DC Waterfront Redevelopment Plows Full Speed Ahead

The Anacostia Waterfront Corporation (AWC) has reached the final round of its Survivor competition and selected two teams out of five original bids for the next phase of the waterfront project. The two teams are, Madison/KSI Waterfront Partners and PN Hoffman, Streuver Brothers Eccles and Rouse. While neither team is known for its Brando impersonations, both are considered experienced in waterfront development. Keeping the real estate and development world in agonizing suspense, the AWC expects to make an announcement regarding the finalist in the Fall of 2006. The criteria used to select the two finalists included, qualifications and experience, vision, development approach, implementing strategy, financial framework, and, (apparently because of a pressing need for yet one more acronym) LSDBEs – Local Small & Disadvantaged Business Enterprises. The AWC expects to develop the 47 acres of land by selling exclusive rights to one of the firms which will create an area that enhances the community, provided business opportunities for small, local disadvantaged companies, and generates tax revenue for the city. Elia Kazan could not be reached for comment. (You youngsters out there can Google that one.)

In Potomac Yard, Developers to the Rescue

When city planners for Potomac Yard found that public works projects were needed, they did what city planners across the country are increasingly doing: They turned to the developer to provide city services.

Begun in 1999, the project has gone through several phases including a plan by the late Jack Kent Cooke to build a new stadium for the Washington Redskins; a plan defeated by a coalition of neighborhood groups. The current plan calls for development of 165 acres with 1.9 million square feet of office space, 135,000 square feet of retail space in addition to the 600,000 square feet already in use at the Yard, and 1700 units of housing.

Justin Wilson, former President of the Del Ray Citizens’ Association, is optimistic about the on-going development project at the Potomac Yard.

Wilson was one of many in the Del Ray community who were shocked to learn that there was a plan to relocate the local fire station from Windsor Avenue to the Potomac Yard – and Wilson and the Association insisted on a discussion with both the developers and the City. "The city got caught behind the eight-ball,” said Wilson, “But they’ve caught up with the issues facing the community and the development companies are responding to our needs."

Enter the site’s developers, Pulte Homes, Inc. and Centex, which agreed to finance the relocation of the firehouse and to pay for new equipment, according to Wilson. The master plan further calls for the developers to straighten Route 1 and rebuild the interchange and overpass. As in many communities, the developers have already agreed to subsidize 60 units of low-income housing, providing communities a fast, free way to provide affordable housing, an issue that long vexed planners in recent decades.

Helen McIlvaine of the Office of Housing has addressed the issue of affordable homes at the Yard, in meetings between the City, developers and community members. The proposal calls for the affordable housing to be based on yearly incomes of $54,000/yr and rents of, $1,500/month.

Among the features proposed for the new state of the art fire station are a community room to be used by both residents and fire department trainees, as well as the construction of individual sleeping quarters that will be able to accommodate the growing number of women in fire suppression.

Community concerns have also been expressed regarding noise abatement for the homes above the proposed fire station.

Alexandria Fire Chief Gary Mesaris stated that the new location in the Potomac Yard would still allow for a 4 minute response time to emergencies in Del Ray; a time still within accepted limits. Among the proposal being considered are the maintenance of two fire stations; one at Windsor Avenue holding the HAZMAT Response team and the new one at the Yard.

Tenley Tower Starts Coming Down

The monolithic tower that has stood half-built across from the Tenley Metro is finally beginning to come down, according to its owner. American Tower Spokeswoman Lori Philbin said, "American Tower is working diligently to finalize the schedule for dismantling the Tenleytown tower." The company has fought the city for several years about the status of the tower, construction of which was halted approximately halfway when neighbors protested the size of the structure that sits adjacent to several others on Wisconsin Avenue, close to the highest elevation in the city. The massive iron tower was being constructed around the historic Western Union tower, built by noted DC architect Leon Chatelain. 

The Western Union tower was intended to form part of a "radio triangle" of microwave radio-stations linking Washington, Pittsburgh, and New York, and was originally designed to serve as a relay point for the Wideband System and other national security communications systems. In conjunction with the City and through a series of lawsuits, the newer addition was stopped several years ago and has since sat unused. Philbin added that, American Tower is, "...focused on removing the tower as expeditiously as possible while ensuring the safety of residents, contractors…and to ensure minimum disruption to businesses and vehicular and pedestrian traffic in the neighborhood." No final date has been set for completion of the dismantling.

Washington DC commercial real estate news

Whither the Whitehurst Freeway?

Yes, it has been an eyesore since erected in 1949, and yes, it cuts off Georgetown from the rapidly redeveloping waterfront area. But this almost mile-long elevated highway over K Street to the Key Bridge also provides quick access to and from downtown for thousands of Virginia and Maryland commuters, and eliminates potential traffic nightmares on the already claustrophobic streets of Georgetown. With such a conflicted existence, no wonder the battle over the future of the Whitehurst Freeway is often heated, with business leaders and the new luxury condo owners along the elevated road advocating demolition (more traffic means more business, and no freeway means unobstructed water views and increased condo values), and long-time residents and commuters favoring its preservation (especially considering it just received a $35 million overhaul and upgrade in 1998). The latest salvo arrived in late July, when the board of the Georgetown Business Improvement District (BID) voted in favor of removing the freeway. The Georgetown BID will next make its recommendation of a preferred alternative after an upcoming presentation by DC transportation officials. District officials have also proposed demolishing the Whitehurst and making K Street a 4- or 6-lane through street. That is, if they can ever solve the long-time curse of this project: How to connect K Street to both Key Bridge and Canal Road, which differ in elevation by 60 feet, in so short a road length.

Condos - Not Just for Kids Anymore

DC's latest condo conversion isn't reaching for the coveted 20-something market, or even the 30-somethings. 40-somethings? Forgetaboutit. You'll need to be 62 to purchase at the Thomas Circle Residences, a refurbished senior living center at 1330 Massachusetts Ave., NW, offering both assisted-living and "independent senior living." Developed by the Carlyle Group and managed by McLean-based Sunrise Senior Living which manages an international portfolio of senior living centers; condos start at $262,000 for a studio and $669,000 for a 3-bedroom unit, with condos selling as the old units are renovated. While this venture is not a nursing home, an array of services is provided, from 24-hour nursing service to meal packages and free bus service, but health care doesn't come cheap: Condo fees start at $317 and service fees start at a belt-tightening $1300. And yes, federal law prohibiting age discrimination in housing says they can keep you young kids out - laws aren't written by 20-somethings.

Architect to Build New Takoma Condos

Sassan Gharai, of Bethesda-based SGA Architects, is designing and developing a new condominium to take shape in Takoma this Fall. Ecco Park will feature 85 units and 6000 s.f. of retail space in a 4-story building adjacent to the Metro, on a contaminated site now housing a truck rental facility and gas station. The infill project will incorporate green elements - such as a green roof and recyled products - but will not likely be LEED-certified. Patios or balconies are planned for a majority of units, as well as underground parking and exterior fenestration combining metal, stone, and glass; with sales to begin in September and groundbreaking this Fall. Gharai is currently building the Butterfield House on Capitol Hill which should deliver early next year.

Massive Redevelopment of Falkland Chase Apartments in Silver Spring Planned

It appears the Falkland Chase Apartments, the historic apartment community built in 1937 on 22 acres in downtown Silver Spring along the 16th Street - East-West Highway axis, is in for some major redevelopment. According to sources who attended an August 10th community meeting at the apartments and, plans call for the northern portion of the old Falkland Chase complex to be completely demolished, and ultimately the whole community will be redeveloped into biggest project ever in Silver Spring, totaling 1,050 apartment units (the complex now only holds 450 units) in a group of high-rises. In addition, it is expected that a major grocery store such as Harris Teeter will anchor a string of retail shops planned for the development. A timetable has yet to be announced, but between this project and the Gateway project in south Silver Spring at East-West Highway and Georgia Avenue, this area is quickly turning into a metropolis.

Silver Spring, Maryland commercial real estate news

Air Force Memorial Tops Out

The Air Force Memorial in Arlington – those blue, twisting structures rising slowly near the Pentagon – achieves its final height on Friday with placement of the 14^th out of the 15 blocks that will eventually comprise the three curling spires. Designed by the late James Freed of Pei, Cobb Freed, the monument is meant to evoke the wispy contrails of the Thunderbird bomb-burst formation. The 3 spires, now sheathed in blue wrap, will be revealed in the next few weeks to expose the stainless steel structures beneath. The tallest of the 3 spires will reach its maximum height of 270 feet on Friday with the placement of the 14^th hollow block to top out the tallest of the structures. The $30m project, paid for through the Air Force Memorial Foundation by private donations, is being built by Centex construction and should be completed by late September, well in time for the October 14^th dedication ceremony.

Centex Cityhomes Announces Silver Spring Project

Dallas-based Centex, known mainly for its suburban home communities, continues its foray into more urban condominium building by officially announcing its plans for the old auto-repair garage and lot at 1200 East-West Highway (across from the recently completed Silverton, just blocks from the metro stop. The project, called "Cityhomes at 1200 East-West," will likely contain a 14-story, mixed-use building, including 247 condos (ranging in size from 715 to 1365 sf) and approximately 10,600 square feet of retail space on the first floor. Centex purchased the property in May and will be starting construction this year; no sales date has yet been set. With the huge Gateway project underway across the street and development plans for 1200 Blair Mill Road, this south Silver Spring intersection will soon be bursting. The project should be ready in early 2008. Maybe this will give the city enough self- esteem to take down the "Silver Sprung" signs.

Cleveland Park Condo Gets ANC'ed

Bethesda-based Clark Realty Capital is planning to move forward with its condo development in the of Cleveland Park neighborhood of DC despite unanimous opposition by the local ANC. Clark has vetted plans before height-obsessed DC residents for a 5 to 6-story building at 2950 Tilden St., a site just off Connecticut Avenue that sits adjacent to Clark’s last project, the 9-story Connecticut, and a five-minute walk from two Metro stations, but has gotten a cool reception by the ANC for its "towering" height. The building would contain a maximum of 49 condo units in 87,500 s.f. of space. The Sorg & Assoc. design would start at two stories at street-level and step gradually up to 5 or 6 stories, culminating in a green roof with penthouse terraces. Clark expects a zoning decision in September and a ground-breaking in 2007.

Ft. Totten to See Major Mixed-Use Project

Lowe Enterprises has announced they intend to develop approximately 9 acres of land next to the Ft. Totten Metro station after having joined two local developers that recently purchased the land. The Metro station serves both the Red and Green lines but the area, isolated by the CSX lines that bisect the neighborhood, has seen no residential or commercial development - until now. The project is intended to add for-sale and rental housing and substantial retail space, though the composition of the development has not yet been finalized. Though the Metro stop is known more as a dot on the Metro map than a destination, Centex and Clark Realty Capital have both announced large projects nearby - making Ft. Totten the next Petworth (which is the next Columbia Heights - which is the next U Street). Clark's project, already begun, will provide several hundred rental units to the area.

Chianti Conversion?

Hard as it may be to envision, the possibility of a District without old standby A.V. Ristorante Italiano may soon come to pass. Months of whispers were proven true this week, when developer Douglas Jemal finally confirmed that he bought the Mount Vernon Square lot where A.V. now sits, for an undisclosed price, with plans to purchase the rest of this block on New York Avenue between Sixth and Seventh Streets NW (between the new Convention Center and the in-progress Yale Steam Laundry condo project) for conversion to office and retail space. A Washington institution, A.V. has been serving old-school red-sauced pasta and wine to regulars since 1949. The restaurant is expected to close in October 2007.

Monument Realty Cancels 2nd Condo

Monument Realty has confirmed they are abandoning their second large condo-conversion project in as many months, citing a strengthening of the rental market and a weakening of condo sales in certain submarkets. Sales at The Prime, a 256-unit building at 1452 N. Taft St. in Arlington, near the Courthouse Metro station, have been halted, and the building will return to its former status as an apartment building to be managed by Monument. The DC-based developer bought the 14-story, 4-year old apartment building last year, and began sales in February of this year, with approximately 50 of the units having received written contracts. The Prime was to have been completed by the end of the Summer. In June Monument canceled sales at the Park Center in Alexandria, a 571-unit conversion, of which only about 60 units ever sold. The developer still has five other projects – mostly conversions - actively selling in the area, including the famed Watergate Hotel, where 13 of the 96 planned coops have sold. Monument added that it sees “very strong condominium demand…in the medium to long term,” and that “buyers who are waiting for condominium prices to drop further may be surprised to see that they do not.”

Groundbreaking for Donatelli's Petworth Project

On Monday, July 31, Donatelli Development will break ground on Park Place, its latest project, to be built above the Petworth Metro Station at Georgia and New Hampshire Avenues. When completed in mid-2008, Park Place will offer 156 units in a 6-story building designed by Torti Gallas of Silver Spring. Donatelli Development - the builder formerly known as Donatelli & Klein - teamed up with Torti Gallas for the two anchor residential projects in the center of Columbia Heights, inviting speculation that Petworth is the leading edge of the boom that engulfed 14th St. Park place will offer underground parking and private rooftop terraces for prices starting at $320,000 for a 1- bedroom condo and $480,000 for 2 bedrooms. Reservation agreements are currently being taken, hard sales should start in October when final condo certification is issued by the DC government; the general contractor has not yet been selected.

Dare to Dream...of Organic Arugula

The on-again, off-again saga of the Gallery Place Balducci's has taken another turn, hopefully toward the future enjoyment of Penn Quarter residents eager for pricey yet oh-so-good produce and food. Part of the original plan for the ground-level retail space in The Jefferson on 7th Street NW between D and E Streets, statements by officials of the specialty grocery chain had thrown doubt on the store actually opening. However, Balducci's never lost hold of the lease for this 21,000-sf space, and reports now indicate that the chain is once again planning on opening store at this outpost, no doubt spurred by the District's offer to not only waive the store's real estate taxes for 10 years and the sales taxes on its construction materials (the original offer), but to also throw in some new (as yet unspecified) incentives. If Balducci's does decide to not open a store, it is believed it will sublease the space to another grocery chain, such as Magruder's or A&P Fresh Market. Stay tuned....

Historic Silver Spring Fire Department Building on Market

Continuing the march of development along the upper Georgia Avenue corridor in south Silver Spring, this week the Silver Spring Fire Department – which recently moved into its new modern space across the street - has put its old building at 8131 Georgia Avenue on the market for $2.5 million. The station, which the department bought in 1918 for $5,500, is on the Montgomery County’s Index of Historic Places. The two-level station is about 6,000 sf and the building sits on a 7,500 sf lot. The department is looking for a quick sale in order to pay for a new ladder truck. The department is also working with the Silver Spring Historical Society to ensure a proper buyer, adaptation, and preservation of this space, which is seen as perfect for retail, a restaurant, office, or entertainment use.

More Apartments Convert to Private Ownership

Despite the gloomy forecasts of various media declaring an oversaturated condo market, apartments still aren’t safe from conversions. The latest downtown DC conversions include a pair of historic buildings undergoing renovations by local developers for impending sales as condominium units. The newest converts are The Grant, a historic 40-unit building at 1314 Massachusetts Ave., NW, and the Chastleton, an 86 year-old building at 1701 16^th St., NW, with developer Keener-Squire converting its remaining apartments. Despite the supposed malaise of the market, condos in Metro-centered neighborhoods have been the least affected in the region; and with financing costs rising and construction costs, well, going through the roof, conversions offer developers relatively speedy, low-cost alternatives to developing increasingly scarce land. Condo conversions are dead; long live the condo conversion!

RFK Redevelopment Gets a Hearing

The National Capital Planning Commission (NCPC) held a forum last week on the potential redevelopment of the RFK stadium site. The stadium, which sits on a 190-acre site owned by the federal government, is likely to be nearly obsolete with the Nationals relocating to Southeast and D.C. United potentially moving to Poplar Point in Anacostia. With the National Mall filling up like a cheap yard sale, proposed uses include set-asides for future commemorations, as well as park space, commercial and residential development. The DC government retains jurisdiction over the site only for use as a stadium, so redevelopment would require federal cooperation - no word yet on whether a new stadium would be named after the current Attorney General.

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.

Montgomery County Approves More Subsidized Housing

County Executive Douglas Duncan signed into law Wednesday afternoon new legislation to require developers to provide "workforce" housing to benefit middle-class residents at new housing projects. The "workforce housing" program (WHP) will apply to all new residential developments of 35 units or more near Metro areas, requiring the developer to set aside at least 10% of their housing for households at or below 120% of the area median income - or $86,000 for a family of two - and will not receive incentives from the county for the additional subsidy. Developers are already required to set aside 12.5% of their units for MPDU's, a lower income threshold. The bill was passed unanimously by the County Council on July 11th, and is set to sunset in 2014. The DC government is currently working on a similar proposal for residential projects of 10 or more units.

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.

Hertz Building on New York Ave. is Plowed Under

The Hertz building at 11th Street and New York Avenue in downtown Washington DC has finally yielded to development. The unsightly, 2-story building that housed the local Hertz car rental was for years about the only active business in the vicinity, but had recently become overwhelmed by the nearby development surrounding the old Convention Center. The property sold in 2004 to Tishman Speyer for $21m, but Hertz's lease continued until recently, and Hertz closed the office in May. Demolition began this month to make way for an 11-story, 173,000 s.f. office tower to match development underway on all sides of the project. Upon completion in Spring 2008 the building will offer about 10,000 s.f. of street-level retail and 10 stories of office space. No tenants have yet been announced for the project.