Plans Submitted for Southwest Wharf Waterfront

Visions of a "world class" waterfront destination along the Washington Channel in Southwest had been dancing in developers' heads for years before a contract was awarded by the District in 2008. On June 28th the winning team's vision became more clear when PN Hoffman and Madison Marquette filed a preliminary report with the D.C. Zoning Commission, clarifying its plans for the 52 acres (including build out on the water) that will be radically revamped as "The Wharf" to be constructed in three phases over the next 10 years.

Phase one of the project - encapsulated for approval as the "Stage 1 PUD" - will be reviewed by the Commission on July 18th. In addition to reviewing Stage 1, the Commission will rule on the request to rezone the area from R-3 to C-3-C on land, and from unzoned to W-1 in the water.

If approved, the initial stage will be valid for 18 months, allowing developers that long to submit the final Master Plan to the office of the Deputy Mayor's for Planning and Economic Development (DMPED) for approval. Construction of the first phase is projected to begin in late 2012, and is expected to last until 2016. In those four years, phase two will undergo the review and approval process.

Phase 1 will begin in the middle section, roughly from 7th Street to 9th Street, in between the entertainment-heavy section closest to I-395, which focuses on water-transit-oriented piers and redevelopment of the Municipal Fish Market (phase two), and the residential area at the southern end (phase three). Redevelopment of the Municipal Fish Market will take place in phase 2.

Phase one includes the restructuring of portions of 7th, 9th, N St and M Place; a new Capital Yacht Club; two new piers - "City Pier" off of 9th and "7th Street Pier" - and a major infrastructure overhaul of Water Street. The grand scheme is to turn Water Street into a promenade with 60' of width shared between pedestrians, streetcars, bikes and outdoor diners.

The parcels in phase one (2,3,4 and 5) will be developed as office, retail, residential and hotel space. Parcels 3 through 5 could potentially be 130' high, as is permitted in a C-3-C zone. The plan shows that parcels 3 and 4 will have ground floor retail and office and/or residential towers, parcel 5 will hold two hotels, and parcel 2 is slated to become a concert/entertainment venue with seating for 4,000 to 6,000.

Parcel 3, at the corner of Maine Avenue and 9th Street, has been claimed in part by the Graduate School USA, which will take up 190,000 s.f. of space and operate 18 hours a day. A temporary Kastles Stadium, now located near parcel at 9th and Maine Street and intended to be temporary, is now being considered for parcel 2.

Holland & Knight, legal counsel for PN Hoffman and Madison Marquette, submitted the project's prehearing statement to the Commission in May, and the more recent "20 day [in advance of hearing] submission" on June 28th. Significant changes in both prehearing documents that will affect phase one include a decreased F.A.R. (floor area ratio), the removal of residential use at parcel 5, reduced parking spaces and increased bike docking areas. Most encouraging is the reduction of subsidized housing required by the District from 30% to 20% of total housing.

A community workshop was given by the developers on June 7, where several issues were raised, most of them surrounding the riparian development, including the depth of the channel, and the extended length of several piers, which cuts the width of the channel from 400' to 200' wide.

Subsequent development will include a revamped Banneker Park and the Southwest Ecodistrict of 10th Street (not controlled by Team Wharf), which will ideally provide a link from the waterfront to the Mall.

Other elements of the overall development (all three phases) include a combined 3.2 million s.f. gross floor area (3.87 F.A.R.), 8 to 12 acres of park/open space with "programmed public activities" catering to year-round use, 625 hotel rooms, 1,200 "mixed-income" residential units, and 400 to 500 Marina Slips

The entire project is estimated to need $2 billion; the District pledged $200 million in 2008 in tax increment financing. The redevelopment, say developers, has the potential to bring in $40 million in tax revenue annually.

ANC 6D will hold a meeting, in advance of the Zoning Commission hearing, at the Dept. of Consumer and Regulatory Affairs (DCRA) at 7pm, next Monday, July 11th.

Washington D.C. real estate development news

Pentagon City Project Gets Restacked

Pentagon City's mega mixed-use project will get a mix-up to help it move forward. The Arlington County Board has approved a reallocation of density between two parcels in Pentagon City for stages 4-8 of the 8-phase Metropolitan Park. Originally slotted for 300 hotel units and 930 residential units (for Parcels 3 and 1D, respectively), the Board reallocation means the developers will have flexibility in determining where to build the 930 residential units and 300 hotel rooms. VNO Pentagon Plaza LLC previously received approval from the Arlington County Planning Commission in June. After the Board's July 11th approval, the process of drafting a site plan begins.

The two parcels in question are held by Vornado, which would sell the remaining portion of Parcel 3 to Kettler for the realization of Metropolitan Park's next stages. Vornado previously sold the part of Parcel 3, where phases 1-3, stand to Kettler. When Metropolitan Park's design guidelines were set in 2004, it called for 3,212 residential units on Parcel 3. The Pentagon City Phased Development Site Plan shortchanged Kettler, allotting 2,282 residential units and 300 hotel units. Through a little bit of density reallocation magic, Kettler can now have it's 3,212 residential units (2,282 + 930 = 3,212). That leaves Vornado with 300 hotel rooms to use, or not, on Parcel 1D, assuming the Metropolitan uses all 930 allocated residential units remaining.

The first stage of the massive development is bounded by 12th, 15th, Eads, and South Fern Streets. The Gramercy, pictured above, is a luxury rental high-rise building from Phase 1.

Two New Hotels to Join Development of New York Avenue NE

Once described many years ago by a local alternative paper as "The Devil's Bowling Alley" for its long stretch of dilapidated auto lots and boarded-up buildings, things are beginning to look up for New York Avenue NE. The latest news is that the joint venture of Rocks Engineering Co. and SharCon Hotel Management & Development Co. is moving forward on its development of side-by-side hotels next to the National Arboretum at the southeast intersection of New York Avenue and Bladensburg Road in the Ivy City neighborhood. The hotels will both be five-story structures, with one being a 126-room Fairfield Inn & Suites and the other a 125-unit Holiday Inn Express Hotel & Suites. The hotels take the place of the old, now-demolished Travelodge Hotel (pictured, officially at 1917 Bladensburg Rd NE). Both hotels are expected to be ready for occupancy in early 2008.

The developers are banking on not only the 80,000 vehicles that pass the intersection each day, but also the other major developments planned for New York Avenue NE. The projects (as have been reported in past dcmud postings) include: Abdo Development's $1 billion mixed-use "Gateway" redevelopment project of 17 acres on the north side of the Bladensburg intersection into almost 4,000 residential units, green space, and a grocery (delivery after 2009); MRP Realty’s "Washington Gateway" project, a $350 million, 150-room hotel and 250-unit residential tower development to be located along New York and Florida Avenues NE (2010 occupancy); and New Town Development LLC’s $1 billion redevelopment of the 24-acre Florida Avenue Market, located between New York and Florida Avenues NE, into 1,700 residential units and 330,000 sf of retail, restaurant, and merchandising space.

The Shaw Redemption

Five metro area developers came together last night to highlight their major (and we mean major) plans for the District's Shaw neighborhood. Hosted by the Shaw Main Streets initiative, the developers on hand included Douglas Development (Wonder Bread Factory), Marriott Hotels (Washington Marquis Marriott), Roadside Development (City Market at O), Metropolitan Development (Kelsey Gardens) and Hines Interests (CityCenter DC).

Douglas Development
The keynote of Douglas' presentation was the long-gestating revitalization of the former Wonder Bread Factory at 641 S Street NW. Contrary to initial plans, the building will not be razed. The developer has obtained the original plans for the facade and will, to the best of their ability, restore the building to its original 1922 appearance. An additional story will be added to bring the building up to 5-stories and 150,000 square feet. The project has been summarily approved by the Historic Preservation Review Board (HPRB) and is aiming for groundbreaking in approximately 7 months, following permit approval. The developer expects construction on the GTM-designed facility to take no more than a year. Once completed, the former Wonder Bread facility will neighbor the proposed Radio One development (the outline of which can be seen in the accompanying renderings).

Several other Douglas projects underway in Shaw were also briefly touched upon. The developer’s proposed development at 600 New York Avenue NW is on hold due to the current economic situation and "lack of synergy," as is their proposed redevelopment of the Howard CVS.

Other projects, however, have had much more luck getting off the ground. The former site of Popeye’s at Florida & N Streets NW will complete its expansion and renovation in the next 3-4 months and will house a Fatburger chain restaurant, a cell phone retailer and office space. Another Douglas mixed-use development at 9^th & N Streets, NW will include ground floor retail, office space and apartments. Although poised to begin construction in the coming weeks, leases for the site will not be sought until the project is completed.

Marriott HotelsThe long-proposed (circa 2001) Washington Marriott Marquis Hotel at 9^th Street & Massachusetts Avenue, NW, long envisioned as an anchor servicing the Washington Convention Center across the street, is now slated to break ground in the first quarter of 2009. Overseen by the Quadrangle Development Corporation and designed as joint venture between TBS Architects and Cooper Carry Architecture, the building comes in at over 1 million square feet. The 13-story project will feature 1250 rooms, 2-3 restaurants, a ballroom and meeting space and a 400 space underground parking garage – all enclosed under an all-glass atrium. Additionally, the Pepco power station and AFL building currently on the site will also be incorporated into the hotel’s footprint, with the latter being converted to hold 42 hotel rooms. The Marriott representative on hand described it as “one of the most complex projects we’ve ever worked on.” The project is hoping to achieve an LEED silver certification.

Roadside Development

The City Market at O is shaping up to bring big changes to the current site of Giant Food on O Street NW. The mixed-use development will feature a new Giant store that will retain the old façade of the O Street Market and was hailed, as least by the pitchmen, as outclassing the new CityVista Safeway in both style and function. Additionally, the site will give way to a new 200 room, limited-use hotel, a large-scale fitness center, a 6000 square foot independent restaurant featuring a local chef, and 600 apartments and condominiums targeted towards “young professionals.” 8^th Street will also reopen for pedestrian use between the two buildings on the site, parking for the facilities will be moved underground. Roadside showcased some interesting architectural features on the buildings, including a 2-story projection on the residential building – currently referred to as “the diving board.” The developers are currently in negotiations with the Deputy Mayor’s Office for Planning and Economic Development (DMPED) to receive Tax Increment Financing for the project and are hoping for a September 2009 groundbreaking.

Metropolitan DevelopmentThough Metropolitan’s Kelsey Gardens has been recently covered by DCMud, the developer still had a few surprises on hand for their presentation. Architects will employ the increasingly common urban technique of breaking the 14,800-square foot, 297-unit building into five distinct facades, in order to affect the appearance of being constructed during different time periods by different architects. Roofs of the “buildings” will be 50% green and feature both private and public terraces. The development will be complimented by 2 levels of underground parking that will feature preferred parking spaces for “energy efficient vehicles” (i.e., hybrids). The project is shooting for 2011 completion.

Hines Interests
The final presentation of the evening concerned the redevelopment of the site of the old convention center, Hines Interests and Archstone’s CityCenter DC project. Designed by Foster + Partners and Shalom Baranes Architects, the 10-acre site is being envisioned as “a new neighborhood for downtown.” Comprised of 4 separate parcels centered around the now-closed (and eventually to be reopened) intersection of 10^th and I Streets NW, the ambitious project is to include 400,000 square feet of retail space, 1,074 residential and hotel units, 1,064,000 square feet of office space, more than 2000 parking spaces and a public park. The hotel on the site is envisioned as a 4 or 4 ½ star facility, while the developer is aiming to lure home furnishing and fashion retailers (possibly a department store) as well – in order to serve the needs of downtown residents and not specifically tourists. The Hines representative on hand posited that the project was 85% ready to go and would be seeking general contractor in the next few weeks.

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

Watergate Auction Tomorrow: Who Wouldn't Want a Building Adjacent to a Piece of History?

When did it all go wrong for the Watergate? The hotel with arguably some of the best views in the city has a lively history - controversial design, Nixon era break-in, failed condo conversion, and now add bankruptcy. Back in 2007, DCMud reported that Monument Realty was ensnared in a legal battle after selling about a dozen units in its attempted condo conversion. Two years later and facing foreclosure on the remaining $40 million (out of $70 million) owed to lender PB Capital, Monument Realty's Watergate goes to auction at Alex Cooper Auctioneers tomorrow. The sale terms listed on Alex Cooper's website detail a process that will require $1 million up front (the starting bid was not disclosed), so be prepared to show the money to get in the door. Paul Cooper, principal at the auction house, said the response so far has been "tremendous," but that he had “given up speculating” how many bidders might show.Monument was given the standard 30 days notice to pack the linens and move out, or secure funds to prevent foreclosure. But with financial times like these and the bankruptcy of Lehman Brothers, the financing partner on the project, no financing has emerged and the gavel will fall tomorrow at 5301 Wisconsin Ave N.W. at 10:15 AM. So if you want to get a chance at owning a piece of history, bring $1m. Which, you might feel good to know, is less than it would have cost to buy a single unit back in the day. 

Washington DC real estate development news

MRP to Begin Phase One of Washington Gateway in NoMa

MRP Realty will soon move forward with a long- awaited three-phase, 1-million-sf mixed-use project on 3 acres in northern NoMa. Matthew Robinson, Senior VP of MRP, says the $360-million project known as Washington Gateway will break ground before the end of the year, with the first phase residential and retail. The project has been planned since at least 2006, with several near starts over the past 5 years.

At the intersection of Florida and New York Avenue, NE, the Washington Gateway development team will seek financing on a rolling basis. As for now, the team is focused solely on phase one: 400 units of residential in an 11-story building with 5,200 sf of retail.

In terms of getting the first phase off the ground, all seems to be in line for MRP. An equity partner is in place, construction loans are in the works, construction (sheeting/shoring/excavation) permits have been applied for, and a building permit will be filed at the end of September, according to Robinson. One year into construction, MRP plans to start phase two, which will consist entirely of office space. Further down the road, phase three will consist of office space and a retail component.

Nearly 1 million square feet of built area in all, the three-building project consists of approximately 350,000 sf of residential, 600,000 sf of office, and 12,200 sf of retail. The original plan called for significantly less residential space - 260 units versus 400 - with the space going to a 181-room hotel - a component that was scratched due to changing market needs as perceived by the development team.

Robinson says that getting rid of the hotel component, "makes the residential building better. The additional space allows for greater residential amenities [in the form of] increased shared spaces, [including] an extensive 3,700 square foot club room, and two-story fitness center." A rooftop pool and lounge area will offer "Capitol dome views," adds Robinson.

The 11-story residential building was designed by SK&I, and will be built under general contractor Davis Construction. Construction, if underway before the end of the year, should be complete within the next two years. The two 11-story office buildings, to be included in phase two and three, were designed by Gensler. And although the same height, the grade on site varies by about 40', confirms Robinson, creating a height variation optical illusion.

The overall design of the whole Washington Gateway project is a hollowed-out glassy triangle (labeled number 3 on the map to the left), offering an inner triangle of public space, accessible by an opening on Florida Avenue. All retail will front Florida Ave; retail tenants are being pursued, though phase one will be built on spec. Retail will most likely include "neighborhood serving retail," says Robinson, including sidewalk cafes.

Also a part of the development will be a widening, and repaving of the sidewalks along both Florida and New York Avenues. New trees and street furnishings will be added, and landscape architecture design will be the work of Oculus.

"It's exciting right now in NoMa," says Robinson. Washington Gateway will be followed by Camden Property Trust's 60 L Street, NE (1 & II), located just east of the new NPR headquarters currently under construction. Camden's 60 L Street will become NoMa's largest residential building, with 730 units, if it goes through as planned.

Mill Creek Residential's NoMa West, the largest single-phase residential project in NoMa to date includes 603 apartments with a single retail store. Located north of the FedEx building (just north of Washington Gateway) the Mill Creek project broke ground in March, and aims to finish in the spring of 2014.

Several other projects with substantial residential and office space are planned for the NoMa BID, including the Bristol Group's NoMa Station (II - IV), a follow-up to One NoMa Station (400,000 sf office, and 5,000 sf retail) next door at 131 M Street. NoMa Station II-IV is a massive mixed use project to front 1st Street between M and L Streets, NE, made up of: 700,000 sf office, 50,000 sf retail, and 700 residential units.

8/30 correction: 350,000 s.f. of residential, not 290,000 s.f.

Washington D.C. real estate development news

Shaw Main Streets Development Woes

At the annual Shaw Main Streets (SMS) Development Forum Wednesday night, representatives from developers were invited to present the current status of their plans for major renovation and new construction in the area. The status, unsurprisingly, was "more of the same," leaving community members to resign themselves to continued hopeful waiting. SMS Executive Director, Alexander M. Padro, made excuses for several invited developers who were unable to attend. Quadrangle Development was a no-show because of the recently publicized litigation over their Marriott Marquis Convention Center Hotel deal, though Padro said Quadrangle indicated that financing is now secured. Banneker Ventures, slated to build The Jazz on Florida Avenue, declined to attend as their Land Disposition Agreement with WMATA has not been finalized. And Hines-Archstone, developers of the planned City Center cited scheduling issues. 1. Paul Millstein of Douglas Development, certainly does not sugarcoat anything. About the Wonder Bread Factory development Millstein said it was a "victim of the times...stuck in a trench" and "could be stuck for a while." As for Squares 450 and 451 on the 1100 block of 7th St, Millstein announced that though the original plan was to redevelop the site, the group will now remove window boards, put some lipstick on them, and lease them out for the time being. On the positive side, Douglas secured a NY-based restaurant, Carmine's, to fill the 18,000 square feet of their Penn Quarter property near the Clara Barton Condos and Wooly Mammoth Theater. As for their 7th and Florida Ave. project, Douglas is seeking tenants, but according to Millstein the group is being picky, refusing to go the "fast and ugly" way of cell phone stores or fast food. Neighbors gave a round of applause for that one. 2. Next came 1501 9th ST NW a smaller development by a small business, Inle Development. According to the property owner/developer, the space will be leased to a single tenant, Mandalay Restaurant and Cafe, a Burmese restaurant currently based in Silver Spring. Mandalay will have a ground floor restaurant with outdoor seating, a second floor bar and the remainder will be residential space for the restaurant owner and family members. The developer cited a few financing "hiccups" but estimated the project should break ground in three to four months, delivering late 2010. The project takes up a single lot and will likely be 50 ft in height. 3. On their Addison Square project Metropolitan Development had hoped to be into the ground by now, but it's looking more like summer 2010, at which point the 4-5 weeks of demolition will commence, followed directly by construction. The group received their final PUD two weeks ago, and a few changes mean the 54 units of affordable housing will be distributed among the 224 market-rate units, for a total of 278 rental units in the main building. The ground floor retail plans are largely unchanged with the group looking to have both a white table cloth restaurant as well as a faster, less formal restaurant. 4. Ellis Development Group and Four Points, erstwhile developers of Howard Theatre and Media Center One, formerly Broadcast Center One, said the financing for the projects, which have been repeatedly punted down the road, hit a "road bump," but the group expects the project to move forward, breaking ground on Media Center's 300,000 s. f. mixed-use development on 7th and S Streets NW before the new year. Construction will take approximately 24 months for Media Center to finish and, as the developer noted, they are one of the few lucky projects to actually have a tenant secured. Over at the Howard Theatre, demolition of the 1940s facade has already begun, ground breaking may still happen this year, and the developers are, of course, talking with prospective tenants. 5. Roadside Development's City Market at O finally has some legs and a timeline. In an agreement with several DC Council members, Roadside received a $2.5 million grant, enabling them to "put the architects back to work." The big day will be September 3, 2010, when the group starts work on stabilization of the historic market. The next big date is January 15, 2011, when the current Giant will close its doors and from which date Roadside will have 24 months to finish construction of the new Giant location. The takeaway from the evening, with projects stuck in trenches, hitting road bumps or just plain falling victim to the economic climate, was that Shaw developers seem to be in a regular war zone these days. With so many groups blaming the current "financial situation" for development and construction delays, we are beginning to wonder what they'll blame whenever the financial situation improves...

Washington DC commercial real estate

West End To Get Independent Movie Theater At Former Site Of The Inner Circle

For D.C. film nerds and pseudo-intellectual George Washington University students in the 60s, 70s, and 80s, the Washington-based Circle Theater chain was an oasis of obscure, independent, foreign, and cult films and documentaries; and may be so again in just a few months. Built in 1911, the original Circle Theater at 2105 Pennsylvania Avenue stood as the oldest film venue in the District for almost ninety years. To the chagrin of $1 matinee frequenters, it was demolished in the late '80s to make way for a 12-story office complex. Although its various sister-theaters (Circle West End 1-4, later the Inner Circle 1-4, as well as Inner Circle 5-7) held on to life for some years after, they were subsequently bought and sold, each now demolished or out of operation for several years. But luckily for those Washingtonians nostalgic for the art-house film chain, the one remaining venue unscathed by wrecking balls will be resuscitated and reopened this fall. Josh Levin, a New York film producer and distributor has leased the building formerly housing Inner Circle 5-7, and has plans in the works to reopen the venue as the West End Theater.

Circle Theaters first expanded to include the West End property (1101 23rd Street NW) on August 17, 1977. In 1985 the chain amassed another property just a block north at 2301 M Street NW, a three auditorium venue that sat 94, 78, and 55 people. This theater became the Inner Circle 5-7, and later simply the Inner Circle when the Inner Circle 1-4 was torn down to build the Ritz Carlton residences (adjacent to the hotel).


The movie house has not shown a film since 2003, but that will change soon, as the property is set to become the new West End Theater. A few seats will be subtracted from each of the three viewing rooms, in order to make the venue a bit roomier and classier, but of course without losing the intimate feel. The cinematic repertoire will remain much the same, showing "first-run independent films, art house, documentary, and remastered classic films." No significant structural changes are needed as the venue "still has the projector systems, platters, sound systems, screens, seats and concessions line exactly where they were when the theater closed in late 2003, early 2004," according to Levin. Going inside to discover the eerily but cleanly foresaken theater was a bit "like a science fiction film," Levin told the West End Friends, "where the humans have been erased but everything else remains."

While the multiplex is not equipped with a kitchen, Levin plans to serve salads and sandwiches in addition to traditional theater snacks - think Jujyfruits and popcorn. He is also pursuing a full liquor license to serve beer and wine, with the hope of offering cocktails as well. Levin presented his plans to the ANC last week, and an application should go before Alcoholic Beverage Regulation Administration (ABRA) shortly. There seems to be some apprehension from some members of ANC2A concerning small details of the liquor license, but no serious roadblocks stand in the way of Levin's plans - ABRA is well-known for its strong pro-business tendencies.

Even though major renovation is unnecessary, the interior will be refitted to some extent: the seats will be replaced, as will the drapes, the bathrooms redone, and lighting fixtures updated. "A luxury screening room setting with plush leather seats and real food and drinks," is Levin's aim. On July 21st, Josh confirmed his business intentions via the internet, assuring film geeks on the website Cinema Treasures (dedicated to iconic movie houses) that West End Circle Theater would soon be moved from the "old listings" to the "new listings."

The architect of the original Circle Theatre was A.B. Mallett & Co/Luther Ray. Ray was well known during his time as a designer of restaurants and commercial store fronts, and also did considerable business producing large porcelain enamel signage for local businesses. Pictured right is an old rendering of the design for Hahn Shoes (located at Seventh and K Streets NW) drawn by Luther Ray. Although the Art Deco styling of the Circle Theater was faded and crumbling by the time obscure foreign films like the Italian classic Bicycle Theives or Ladri di Biciclette (1948) made its way onto the reels, the theater remained a film-buff favorite for over two decades. Jim and Ted Pedas took over the cinema in 1957 as local law students and ambitious film-enthusiasts. Their repertory cinema venture was so successful, they not only expanded into a chain operation, but also founded Circle Films, an independent film production company. The brothers along with two other business partners produced many of the Coen brothers early cult favorites, including: Blood Simple (1984), Raising Arizona (1987), Miller's Crossing (1990), and Barton Fink (1991).

Washington D.C. Real Estate Development News

Planning Board OKs JBG's New Woodmont East Plans

JBG Companies on Thursday received unanimous support from the Montgomery County Planning Board for its amended Woodmont East plans that more than double the lot size and revive a previously eliminated hotel.

JBG already planned to build in the same block at 7200 Woodmont Avenue, located between Elm Street and Bethesda Avenue. Shalom Baranes Associates designed the project with landscape design by Oehme van Sweden Landscape Architects.

Plans for the new section involve constructing two additional floors of office space on the existing Artery Building, adding retail space along the ground level, and building a new 182,950 s.f. hotel.

The hotel (center) and office/retail space along Bethesda Avenue

Amended plans also add 168,950 s.f. of office space, 25,088 s.f. of retail space and eliminate 22,974 s.f. of space for the 210 residential units.

Incorporation of the Capital Crescent Trail (mostly the alternate route along Bethesda Avenue) continued to raise concerns for the Board. Some feared that the increased foot traffic along Bethesda Avenue could create safety and logistical problems for trail users. But they ultimately were satisfied with the plan to use landscaping, curbs, outdoor dining areas and pavement changes to separate the sidewalk from the trail.

Trail construction hinges on the future Purple Line, Lot 31, and third-phase construction. All parties agreed that if the trail benchmarks are reached after construction of the second phase and before the third phase starts, the company can choose to either build the trail or pay the county to do it.

The Board did not raise any significant concerns with the rest of the plan. If fully constructed, Woodmont East would provide a link extending the revamped downtown area.

JBG's Holly Hull said the development is "extending and celebrating Bethesda Row."

Woodmont East will focus on the pedestrian experiences, presenters said. Following the lead of Bethesda Row, the sidewalks will be next to retail spaces. Outdoor dining will be pushed way from the buildings to keep the sidewalks clear. Artistic benches scattered throughout the property offer a place to "lounge." And building setbacks will give the appearance of low building heights.

Robert Sponseller, principal at Shalom Baranes Associates, said they strayed from the standard approach in designing this project. "We have designed from the public space up."

When completed, Woodmont East will have more than 1 million square feet of new and repurposed office, retail, residential and hotel space. Construction could start as early as 2013.

Bethesda, Maryland, real estate development news

If You Rent It, They Will Build

The ubiquitous JBG Companies is working on a new and rather unorthodox $70 million project, the K Street Office Complex at 1201 K Street, NW, to eventually replace the Four Points Sheraton now on the site. The 1/2 acre site might soon be home to an eight-story, 280,000-s.f. office building designed by London-based Rogers Stirk Harbour + Partners architectural firm, world-renowned for their bleeding edge design (though the rendering, above, looks awfully 10 storyish to us). Unfortunately for those who long to see developments materialize sooner rather than later, JBG has vowed to delay construction until a tenant leases a "significant portion" of the future space.

According to JBG, the Sheraton is doing well financially. Yet JBG doesn't see the faded hotel as a serious competitor in the next five years, as DC gets more hotel beds and competition accelerates. The bottom-line: although JBG doesn't foresee an office complex being more lucrative than the hotel presently, they do predict it will hold up better to the coming market. Yet JBG is playing it safe both ways: Having a exit strategy in order to hedge against losses from a surge in hotel supply, and holding out for a pre-lease to avoid vacant office space.

Sheraton's replacement building is quite the anomaly; having been designed to have an offset core with removable slabs. Architects have moved the core - the load bearing portion - and elevators to one side and opened up the building to more efficient uses, leaving each floor without disjointed office space surrounding a space-stealing central elevator bank.

But one of the most innovative features of 1201 K Street is what JBG calls its "soft zone," three entire bays at the center of the floor plate which can be removed, all or in part, and replaced at a later date, to accommodate tenants who want to connect two floors with monument staircases or open trophy spaces. Managing Director at JBG, John Schlichting, broke it down: "The extraordinary advantages of the soft zone are connectivity between floor levels, delivering light into the deep portion of the floor plate, allowing flexibility in creating atria spaces within a tenant's space, and providing an animated sense of work place."

JBG's newest office building will surely stand out from the K Street crowd. "Together with Rogers Stirk Harbour + Partners, we have designed an extraordinarily innovative building that will encourage a working environment that responds to the changing needs of corporate office space," Schlichting added. "In questioning the 'norm' we can better understand how to achieve the level of excellence to which the building aspires."

Aside from 1201 K's unique architecture and eye-pleasing asthetics, the building is being prepared for no less than silver LEED Certification. Although JBG is holding out for a nearly-full building before beginning construction, a ballpark-timeline puts the start date at January 2009. It seems likely the Sheraton won't be mourned.

Shirlington Hotel Approved

Arlington County gave approval this week for a final site plan application by Shirlington HHG Hotel Development on Arlington Mill Drive in Shirlington across from Jennie Dean Park. The proposal for the project, located at the corner of South Stafford St., was for a 7-story, 142-room Hilton (110,000 s.f.) located on a 0.79 acre parcel with street-level retail. The masonry structure with red, blond, and buff colored brick will feature a mix of studio, 1-bedroom and 2-bedroom units, indoor pool, and provide parking with a residential garage located across S. Stafford Street. The entrance will face South Stafford St., and the developer will improve landscaping and sidewalks surrounding the building as part of the project. The county is requiring a minimum LEED score for the project, though the developer does not intend to seek certification for the project.

This hotel was initially given the green light by the County Board in late 2000 as part of a larger development by the Federal Realty Investment Trust, a nationwide developer which has been a shaping force in Shirlington. The completion of the hotel will be the final element of the Phase II plan.

White Flint Mall Plan Goes Before County

The Montgomery County Planning Board will vote today on a preliminary plan put forward by the owners of the White Flint Mall to transform the 1970's-era shopping mall into a high-density development with over 5 million s.f. of residential and commercial development.

As indoor malls fade across America, mall owners Lerner Enterprises and the Tower Companies plan to replace the mall, and an adjacent office building, which sits on 45 acres on the east side of Rockville Pike, half a mile from the White Flint Metro Station. An attorney representing the developers said the owners have declined to comment before the hearing.

The genesis for redevelopment plans came after the County's approval of the White Flint Sector Plan in 2010.  That plan allowed additional development on properties in the 430 acres covered by the plan, many along Rockville Pike and near the metro, from single-use commercial to vertical mixed-use.

White Flint Mall property, Image: Montgomery Planning Dept.

Construction won't come quickly; today's sketch plan approval vote will be solely conceptual and preliminary; owners will still have to submit a Preliminary Plan followed by a Site Plan process, all of which could take years to finalize.

The mall redevelopment is part of the White Flint Mall District within the larger Sector Plan.   Plans call for replacing acres of surface parking and the 874,000 s.f. mall with a 5.2 million s.f. development that will include commercial, residential, and hotel space.  To date, the Pike and Rose has been the only project to commence since passage of the Sector Plan.

White Flint Mall Redevelopment Plan. Image: County

Unlike the existing mall, the new plan calls for primarily underground parking and includes 1 million s.f. of office space, 280,350 s.f. of hotel space, 2,426 residential units (2.8 million s.f.), and 1 million s.f. of retail.  Plans also set aside a site for a possible future elementary school, lay out a grid of public and private streets, and sketch out a new a public park area north of the existing White Flint Neighborhood Park.

Planned building heights range from 40 feet to 250 feet, with the tallest fronting Rockville Pike and the shortest buildings facing the public park.  The plan, which would be built in three phases, details other public-use spaces - a central plaza, a gateway plaza, north and south gateway plazas, and a neighborhood plaza - which county planners say must be built to completion.

County planners are also requiring developers to include wayfinding signs, vegetated areas and walls, small business opportunities, moderately-priced dwelling units (MPDU's), and bicycle parking, among other obvious things like transportation and storm water management plans.

White Flint Mall Redevelopment Phases. Image: Montgomery County Planning Dept.

Washington DC real estate and retail news