Phase II Underway at Capitol Hill Oasis

"Capitol Hill Oasis" sounds like the place to be, especially after a long, frustrating day amidst the incessant bickering on the actual Hill's desert of political disputation. But unless you consider "SoFlo" (South of Florida Ave) and "Capitol Hill" interchangeable monikers, and/or your idea of an "oasis" is eight dingy, brown brick prefab townhomes instead of gushing springs of purified water, palm trees, and lush fauna, then you're likely to be disappointed after visiting the residential project at 12th Street and Florida Ave, NE. 

While the marketing may be clever, it doesn't seem to be swaying any would-be buyers, as the homes at 915 thru 935 12th Street, NE, completed in mid 2008, remain vacant and unspoken for, with no one taking them up on the original $1.5m asking price (long since cut in half). But the inability to find tenants for the initial eight houses hasn't deterred developers 12th Street Partners, LLC and G. B. Herndon & Associates, Inc from pressing forward, as phase two of the development began recently.

Two more townhouses, both five bedroom units, are set to be constructed in addition to the planned four-story, 16-unit condominium on the lot directly behind the already built rowhouses. The new condominiums include office suites that may end up as small doctor's offices, according to the developer. 

Sales representative Jesse Kaye of Prudential Carruthers says that the units are zoned for commercial use, so the developers would consider leasing to small businesses if they continue to have trouble selling and/or leasing to full time residents. Kaye also explained that while they have not officially leased or sold any units, they have had communication of sincere, solid interest from several parties (his words). Even if there were deals in place, the units won't be ready for occupancy until mid October, he elaborated, when some basic utilities installation for phase two is completed.

The developers describe the project as a "distinguished group of all-new residences incorporating an artful blend of traditional Washington architectural styling." Apparently the factory attendants at Deluxe Homes in Pennsylvania, where the pieces of these assembled modular homes were produced, are very knowledgeable about the District's historic rowhouse architecture. Tim Brown at Urban Turf contends that: "When the units are finally completed, it is nearly impossible to differentiate modular homes from homes built with traditional construction methods." But even Paul Wilson, an architectural consultant on the project (in a very "limited role"), said that while prefab housing makes the construction process easier and more cost effective, and also allows better quality control, it can also result in a definite "cookie cutter look." While the exterior might not be exactly distinguished, the amenities package may appeal to the fitness-averse home buyer, as each of the completed units contains an in-house elevator so residents of the lazy persuasion won't have to think about climbing all the way to the fourth floor.

Neighbors seem to have mixed feelings about the development. Some are happy to see activity in the area, but anxious to have the residencies occupied instead of unattended and neglected. But it seems others have found the development a nuisance to their quality of life. One nearby resident has reportedly "complained to the city on multiple occasions for standing water, late night construction, and impediments to parking/access." During the time lapse between phase one and phase two one neighbor has witnessed "a nasty fence [fall] into disrepair, weeds [become] small trees, mounds of dirt [become] fertile soil, and an abandoned truck find its final resting home." No timetable has been supplied for the phase two of construction. Given that completion of phase one lasted roughly 2 years, neighbors might be complaining for a bit longer. 

Washington D.C. Real Estate Development News

WMATA Solicits Bid for Florida Ave Development

The Washington Metro Area Transit Authority (WMATA) announced that it is soliciting bids on three of its properties on Florida Avenue in Shaw, opening the possibility of urban infill near one of the least developed Metro sites in Northwest. The three parcels abut 8^th Street to the East and West, on the South side of Florida Avenue. Sited between the Shaw and U Street Metro stations, each two blocks away, the parcels are currently unimproved – excepting the regular local flea markets – and contain about 29,000 s.f. of developable space. The three small, noncontiguous lots may be a challenging development; each is currently zoned to allow a maximum height of 65 feet, though the Arts Overlay Zone may provide bonus density for ‘arts related’ uses, and are encumbered by the Metro tunnel that passes below, limiting excavation to 19 feet. WMATA is proposing to sell or lease the lots, likely for a mixed-use project incorporating residential development. Bids for the project are due May 31.

Jazzed about Florida Avenue

You've got to appreciate DC's Shaw residents. The small northwest neighborhood has seen more development projects announced - and sit idle - than any other, leaving residents in a cycling state of hope and apathy as the neighborhood talks about big plans with little effect. One such disappointment was the flea market-sporting WMATA site at 8th and Florida Avenue, awarded to a developer more than a year ago, only to sit out the ensuing financial crisis. But thanks to city and federal dollars, and a restructured partnership, that may finally change.

Banneker Ventures has announced a new partnership with Bank of America (BOA) to develop the former WMATA site into three new "affordable" apartment buildings. Banneker can now go forward with The Jazz @ Florida Avenue, designed by Silver Spring-based Torti Gallas, turning 3 separate lots into 124 apartment units above 20,000 s.f. of ground floor retail and a 61-space parking garage, all straddling WMATA's metro tunnel below. The developers have already applied for, and been granted, Tax Increment Financing (TIF) in the form of a $7m promissory note from the District. And with the District's recent receipt of $33m in stimulus money for housing, the developer has petitioned the District government to receive a portion of those funds. As a result, the apartments will be entirely below-market, open to a mix of income ranges, with the cheapest one-bedroom units to rent out at $768. Developers hope to deliver the project in late 2011.

The long path to development began in May of 2007 when the WMATA Board of Directors issued an RFP for developers to build on the site. The Board did not make its final selection, however, until June of 2008, selecting a team that included Banneker and Metropolis Development. But the latest announcement drops Metropolis from the picture in place of BOA. In addition, the formerly tiny project footprint now includes two adjacent parcels on 9th Street recently acquired by the development team. Bozzuto will serve as the general contractor for the project.

Gateway On Its Way

MRP Realty is about to finish the design phase for their long awaited Washington Gateway project located at the corner of New York and Florida Avenues in NE, on the northern edge of NoMa. The 1 million-s.f. project will cost an estimated $350 million to construct, and sit atop the New York Avenue metro station. MRP closed on the purchase of the land from Greenebaum & Rose Associates in August of ’07. Designs are now 80% complete with only interior refinements remaining. The bidding phase and excavation applications will follow, with ground breaking expected in the third quarter of this year.

The project will consist of three buildings, two of which will be office towers. The northern tower - the tallest in the NoMa and Capitol area - will have about 415,000 s.f. of office space. Its sister tower to the south will have roughly 210,000 s.f. The taller building caused MRP a setback in December of 2006 when the National Capital Planning Commission objected to its height, an attribute at least in part caused by a 40 foot height difference between New York and Florida Avenues. The Zoning Commission overrode their objection (yes, they can do that) and made the final approval in February of 2007, deciding to measure the building's height from New York Avenue, although the foundation for the building will be poured on the Florida Avenue level. This allows MRP an extra three stories, making the Washington Gateway more visible to those entering NoMa from New York Avenue - a rare coup for height in our two-dimensional city.

The opposite side of the site features a "T" shaped building, housing a 180-room hotel and a 260-unit apartment tower, of which 8% of the units will be reserved for affordable housing. The rental units will feature 'condo level' finishes like granite counter tops and undermount sinks. A public central plaza will connect each building.

Washington Gateway will also give commuters and residents easy access to the New York Avenue Metro and the Metropolitan Branch Bike Trail. The three-story glass Bicycle Atrium will provide bike storage, lockers, refreshments, trail and neighborhood maps, and an automated bike pump.

MRP is teaming up with Gensler Architecture as master planner and designer of the commercial office buildings. SK&I Architectural Design Group is working on the residential building and hotel while Oculus is planning the plaza and streetscape design.

According to Gensler's Michael Patrick, Washington Gateway "extends the urban grid of NoMA from the south into what was an abandoned and isolated eyesore, and creates a great urban space in a plaza with first class materials."

"The residential building cantilevers an energetic volume of triangular glass which will capture and frame the view for those eastbound on either Avenue. The residential tower and south office building create a ceremonial entry from NoMA, with the office building's plaza facade articulated in high detail of stone, glass and metal to set the tone for the Class A office space inside," Patrick added.

Completion of Washington Gateway is expected in the fall of 2010.

Riverfront Area South of the Ballpark: Out With the Old, Nothing New Until 2013

Just south of the Nationals stadium, one of the last remnants of the area's industrial past will soon fall, making way for 1.1 million s.f. of residential, office, retail and public access to the riverfront. Despite the progress, the wait time for new apartments, condos, restaurants, shops and water features continues to increase, with construction likely pushed back to 2013, at least.

The development team behind the long imagined mixed-use RiverFront on the Anacostia, located along the unit block of Potomac Avenue, SE, in the Capitol Riverfront area, asserts that the project is moving forward, albeit slowly due to the decision to deliver a residential building in the first phase, and not office space, as the PUD currently allows.

David deVilliers, president of Florida Rock Properties, the project developer and wholly owned subsidiary of land owner Patriot Transportation Holding Inc., confirmed that the first phase switch - announced this summer - is still being pursued, and that an informal process is currently ongoing in order to prepare a formal filing with the Office of Zoning to rezone the PUD in the "next 30 to 60 days."

deVilliers said he hopes Zoning will be "quick" to approve the request, but he is realistic about the time required to pursue the market-driven change. After approval, if granted, construction drawings will take approximately 9 months, followed by the several-month-long permitting process, resulting in construction likely to begin in 2013.

Meanwhile, the defunct concrete plant - Florida Rock - currently on site will be razed in the coming months. Activity at the plant wound down in mid-September, and a raze permit was issued last week, allowing demolition to begin, to be followed by environmental remediation.

In the year-long interim, the site could be used for something, but just what remains to be seen. Ted Skirbunt with the Capitol Riverfront BID acknowledged that while there probably won’t be any use before next summer, the BID has, and continues, to discuss potential uses with MRP and FRP.

Coinciding with the July announcement of the rezoning pursuit, was disclosure that local Midatlantic Realty Partners LLC, (MRP), founded by Fred Rothmeijer, came on board to partner with Florida Rock Properties on the stalled development, bringing with it $4.5 million in capital. Due to previous difficulty securing financing for the project - conception of which dates back to the '90s - the PUD was given a two-year time extension in 2009.

deVillers added that the partnership with MRP, under the leadership of Rothmiejer, is going well and the team is "fully engaged" in the project and committed to moving forward with the rezoning process, soon.

Washington D.C. real estate development news

DC's Land Grab

Federally-owned property islands throughout Washington, D.C. puncture the District government's urban domain, often for obvious reasons, but in some places that seem without rationale for federal jurisdiction. Recent efforts by Congresswoman Eleanor Holmes Norton and the Deputy Mayor for Planning and Economic Development have begun to sew together some of the holes, parcel by parcel, adding more territory of the city. The Louisiana Purchase it is not, but a recent bill in the House of Representatives may transfer a cluster of lots from the Department of the Interior to the District. The lots are:

1) Square 336, Lot 828, the site of the Shaw Junior High School recreational fields, valued at $14,689,890.00 as of 2009 (all property values according to the DC Citizen Atlas)

2) Square 542, Lot 85, the site of the Southwest Library, valued at $15,318,280.00 as of 2008,

3) Square 2864, lot 830, the site of Meyer Elementary School (across from Howard University), valued at $13,378,420,

4) Reservation 277-A, a small traffic island at Florida Ave. and North Capitol St.

5) Square 2558, Lot 803, part of the Marie H. Reed Community Learning Center, valued at $519,570, and

6) Square 2558, Lot 810, part of the Marie H. Reed Community Learning Center, valued at $4,758,510.

Shaw Junior High Rec Fields

As part of an effort to consolidate administrative rights on land within the District's jurisdiction, Congresswoman Norton (D-DC) introduced a bill (H.R. 5494) to the House of Representatives on June 9th. The bill mandated that the Director of the National Park Service and the Secretary of the Interior transfer six properties to the District of Columbia, gratis.

Southwest Library

Valerie Santos, Deputy Mayor for Planning and Business Development sat on the panel that addressed the subcommittee on National Parks, Forests and Public Lands on June 24th, testifying in favor of the transfer of the parcels to the District. While Santos advocated for the transfer, her office explained the rationale:

Meyer Elementary School

"There are no defined uses identified at this point in time. The parcels in question were aggregated through a variety of means. In some cases, the transfer was borne out of community-based discussions on possible future alternatives for these properties. In other cases, the parcels were selected by virtue of the existing uses on the site and the possibility of future co-locations at some educational campuses," said Jose Sousa in the Deputy Mayor's office.

Florida Avenue

The two Department of Interior parcels present a pertinent example of how one building - the Marie H. Reed Community Learning Center - constructed over multiple parcels, sits on both Federal- and District-administered land. The Deputy Mayor's office reports that while there have not been any problems with the administration of the building as is, "complete site control guards against the possibility of any difficulties in the future." There are no plans to redevelop this site. The Shaw Junior High School Recreation fields and Meyer Elementary School are unoccupied, and the intersection of Florida Ave. and North Capitol St. is a traffic island. This intersection is slated as a mixed-use zone under the District's 2006 Future Land Uses map. The city shut down the Meyer Elementary School because of persistent poor performance and violent crime on the premises.

Marie H. Reed Community Learning Center

"This administration is committed to the re-activation of fallow sites across the District. Our office will work with the communities in which these parcels are located to determine what possible uses are best suited to the sites. Similarly, we will continue to evaluate whether there are other parcels in the Federal inventory that would benefit the District in the same fashion," said Sousa. On a large-scale perspective, he compared the city's efforts to redevelop these parcels to the Hill East Project, another federal acquisition, which began the master planning process in 2002 with the intent of better connecting DC to the Anacostia waterfront through a mix of uses. Time will tell if that means new developments on any of the city's newfound property.

Washington DC real estate development news

DC Breaks Ground on Southeast Waterfront Park

A cadre of District officials, including Mayor Adrian Fenty, were on hand today to start work on Diamond Teague Park, an $8 million waterfront esplanade in the shadow of Nationals Park at First Street and Potomac Avenue, SE, Washington DC.

Construction has already begun on the park’s duel waterfront piers that, once completed, will offer waterfront taxi service and other commercial boating services to service the baseball stadium. A separate, 200-foot "environmental pier" will also host space for school groups and personal watercraft, such as kayaks and canoes. The piers are expected to be completed by the Nationals’ Opening Day on April 13^th; District officials anticipate work on the rest of the park, including a mural by artist Byron Peck and memorial to the Park’s namesake, Diamond Teague, to be completed by July. The Landscape Architecture Bureau-designed project is intended to serve as the linchpin between the ballpark and a projected 20-mile network of trails that wind through the redevelopment areas of both the Southeast and Southwest waterfronts.

The prominently located park is named in tribute to Diamond Teague, a Southeast teen who was gunned down by unknown assailants in 2003. Teague was once a member of local volunteer organization the Earth Conservation Corps – headquartered in the neighboring Capitol Pumphouse – which works to purifying and preserve the Anacostia River

“Diamond Teague committed his life to restoring, protecting and preserving the Anacostia River,” said Fenty. “This park will be a fitting tribute to his legacy and it will mark our commitment as a city to carry on his work.”

According to the Mayor’s office, funds for the project are being “covered through dedicated revenue streams tied to a number of adjacent economic development projects that surround the park.” The JBG Companies previously contributed $1.5 million toward the project; this past October, the developers behind the neighboring Riverfront on the Anacostia development, Florida Rock Properties, made an $800,000 contribution in Teague’s honor.

Washington DC commercial property news

The Floridian Goes South?

Buyers at The Floridian condominium in Shaw received some unwelcome if unfortunately common news last week when they were informed they would be unable to settle on their contracts until a lien and lawsuit involving one of the lenders was resolved. The condo project at 919-929 Florida Avenue, by Kady Development, has been funded by "a number of different" lenders, including Bank of America. Contract holders have had their settlements delayed until the disputes are resolved.

"The situation is that the seller, about three weeks ago, disclosed to all of our potential purchasers and [current] owners that he is having an issue with the lender and hopes to get it resolved within - what he said at the time - a month, but that he couldn’t be certain. So, we've been working with anyone who is under contract and new potential buyers and telling them that information,” said Gerard DiRuggiero of Urban Land Company.

“[We] can’t settle [contracts] at the moment. So, it’s just weekly updates and we’ve cleared that with all the buyers. Again, people are remarkably flexible and we’re giving them the information that we know. The residents seem to be handling it well and they love the building and the location,” said DiRuggiero. The Florida Avenue project sits amid several sites that were intended for development, such as the Atlantic Plumbing site, but that never materialized.

However, as of last week, the 118-units in the development’s dual, Eric Colbert-designed 8-story towers boasted an occupancy rate of 50% according to the sales team, though DC government records show only 29 recorded sales - after having begun sales in October 2005 and beginning settlements in the first half of 2008. Like the Metropole, a nearby project which was taken over by the lender in April and has been all but invisible since, the Floridian’s sales center at 913 Florida Avenue, NW, remains technically open for business…for now, at least, but without a date certain for resolving the issue. The project was built by Tompkins Builders.

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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.

Florida Rock Gives a Little, Gets a Lot on the SE Waterfront

One of the proposed touchstones of the Southeast Waterfront redevelopment, Diamond Teague Park, took a step towards reality yesterday as Mayor Fenty accepted an $800,000 construction contribution from developer Florida Rock Properties - the group behind the Riverfront on the Anacostia development next door to the park’s proposed location. The $16 million, 39,000 square foot park was described by Fenty as a "green destination" that will route foot traffic to and from Nationals Stadium and become a tourist draw in and of itself.

"We are leveraging this investment to create great public spaces that open up the river to the entire community," said Fenty in a statement distributed at the event. In remarks made at the foot of Nationals Stadium overlooking the Anacostia, the mayor went on to express his hope that the river will one day be among "the cleanest in the country" (good luck).

This marks the second such contribution made towards the park. In April 2007, the JBG Companies made a $1.5 million donation to the Landscape Architecture Bureau-designed project. Construction is expected to begin next month.

Meanwhile, Florida Rock is confident that its project will meet its 2011 start date. In May, they received zoning approval for the former concrete plant site on Potomac Avenue SE - pending a donation to Diamond Teague Park. Their Riverfront on the Anacostia development will host 560,000 square feet of residential and hotel space, 29,000 of which will go towards affordable housing. Office and retail space are also planned for the venture, to the tune of 545,000 and 80,000 square feet, respectively. A large waterfront promenade will link the development to the neighboring park. The Riverfront project is being designed by Davis Buckley Architects and Planners.

DC Council Unanimously Approves $1 Billion "New Town" Plan for Florida Avenue Market

Following up earlier reports, this week the DC Council officially and unanimously approved legislation that would create a public-private partnership between DC and New Town Development LLC to handle and oversee the $1 billion redevelopment of the 24-acre Florida Avenue Market, located to the northwest of Gallaudet University between New York and Florida Avenues NE, just blocks from the New York Avenue metro station. The planned "New Town at Capital City Market" project would put condominiums, retail shops, a hotel, and offices in this location. Up to 40% of the planned 1,700 residential units would be made affordable and available to DC employees, while the remaining 60% will be set aside for DC residents who are first-time buyers. In addition, the developer plans to build a 570,000 sf wholesale distribution space (with hope of luring back displaced vendors who now operate out of the market), plus almost 330,000 sf of retail, restaurant, and merchandising space. Also envisioned is a YMCA building, a health clinic, and library, if DC officials have their way.

Plans to Redevelop Florida Avenue Market Win Preliminary Approval

Long the last bastion of industrial warehouses (not to mention a great Italian deli) and the wholesalers who supply DC with meat and produce, the Florida Avenue Market (or Capitol City Market), located to the northwest of Gallaudet University between New York and Florida Avenues NE, now finds itself at a gentrification crossroads, as it is at the center of a battle over plans to turn this 24-acre industrial area into a new residential "town center" near the New York Avenue metro station. Round one was won by the developer on Tuesday, when the DC Council gave preliminary approval to Sang Oh Choi (who owns most of this land) for his $1.2 billion "New Town at Capital City Market" project that would put condominiums, retail shops, a hotel, offices, a YMCA, and a theater/ice rink in this location. A minimum of 20% of the planned 1,450 residential units would be made affordable and available to DC employees such as teachers and fire/police officers. In addition, Choi plans to build warehouses with three levels of parking for the wholesalers now operating in the market. Merchants are understandably nervous about these plans, and there was strong opposition to this proposal on the DC Council. However, the measure was approved after being attached as an amendment to another bill on workforce housing by supportive council members.

Eckington Fairfield Residential Groundbreaking Now Set for June 2007

Despite earlier reports that it would be breaking ground this October, it now appears certain that Fairfield Residential and CSX Realty Development will officially break ground on their $150 million mixed-use development at Eckington Place and Harry Thomas Way, NE, in June 2007. This project, located on 4.3 acres across the street from XM Satellite Radio (pictured) and north of the Fedex center just off the intersection of New York and Florida Avenues, will feature three buildings containing up to 675 condo units (though some of these may become rentals depending on the market), 15,000 sf of retail, and almost 800 parking spaces. About 70 of the units will be reserved for workforce housing (for households earning less than 80% of the area median income). One interesting fact about the project is the plan to extend Q Street NE through the project, and connect it to the nearby Metropolitan Branch Trail (which travels under New York Avenue and then becomes elevated over Florida Avenue alongside the Red Line tracks), which will permit residents to reach the New York Avenue metro stop without having to risk their lives crossing traffic on New York/Florida Avenues. The first phase of construction (a 173-unit building and all retail) is scheduled to be done in September 2009.

Washington D.C. real estate development news

Fabled Florida Avenue Grill Gets a New Neighbor – The Lacey

Though details are still forthcoming, it appears that the empty lot currently next to (and serving as a parking lot for) the fabled Florida Avenue Grill at 1100 Florida Avenue NW – serving the best grits and DC since 1944 and regularly patronized by every local and national politician – will soon become The Lacey, a 26-unit condominium building. Division1 Architects has been commissioned to come up with The Lacey’s cutting-edge, sleek European design. While pre-sales are now occurring for "family and friends," it is not known when public offerings will begin.

NoMa Gets Its First Hotel

On July 11, the usual DC official suspects (including Mayor Fenty) joined the ownership team headed by The Finvarb Group in breaking ground on the first new hotel squarely in the North of Massachusetts (NoMa) area in Northeast DC (usually delineated as being bounded by Massachusetts Avenue to the south, North Capitol Street to the west, Florida Avenue the north, and about 3rd Street NE to the east). The eight-story, 218-room Courtyard by Marriott will be located between the New York Avenue Metro station and the new US Bureau of Alcohol, Tobacco, and Firearms (ATF) headquarters, and will feature 10,000 sf of ground-level retail, including at least one outdoor café. In addition, an elevator will provide direct access from the plaza between the hotel and the Metro station entrance to the elevated Metropolitan Branch bicycle and pedestrian trail running alongside the Metro track. The hotel will also be next to MRP Realty’s planned Washington Gateway project, and the Florida Avenue Market redevelopment.

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

New Parks Plan for NoMa

NoMa BID released its new Public Realm Vision Plan Friday night for the growing community of residents, shops and offices. The vision includes three parks and a "modern, monumental gateway."

With 1,200 apartments already leased and 2,200 more under construction, there are plenty of residents looking for space to relax, play, and interact. The vision offers ways to create the space they need.

"To me, neighborhoods are about ... the interaction of people both with the environment and with each other outside their own private places," said NoMa BID President Robin-Eve Jasper. "So parks are just a critical part of that. And we have disaggregated what a park is around the concept of what jobs do people hire parks to do."

With that in mind, the Public Real Vision Vision Plan was borne. According to a Friday press release from NoMa BID, the vision focuses on four sites:

1. The Plaza: A public gathering space at First and L Streets, NE
2. The Tracks: A recreation and train-watching venue between the railroad tracks and Second Street, NE at K Street, NE
3. A casual neighborhood park at Florida Avenue and N Street, NE
4. The Gateway: To enliven and add color to the intersection of New York and Florida Avenues and First Street, NE, the plan envisions large, colorful obelisk-type structures greeting residents and visitors on their way to and from NoMa and Washington, D.C.

The vision plan is a preliminary look at what could be created in NoMa, but details have not been worked out. According to the press release, Councilman Tommy Wells introduced legislation that could created funding for the parks.

The press release states that property owners with land next to the proposed sites "have been approached, and many are considering ways they can incorporate the NoMa parks ideas into their own future developments." Translation: NoMa has potential for traditional neighborhood amenities, but its going to take a village.

Washington, D.C., real estate development news

Uline Arena to Get the Douglas Touch

The has-been Uline Arena is once more, thanks to Douglas Development. The old skating rink, located at the corner of 2nd & M Streets, NE, adjacent to the Amtrak lines, seems to have been used for just about everything, but as we reported last year, developer Douglas Jemal of Douglas Development purchased the property back in 2004 with the intention of making it a thoroughly modern mixed-used facility, including condos and office space. Now the Washington Business Journal reports that Jemal has teamed up with the Wilkes Company to develop the area. Wilkes owns the land on the north side of M, and the two will apparently work in concert to develop the properties. Wilkes is the midst of redeveloping a sizable chunk of Mt. Vernon Triangle, with Madrigal Lofts, The Sonata (now complete), and Mount Carmel all on its resume.

Jemal, love him or hate him, has been the force and inspiration behind much of DC's development, including Cleveland Park and Penn Quarter, and most notably the new Convention Center. Counting cranes in the area may soon become hard to do, with the new Marriott scheduled for construction soon, the recent groundbreaking of Union Place at 1st and K, MRP's $350m Washington Gateway project at the intersection of New York and Florida, Constitution Square on 1st Street, the New Yorker going in soon one block south of the Uline Arena, and of course the massive would-be development of the Florida Avenue market and Burnham Place, Akridge's long-term plan to build above the tracks north of Union Station.

MBT Bike Trail Construction to Resume

In an announcement that cyclists have long anticipated, the District of Columbia held a press conference this morning to proclaim the imminent construction of the MBT - the Metropolitan Branch Trail - an eight-mile bike/jogging trail that will run from Union Station to Silver Spring. In his announcement this morning, Mayor Fenty stated that the District had reached an agreement with PEPCO to donate property adjacent to the CSX railroad lines, land currently worth (they are telling the IRS) $3.3m. The new trail will connect the New York Avenue Metro to Franklin St., NE. The agreement represents a key parcel of real estate, stretching through NoMa and Eckington, and the city's resulting ability to add a crucial connector.

The MBT began as a concept in the early '90's, several segments have already been built. When completed, the MBT and its contributing paths are envisioned to run from the Mall to Silver Spring, northwest into Bethesda, where it will connect to the already completed Capital Crescent Trail. The MBT portion will later add a spur from the Ft. Totten Metro to West Hyattsville. The section of the trail announced today will connect the recently completed New York Avenue Metro station on NoMa's north end, running over Florida Avenue, under New York Avenue, and over Rhode Island Avenue at the Metro station, where the trail will take the form of roadside bike lanes until it reaches the Brookland-Catholic University Metro.

Officials involved with the project project that design work will begin immediately, with construction to start hopefully by year end. With this latest acquisition, the MBT still has numerous issues to work through at the Ft. Totten Metro station, including a land acquisition from WMATA.

Eric Gilliland, Executive Director of Washington Area Bicyclists Association, which has worked with the District in support of the trail, extolled the virtues for both bikers and Metro riders, projecting that the newest leg will increase access to the New York Avenue Metro - a station that is currently cut off by Florida and New York Avenues, an interchange Gilliland called "really terrible for pedestrians." Gilliland predicted that connecting remaining pieces within the District would take and additional two and a half to three years, but that the Silver Spring to Bethesda section was waiting on plans for the Purple Line.

DDOT will be in charge of construction. To date most of the costs have been paid for with federal dollars, though the project will undoubtedly be a boon for a few neighborhoods like Eckington that will be suddenly be connected along the the railroad tracks that once condemned them to relative isolation.

WMATA: Florida Avenue Developer Selected

After announcing yesterday that a decision on the year-old Florida Avenue RFP would not be forthcoming, WMATA's Board of Directors met today in a closed-door session and selected a development team. The decision regarding three lots adjacent to the Shaw-Howard Metro had been held off since May of last year, when bids were submitted, and WMATA Media Contact Angela Gates had prognosticated that a decision would not be made "for another six months." In a surprise decision, WMATA officials today gave its staff permission to negotiate a Development Agreement with Banneker Ventures LLC, Metropolis Development Company, LLC, and District Development Group, LLC. The transit authority did not formalize terms of an agreement, so today's announcement opens negotiations between the winning bidders and WMATA to come to agreement on development of the site, but no final plan is certain. The contest for the site had been between nine submissions in response to last year's RFP, and had been winnowed down to three as of yesterday. WMATA's press release stated exuberantly that "the team has the experience to complete the project," though cited only Metropolis Development's experience, pointing to its completion of Langston Lofts, one of the DC developers earliest projects. The 80-unit condominium was built by MDC above a Metro line, requiring coordination with WMATA to produce caissons to straddle the existing tunnel. According to WMATA's Board Action/Information Summary, "The developer provided a better financial offer than its closest competitor and the same type of development - four to five stories of residential units over a ground floor devoted to retail and arts uses...The third competitor did not meet appraisal benchmarks." Despite the surprise timing of the decision, Merrick Malone, principal and Executive Vice President of Metropolis was upbeat about the project: "Metropolis has proven demonstration to build on top of the Metro tunnel, we know how to go through this process."

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