MacArthur Boulevard Townhouses

An old psychiatric hospital on MacArthur Boulevard may be replaced with for-sale townhomes as early as next year, if all goes well for the developer. Willco Residential and the New York-based Athena Group, LLC, which owns the property, are in the PUD process for Canal Parc, a 37-unit development at 4460 MacArthur Boulevard, NW. A partnership between the two companies, if approved, the project will yield "higher end" townhouses and break ground in the spring. Designed by the Vienna-based Lessard Group, the project in the Palisades neighborhood was originally planned as 41 units but has since been scaled back to 37 three and four-story townhouses. Under the new plan, the developer will demolish the old Riverside Hospital and change the site's use from institutional to residential. According to Jack Rosenfield at the Athena Group, the project is the biproduct of a friendship between the two developers. The team submitted an application for a raze permit for the old hospital on August 6th; the city has not yet responded. In proximity to the 120,929 s.f. development are Canal View - single family houses, Foxhall Mews townhouses, and rowhouses along Lingan Road. Rosenfield said, "Even through prices have softened, this is a great location." The Lessard Group also designed The Monroe at Virginia Square in Arlington and JPI's Kings Crossing in Alexandria. The Athena Group developed the Grove at Arlington. Willco Residential developed Jefferson Row in Dupont Circle. You'd almost have to be crazy not to buy here.

Washington DC commercial real estate news

Plans for West End Library Renovations

The District will soon write the next chapter of its library tales when it issues a solicitation for developers for Square 37, home of the West End Branch of the DC Public Library, sometime this fall. Though the West End's story does not have a plot as dramatic as that of the Tenley Library, efforts to redevelop the site on the corner of 24th and L Streets, NW have still faced traditional District-neighbor conflicts. A year ago, the DC Council passed "emergency legislation" to sell the site to EastBanc Inc., only to rescind it at the opposition of the community. Foggy Bottom, West End, and Dupont Circle ANCs, community groups, residents, and business representatives have since taken the reigns and held vision sessions, distributed surveys, and conducted studies of who uses the library, how the catalogue can be improved, and what amenities should be included in the branch's redevelopment. West End Library Friends Stakeholders Committee released their "Guidelines for a New or Fully Renovated Branch Library" mid July. In it, the group calls for a coffee shop with an outside entrance, attractive, well-landscaped grounds and accessible inviting sidewalk space and entrances, office space for local ANCs and community organizations, and an architectural team that is familiar with library design. Robin Diener, director of the DC Library Renaissance Project, an organization founded by Ralph Nader to improve the DC Public Library system, said the report is consistent with what her organization wants to accomplish on the site. She also stressed that the District should do a better job of including the community in the planning process. "We think that planning should be dealt with early on by the community and that we should see a more comprehensive planning process. We had our own vision session that was shorter than the Friends of the Library, but still very comprehensive, and then the Office of planning had a meeting in which they read back to us what we had put forward. It was a standard question and answer and they were very generous in answering our questions, but it wasn't much of a program. 

The second meeting that they hosted was more of the same. There will be two more in September but my impression from what happened is that they will be more of what was already done," she said. Diener said that under current procedures it seems that the District cares more about which developer is interested in the site, than what the community would like to see. "DC is missing a critical piece of planning that should happen before there are discussions with developers. In DC, what we do is we talk to developers and see who might be interested in the project and then talk to the community, it should be driven the exact opposite way. Now it seems like they (the City) have got an idea, and they're trying to put an idea out there in a way that people can be respond, but that plans have already been determined," she said. Many of the redevelopment suggestions for the parcel at the corner of 24th and L Streets, NW are related to the large homeless population that congregates in the library. 

A survey issued to 348 self-selected respondents by the Friends of the Library showed that the homeless population's use of the library is "a deterrent to greater use by other patrons." The report recommends fewer reading tables to deter homeless people from congregating, removing parking meters in front of the building so that bags can not be tied to them, limiting the number of bags each person can bring to the library, and adding stand-up computer-only tables. In addition to interior and exterior design guidelines, the report calls for a revamped collection that better reflects the demographics of the users. "Those who do use the library are older, wealthier, better educated, and less racially diverse than the general population of the District; and, therefore, the collection, programs, and services for this particular branch, like all branches, should be tailored to the population it serves." EastBanc developed the Georgetown and West End Ritz-Carltons.

Washington DC retail and commercial real estate news

Old Town Storage Site Development

After changing hands and changing plans, "The Security Storage Site" at 621 North Payne Street in Alexandria will now be developed into mixed-use development, a design that will bring more than 200 residential units to Old Town. Hoping to break ground next year, the developer is not yet committing to for-sale or for-lease units, but condos seem unlikely with financing of condominium construction so limited.

Erkiletian Construction Corporation bought the site, currently occupied by a warehouse, from Security Storage at the end of June, altering the plans presented to the Alexandria Planning Board back in 2007. The prior development plan, submitted by K. Hovnanian Homes in February of 2007, included 146 condominium units in the form of townhouses, live-work units, and low rise building.

Erkiletian will instead develop a three-story, 12,000 s.f. building designed by Rust Orling Architecture. According to Tom Woodhouse, Project Manager, the building will be consistent with the appearance of the surrounding buildings. "It won't be a contemporary high rise because they don't like that in Old Town, we're going with traditional design - brick and glass with cornices. The building is designed to harmonize with those that are already present in Old Town, those from time periods starting around 1725 and going through the present day. So you have all kinds of architectural achievements."

Woodhouse said the developer has not yet filed for permits for the site two blocks from the Braddock Metro Station, but hopes to do so in the near future and begin construction in Spring of 2009. Erkiletian is also responsible for Alexandria's Carlyle Towers and Northampton Place.

The End of Howard Theatre Blues

Since it first closed in 1970, the Howard Theatre's fate has been as unpredictable as Cab Calloway's scat. After being named a historic landmark in 1973, the theater opened and closed several times, its stage finally going dark in the early 1980's, seemingly for good. Now, after years of work by Howard Theatre Restoration, Inc., a nonprofit organization, along with the District of Columbia, private developers, and DC residents, the curtain will go up again just in time for the theater's 100th birthday.

A representative at Howard Theatre Restoration told DCMud that the organization is in the midst of a fund raising effort that, if successful, i.e. if they raise the $28 million necessary to fully renovate the theater, will allow construction to begin this time next year. The District already gave $8 million to the project, and the organization can collect $6 million more through historic and additional tax credits. The District's contributions are part of a deal to improve the neighborhood, a commitment that will also bring African American-Owned Radio One to the District. Fenty signed a $144 million deal with Broadcast Center One Partners in January, the Radio One Headquarters will sit on the same block as the theater.

Built in 1910, the theater near the corner of 7th and T Streets, NW could seat 1,200 people. It was made specifically for African American performers, but was known as "The Theatre for the People" and hosted crowds of all races and performers such as Duke Ellington, Buddy Holly, James Brown, and Redd Foxx.

HTR's interactive website says, "Together with the City, HTR and its partners will reestablish the historic U Street/Shaw and LeDroit Park neighborhood as an art and entertainment destination where residents can live, work and play."

Pattern Shop Lofts Underway

Construction is now underway on the Pattern Shop Lofts, the redevelopment of an historic Navy Yard warehouse. A piece of Forest City Washington's larger The Yards project, the former pattern store was part of the old Navy Yard Annex, but will be converted into a 170-unit "loft" apartment building with 10,000 s.f. of ground floor retail space. The six-story building is being redesigned by Bethesda-based SK&I Architectural Design Group , including 33 two-level penthouse units with private terraces and views of the Anacostia River.

The mixed-use retail and residential Pattern Shop Lofts will be completed and begin leasing units in fall of 2009, according to the developer. The overall project, surrounded by the Anacostia River, U.S. Department of Transportation Headquarters, the Washington Navy Yard, and the new Nationals Park, will deliver 2,800 residential units, 300,000 s.f. of retail space and 1.8 million s.f. of office space by 2013.

The retail space will likely host a restaurant, though Vanessa Lopez-Isa, marketing manager at Forest City said the developer is currently focusing on leasing the Boilermaker Shop across the street, a retail building which will also deliver next fall as part of Phase One. "There has been a lot of interest in restaurants and some really neat tenants that I can't disclose yet," she said of both buildings.


Lopez-Isa said the developer acquired the property through a federal grant and that the development is consistent with Forest City's portfolio of historic adaptive reuses. "We obtained control of the 42 acres directly adjacent to the ballpark after we went in for a proposal with the federal government in 2002 and were awarded site through that proposal process. Pattern Shop Lofts was originally Pattern and Joiner Shop in 1918 and it was part of the Navy Yard Annex...the area we are redeveloping. It was a large-scale wood and pattern house and it is one of five historic buildings on our site." Forest City has experience in other adaptive re-use projects, as at Tobacco Row, its historic project in Richmond.

Douglas' Plans at Cheverly Metro

Douglas Development received partial approval last week for their plans to create Addison Row at Cheverly Metro, a mixed-use residential and commercial development southwest of the Cheverly Metro Station. The Prince George's County Planning Board approved the developer's conceptual site plan, which proposed two scenarios, the first of which would offer 121,900 s.f. of retail space, 940 residential units, 650,000 s.f. of office space, and a 25,000 s.f. recreation center. The second, larger plan is for 121,900 s.f. of retail space, 2,000 multifamily residential units, 14,000 s.f. of office space, a 25,000 s.f. YMCA-like recreation center, and a 178,000 s.f. hotel. The project will be developed on 34 acres that is currently occupied by a large vacant warehouse and distribution center that the developer will eventually raze.

According to the Zoning Hearing Examiner's report, 60,000 s.f. of the project's retail space will be used for a grocery store, but the final selection of retail vendors is a long way off as the Board asked the developer to clarify the structure of the retail and residential components. Staff Reviewer Susan Lareuse reported, "It is not unusual for residential living to be located above retail uses on the first floors, but the plans do not clearly provide the amenities required to assure stable functional relationships between the uses."

Located at the intersection of Addison Road and North Englewood Drive, the project is close to both the Cheverly and Deanwood Metro Stations. WMATA said they support the development and all mixed-use development near stations as they promote the use of Metro. A letter from Joel Washington, Director of WMATA's Office of Station Area Planning and Asset Management, read "WMATA would like to see as many steps taken as possible to improve the accessibility of this project to Metro at Cheverly and Deanwood stations by foot, bicycle, or shuttle bus, including wide, safe, well-lit paths." Douglas' current plans show a potential connection to the metro station, but according to the PG County Staff report, the execution of this connection is unlikely because of environmental features on property north of the site.

Phase One, which will deliver a retail building, two mixed-use buildings, and the recreation center along Addison Road is scheduled for completion in 2009. The entire project is slated for delivery in 2012.

Major Tweeking for Tewkesbury

The Office of the Deputy Mayor for Planning and Economic Development just announced that four developers have submitted proposals for the redevelopment of a vacant 1950s-built, 26-unit apartment building at 5425 14th Street NW in Brightwood.

Known as the Tewkesbury, the building has been cited for over 100 violations since it was vacated in 1980's. DC bought the property for $3 million from Vincent Abell, one of the 20 less-than-savory landlords sued in April for code violations on rental properties.

Blue Skye Development, LLC and The Educational Organization for United Latin Americans Spanish Center, Mi Casa, Inc., PML Real Estate, LLC, and 14th Street Partners, which includes UrbanMatters Development Partners LLC, Northern Real Estate Urban Ventures, and Emory Beacon of Light, Inc. responded to the District's May solicitation for the 30,000 s.f. property.

The District would like to see senior or, you guessed it, mixed-income housing for the site, but did not specify whether or not the units had to be condos or apartments. Over half of the units must be affordable.

“This property has been a blight on the neighborhood for more than 20 years,” Deputy Mayor Neil O. Albert said. “The response to our solicitation clearly shows that the development community -- just like the residents of Brightwood -- is eager to get this property back into productive use.”

Onyx on First Opens Its Doors

It's time for another ballpark area opening: The Onyx on First by Faison Development and Canyon-Johnson will open its doors Monday. The developer has been giving small tours of the fourteen-story, 266 unit apartment building at 1st and L Streets, SE for the last few weeks, but will officially open the leasing office next week. The $60 million project, near the Navy Yard metro, offers units sized from studios to two bedrooms.

Onyx apartments feature floor-to-ceiling windows, stainless steel appliances, stained concrete floors and full size washer-dryers. The community, which sits two blocks from the Nationals Stadium, includes a roof deck with a pool, WiFi in common areas, a fitness center, 24-hour concierge service and a clubroom with billiards.

Designed by Esocoff and Associates, the project was originally planned as a condominium building with prices in the high $200 and $300,000's, but went rental earlier this year. Construction began in November 2006. RAM Partners, LLC is the property management company.

Walnut Street Development Sells Mt. Vernon Site

Walnut Street Development (WSD) will be selling its Eye Street Lofts project; the sale is apparently imminent. WSD had been planning approximately 160 residential units and 4,000 s.f. of retail space for their land at 443-459 Eye Street, NW, since it purchased the land in 2004. The Mt. Vernon Triangle project had been planned originally as a condominium, to break ground in 2007, but market changes forced a shift to a planned rental building, construction had not yet begun. The purchaser is not presently being identified.

The site, a large project in its own right, is enhanced because of the adjacent District-owned property, the hotly pursued District 5th and I site for which four developers are vying. According to Jared Jablonka at WSD, the developer submitted a proposal for the 5th and I site, but withdrew when another developer made an offer on the Eye Street Lofts' parcel. Speculation points to JBG as the purchaser, though WSD would not comment on the terms of sale or identity of the purchaser.

"We had a pretty good plan, but then we got an offer from another developer to buy the land. We wanted to develop it ourselves because it would have been an exciting project, but we received an attractive offer," Jablonka said.

He added that WSD had delayed groundbreaking because they hoped to win the 5th and I site. "We had held off because the announcement of a developer for the adjacent piece of land (5th the and I) was delayed. We wanted to incorporate that site into our project, that was the idea, but then we got the offer to sell the site and it was hard to turn down. We are now under contract."

WSD's original $55 million multi-use project would have been a renovation of two 1880's row houses and other industrial buildings into an approximately 12-story structure with over 15,000 s.f. of community-serving retail space.

WSD's plans have been in the works since 2005 and have since faced several obstacles because of the historic nature of the buildings on site that include the Central Auto Works garage, a historically-designated structure. Architects HOK Group decided to incorporate the entire garage into the new edifice by piercing columns through the building and creating footings beneath the garage to support the new construction. The development would have also included the two existing row houses as well as a historic blacksmith shop.

According to the Deputy Mayor's Office, the four remaining developers - JBG, Buccini/Pollin, Potomac Investment Properties, and a group comprised of Holland Development, Donohoe Development, Spectrum Management, and Harris Development had all submitted satisfactory bids, but had subsequently been asked to submit a further "best and final" offer by this Friday to remain in consideration.

WCI Files for Chapter 11 Bankruptcy

It seems not even development giants can dodge the vicissitudes of the market. Bonita-Springs, Florida-based luxury home and tower developer, WCI, announced Monday that they have filed for Chapter 11 bankruptcy and will petition to restructure their debt and capital. They followed that announcement yesterday with news that Chief Judge Keven J. Carey of the U.S. Bankruptcy Court, "approved a package of relief designed to facilitate and ensure the continued and uninterrupted operation of WCI's business." 

WCI's closest project is The Club on Quincy (pictured, at left) at 3901 N. Fairfax Boulevard in Arlington. The project has been on hold, but is planned as a approximately 125-unit, 12 story condo building one block from Quincy Park, on the site of the parking lot of the Arlington Funeral Home in Ballston. A representative for the company said that project will remain on hold until the "market improves."

The company cites the poor shape of the market as the reason for their financial troubles; WCI accumulated a number of unsold properties because of both purchase cancellations and defaults on existing sales. Under Chapter 11, WCI will be able to reorganize their finances and come up with a plan to keep their business running and pay off their debts and blocks other companies and individuals from collecting debts owed by the company.

WCI maintains that they are "absolutely not" going out of business and will use their granted $50 million in cash collateral to meet "immediate obligations to suppliers." According to their press release, "The company said Realtors, brokers and customers will see no interruption in these (brokerage, foreclosure, and rental management) services."

Sitrick and Company, known for its work in "sensitive situations", is doing PR for the WCI while they work through their bankruptcy. WCI's website optimistically cites Delta Airlines, Macy's, and 7-Eleven as other companies that made it through Chapter 11 situations.

Arlington, Virginia commercial real estate news

Partial Approval for Armed Forces Retirement Home

The DC Armed Forces Retirement Home will move forward with the development of 77 of its 272 acres, or "Zone A," thanks to the National Capitol Planning Commission's (NCPC) partial approval. While the AFRH submitted plans for the redevelopment of four zones throughout the campus, which sits east of the Georgia Avenue Corridor and West of North Capitol Street and Irving Street, NW, the NCPC approved only Zone A; other zones will proceed on an as-needed basis. The mixed-use development, still undetermined in composition, will be the first development on the site in more than 50 years.

Zone A will host the most extensive development of the four zones and is slated for improvements to take on an "urban character with a building typology that is sympathetic to the character and scale of existing AFRH contributing buildings and landscape…" Ehrenkrantz Eckstut and Kuhn Architects (EEK) have been working with the development team, a partnership between the General Service Administration and Charlotte-based Crescent Resources, LLC, to create a mix of uses that could potentially include research, office, residential, hotel, retail, and educational uses through private leases. The maximum allowable gross area will be 4.3 million s.f. with over 6,000 parking spaces.

The AFRH is a federal agency, but relies on a trust, rather than federal funding, to operate, allowing it to use its underutilized land to generate new sources of revenue for the veterans' home. The new funding anticipates the future Iraq and Afghanistan veterans who will require long-term, specialty care.

The GSA was not disappointed by the partial approval; according to Tim Sheckler, project manager GSA, the development team knew that complete approval was unlikely. “The NCPC required that the home submit a plan for the entire site and then as part of the discussion at the meeting, it was decided the Zones B and C would be pulled back into the home's zone. That means that they will develop Zone A first and evaluate its financial return. It was always the home's intention to develop Zone A first,” he said.

The NCPC's report says Zones B and C will be "returned to the AFRH Zone", meaning that plans for a mixed use development on Zone B, and townhouse residences on Zone C, will be on hold pending the success of Zone A's development. The AFRH will continue to own and maintain the area and may even lease the property to the National Park Service.

The developers' plans include sustainable development features to, “enhance the overall design, natural environment, and quality of life of the community” by creating a mixed-use, clustered development with walkable space, bike ways, sidewalks, and parks. Zone A will likely achieve Gold LEED certification for overall neighborhood design; residential buildings over three stories, office buildings, and historic adaptive reuses will also earn LEED certification for New Construction.

Established in 1852, the AFRH services over 1,200 veterans and the DC campus boasts proximity to three metro stops; the Georgia Avenue-Petworth, Brookland-CUA, and Fort Totten Station; the master plan is the first attempt at improving the campus in over 50 years. Crescent Resources, LLC was selected as the master developer in March 2007, when they proposed the development of,"300 units of affordable housing, market-rate rental and condominium units, medical office space, a small hotel, a grocery store and other ancillary retail, as well as transitional housing for military veterans." The AFRH doesn't anticipate full build out of the zones for 15-20 years.

Marina View - New Towers Likely in Fall

Fairfield Residential will go before the DC Zoning Commission late September for approval of PUD modifications for their Marina View Towers apartment project. One of several developments along the Southwest waterfront, including Southwest Waterfront, Arena Stage and the Waterfront Mall, Marina View, at 1100 6th St., will deliver apartments, public spaces, and a restaurant at completion. Redesigned by Esocoff and Associates, Marina View will be a mixture of new construction and interior renovations on the two landmarked forty-six year-old I.M. Pei towers. Under the PUD modifications submitted July 3, Marina View will now be completely rental, a change from the developers original plan to make the South Pei tower a condominium building.

Graham Brock, Project manager at Fairfield Residential, said changes in the market led the developer to convert to rental units. "We planned condominiums for the South Pei tower because existing residents in the Pei towers wanted the option of home ownership, but then we struggled to find ways to finance that building and get those residents to qualify for loans. The market changed and the deal we had come up with wasn't as strong anymore. So we met with the residents again and I think everyone came out whole."

Work is already underway in the 128-unit North Pei tower; the developer had to bifurcate all of the systems and transfer tenants; all residents are now in renovated units and the developer is completing the opposite side of the building. Brock said they hope to start work in the South Pei tower in the coming months and complete the historic renovations in the next six months.

As for the new towers that will replace two surface parking lots and climb to 112 feet, Brock said depending on the market, condos could become a possibility, but for now, they too will be apartments. Construction will likely start in the fall on the South tower, which will deliver 156 units and is the only building of the four that will offer ground-floor retail. Brock said it will deliver 8,500 s.f. with 5-6,000 s.f. reserved for a restaurant. The 168-unit new North tower will follow once the South tower's parking garage is completed.

The project will also include amenities such as a small public park on 6th street and 12,000-15,000 s.f. amenities building that will include a pool, gym, lounge, and business center.

Washington Hilton Landmarked

Some say the aerial view of the Washington Hilton in Dupont looks like a distant seagull, some say the hotel looks like a sedentary spaceship. The Historic Preservation Review Board says it looks like a historic landmark. In a 5-2 vote at their July 24th meeting, the board designated the Washington Hilton Hotel at 1919 Connecticut Avenue, NW a historic landmark based on "Criteria D and F", architectural significance and the work of a master.

In his staff report prior to the meeting, Tim Dennee, Architectural Historian for HPRB, recommended that the Board designate the Hilton, built from 1962-1965, a historical landmark and wrote, "Its sinuous massing was a radical departure from traditional local architecture as was its use of column and slab construction throughout, and uniform, pre-cast concrete, windowed wall panels."

In addition to his praise for Architect William B. Tabler, who designed the 1,250-room full-service hotel and whom Dennee described as "no household name, but nonetheless an extraordinarily prolific and acknowledged master of hotel design," Dennee pointed out the hotel's significance as the site of the attempted assassination of President Ronald Reagan and as a venue for events attended by subsequent presidents.

But not everyone was as convinced that the hotel was worthy of landmark status, which not only puts it on the National Register of Historic Places, but also makes the building subject to preservation law, which "requires review of proposals for new construction and additions, demolition, and exterior alterations." Among the reasons the two dissenting members - and several local residents - opposed the landmark were doubts about the distinctiveness of the building, the significance of the architect, and the owner's motivation in landmarking it.

There has been some speculation that the applicant and owner, C.J.U.F. II Destination Hotel LLC, a partnership of Los Angeles-based Lowe Enterprises and Beverly Hills-based Canyon-Johnson Urban Funds, LLC, created by basketball star Magic Johnson, applied for the landmark to be eligible to apply for a parking and loading waiver in the event of future on-site construction or renovations. The HPRB can't confirm this, as the owner did not discuss it with them, nor did they officially submit future construction plans. The developer bought the hotel in May of last year and is currently working with the HPRB to come up with a residential concept that is applicable to the now landmarked hotel.

Dennee, on the other hand, said it seemed like the owner applied for the land mark to beat other applicants to the punch, "In his testimony before the HPRB, the owners’ rep seemed to suggest that the motivation was largely the fact that they recognized it as an important building and thought that someone else might nominate it as a landmark. The owners apparently wished to manage any risk and the timing by forwarding the nomination themselves," he said.

"We have the zoning and development right to build, but now that we had the hotel landmarked, we have to have any building concepts approved. We want to work with the community and the HPRB to come up with a concept that works with the landmarked building. We felt that if we landmarked the hotel ourself, we were opening doors to the community to have a good rapport. We want to set a precedent that developers should be landmarking their own buildings rather than fighting it," said Sarah Hubbard, Development Manager at Lowe Enterprises.

"We want to be proud of the fact that it's recognized as a historic site. There were things left out of its original design and now we want to bring the historic site into the 21st century, so any addition would not only be a modern addition, but it would fix some urban design problems like open space and pedestrian access," said Hubbard.

According to William B. Tabler Architects' website, the sprawling form, a result of the District's height restriction, "gave every guest-room a view with light, space and air. The curve allowed for an efficient double loaded corridor while breaking the endless vista that usually occurs in such long buildings." The landmarking process is intended to protect the physical fabric and appearance of historic structures. We think Jody Foster will be impressed.

West End Retail and Architecture Get Boost

The Board of Zoning Adjustment approved Tuesday NH Partners Holdings, LLC's plans to redevelop DCD America's eight-story office building at 1200 New Hampshire Avenue, NW into an improved office building with more accessible ground floor retail, a handicapped-accessible entrance, and a new lobby. Designed by Bonstra Haresign Architects, the addition will feature modern glass, stone, and metal detailing and "establish an appropriate modern/current architectural language" rather than the existing 1970's-style brick and glass ribbon facade. The renovated office building will also include a single story glass-faced building addition, green roof, and new space for a "high-end white table restaurant or retailer".

Bounded by New Hampshire Avenue, 21st, M, N and 22nd Streets, NW, the 48,589 s.f. site is located between the central business district and the West End neighborhood and is home to Grillfish and Meiwah restaurants, a dry cleaners and a wine shop. The current building was developed in 1978 and includes an approximately six-foot arcade that the developer hopes to enclose, making ground floor retail more accessible to pedestrians and to increasing the floor area by 4,494 s.f.

According to the BZA report, "The location, size, and depth of the open plaza combined with the building design have created retail spaces that have little to no relationship with the adjacent street and are not easily visible, accessible, or marketable," thus, over 6,000 s.f. of the existing ground floor retail space is being used as back office space. The developer's plan would reduce public space from 4,806 s.f. to 313 s.f., but would create larger sidewalks and move retailers closer to the street.

According to David Haresign, Project Architect, the project has faced little opposition from neighbors or the government. The project team, "received support for the design and variance from the full spectrum of stakeholders - tenants, residential, neighbors, and officials from the DC office of Planning, and a neutral vote from the Advisory Neighborhood Commission," Haresign said.

Construction is anticipated to start in mid 2009. The renovated building will still include 165 spaces of below-grade parking. Houston-based PM Realty Group is managing the property. The building is surrounded by renovation, including the just-finishing 22 West, Tiverton condo conversion, and renovation of the Marriott next door.

Washington DC restaurant and retail news

Avera Station Condos Now Apartments

The Avera Station condominiums in Falls Church has joined the long and growing list of condos that have been converted to for-lease apartments, and has been rechristened as Carmel Vienna Metro. Built by Atlanta-based Beazer Homes, the 245-unit Avera Station was fully completed in mid June, and sold to Denver-based Carmel Partners on July 1. The project had been selling as condominiums since early 2006, and had been advertised as "No. Virginia's Fastest Selling Condos." Carmel, which purchased the project free of the previous condominium contracts, would not disclose the sale price. According to Carmel, none of the pre-construction contracts went to settlement.

The project is located outside the beltway, nearly adjacent to the Vienna Metro station. Carmel, which owns and manages 45 apartment buildings nationwide, says it has already leased 50 of the units over the past month, with rents ranging from $1705 to $2420. According to on-site Manager James Mann, Carmel Vienna Metro is maintaining the "luxury homes" branding, offering "concierge services" and a flat-screen television to all tenants.

Falls Church real estate news

Peck Site Swap Yields Affordable Homes

A recent approval by Arlington County has paved the way for a new affordable housing project in the center of Ballston. The JBG Companies have long had plans for 800,000 s.f. of mixed-use development on the former Bob Peck Dealership and Showroom site in Ballston, but the project lacked an affordable housing component. Arlington-based AHC Inc., which provides affordable housing locally, wanted a higher density development at its neighboring Jordan Manor project, an affordable housing site. But the thought of two high-density developments in close proximity troubled some in the planning process. Arlington, seeing an opportunity for a deal that would please both parties and yield affordable housing for the county, facilitated a land swap between the two developers.

The result was a plan for 90 affordable rental units, designed by Bonstra Haresign Architects and developed by AHC, on a portion of the JBG Companies' land, keeping the density all on one site. JBG will in turn develop 28 townhouses on AHC's 1.1-acre Jordan Manor Site, keeping it lower density. The board approved the affordable housing plans last Saturday.

AHC Project Manager Curtis Adams said his company wanted to build a higher density project on their adjacent site and submitted plans to Arlington around the same time as JBG. "We had been interested in developing our property into higher density and JBG was doing their big development, and we knew that it would hurt our chances of getting the density we wanted. The county pushed for a land swap - they are building townhouses on AHC property and we will take room on their site to the higher density that we wanted."

Adams said his company will demolish the existing 24-unit Jordan Manor that they own and operate to prepare for the approved land swap that will take place in December of this year. The affordable housing component will deliver two buildings, the Wilson and the Wakefield, and is a benefit to the master developer who can now boast the affordable units as a community benefit and not just a large mixed-use development. As project architect David Haresign said, "It is an important component of the project because JBG is now able to show a project with affordable housing."

When the larger project was initially approved in February, County Board Chairman Walter Tejada said, "The project has it all...it adds to our stock of affordable housing in the Metro Corridor."

The entire development on the "Peck site" will deliver two office buildings with over 400,000 s.f. of office space and 36,000 s.f. of ground floor retail space as well as the 28 townhomes on the demolished Jordan Manor site. The commercial space, JBG's portion, was designed by Cooper Carry.

Other community benefits include LEED certification for both office buildings, new traffic signals, after-hours public parking, and pathways connecting the two buidlings. Projected rents on the affordable units range from $1,050 for a one-bedroom unit to around $1,500 for a three-bedroom unit. The majority of the affordable units will have two or three bedrooms.

Bowman Consulting is the civil engineer and landscape architect for the entire complex.

Arlington Virginia real estate development news

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DC's Development Pipeline

Ever since the Fenty administration took over development of the District's publicly-owned property, merging agencies and placing them under his direct supervision, it seems development of blighted blocks has been given a new urgency, even compared to that of the Williams administration - itself a great improvement over its predecessor. But despite weekly announcements from the Mayor and the Office of Planning and Economic Development, many of the projects still have to proceed through the District's infamously thick bureaucracy. But if China can cleanse its murky atmosphere in a few short months, there is cause for optimism that change is in the air here in Washington. DCMud has prepared a rundown of the largest projects now underway, properties in need of developers, and solicitations to look for in the future.

The projects listed below are still being refined. The numbers and square footage assigned to each are conceptual and are subject to change.

Projects With Developers

Southwest Waterfront by Hoffman Streuver will offer 539 market-rate units and 231 affordable units. The $1.5 billion project will also include 350 hotel rooms, 700,000 s.f. of office space and 280,000 s.f. of retail space. On July 15th, the DC Council approved a $198 million TIF/PILOT package to finance park and infrastructure improvements. Groundbreaking is not expected any time soon, with construction lasting at least 6 years.

Waterfront, the erroneously named project at 401 M Street, SW, will deliver 800 market-rate and 200 affordable residential units as well as 1.3 million s.f. of office space and 110,00 s.f. of retail space. Mayor Fenty joined SW Waterfront Associates (Forest City Wasington, Charles E. Smith Vornado) in November to demolish the former Waterside Mall. The $800 million project will sit atop the Waterfront -SEU Metro station.

Clark Realty was selected in February as Master Developer for Poplar Point on the east side of the Anacostia. The number of residential and hotel units they will deliver has not yet been determined, however 30% of all residential units will be affordable. The District and the National Park Services held a public scoping meeting last month for the Environmental Impact Statement of the $2.5 billion project.

Center Leg Freeway on Massachusetts Ave, NW between 2nd and 3rd Streets is being developed by Louis Dreyfus Properties into 100 market- rate and 50 affordable residential units. The $1.1. billion project will cap the exposed section of I-395, and include 2,100,000 s.f. office space and 67,000 s.f. retail space.

The McMillan Sand Filtration Site on North Capital Street and Michigan Avenue will be developed into 820 market-rate units, 351 affordable units, and a 100-room hotel by EYA. The $1 billion project will also deliver 700,000 s.f. of office space and $110,000 s.f. of retail space. The project has long been worked over, but don't make plans for moving in any time soon.

In May the District reached a deal with Hines Archstone to develop a 400-room "high-end" hotel and 100,000 s.f. of additional retail space on "Parcel B", a 53,000 s.f. plot of land that is part of the larger CityCenter DC, the development taking up residence on the old convention center site. The entire $850 million project downtown will deliver 539 market-rate units, 135 affordable units, 476,000 s.f. of office space, and 266,000 s.f. of retail space.

On June 26th, Marriot International, Cooper Carry Architects and EHT Traceries presented plans for the Convention Center Headquarters Hotel to the Historic Preservation Review Board. Located on the Corner of 9th Street and Massachusetts Avenue, NW, the $550 million project will deliver 1125 hotel rooms and 25,00 s.f. of retail space. Having been scaled back from its original 1400 bed facility, the project is well past its early schedule, of construction in 2007.

O Street Market at 7th Street and Georgia Avenue will be transformed into a mixed-use development that will include 550 market-rate and 80 affordable residential units by Roadside Development. The $329 million development will replace a current Giant supermarket with a new 71,000 s.f. store and include a 200 unit hotel and 87,000 s.f. of retail space. The District reached an agreement with the developer late last month to kickstart financing. Of the dozens of projects promising to revitalize the Shaw neighborhood, this may be the first large project to actually get underway.

Skyland Shopping Center on Good Hope Road at Naylor and Alabama Avenue, SE will be developed by Rappaport Companies and William C. Smith Companies into a $261 million development with 155 market-rate units and 66 affordable units as well as 230,000 s.f. of retail space. When? Even an estimate will be fine.

City Vista, which began sales in late 2005, will bring 441 condos with 138 affordable residential units to, as well as a separate apartment building, to 5th and K Streets, NW. The project will also include 130,000 s.f. of retail space and will cost $191 million. The first condominium building completed last October, the remaining condominium and the apartment building are nearly ready for occupancy.

Early this year, Fenty signed a Land Disposition Agreement with Broadcast Center One Partners LLC, (Ellis Development and Four Points, LLC) that will bring African-American-owned Radio One to the district. The $144 million Broadcast Center One at 7th and S Streets, NW will be a mixed-use project with 135 market-rate and 45 affordable residential units as well as 96,000 s.f. of office space and 22,000 s.f. of retail space. According to Fenty's office, "the deal also sets in motion the $22 million redevelopment of the Howard Theater, a long-shuttered landmark that was the hub of black Broadway." If it gets built; the timeline remains uncertain.

Mt. Carmel (Parcel 51B) on 3rd Street, NW between K and H Streets is being developed by MQW LLC (Quadrangle and the Wilkes Companies) into $130 million mixed-use project with 267 market-rate units, 67 affordable units and 90,000 s.f. office space.

Forest City Washington is responsible for the $120 million O Street SE Redevelopment by the SE Federal Center. It will deliver 354 market-rate units, 89 affordable units and 47,000 s.f. of retail space.

The Village at Dakota Crossing in Fort Lincoln by Ft. Lincoln New Town Corporation will include 327 market-rate and 30 affordable units. It will cost $110 million.

Mid City Urban and A&R Development will bring 216 market-rate and 54 affordable residential units as well as 70,000 s.f. of retail space to the area around the Rhode Island Avenue Metro station with their $105 million Rhode Island Station project. First attempted as a condo project, developers have bowed to the market and substituted apartment buildings - at least in theory, as the project has yet to break ground.

The $100 million Shops at Dakota Crossing on New York and South Dakota Avenue, NE will be developed by Ft. Lincoln New Town Corporation into 29,000 s.f. of office space and 461,000 s.f. of retail space.

Lowe Enterprises and Jack Sophie Development have long had intentions to develop Riggs Road and South Dakota Avenue, NE (Triangle Parcel) into 208 market-rate units, 52 affordable units and 23,223 s.f. of retail to the tune of $75 million. The fate of the project is uncertain, as higher construction costs, shrinking condo prices, and more conservative lending practices - especially in low-income neighborhoods, make such projects harder to justify.

Park Place on Georgia Avenue in Petworth will be developed by Donatelli Development into 161 market-rate units, 32 affordable units and 16,000 s.f of retail space and will cost $60 million. Purchased by Donatelli, along with partners Gragg & Associates, Canyon Capital Realty Advisors and Earvin 'Magic' Johnson, will be one of the few developers delivering new condos in 2009.

In February, the District made a Term Sheet with Parcel 42 Partners to develop 95 affordable housing units and 8,000 s.f. of retail space on Parcel 42, in Shaw at 7th and Rhode Island Avenue, NW for $28 million.

In December 2007, the District selected William C. Smtih Companies and the Jair Lynch Companies to develop the $700 million Northwest One New Community that will deliver 1,600 units of housing on former NCRC parcels as well as adjacent DC-controlled and private properties in Ward 6. Located between North Capitol Street, New York Avenue, New Jersey Avenue, and K Street, the site is in an area that has "long been plagued by high crime and poverty", but is surrounded by the up-and-coming NoMa and Mt.Vernon Triangle neighborhoods. The development team, which also includes Banneker Ventures and CPDC (affordable housing provider), will create apartments, townhouses, and condos for all income levels as well as over 40,000 s.f. of retail and 220,000 s.f. of office space. The development will also offer a 21,000 s.f. clinic.

And further down the road...

The District issued a solicitation in early June for Parcel 69 at 4th, 6th, and E Streets, SW. The $130 million development will be an office and hotel project along the Southwest freeway. Proposals are due by September 15th.

In May, Fenty issued an RFEI for the Hill East Waterfront on Capitol Hill East. The District seeks a developer to create 2,100 market-rate and 900 affordable units with 2,000,000 s.f office space and 67,000 s.f. of retail space. The District anticipates a price tag of $1.1 billion for the development of the 50 acres surrounding the former DC General Hospital. Proposals are due by October 31st.

Proposals were due June 3rd for Minnesota and Benning Road, NE Phase II. The $107 million development will include 60 market rate, 392 affordable units and 40,000 s.f. of retail. No developer has been selected.

It is high time the District announced developer for Fifth and I Street, NW. After proposals were submitted in March, the District widdled the teams down to the final four including BG, Buccini/Pollin, Potomac Investment Properties, and a group comprised of Holland Development, Donohoe Development, Spectrum Management, and Harris Development. The winning team, whenever they are announced, will create somewhere around 170 market-rate units, 30 affordable units, 100 hotel rooms and 50,000 s.f. of retail space.

Upcoming Solicitations

The District would like to see 1,469 market-rate and 440 affordable units in Lincoln Heights in Ward 7 at an estimated cost of $576 million.

Barry Farm/Park Chester/Wade Road in Ward 8 will likely include 110 market and 330 affordable housing units and will cost around $550 million. The project is an effort to revitalize low-income properties in the historic Anacostia area.

The issuance of the Park Morton solicitation at Park Road and Georgia Avenue, NW is "imminent" according to the Mayor's office and will cost $136 million with 499 market-rate and 150 affordable units. Axis