Centex Development in Falls Church Stalls

A combination of astronomical asking prices for land and recent residential market trends has Centex Homes reconsidering whether to move forward with its planned role in the development of Falls Church’s City Center village project, to be located at the intersection of South and North Washington Streets and W. Broad Street. The City Center project will contain a public town square, along with a hotel, new grocery store, retailers, office space, and a mix of residential options, including up to 1,000 condo units, over the next decade (though this, too, is now uncertain). However, the job of purchasing the needed land for this project has proven problematic, as landowners are asking between $2.5 and $5.7 million an acre on the north side of W. Broad – the location of the first two blocks of the project that Centex (teaming with Federal Realty) is tasked to develop. Given the significant distance to the nearest metro station, Centex is re-evaluating the worth of this project, and is now in discussions with the city and landowners on the next step, if any. Meanwhile, while the north side of W. Broad is up in the air, the south side of this project, which is being developed by Atlantic Realty, appears to be moving forward, as most of this land has already been bought or acquired.

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

Capitol Hill News: Thorton Row Sales On Hold; Jenkins Row Has Units Back on Market

Perhaps reflecting the new market realities that are now shaping the DC residential market, there are some interesting developments coming out of the eastern edge of Capitol Hill. First is Thornton Row at 1220 Pennsylvania Avenue SE (pictured), a "boutique" condo project planned by JPI near the Potomac Metro and the Harris Teeter supermarket in Jenkins Row (also a JPI project). A marketing representative has indicated that sales for Thornton Row are now "on hold indefinitely." No word yet on what this halting of sales means for the project itself, though. Meanwhile, Jenkins Row, JPI’s highly anticipated and long indicated as "sold out" 247-unit project at 1391 Pennsylvania Avenue SE suddenly has units back on the market in all flavors – 1, 2, and 3 bedroom units, ranging from the high $300,000s to the mid- $700,000s. Delivery is now scheduled for late 2007.

Washington DC retail and real estate news

Court Rules Against Arlington County, Church's Clarendon Condo Project

After two years of back-and forth waiting, it appears that The Views at Clarendon project is no longer a viable option, as the Virginia Supreme Court has ruled that Arlington County violated its own zoning regulations when it approved plans two years ago to let the First Baptist Church of Clarendon build a mixed-use church and residential development at its current location at 1201 N. Highland Street. The project would have kept the church's 107-foot steeple, while rebuilding the church (a smaller version) within a 10-story, 116 rental-unit structure (with 70 units reserved for moderately priced housing) that would have helped defray the church’s operating expenses. After the church received zoning-change approval from the County, neighbors immediately objected to the tall tower (heaven forbid Clarendon allow construction of a high-density, boxy building within spitting distance of its new Market Common mall monstrosity), and filed a lawsuit in November 2004 to reverse the decision. While the County Circuit Court judge ruled last year against the neighbors, this September the Virginia Supreme Court reversed the Circuit Court and sided with the neighbors, stating that the County violated its own Zoning Ordinance 27A by not complying with its eligibility requirements. The Circuit Court confirmed the remanded ruling this week (got all that?). Both the church and Arlington County are now mulling over their next steps and options.

Major Residential Project Planned for Fort Totten Area

If approved by the DC Zoning Commission, a new 188-unit residential development might soon be built on 9 acres at 6000 New Hampshire Avenue NE, the former site of a Medstar Health nursing home. The Jarvis Company and Four Points (formerly West*Group) Development have submitted plans to build 61 condominiums, 27 single-family homes, and 100 townhouses to the Zoning Commission, which will decide on October 16 whether to rezone this area to allow mixed residential development (it currently only allows single-family residences). This secluded corner of Northeast DC, mid-way between the Fort Totten and Takoma metro stops, has seen little development in the past – a fact that is expected to keep the unit prices for this project on the affordable side. Project timeline and other details have yet to be released.

Apartments Just a Fly Ball Away

With construction of the new Nationals ballpark moving full speed ahead in Southeast along South Capitol Street, a number of new apartment buildings within spitting distance of the field have recently been announced. First up is Camden Property Trust's 1325 Capitol SW project (pictured), located right across the street from the National's stadium between N and O Streets. The $99 million, 210,000-sf apartment project will be nine stories tall and contain 244 units, mostly one bedrooms with an average apartment size of 860 sf. Construction is expected to start Summer 2007. Camden (the owner) has yet to select a developer. Next up are two apartment projects from residential developer JPI: 70 and 100 I Street, a $210 million project with two towers containing nearly 700 units (completion is scheduled for late 2008); and 901 New Jersey Avenue, a $75 million, 238-unit apartment building set for the block now housing the Nexus Gold Club, a "gentlemen's" club (so, uh, I was told...). 901 New Jersey is set to being construction in 2007 with a late 2008 completion date. Finally, there is Faison's planned residential tower at 1st and L Streets SE. This will be a 14-story, 266-unit tower. Construction started last month, and the tower is expected to be done in late 2008. Make sure to glance to your left when driving down South Capitol – you can tell your kids you remember it when it was all empty lots and run-down warehouses....

Akridge Receives Air Rights for Burnham Place at Union Station Project

DC developer Akridge has signed a deal with the US General Services Administration that gave the company the air rights over the train tracks behind Union Station, allowing Akridge to move forward with its Burnham Place at Union Station project, a 15-acres, mixed use complex to be located over the tracks and to the north and south of the Hopscotch Bridge (H St.), and west of 1st Street NE. The Burnham Place project will contain offices, retail (including medium-sized box store, residential towers, and a 400-room hotel. Burnham Place will also include a “comprehensive intermodal transportation center” that includes a new rail passenger concourse. Akridge hopes its project will anchor the new North of Massachusetts neighborhood (NoMa, for those who haven’t been exposed to this “hip” naming convention) and tap into the over 18 million passengers who use the Union Station metro annually. Akridge anticipates beginning construction in 2009 with the platform over the train tracks – this is expected to take three years to build. Work on the residential, office, and retail will then start.

Anancostia Waterfront Project Selects Winning Developer for $800 Million Project

After months of keeping the DC construction world waiting with "baited" breathe (sorry, bad puns are our specialty), the Anacostia Waterfront Corporation (AWC) has finally announced the DC-based venture of PN Hoffman and Struever Brothers Eccles & Rouse (that will be fun to pronounce for the next decade) as the winning team for its $800 million project to develop the 47 acres along the Southwest waterfront into "maritime-themed" housing and retail, a space now filled with middling restaurants and empty lots. The PN Hoffman and Struever Brothers Eccles & Rouse team (let's just call them the Hoffbrau team) was selected from an initial list of 17 developers. The AWC will sell exclusive rights to the Hoffbrau Team, which will develop the land while providing business opportunities for small, local disadvantaged companies, generating tax revenue for the city. The 2 million-sf development will include about 900 condos and apartments, 360 hotel rooms, 230,000 sf of retail, 150,000 sf of cultural spaces, plus office space, parks, piers and a waterfront promenade. Some of the residential units will be for moderate- and low-income families. Work is expected to begin in 2009, with completion in 2017.

Mount Vernon Place Church Square Project Breaks Ground

The National Capital Revitalization Corporation (NCRC) has broken ground on its $145 million Mount Vernon Place Church Square development, a unique 300,000-sf residential and office complex to be carved out of a piece of (and also above) Interstate 395 at 3rd and H Streets, NW. The project will be tackled in two phases. Phase 1, which was just started, will be a $45 million, 90,000-sf office complex scheduled to be completed by the end of 2007. Phase 2, while still being finalized, is expected to be a 20,000-sf, 300-unit residential building with underground parking, plus a 10,000-sf, kindergarten-through-third-grade school. About 20% of the units are to be affordable housing. Phase 2 is expected to begin in March 2007. The project is being developed by MQW LLC, a joint-venture of the Mount Carmel Baptist Church, the Wilkes Company, and Quadrangle Development, and falls within the larger Mount Vernon Place Initiative, comprising 11 projects on five city blocks between 3rd and 5th Streets, and Massachusetts Avenue and K Street.

Previews Begin This Weekend for The Takoma Condos

Interested buyers will have their first chance to preview the model units for The Takoma, the newly renovated and updated Wedgewood Apartments, located at 111 Lee Avenue in Takoma Park, near the metro station. The Takoma, by NOVO Development, will feature 46 units with hardwood floors, granite countertops, stainless steel appliances, private parking, and a fitness center on site. Studious start at $159,900, one bedroom units at $234,900, two bedroom units at $279,900, and three bedroom units at $329,900. Visit The Takoma Web site - http://www.thetakoma.com - for preview information.

Luzon to Break Ground in Early October

After years of sitting vacant and

forlorn in the no-man's land on Pennsylvania Avenue between Georgetown and Foggy Bottom, its dull yellow paint peeling and metal fire-escapes rusting, the historically designated Luzon apartment building is ready to begin its new life as a high-end condomium. In early October, Intrepid Real Estate LLC will break ground on the new Luzon, which will incorporate the existing building at 2501 Pennsylvania Avenue NW, plus new construction on empty real estate next door. Plans call for 16 large units (2600 to 4000 square feet each) in the eight-story building, with elevators that will open directly into the condos. Pricing is expected to range from $1.8 million to $4.5 million, with the Milan-built kitchen units costing $100,000 per unit alone. The Luzon - originally built in the late 1800s – was designated a historic building in 1990, which ensures its façade will be preserved during this renovation. In addition, the original bell tower at the top will be restored, with retail for lease on the ground floor. With the soon-to-be-completed Columbia Residences and new Trader Joe’s grocery store across the street, the Luzon will certainly be a sought-after address once again.

District of Columbia retail and real estate development news

Ecco Park Sponsors Open House Today

Ecco Park - the new project unveiled recently in Takoma Park, has announced an open house for Today from noon to 3pm. The catered event will promote the much vaunted green project going in one block from the Takoma Metro. Designed by SGA Architects, this project will remove and clean the site now operating as a truck storage area and gas station, offering 85 moderately priced homes a short commute to Silver Spring and downtown.

Brandon at 14th and W Street Goes Bye-Bye – Donatelli Steps In

The names may change, but the corner at 14th and W Street NW remains hot. It appears the land at 1407 W Street where AB-Urban Development was planning to build The Brandon condominium project has been sold to Donatelli Development, and the company has wasted no time breaking ground on an as-yet unnamed 12-unit building for this spot, with a completion date of Fall 2007. Sales are expected to start late this Spring, with pricing believed to be a bit below the current rates for this neighborhood. With the Union Row and View 14 projects being built across 14th Street and new condos going up the road in Columbia Heights (in addition to all the new retail opening and planned for the area), the 1407 W Street project will join a crowded yet highly desirable field.

NCRC Announces Rhode Island Ave. Development

NCRC has announced that it intends to start work on an apartment building at the Shaw Metro next Summer. NCRC, the publicly-chartered organization charged with spurring economic development in the city, will begin construction of the 96-unit apartment building on the 1/4 acre lot known as Parcel 42, at 7th & Rhode Island Avenue, NW, across the street from the Shaw/Howard Metro station. The project will take shape on the northwest corner of the intersection, close to a spate of other development, including West*Group's much-heralded Broadcast Center One project which is expected to start construction around the same time and bring 185 condos and substantial office space to the area. Parcel 42 will offer 46 parking spaces and 7500 s.f. of retail on site, and will be facilitated by RLARC, a subsidiary of NCRC.

ClubCondo DC Launches Condo Blitz

A group of developers and marketers announced today the launch of ClubCondo DC, a single-day marketing event for urban condos (www.ClubCondoDC.com). As many as 10 developers are expected to participate in the event, to be held from 3pm to 8pm on October 14th at Lima Restaurant & Lounge on K Street. The event will admit a limited number of pre-registered individuals to a catered showcase of some of DC’s biggest downtown developers, who will in turn offer a number of one-time incentives for buyers. Lima, Felix Design and Washington Life Magazine will be co-sponsoring the event, with entrance gifts provided by DC’s downtown retail community, including Bang Salon, Wine Specialist, Durkl, VIDA, Skin Lounge, Georgetown Tobacco, Logan Tavern, Stop Smiling, Mint Fitness and others. The sponsors will provide an open bar and food for the duration of the event, at which purchasers will receive special incentives if they make non-binding reservations on a new condo. Developer participants will be announced the week before the event; website registration is required.

Just Put That Condo on My Card...

Consider this the ultimate step in impulse purchases: On September 15, American Express Company announced that it will now allow a selection of its cardholders to use their Amex cards to make a down payment when purchasing a condo. American Express is rolling out its new program in conjunction with the New York-based real estate firm Moinian Group for sales of the new Atelier luxury condominium in midtown Manhattan, though the company sees expanding it should the program prove successful. Plans call for condo buyers to earn reward points (possibly one point for every dollar charged) or frequent-flier miles, as well as extend the timeframe for meeting down-payment requirements. Those in the financial world are intrigued by this move. "I find this program to be quite interesting," said Rami Futerman, Managing Partner at F&M Mortgage Group, LLC. "From experience, this program needs to be implemented properly in conjunction with Fannie Mae and Freddie Mac guidelines, to avoid disqualification of the borrower/buyer from getting a traditional mortgage." That being said, Futerman believes such a program, if it came to DC, would probably "increase the sales and financing for the high end condos that are now springing up around the metro area." Where there is a will to buy real estate, it seems the market will always find a way....

Brentwood Shopping Center Nears Completion

Development continues to spread around the red line’s Rhode Island Avenue metro station, with news that the Brentwood Shopping Center is nearing completion at the intersection of Rhode Island Avenue and Brentwood Road, NE. The new 58,000-sf strip mall will house 8 new stores, including a much-needed bank, but not a good non- fast food restaurant for this part of town. The center is to begin scheduled shop openings by the end of September (with all shops open by the end of October). With nearby new condo projects starting to spring up in Brentwood, such as the RIA at 1007 Rhode Island Avenue and a Metro Properties project at 1300 Rhode Island Avenue, we can anticipate further retail development in this neighborhood soon.

Developer, CVS Battle Over Gallery Place Location

Sometimes, the big glamorous world of real estate development can be tripped up by the most basic landlord-tenant disputes. This week, Yeni Wong, the owner of the building housing the CVS Pharmacy store at the northeast corner of 7th and H Streets NW, filed suit against the retail store for refusing the vacate the space despite receiving an eviction notice this past Spring. Ms. Wong’s development company, Gallery Tower, owns the building at 801 7th Street, and has plans to redevelop this and the next door Kam Fong restaurant building (807 7th Street) into a 50,000-sf, four-level office/commercial space, as well as build her Gallery Square condo project (25 units) on top of the 807 7th Street space. Guess we'll see you in court....

Capitol Hill's Medlink Site Receives Downsized Zoning Approval

Resolving a long-simmering battle in the Capitol Hill neighborhood, on Monday, the DC Zoning Commission officially voted to downsize the zoning for the Medlink campus site, located at the corner of 7th Street and Massachusetts Avenue, NE, completing actions they first approved this past May. The owner of the former hospital site, Peter Shin, has harbored plans to develop the south side of the plot into high-end condominiums (while keeping the health facility at the northern end), and have the residential buildings built up to the limits allowed by the hospital’s zoning classification – a classification allowing higher, larger buildings than the normal residential designation. This plan has been fought against by the Near Northeast Advisory Neighborhood Commission, which argued the "upzoned" hospital designation should not apply to these new buildings. In May, the DC Zoning Commission voted in favor of the community, and lowered the building height for any new construction. Shin is now contemplating two options: Either leasing the south side also to health providers, or transforming the existing facilities on the site into residential units.

No Radicchio for You! Balducci’s Decides to Bypass Penn Quarter

It seems as though the off again – on again saga of the proposed downtown Balducci’s gourmet grocery store has finally sputtered out. This week, Balducci’s firmly announced it will not open its eagerly anticipated store in the ground-level retail space in The Jefferson on 7th Street NW between D and E Streets. The past few months have seen plenty of conflicting statements on the status of this project, with Balducci’s officials often stating the store was in doubt, yet never letting go of the company’s leasehold on this 21,000-sf space. The District was even in on this drama, offering to not only waive the store's real estate taxes for 10 years and the sales taxes on its construction, but to also throw in some additional incentives. But in the end, Balducci’s decided to instead focus on its existing holdings and not expand. JPI, the developer managing this retail space, intends to soon meet with Balducci’s to discuss termination of its lease, thus freeing the space up for another grocery chain, such as Magruder's or A&P Fresh Market, to step in and set up shop.

New $175 Million Complex in Howard County Anticipates Planned Growth

While one member of the DCmud team fondly remembers a dive bar he frequented in decades past along the old industrial rail lines in Savage, Maryland, the proposed $175 million complex just announced for this area should contain a few watering holes to cheer him up. Petrie Ross Ventures, an Annapolis-based developer, has been granted the right (the state will sell the company the land) to transform the 15-acre state-owned parking lot next to the Savage MARC station (bordered by Route 32 and Dorsey Run Road) into a pedestrian-friendly complex of offices, residences and shops – all geared toward the public transportation and housing needs of nearby Fort Meade, the population of which is expected to grow as a result of the Pentagon's recent decision to expand operations at this Army post (almost 10,000 new personnel are expected to work there within the next few years). The proposed Savage Towne Centre will contain two 13-story buildings with 260 housing units (no decision yet on if they will be apartments or condos), as well as two office buildings, two restaurants, a hotel, and 53,000 square feet of retail space. There will also be a five-story garage with 1,000 spaces built alongside the MARC station, plus another 1,000 spaces for use around the complex. Construction is expected to begin in 2008, with completion in 2011.

Braddock Metro Boom

On September 7th, the Alexandria, VA Planning Commission held a working-session to share its ideas for the development of the area around the Braddock Metro Station. The vast development area includes parts of Fayette, Queen and Paine Streets, a 7-acre parcel directly behind the Braddock Metro station, as well as the historic Parker Gray neighborhood. The proposed project would develop up to 2.4 million square feet of residential space and 1 million square feet of retail. The city is considering numerous options, including multiple condominium developments with street level retail, 3000 square feet of retail space along Fayette St., and construction of a Harris Teeter supermarket at 621 N. Paine Street to replace existing warehouses. The commission emphasized the need to preserve what it called a "habitable scale" in terms of the size of the new buildings and the need for open spaces adjacent to the proposed new construction. The Commission expects the total number of housing units built to range between 1500 to 2000, and that development could take 3 to 4 years. The commission also expects an undetermined number of the units to be sold at "affordable," below-market rates.