will present to the County. JBG expects the public hearing to take place at some point this summer.

If it goes through, the proposed community would exhibit an urban street grid, with a central park and other public recreation spaces. Tantalizing features include pocket parks and, as the project website promises, the central plaza's "interactive water feature."

The pedestrian-, bike-, and Zip Car- friendly proposal was one of the Washington Smart Growth Alliance's 13 honorees in 2007 as a Smart Growth Project, meaning it is “both good for community and good for the environment.”

JBG confirms that they have not yet hired an architect for the project, which is still in the early stages of development. The company line? "While the architectural character of Glenmont MetroCenter has not been determined, the intent is for the architectural character to contribute in a significant manner to the quality of the streets, open spaces and neighborhood." Translation: The buildings will look lovely.

Very early estimates (the project isn't scheduled to be completed for at least eight years) put Glenmont MetroCenter’s townhouse costs at $500,000 to $600,000, condos at $300,000 and up, and rents at $1,500 to $2,000 per month. The tentative unit breakdown offers “about 1,300 apartments and condominiums and 250 town homes…including 3 to 4 story townhomes, 4 to 5 story multifamily dwellings, and up to 5 to 10 story dwellings over retail.”

JBG's other MoCo Metro-focused development projects in the works include Twinbrook Station and White Flint Crossing.

So, given the Council's traffic concerns, does the Glenmont MetroCenter stand a chance?

In JBG's favor is their emphasis on building a community designed for pedestrians and Metro users, with the county pushing for transit-oriented design. They also could benefit from the possibility that the county will build an interchange so that Georgia Avenue can run above Randolph Road. To the county's point: no matter how many sidewalks JBG builds, replacing 352 apartments with 1,500 residences and adding 90,000 s.f. of retail to boot will create more traffic at an intersection that is already a disaster at rush hour. But JBG might ask, if not at the Metro, where?

U Street Hotel in the Future?

Trendy and quirky U Street, which has seen a spate of residential development of late, may get a hotel in the not too distant future. The plan, brought before the Cardozo-Shaw Neighborhood Association last week by JBG Companies, proposed developing the strip mall that currently houses the Rite Aid, a nail salon and dollar store, into a 10-story multi-use development.

Though in its very early stages and likely to evolve, the vision is to replace the current strip mall across the street from the Ellington Apartments, replacing it with a single building that would house underground parking, retail on the ground floor, a boutique hotel on floors 3-8, and possibly capped by two floors of residential to max out the density. The existing strip mall takes up most of the block on the south side of the 1300 block of U Street. The area falls within a historic protection zone, but no historic building would be affected.

With neighbors apparently in favor of supplanting the current retail, the largest obstacle, financing notwithstanding, will be to change the underlying zoning, which does not now allow for density sufficient to support this project. Phil Spalding, Commissioner for ANC 1B, says the development has local support, and that there will be "a strong push for retail to animate the street," speculating that some of the current retail could reopen in the new space, though stressing that the plans will likely see "another 9 or 10 redrawings" before construction could begin. Renderings are not yet available, but Spalding describes the current iteration as 'classical.'

"1" Hotel Sees the Green Light at End of Tunnel

Perseus Realty, LLC received a unanimous vote of approval from the Zoning Commission on Monday for their PUD of "1" Hotel, DC's first LEED certified hotel. They last met with the ZC at the end of February to hammer out more details on their project to be located at the corner of 22nd and M Streets in the West End neighborhood, across from the Ritz Carlton.

The 125,000 s.f. luxury hotel, pledged to be LEED Silver certified, will have between 148 and 170 rooms, depending on how many suites developers decide to create, on ten guest room levels. Perseus, along with Starwood Capital Group, purchased the land back in November 2006. The Nigerian Embassy and Asia Nora (see photo below) are currently on the site but will be demolished in order for construction to begin.

Starwood hopes to turn the "1" Hotel concept into the first global, luxury, green hotel brand. According to a source at Perseus, who asked not to be named until approval was completed, "In addition to the architecture, which is great, what makes this project special is more the concepts behind it and what it is trying to get accomplished. This is all new to DC. It is the first LEED certified hotel. It is definitely a work in progress, but we are all still really excited about it. This is a way for guests to act in an environmentally conscious way but still have everything they want and need."

The building will have an exterior layer of energy efficient glass to let in daylight during cold months and shield the rooms from heat during warmer weather. The guest rooms will have individual energy controls that will activate when a key card is put in place by the guest, in order to save on light and temperature control costs. The hotel will most likely use a greywater system, recycling "slightly dirty" water to use for heating.

Back in February, the ZC asked the developers for clarification on the "green walls" that are to run from floor to ceiling and divide the L-shaped building into three sections, as well as border the outside tea garden. The walls are made of a mix of plants that grow in both shade and light to give guests an outdoor-while-indoor experience. The walls also have a functional job, as they help to purify the air and get rid of pollutants. Perseus assured the commission the walls could be replaced in one-ft. squares, so that it will not eventually turn into a "brown wall."

Other issues resolved were clarification for an unnamed party in opposition about an abutting wall from the roof penthouse structure that came close to a property line, and the location of a garage entrance. Perseus is still going through the PUD process; their plans now go to the National Capital Planning Commission. NCPC will have 30 days to give their verdict. Developers have not yet released a construction time line.

Washington DC commercial real estate news

Bridging the Gap to Roosevelt Island

A plan to physically connect Roosevelt Island to the District by means of a pedestrian and bicycle bridge is gaining momentum. The 90-acre federal island park, dedicated to our nation's 26th President back in 1967, is currently accessible solely by way of the George Washington Parkway, and only via northbound, at that. At least for now. The proposal, heard before the DC Council's Committee on Public Works and the Environment in November, requests that the city work out a relationship with the District Department of Transportation and come up with nearly $35 million to pay for the span.

Dupont Circle resident David J. Mallof proposed the idea back in November, and has now sought the requisite sanctioning by the federal government. Mallof went to the Feds in early April and got a sit-down with James Oberstar, chair of the House of Representatives Transportation and Infrastructure Committee - apparently the Feds are not opposed to the bridge (no Ted Stevens jokes here, please), but won't do anything 'official' until the DC Council and Mayor Fenty support it. The Council won't approve without some show of public support for the project, so the next step is for a public hearing. If supported, the Council would only need to earmark 20% of the overall cost, with the feds potentially picking up a generous 80%. This puts the timing of the bill at least into next year, because it will be nearly impossible to get the financing inked into the new budget by budget deadline of June 3rd. If it gets that far, it will still have to go to the Washington Council of Government, which is chartered to oversee multi-jurisdictional issues. In this case, WCG would be mediating between the federal government, the DC government and the Virginia government, because a second bridge would then connect the island to Rosslyn, Virginia.

The proposal is to connect the land in front of the Watergate Hotel to Roosevelt Island, then across to Virginia. Mallof chose the Virginia location to connect the bike paths that nearly converge in the area, and proposes that the bridge could not only provide recreational use, but also serve as a main thoroughfare for sweaty commuters biking in from Virginia, who currently have a more complicated route after crossing Key Bridge, which involves either descending stairs or threading Georgetown's traffic, though even at this location bikers would still have to face a series of frogger-like challenges to get to the Mall. Still, some are concerned about the visual obstruction down the river, which has few open vistas thanks to the series of vehicular bridges.

Aside from the practical uses, Mallof stresses that the park falls within DC's perimeters, not Virginia's, forcing DC residents to cross the Potomac and park their cars on Virginia soil in order to take advantage of their park. Roosevelt Island remains so lightly trafficked, thanks in part to its inaccessibility, that it still boasts a mature white-tailed deer population.

Washington DC commercial real estate news