Florida Rock Development Reboots, Meets Resistance

With demolition of the concrete plant finally complete, RiverFront on the Anacostia, the on-again off-again Southeast waterfront mega-project is on, again - pending various hearings, presentations, meetings, and ultimate approval of some very substantial changes to the zoning application.

Developers Patriot Transportation Holding Inc. and Midatlantic Realty Partners LLC (MRP) filed a modification with the Zoning Commission last month to, among other things, modify the Phase One building from an office complex to a residential building. The proposed residential building would be nine stories tall and include up to 350 units, 286 underground parking spaces, and 300,000 square feet of gross floor area (8% of which would be set aside for affordable housing at 80% of AMI). The new filing retains the 12,500 s.f. of retail space for lease, but now wants to earmark 7,000 s.f. as "flex space" or "residential amenity space."

Last week, the Zoning Commission gave their first impressions of the new plans, and it wasn't pretty. One commissioner called it "an affront" and a "bastardization," even going so far as to suggest the developers might have to start the PUD process from square one. Another excoriated the developers from reducing the initial 80,000 s.f. of retail space to under 24,000 s.f. in the latest filing, with 7,000 of that possibly being converted to non-retail "flex space." Even the most positive board member damned the project with faint praise - characterizing it as an improvement on the original PUD, but "boring" and "simplistic." In the end, the board deferred a decision, and the next public hearing is on February 13.

The new building, designed by SK&I, is U-shaped, facing the river, with a private inner courtyard. On the east side is a planned greenspace (Anacostia Plaza) and on the west side, in between the Phase One building and the Phase Two (also residential) building, another large plaza (the Mews) that "privileges pedestrians over vehicles." The new landscape plan, by Oculus, uses the idea of "ecotone" (in the report, this is defined as "an ecological term referring to the transitional zone between two ecologies") to create an impressive stormwater management and filtration system that will both provide lush public native plant green spaces, and filter runoff. (And the Anacostia River can use all the help it can get.)

Phases II (a 262K s.f., 130-foot tall residential building), III (326K s.f., 130-foot tall office building), and IV (275K s.f., 130-foot tall hotel) are unchanged. FRP anticipates a Q2 2013 groundbreaking, with move-ins starting in Q1 2015, and everything wrapped up by that summer.

Big picture, the plan is cut from the same cloth as the plans for the Wharf and the Maryland Avenue redevelopments. (There are only so many ways to skin a cat, after all.) Much like those plans, this latest filing is hoping that their conversion of the Phase One building from office to residential "will provide the critical mass of people necessary in order to support future office and retail uses." Of course, this could take a while, which is the thinking behind the "flex space." What if they build it, but people don't come? The plan also asks for permission to use the Phase II/III/IV sites for interim projects like a farmer's market or temporary retail, rather than letting those spaces remain dormant. It's a good strategy to lure more people to the area, and can only help not just their development, but the neighborhood as a whole as it gears up to make the transition to world-class waterfront. But first, developers need to win over the Zoning Commission, which is proving to be a harder task than they may have anticipated. 

Washington D.C. real estate development news

Southwest Wharf Developers Move onto Design Phase

With Zoning Commission approval of the First Stage zoning application secured last week, PN Hoffman and Madison Marquette - joint developers of the $2-billion Wharf in Southwest - now turn to the completion of the Second Stage PUD, in order for submittal early next year.

The Hoffman-Madison team has been gaining momentum in filling its 3.2 million s.f. development along the northern shore of the Washington Channel and aims to begin construction on the first phase (of three) in the first quarter of 2013.

The first phase of construction, expected to take four years, will build out 40 percent of the entire development with parcels 2 thru 5 (seen to the right).

Site designs, in order from north to south, will include: two apartment towers above a 100,000-s.f. multi-purpose theater (parcel 2); a four-star, 268-room hotel by Carr Hospitality and InterContinental Hotels Group, which purchased the site in early October, and office space with signed tenant the Graduate School USA (parcel 3); an apartment and condominium building (parcel 4), and two JBG Companies-operated hotels, a limited service and an extended stay (parcel 5). All of the parcels will include ground floor retail, with the combined total approximately 300,000 s.f.

The first phase also includes the restructuring of portions of 7th and 9th Streets at Maine Avenue, a new Capital Yacht Club, two new piers - "City Pier" off of 9th and "Transit Pier" - and a major infrastructure overhaul of Water Street, the grand scheme being to turn Water Street (running parallel to the shore) into a promenade with 60' of width shared between pedestrians, streetcars, bikes, and outdoor diners.

The Wharf is being developed in partnership with the District, which agreed to provide $200 million in public financing in 2008. Madison Marquette joined PN Hoffman as a partner in the spring of 2010, after the partnership with Struever Bros. Eccles & Rouse faltered. PN Hoffman and Struever were selected by the now-defunct Anacostia Waterfront Corporation as the joint Master Developer for the Southwest Waterfront in 2006.

Update: 11/7 Added in residential plan for parcel 4, corrected second pier name to "Transit Pier," and changed "Office of Zoning" to "Zoning Commission"

Washington D.C. real estate development news

Clear Sailing for Southwest Waterfront Development

The Congressional Budget Office weighed in just before the holidays with a strong endorsement of the proposed rezoning of the Southwest Waterfront, further bolstering H.R. 2297’s already favorable chances of passing into law when the Senate reconvenes next session.

If (when) passed, the bill would bring the District one step closer to a dramatic revitalization of the largely moribund Southwest waterfront, bringing it in line with the rapidly-developing Southeast waterfront, and creating what planners hope will eventually coalesce into a “second downtown.”

The bill, introduced by Delegate Eleanor Holmes Norton, has already passed the House and gone through Senate Homeland Security and Governmental Affairs committee markup, and clarifies the vague and somewhat archaic restrictions governing the waterfront. The District has always technically owned the land, but was barred from selling it, which for all intents and purposes made commercial development impossible. The recent CBO report found that empowering development in the area would have no adverse effects on the federal government, thus clearing the way for the 2.5 million-square-foot blockbuster PN Hoffman-Madison Marquette hotel-office-retail-pedestrian mall project.

The Hoffman-Madison First Stage PUD, as reported on this site, breezed through its NCPC hearing back in October. Bob Rubenkonig, a Hoffman-Madison representative, said Hoffman-Madison is busily preparing for 2012 public meetings, with the Second Stage PUD forthcoming very soon - hopefully in February, according to Hoffman VP Shawn Seaman.

The $2 billion, 2.5 million-square-foot project, dubbed “The Wharf,” takes its cues from Baltimore and Seattle's waterfront promenades, and will feature around 1200 residential units, almost 400,000 s.f. of office space, and 200,000 s.f. of retail space. Over half the site will be public space, much of that a pedestrian-friendly, privately-held waterfront avenue, “Wharf Street,” which will replace Water Street, will feature walking lanes, bike paths, and a streetcar. Development plans also call for a four thousand seat theater, a maritime history museum, and three hotels – a four-star, 268-room hotel from Carr Hospitality and InterContinental Hotels Group, and two others from the JBG Companies.

Developers have also agreed to a community benefits package that will set aside 30 percent of the first 500 units of housing - half earmarked for households making less than 60% AMI, and half earmarked for households making less than 30% AMI. Beyond the 500-unit mark, 20% will be reserved for "workforce housing," i.e. police, firefighters, teachers making 80 - 100% AMI. This unusual formula is the result of the Southwest Waterfront Redevelopment Clarification Act of 2010, which exempts a portion of the development from the District's affordable housing requirements. Furthermore, a quarter of the retail space will go to local businesses, and a third of everything sold in the retail spaces will come from local merchants. Design is being spearheaded by Ehrenkrantz, Eckstut & Kuhn Architects, while construction is being handled by PN Hoffman and Clark Construction.

Washington D.C. real estate development news

SW Waterfront Nets its First Casualty

Just weeks after the City Council's approval of a Land Disposition Agreement authorizing the Hoffman-Struever, LLC’s redevelopment of the Southwest Waterfront, progress, of a kind, is already being made. The first casualty of the development process appears to be the Virgo Fish House – a staple restaurant of the famed Maine Avenue Fish Market. Shrimp cocktail enthusiasts shouldn’t fret, however; while the restaurant’s current quarters are scheduled to be demolished in tandem with another abandoned property at the site, the remainder of the Washington landmark at 1100 Maine Avenue, SW, will be safe for the foreseeable future. "The blue building, which formerly operated as a crab house [will be razed],” says Nina Albert, a Project Manager with the Office of the Deputy Mayor for Planning and Economic Development. “That blue building will be replaced with a temporary Fish Cleaning Building, and...the building that Virgo’s is currently operating out of will be demolished. The intent of these small moves is to keep the Fish Market in safe and operable condition until the redevelopment occurs.” That redevelopment by the Hoffman-Struever development team – which is officially comprised of comprised of PN Hoffman, Struever Bros., Eccles & Rouse, McCormack Baron Salazar, ER Bacon, Gotham, City Partners, Triden and the recently added Paramount Development – isn’t expected to begin anytime before 2011, but it’s also worth noting that the Maine Avenue Fish Market was also targeted by 2008’s National Capital Framework Plan. The Plan – drafted by the National Capital Planning Commission - seeks to reintegrate Maine Avenue into the fabric of daily life in the District by refurbishing the Market’s home at the Overlook and linking it with an extension of 10th Street, SW.

Washington DC retail development news

Buzzard Point's Turning Point

If there was a moment for Buzzard Point, the tip of DC where the Anacostia meets the Potomac, it might have been the opening of Audi Field, bringing tens of thousands of occasional fans to southwest DC's formerly industrial and empty midpoint.  But perhaps a more significant moment is the transition from parking lots and decrepit office buildings to actual neighborhood status, as long-planned real estate developments begin to fill with residents.  Three recent developments alone add more than a thousand residential units to the waterfront, with Peninsula 88's completion this summer adding 110 condos to Buzzard Point's southern tip, Akridge's Riverpoint residential project converting the former Coast Guard headquarters into 481 apartments and 60,000 s.f. of retail (coming soon), and, beginning delivery this week, the Watermark.

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The residential project by Douglas Development turned an "E" shaped 9-story office building - one of 2 buildings in the neighborhood that housed the U.S. Coast Guard - into 419 apartments, 15,000 s.f. of retail and some of the top water views in the city.  Amenities include views of the suddenly captivating Frederick Douglass Memorial Bridge, and the building even helps fulfill the dream of DC's bikers with a new stretch of the eventual Buzzard Point Trail, which will round Buzzard Point (avoiding Fort McNair) and connect with the Anacostia River Trail and the Wharf, which already connect well to the rest of DC and beyond.  Add to that a short walk to Nationals Park and even shorter walk to Audi Field, which will someday (sigh) host public sporting events, and you do, in fact, have a legit neighborhood to call home.

Project:  Watermark

Address:  1900 Half St., SW, Washington DC 

Developer:  Douglas Development and PTM Partners

Architect:  Antunovich Associates

Construction: Davis Construction

Use:  481 apartments, 15,600 s.f. of retail

Expected Completion:  Summer 2020

Washington, DC retail real estate and development news

Phase One of Southwest Waterfront Redevelopment All but Approved by Zoning Commission

Last night, the massive redevelopment of Southwest’s waterfront inched a couple of notches closer to reality. DC’s Zoning Commission held a proposed action hearing for the project’s first phase, approving information that had been newly submitted and asking no follow-up questions.

That sets up the $1.5 billion project, technically titled The Wharf and comprising 3.2 million square feet in total, for a final action hearing next month, which at this point should largely be a formality. After that, developers PN Hoffman and Madison Marquette will be in the clear to begin applying for permits and seeking construction financing.

This was a very short, perfunctory hearing. On November 14, the commission approved three out of the development’s four parcels for the second stage of the PUD process, which examines public benefits, architecture and design (the first stage, which looks at height, density and zoning issues, was approved late last year).

But the members had questions regarding the last parcel; most prominently, they worried that the residential building on 6th Street lacked direct entrances and looked unusually stark. In response, the developers changed the facades, pushing the residential building back five feet in order to allow for direct entry by residents.

“This is a significant improvement,” said Commissioner May, who’d expressed concern at last month’s meeting. “I’m pleased with this result.” The commissioners had no other questions.

That means all four parcels, each of which contains one or two buildings, have been approved—“knock on wood,” said Shawn Seaman, a PN Hoffman principal and project director for the development. The team has a lot to accomplish in the next few months, and the estimated start date has been pushed back a few months from earlier predictions. “We’re looking at a groundbreaking early in the second quarter of 2013,” said Seaman. 

This first phase of development will eventually bring 1.5 million square feet of retail, residential, hotel and office space to the area, along with four piers and several open spaces, including a three‐acre waterfront park. The Hoffman-Madison team sees the project as eventually matching internationally-known destinations like San Francisco's Embarcadero and Pike Place Market in Seattle.

Washington, D.C., real estate development news

District Approves SW Waterfront Bonds

The District Council today approved a financing project for the 23-acre Southwest Waterfront, providing $198 million in bonds for the waterfront project, a bill that Mayor Adrian Fenty is expected to sign. Under terms of the bill passed unanimously by the the DC Council, the District will issue revenue bonds supported by tax increment financing (TIF), payment in lieu of taxes (PILOT), and special assessments, for improvements that will begin after developers PN Hoffman and Struever Brothers, Eccles & Rouse finish the private portions of the redevelopment. The Southwest Waterfront Bond Financing Act of 2008 authorizes the Mayor to issue revenue bonds to fund site improvements, with $148m allocated specifically for "development costs" of the project. The remaining $50m is allocated to pay for financing costs incurred by the District. Any funds received in excess of $198 million will be transferred to the District's General Fund. 

According to the development team, the waterfront project is projected to generate more than $40m in annual tax revenues, with $13.3m contributed to the general fund annually after payment of the debt service. The land, when fully developed in 2017, is expected to support 2.4 million square feet of development, including 770 residential units, 700,000 s.f . of office space, nearly half a million s.f. of hotel space within three hotels, and 280,000 s.f. of retail. The more public amenities are expected to include new parks, four new piers, a half-mile promenade and bike trail, and renovation of the existing fish market.

Washington DC retail and real estate development news

14th Street Short-Term Family Housing Project

A family housing shelter is now taking shape in Columbia Heights, replacing the former Rita Bright Family and Youth Center.  The $20m project will provide 50 family rental units - 35 for short term housing and 15 for seniors, and will recreate a recreation center that existed prior to construction, all on land currently owned by the District government.  Cunningham Quill, which has designed such notable buildings as the Yacht Club at the Wharf and Wooster & Mercer Lofts, designed the project, which is expected to wrap up in the fall of this year.

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Project:  14th Street Family Housing Center

Address:  2500 14th Street, NW, Washington DC

Developer: District of Columbia

Architect:  Cunningham Quill

Construction:  GCS Sigal

Use: Homeless Shelter

Expected Completion: Summer / fall 2020

Rendering

Washington D.C. retail and real estate development news