Arlington and Alexandria Hope to Lure Developers for Restored Waterfront Property

Have you heard about Four Mile Run, the next hottest waterfront development area in the DC suburbs? Arlington and Alexandria urban planners are hoping to transform the Four Mile Run into a draw for developers seeking to capitalize on a waterfront environment. The restoration project set out a series of wish lists for environmental improvements and guidelines for greener, more modern buildings. Arlington and Alexandria continue to push forward on the three year project, optimistically riding the storm of the current economic downturn.

For those unfamiliar with the Four Mile Run Project, here’s the rundown: The lower 2.3 mile portion of Four Mile Run runs from Shirlington to the mouth of the Potomac and acts as a natural boundary between the cities of Alexandria and Arlington. In the 1970s and 80s, the Army Corps of Engineers channelized this portion of Four Mile Run to control a major flooding problem. The solution worked, but the resulting channel became an eyesore that eliminated the vegetation and aquatic wildlife that used to call that part of the stream home.

In March of 2006, the cities of Alexandria and Arlington drafted a plan to revive the once thriving environment along the channel bed without sacrificing flood control. Enter the Four Mile Run Restoration Plan and the Four Mile Run Design Guidelines—an overview of improvements planned along the stream and a guide for developers hoping to take advantage of what the cities of Alexandria and Arlington hope will become a bustling gateway between the municipalities over the next 10 to 15 years. Another plus for developers: the guidelines do not set new ordinances or even make hard and fast development rules for that matter.

“We wanted future developers to focus their orientation toward the stream instead of turning their backs on it as developers had done in the past,” explains Arlington County Urban Planner, Leon Vignes, adding that in the years to come, the newly revitalized stream will come “to be seen as a feature for building in the area.”

According to Arlington Environmental Planner Aileen Winquist, developers should look forward to the completion of the Tidal Restoration Demonstration Project within the next two years. This project will restore the stream banks and improve the appearance of the channel bounded by Route 1 and extending to Commonwealth Avenue/South Eads Street. Additionally, a design competition for a new pedestrian/bicycle bridge extending from South Eads Street to Commonwealth Avenue to connect the cities of Alexandria and Arlington is also in the works.

“Our mantra in Arlington has been cafes and retail on the first floor. We’d love to see that and development with an eye to the stream. But we don’t make land use recommendations,” says Vignes. “We really just want to leave the possibilities open and see all types of development.”

On the Alexandria side, you’ve got the Potomac Yard project. New apartments and condominiums will join the relocated Signature Theatre in Shirlington. And rumor has it that the Target on the Alexandria side might also be up for redevelopment.

As long as developers strive for greener building practices, do what they can to incorporate public spaces and the newly improved stream in their designs, and take into account storm water management, they'll be welcomed by city planners in Alexandria and Arlington. (Not that they could actually penalize developers for not following the plans).

Public hearings and planning meetings to discuss additions and finalize the Four Mile Run Design Guidelines are scheduled for the 14th and 26th of this month.

The Dirt on...14th and U

Pawn shops no more
As any casual observer of the area can tell you, the post-riot 14^th Street that used to host DC’s finest peep shows and open-air drug markets (RIP Shop Express) is long gone. True, there are probably a dozen dollar stores hocking Obama t-shirts and incense at any one time, but the retail scene has expanded beyond just Footlocker and tattoo artistry of Pinz-N-Needlez. While Whole Foods isn't too far way, the newly-opened boutique grocer, Yes! Organic, should satisfy the immediate needs of hummus-starved newcomers. In fact, the neighborhood today boasts DC’s most impressive array of niche-centric retail with everything from gourmet confectionery (Cake Love) to pricey custom furniture (Vastu) to comic books (Big Monkey) and hand-made jewelry (DC Stem), within walking distance of the U Street/Cardozo Metro station.

Real estate’s best bet
Two blocks north of the famed 14^th and U interchange, DC's largest concentration of new condos and apartments is brewing, with more than 1000 new units of housing going up within a stone’s throw of 14th and W. Among those completed are PN Hoffman’s Union Row and Jair Lynch’s Solea condos, while Level 2’s View 14, UDR’s Nehemiah Center residential tower are under construction, and Perseus Realty’s 14W is scheduled to begin shortly. And, unlike, say, the area surrounding Nationals Park in Southeast, where neighborhood amenities are still absent after the residential building boom, U Street is already loaded with restaurants and nightlife of all stripes. And with Room & Board scheduled to open more than 30,000 s.f. of retail space next year, expect much more visibility for the neighborhood.

Eating out: it’s not just half-smokes anymore

While Taco Bell and McDonald's might be the most popular dining establishments (at least at 2 am), the inroads made by funky restaurants like Busboys and Poets, Marvin (country fried chicken and waffles--who knew?) and Tabaq have gone a long way to bringing some flavor to the neighborhood. In the past months, newly opened establishments like cajun/soul food eatery, Eatonville, and The Gibson, where mixologists design the perfect cocktail, have been abuzz in the press and are the newly-minted, go-to destinations for urbanistas city- (and suburb) wide. Even greasy spoon and DC dive landmark Ben’s Chili Bowl has moved upscale by opening a white table cloth eatery, Ben’s Next Door.  After you've over-indulged, you can work it off with an Urban Funk Class at Results Gym.


Adams Morgan ain’t got nothing on U Street
While nearby Adam’s Morgan may have one thing going for it (read: boozed-up college kids), U Street’s approach to nightlife is more diversified with culture: The Lincoln Theater and Source Theater, DC's most eccentric sports bar, Nellie's, and a laundry list of music venues (The 9:30 Club, Black Cat, DC9, and the Velvet Lounge) share space next to bars that (gasp) don’t specialize in jell-o shots and specials on Miller Lite…not that there’s anything wrong with that.

But it’s still has that old school DC charm

But if you’re really attached to the iPod adapter you keep in your tape deck, it might still be good idea to take it inside before sacking out for the night. Area car thieves have made the old smash-and-grab a fact of daily life at 14^th and U, much like five o’clock congestion or sidewalk sermons from Greenpeace. Whether it is women’s clothing, a half-empty pack of cigarettes or the kids’ car seat, literally nothing is too inconsequential a target for area miscreants. For a closer look, check out the MPD's crime map.

Nonetheless, don't be afraid to chill out. This is a neighborhood with not one, not two, but three yoga studios after all. Santa Monica, here we come.

Washington DC retail and real estate news

McMansion Watch: Chevy Chase

Even through the worst of economic slowdowns, the Montgomery County hamlet of Chevy Chase has proven to be one of the most insulated from market declines - at least with regard to home values. The fact may have something to do with schools, proximity to DC and Metro, walkability or history, but certainly housing is the dominant factor, and close-in single family homes have fared best. Which helps explain the surfeit of increasingly imposing, over-sized homes that have dominated the architectural style of new homes. With that in mind, here's a look at some projects currently underway:

Properties 1 & 2: 3823 Bradley Lane

Two single family homes will soon be situated on these dual 17,000 square foot development lots, which formerly hosted the now-demolished Nigerian ambassador's residence.

Developer: Sandy Spring Classic Homes

Architect: GTM Architects

Builder: Sandy Spring Builders, LLC

3810 Club Drive

Formerly home to a split-level rambler that has increasingly become the target of developers, this parcel has been reborn as a goldenrod...chateau? Or English manor, we're not sure.

Developer: Mitchell & Company

Architect: Mitchell & Company

Builder: Mitchell & Company

3516 Turner Lane

Wrapping up construction next month, this garage-centric home sits on a 7,000 foot lot a block over from Chevy Chase's only (and tre exclusive) shopping center on Brookville Road. The convenience will only run you $2,199,000.

Developer: McNamara Bros., Inc.

Architect: Studio Z Design Concepts

Builder: McNamara Bros., Inc.

Washington Adventist's Move to Silver Spring

Takoma Park's Washington Adventist Hospital will soon be getting a new address, courtesy of owners Adventist Healthcare, Inc. (AHI) and the Montgomery County Planning Board (MCPB). Earlier this month, the Board unanimously approved the healthcare provider's plans to build a sprawling 803,570 square foot hospital complex on a vacant 50-acre parcel in the White Oak/Calverton area (aka greater Silver Spring).

The new Washington Adventist will be erected at 12030-12110 Plum Orchard Road - a site within the Westfarm Technology Park that also includes Target, Kohl's and PetSmart locations, in addition to United States Postal Service distribution facility and a Marriott Residence Inn. The location also adjoins nearby residential neighborhoods like Riderwood Village and West Farm. The Citizens Associations of both those developments have lent their approval to the project, as have a number of other local authorities including the Calverton Citizens Association, Greater Silver Spring Chamber of Commerce and the US Food and Drug Administration, headquartered nearby.

In all, the MCPB received only one complaint from a local resident, out of more than 700 hundred in favor of the project. Jerry and Alice Wahl, residents of nearby Featherwood Street, expressed concern about ambulance and helicopter noise resulting from day-to-day hospital activities. However, AHI’s stated intention is to impact the community as little as possible, and, in the areas that it does, for the change to be nothing short of positive.

At present, AHI plans to build the facility in two phases with four overlapping sub-phases. The first such phase is set to include construction of the main 7-story, 500,083 square foot main hospital building and emergency room; a 2-story, 60,888 square foot ambulatory care building that will connect with main facility via enclosed pedestrian bridge; and two supporting parking garages on the north and south ends of the site, respectively, for a total of 2136 new parking spaces.

With those primary facilities in place, AHI will then move on to constructing a ground-level helipad; two 100,000 square foot “medical office buildings”; a 9,264 square foot multi-denominational “Faith Center” with amenities including an outdoor plaza, overhead canopies, an arts component, and water features; and finally a lakefront “Healing Garden” to be connected to public walkways and a fitness trail. Per the MCPB’s ruling, the development must feature at least 37-acres of green space – meaning AHI will be preserving as much heavily forested area as possible. Furthermore, in keeping with the eco-centric tone of the Board’s conditional approval, the new Washington Adventist must achieve a LEED certification.

Meanwhile, AHI will continue to use their 13-acre Takoma Park campus as part of the Hospital’s Vision for Expanded Access, which, in short, aims to make healthcare as accessible as possible for Montgomery County residents. In a statement following the ruling, Geoffrey Morgan, Vice President for Expanded Access at Washington Adventist Hospital, said, "The new campus and the future services at our Takoma Park site will allow us to continue our more than 100-year tradition of improving the health and wellness of our communities.” AHI also plans to update the roster of services available at their present location with a new “Village of Health and Well-Being” that will be constructed as other hospital components are demolished or moved off-site.

AHI is currently projecting a 2013 opening for the new facility – a point at which hospital officials expect the new, state-of-the-art Washington Adventist to greatly improve the metro area’s ability to deal with public health crises. The project is being designed by a panel of local architects in order to better serve a variety of medical specifications.

Use 'Em or Lose 'Em Credits for Views at Clarendon

The Arlington County Board has put the long-delayed Views at Clarendon project on the fast-track, after approving up to $6.5 million on Saturday in additional loans for the development. This follows a December ruling, wherein the Board of the Virginia Housing Development Authority offered another $700,515 in annual tax credits for the project, adding to the $1.5m of tax credit already available.

While the approval was good news for the project, every silver lining at the Views seems to have a cloud. In accordance with Internal Revenue Service deadlines for the tax credit program, the project’s developer, the Views at Clarendon Corporation (VCC), must have the development "ready for occupancy" by December 31, 2011 - meaning that the developer must turn paper into bricks soon, or face the prospect of losing their $2.3 million in credits.







This is just the latest wrinkle for the much embattled project, which has faced not one but two legal battles in 2004 and 2007, respectively – including one that took them all the way to the Virginia Supreme Court. Additionally, construction delays, legal fees, and the downturn in the economy, have driven the project’s budget from $41.2 million to $49.2 million. With the newly approved addition to their cache of county dollars, the total of the Views’ Affordable Housing Investment Fund loans has now reached $13.1 million – not to mention the aforementioned tax credits.

David Cristeal of the Arlington Department of Community Planning characterized the inclusion of tax credits as "essential" to the project's budget and said without them, it cannot be built. He did, however, confirm that the developer now plans to break ground on September 1st, 2009 and said that "It gives [the development team] a 24 month construction period and some cushion." But not much.

In order to keep the project on target and keep costs down, the First Baptist Church of Clarendon – the entity that owns the proposed site at 1210 North Highland Street and makes up one-half of the VCC development team, along with the Arlington Partnership for Affordable Housing – has elected to defer a portion of its developer fee and accept $500,000 less for the development rights above their church.

At least the road to the Views is paved with good intentions. The 116-unit, mixed-income building promises to add 70 affordable apartments – including 12 reserved for the County Department of Human Services’ Permanent Supportive Housing Program - within earshot of the Clarendon Metro. Arlington County Board Chairman, Walter Tejada, described the county as “committed to increasing the supply of affordable housing” and said that the Board is “working closely…with the [VCC] and their development team…to make this development happen.” Lacey

Half Street Digs Itself Out of a Hole

After weeks of speculation, construction is underway at Monument Realty's Half Street residential project. The prime real estate sits directly across from the Nationals' ballpark, was dug in the first months of 2007, with Monument's 275,000-s.f. office project rising on the northern portion of the crater. But when the remaining 2-acre hole sat vacant as the market was free-falling and funding of residential projects evaporated, speculation ensued about its demise. The hole became metaphorical as well as literal once it was revealed that Lehman Brothers, in a hole of its own, had an equity stake in the project.

But after 18 months without activity, construction is now underway on the site. Workers now seem to be assembling a subterranean parking garage at Half and N Streets SE - presumably a component of the hotel and 340-unit residential buildings planned for the site. And while the developer will not be able to hit their original target of a 2009 completion date, it does seem that rumors of the project's death have been greatly exaggerated.

"Monument is pursuing financing for the residential projects at the corner of N and Half Streets, SE. Clearly the changes in the market have made that task more difficult, but we have not made any plans to refill the excavated hole," says Monument Executive Vice President Russel Hines. "In addition to the office building [55 M Street SE], which will finish up in January, we are also building a portion of the garage that extends under the residential buildings – so, yes, there is some construction underway at this time."

In a related item, some portions of the Half Street project could be getting a new address, if a measure before the DC City Council goes through. According to the Washington Examiner, a vote next week will determine if a three-block portion of South Capitol Street (that also happens to border locale célèbre, Nationals Ballpark) will be renamed “Taxation without Representation Street.” Among those most directly affected by the switch would be Camden USA – which just happens to have a $105 million mixed-use project in the planning stages that fronts the avenue in question. We can see the signs now: Taxation without Representation Street Lofts now available! Have fun with that one, marketeers.

Washington DC commercial real estate news

Organic Grocer in Columbia Heights to Build in March

Richmond-based organic grocer Ellwood Thompson’s Local Market has announced it will start construction on its second location (and first District store) in March of next year. The grocer, which announced its intention to occupy the space last month, will build out the 15,000 square foot store inside the DC USA at 14^th and Irving Streets NW. It’s an area that Ellwood Thompson’s CEO, Ryan Youngman, saw as a perfect fit for his stores’ locally grown, organic produce.

ET bills itself as supporting "sustainable practices ...supporting local farmers" with food "free of artificial flavors, colors, preservatives and sweeteners." Said Youngman: "We’ve always seen DC as market that could really handle it. It’s always been on our list of places to go...We’re one independent store and wherever you grow, you want to get your biggest possible audience."

After meeting with nearly 20 developers and scouting locations across the city (including PN Hoffman’s storefront at Union Row, now occupied by Yes! Organic), Ellwood formally partnered with MV+A Architects to resurrect a derelict storefront at 14^th and Irving that the architecture firm had been seeking to fill with a viable tenant. Once completed – with historic facade intact - the new Ellwood Thompson’s will share the block with a recently opened Washington Sports Club location and Best Buy.

According to Youngman, the local community registered almost immediate support once word got out that his organization was vetting it as the possible location for an independent, health-conscious grocer – a feeling that was reciprocated on Ellwood Thompson’s end as well. Says Youngman:

We really just loved the walk of it. We loved the people and the activism aspect of it. I’ve got thousands of e-mails of testimony from people who wanted us to come up there...we just got hit after hit after hit and we’d like to profess our undying gratitude. After 800 or 900 e-mails, it just became the obvious location for us. This is also an economy where we really need to be in a place where the discretionary income is there and it’s under-served in that area. Giant is cranking away up there, but there’s no alternative for a grocery.

Washington DC-based Prince Construction has been selected to build the project. Construction is slated to begin in March of 2009.

Washington DC commercial real estate news

2000 Wilson Finally Making Rubble in Clarendon

2000 Wilson, the oft-delayed Clarendon apartment complex, has finally taken its first steps towards fruition. The Taco Bell franchise and abandoned Dr. Dremo's occupying the site are now being demolished to make way for 141 rental apartments and 36,000 square feet of ground floor retail.

Developer Elm Street Development initially planned construction late last year of what was first intended to be a condominium project (that's just so 2006), but now forecasts an open-ended 2010 completion target. Dr. Dremo's, the beloved neighborhood bar that used to stand on the site, closed its doors last January in anticipation of imminent demolition.

With that out the way and approval from the Arlington County Board locked, the WDG-designed project can now move forward unimpeded. The development is bounded by Wilson Boulevard, North Rhodes Street, Clarendon Boulevard, and North Courthouse Road, but confusingly carries a street address of 2001 Clarendon Boulevard despite the 2000 Wilson title; meaning the next hurdle for the project lies at the feet of the marketing team.

The District's Best Buy

Just a few weeks after the opening of the city's first Target store, in Columbia Heights, Best Buy is set to open in the same retail complex, the DC USA Center, helping to make the center the largest retail space in the District. The office of Councilmember Jim Graham announced that the ribbon-cutting ceremony will take place Thursday on site - 3100 14th St. NW, at 6pm. This will be the second Best Buy to open in the District, following three years after the success of its first store other in Tenleytown. The store has stressed their commitment to offering employment to members of nearby communities and helping local non-profits.

Columbia Heights Opens Retail Center

Last week marked a proud moment in District of Columbia history - the city's first Target store opened in the DC USA retail complex in Columbia Heights.

The 540,000-s.f., three story 'urban center', on roughly five acres of land between Irving Street and Park Road, is expected to garner more then $12 million in revenues for city coffers and will supply the District with more than 1000 jobs. Coming on the coattails of a 180,000-s.f. Target are Bed, Bath and Beyond, Washington Sports Club, Best Buy and a number of smaller retailers more often relegated to the suburbs, like Caribou Coffee, Mattress Discounters, Quizno's, Marshall's and Staples. New York based Grid Properties and Gotham Developers saw the project through to completion.

In a statement to the press last week, Mayor Fenty said: “[I]t is fitting to call this project both the catalyst and the capstone to an unprecedented economic resurgence in Columbia Heights – where nearly $1 billion worth of new housing, retail and office space has moved through the development pipeline since 2001.”

George Washington University professor, and economist, Tony M.J. Yezer opined. "If you think about what happens when you have group houses or [families with] double income-no kids, if they work downtown, they're not particularly fond of the suburbs. Its logical, that since there is a lot of employment of those types, they're going to want to live in Columbia Heights. If I could speculate, this [growth] might have happened earlier, except that perhaps, the government in DC was somewhat problematic in the 1980s.

"Does retail follow housing, or does housing follow retail, the answer is yes to both. This retail growth in Columbia Heights is caused by the population transformation and the population transformation will bring further retail. Things may be going fast in DC now, and the reason is that they didn't happen over time because they were delayed by what I consider to be problems with local government. You can have the economic rationale for converting a neighborhood to be fairly large, but you can also have regulatory impediments. The dam has burst. [Development] is going to happen very fast."

Bring on the cheap sneakers.

Washington DC commercial real estate news

Neil Alblert's Stimulus Package for DC Developers

The Office of Planning and Economic Development announced yesterday nearly $9 million in development grants for neighborhood projects through the Neighborhood Investment Fund (NIF), a subsidiary program of OPED. The seed money is being offered to catalyze further development in neighborhoods that need it most.

The District's development booty will be offered offered through two programs: $6.9 million, managed by The Reinvestment Fund, will be offered through NIF's Land Acquisition and Predevelopment Loan Fund, which will help to provide non-profit and Local, Small and Disadvantaged Business Enterprises (LSDBE) with low interest loans for land acquisition and predevelopment purposes. The second program will offer another $2 million, managed by Local Initiatives Support Corp (LISC), through NIF's "Predevelopment Grant and Project Grant Fund" to help finance construction and rehabilitation.

“Our charge is to ensure that every section of our city enjoys real economic development opportunities...We expect qualified organizations will put these funds to work – leveraging our initial investment to create some real community benefits,” said Neil Albert, Deputy Mayor for Planning and Economic Development.

In order to qualify for a grant, a project must be considered eligible in both location and scope. The funds apply to projects that would create either affordable housing, mixed-use development, or community facility projects in 12 NIF target areas, namely: Anacostia, Bellevue, Bloomingdale/Eckington, Brightwood/Upper Georgia Avenue, Brookland/Edgewood, Columbia Heights, Congress Heights, Deanwood Heights, H Street, NE, Logan Circle, Shaw and Washington Highlands neighborhoods.

The deadline to apply for one of these grants ends on July 31, 2008, or until the grant the District gives away all of its money. To get a pice of the pie, check out their website.

Allegro says: Arrivaderci Condos

Metro Properties Inc. has just announced that the Allegro Condominiums, their 297 unit project at 3460 14th Street, NW, in Columbia Heights, has joined the tide of reverse condo conversions and is now destined to become an apartment building.

According to Jeremy Rubenstein, CEO of Metro Properties, the firm had finished their sales for the initial phase back in July, "right before the worst part of the instability of the housing market hit." MP had planned to resume condo sales this spring. "It actually has been an enormously successful condo sales program," Rubenstein said, adding "we reasonably suspected it would continue to be successful, but we looked at the risk in the financial environment and the uncertainty that many of our purchasers faced if sales did not meet our hopes and expectations. The rental market is tremendous in that location, and we decided it was the best choice for the area...we had been mulling it over for the past couple months. We're tremendously excited about this. We decided that our purchasers and our firm would be far better off."

Rubenstein expects that the entire building will be converted to apartments, and that Metro Properties will not keep any of the original purchasers as condo owners. Rubenstein predicts that its unlikely that leasing agents will have any trouble unloading the metal panel and brick apartment building with its nine foot ceilings, large balconies, hardwood floors, and underground parking. For the truly discerning, Allegro will have 62 two-level penthouse units with gigantic private outdoor roof decks, and interior apartments that face a courtyard with a reflecting pool. If all of that isn't enough, the largest retail project in DC history will be opening its doors in March, just 1000 feet from Allegro, offering tenants an assortment of shopping choices...and a Target.

The Allegro site is on the location of the old Giant Supermarket and surrounding parking lot, which was bulldozed in 2006 to make way for the new building. Metro Properties purchased the whole site in three phases, buying the Giant lot in June of 2006, and acquiring the two supplementary sites the next month. Marriottsville Construction, LLC, an affiliate of Harkins Builders, expects to complete construction by the fall of this year (construction photo at bottom).

Washington DC real estate development news

Give Us Subsidized Condos. Now.

Ward 1 Councilmember Jim Graham wants cheaper condos, and he wants them now. In November of 2006, the Council introduced a bill that would effectively require new real estate developments with 10 units or more to include an "affordable housing" element; the Council passed the bill unanimously and Mayor Fenty signed the bill in December, 2006. Much to the consternation of Councilman Graham (pictured, reading the Washington Post to Mayor Fenty....wait, what paper is that?), the legislation has not been implemented in the intervening 13 months, and Graham wants some fruit from his toils. So Graham introduced a second bill on Tuesday, co-introduced by ten Councilmembers, which would require that Mayor Fenty effectuate the law within 30 days by drafting the appropriate regulations. The new bill also allows the Council to review proposed regulations.

The "inclusionary zoning" problem began in the fall of 2006, according to Jason Yuckenberg of Councilman Graham's office. Following two years of deliberations and hearings, the Zoning Commission adopted regulations in 2006 to tackle the issue of affordable housing, requiring developers of 10 or more units to offer a percentage of lower priced homes to residents that meet one of several target income requirements. The Commission was then found not to have the authority to issue such a regulation, and in stepped the Council, passing the legislation now awaiting the Mayor's finesse.

After referring the current legislation, the Inclusionary Zoning Implementation Amendment Act of 2008, to the Committee of the Whole, Chairman Gray has vowed to hold a hearing post-haste to force quick action on the bill. In addition to giving the Mayor 30 days from enactment of the new bill to pass or punt, the new bill then gives the Council 30 days to effect their own changes, absent changes the regulations will be deemed approved. One of the issues to be decided is which developments, based on their approval and construction progress, will be required to adhere to the new standards.

In a letter to his constituents, Councilmember Graham summed up his anticipation: "Although the bill was passed more than a year ago, we are still waiting for the Mayor to implement the law...This is the District's only housing program that has the potential to provide affordable housing in all areas of the city. We cannot wait any longer. The longer we delay in implementing inclusionary zoning, the more opportunities we lose." At the time of posting the bill was not yet available online.

Flats at Blagden Alley Back to Life

When we last visited the Flats at Blagden Alley in July 2006, developer Walnut Street Development had canceled sales of the condo project before breaking ground, with sources saying only one of the 45 units had gone under contract, with the developer stating a likelihood of pursuing residential rental space in the near future. The Flats are indeed coming back, again as condos, but this time as ‘affordable’, to be built by North Carolina-based Self Help, a non-profit whose mission is to “create ownership and economic opportunity for minorities, women, rural residents, and low-wealth families.”

The Flats will front M St., the alley and 9th St., one block from the Convention Center in the heart of Shaw and directly across from the Whitman. WSD’s version, designed by Eric Colbert, had been priced from the high $200’s to the $800’s; the new plan calls for one-bedroom units to start in the upper $100’s to mid $300’s, with target incomes from the mid $30,000’s to the mid $80,000’s. The original project was designed to be a mix of 45 residential condos, ground floor retail, artist lofts, and office space for associations and small businesses; the revised plan calls for 49 one-bedroom condos and 14 two-bedroom condos. Self Help says it expects completion in late 2008.

Arlington Strip Mall to Receive Mixed-Use Makeover

In an effort to revitalize the “neglected” neighborhood at the intersection of Pershing Drive and Arlington Boulevard in Arlington, Abbey Road Property Group is planning a mixed-use project that will include 35,000 s.f. of retail space and 188 residential units. 7 Blocks away from the Clarendon Metro, the 287-acre site at 2201 North Pershing Drive is currently home to two older strip malls; Abbey Road has requested that the area be rezoned to allow for the residential portion of the development.

At its completion, the project will consist of two buildings. The first will have five stories, the second, four, each with retail below and residential space above. The retail portion will have at-grade structured parking behind the buildings while residential parking will consist of one below-grade level of parking per building.

Matt Birenbaum, Principal at Abbey Road said the development would be LEED (Leadership in Energy and Environmental Design) certified, one of the first in Arlington and the metro area. The development has also been recognized by the Washington Smart Growth Alliance for its reuse of an old shopping center. According to Birenbaum, the retail space will target a small format grocer for the corner of the intersection and restaurants and smaller shops for the remainder of the space.

“I think that this (the project) represents an opportunity to redevelop an older strip center and turn what was an automobile-oriented, 1950’s setting into a more pedestrian development pattern. It will be mixed-income, mixed-use. We are really reworking the streetscape, bringing the building up to the street. It could be a model for the redevelopment of old strip centers into more pedestrian-oriented sites,” he said.

The development’s zoning hearing is scheduled for the fall. Developers hope to start construction in the middle of 2008 with occupancy beginning in late 2009 or early 2010.

Crystal City Office-to-Residential Conversion Expected to Start this Spring

Feeling the residential boom immediately to its south along Route 1 down to Alexandria, and finding itself with plenty of suddenly empty office space due to the US government’s recent base realignment and closure measures, Crystal City is making big strides to transform itself into a more residential-friendly neighborhood. First up is Charles E. Smith Commercial Realty’s plan to gut and convert Crystal Plaza 2, located at 220 20th Street S., from almost 200,000 sf of office space to mixed-use residential. The company expects to start the conversion this Spring, with a target completion date of Spring 2008. Crystal Plaza 2 was once home of the US Patent and Trademark Office, before the agency moved to Alexandria in 2005. According to Arlington County records, Crystal Plaza 2 was approved last September for 266 residential units (including six additional floors on top of the existing structure), plus 29,000 sf of retail space. The building will also be re-skinned with new glass and metal. No final decision has been made yet on whether the units will be rentals or condos.

Kenyon Square in Columbia Heights Fills Up its Retail Space

Continuing its rapid development from a neglected thoroughfare along 14th Street NW into the next residential hot spot, Columbia Heights is now getting the retail it needs to follow and service the wants of all its new condo dwellers. The latest retail announcement comes from Donatelli Development, which has announced six new tenants for its Kenyon Square project, located on the northeast corner of 14th & Irving Streets, above the Columbia Heights metro station and across from the DC USA retail center. The newly signed Kenyon Square retailers, which are scheduled to open in May or June, are: Starbucks, FedEx Kinkos, Raidance MedSpa, Georgetown Valet, BB&T Bank, and The Heights restaurant (from the owners of Logan Tavern and Grillfish). These stores will be joined by Target, Best Buy, and Washington Sports Club when DC USA opens next year. Kenyon Square will contain 153 condos designed by Torti Gallas. Delivery is expected this Summer.

Flats at Blagden Alley Cancels Condo Plan

Walnut Street Development confirmed today that they will halt sales for their most recent condo development in DC following disappointing interest. The project, a 45-unit condominium one block from the new Convention Center, named the Flats at Blagden Alley, was to house artist lofts and office condos in addition to the residential units. A WSD spokesman cited "a change in the market" and said that the developer, which has not yet received final condo certification from DC, will continue with the building and finalize condo approval but target the rental market, leaving open the possibility of condo sales closer to the Fall 2007 completion date - or thereafter. The project, designed by Eric Colbert, is still slated to break ground early this Fall. Sales began in late Spring, reportedly selling only 2 out of the 45 units. Numerous condo projects in the immediate area have recently completed, and Faison Development is in the final stages of building its 185-unit condo project directly across the street, where more than two-thirds of the units have sold.

DC USA Project in Columbia Heights Breaks Ground

On May 6 starting at 11 a.m., the National Capital
Revitalization Corporation (NCRC), together with
developers including Grid Properties and The
Development Corporation of Columbia Heights, will
break ground on the new DC USA project in Columbia
Heights. The event will begin at 11 a.m. on Hiatt
Place between Irving and Park Road. DC USA will be
a 500,000 square foot urban retail and entertainment
center next to the Columbia Heights metro that will be anchored by Target and include Bed, Bath and Beyond, Washington Sports Club, and Best Buy. It is expected to generate more than $12 million in new tax revenue per year for the city and will create more than 1,000 permanent and 700 construction jobs. Completion is scheduled for early 2008.