Sky-Low Prices in Randle Highlands

Just days after the District went public with a proposal for the redevelopment of the St. Elizabeths Hospital campus, PERS Development, LLC is opening the doors on the Sky DC condo development - "apartment homes" in Southeast's Randle Highlands neighborhood. It's a move they hope will dovetail with the Department of Homeland Security's proposed move to the area and draw "more working class individuals...towards this part of the District."

The $4 million development at 1620 29^th Street SE got its Sky DC moniker from the so-called "million dollar view" available from the rooftop deck. Totaling 17,000 square feet, PERS is offering amenities like built-in iPod docks, bamboo floors and temperature controlled wine coolers to court "new homeowners and young professionals" – a cause reflected in the relatively low $200,000 price points for the condos. The project was designed by Bethesda based architects, Easta Inc.

This is PERS’ fourth project in the District and the developer plans on branding it just as they have the others – with “a signature waterfall in the front exterior”. Furthermore, the developer describes itself as the “Carmax of Condo Buying” - due to their “no haggle, lower than market prices” – a point you can debate in person when they hold their second open house this Sunday.

Post your comment about this project below.

St. Elizabeths Plan Envisions Massive Redevelopment

The District announced a new plan today to kickstart redevelopment of the old St. Elizabeths mental institution in Ward 8. If approved by the District Counsel, the series of projects will beef up one of DC's poorest neighborhoods with nearly 3 million square feet of mixed-use development. Mayor Adrian Fenty, Congresswoman Eleanor Holmes Norton, and Office of Planning Director Harriet Tregoning were on hand today to announce the release of the St. Elizabeths East Redevelopment Framework Plan, which recommends transforming the hospital’s eastern, District-owned flank into five neighborhoods, "each with their own character," and pushes for the Department of Homeland Security's (DHS) proposed relocation to federally-controlled St. Elizabeths West. The government transferred ownership of the eastern portion to the District in 1987, while retaining the western campus for its own use.

The Plan is sprawling in its scope – the size of the District-owned eastern half alone measures in at 173 acres. Together, construction on the two campuses - separated only by Martin Luther King, Jr. Avenue, SE - would be second only to the revitalization efforts underway on the Southeast Waterfront in terms of size and scope.

“I think what we have proposed…will not only benefit the people who live in Ward 8 and east of the river, but, just as importantly, the entire city,” said Fenty.

Redevelopment at St. Elizabeths East would create up to 2 million square feet of new mixed-use projects and 750,000 s.f. of renovated historic space. The proposed neighborhoods (pictured, below) are being broken down into the North Campus, Maple Campus, Town Square, CT Village and Metro Station; each would feature a distinct blend of commercial, retail and/or residential space, in addition to “civic and community” areas. The northern portion of the site has been reserved for DHS office space and parking – a move made to sweeten the deal for the Feds, no doubt (more on that in a bit). Meanwhile, the historic St. Elizabeths Hospital, its new 435,000-square foot secondary building and John Howard Cemetery on the grounds would be retained.

The Plan also includes provisos for a cohesive link to the two local Metro stations and MLK corridor, where the City is betting on seeing an influx of retailer and developer interest.

On the western campus, DHS’ proposed relocation would include the construction of new, secure headquarters meant to accommodate roughly 14,000 government employees. If and when the project moves forward, it would mark the first time the federal government has ever crossed the Anacostia River, according to Congresswoman Norton. DHS currently lacks a consolidated headquarters, with offices at different locations throughout the city.

The impact of such large workforce on the environment, Metro capability and local traffic is still being evaluated, while the inclusion of the site in the proposed southeast street car system is still a possibility.

The District will submit the Plan to the City Council next month with a decision to follow in December. A Request for Proposals regarding the DHS parking lots and offices is planned for December as well, the District hopes to break ground on that phase of the project in the first half of 2009. Norton described development as moving along an “unusually fast track.”

The Plan is the product of more than 5 years of parallel development by the General Services Administration (GSA) and the District. According to Norton, it's has been included in the Bush administration's budget for three straight years, but has only been able to move forward, ironically enough, since the Democrats came to power in Congress. The challenge now lies in convincing that same body that moving DHS to another, federally-owned piece of property in Southeast would be beneficial and, most importantly, cheap. It would appear that the future of both East and West hinges on a decision by the federal government; if DHS settles on another location or Congress blocks the site, it could be a deal breaker for both halves of St. Elizabeths.

“There will be great potential here if we continue to do it right. The city and the government will work closely together, as we have on projects in the past,” said Norton.

A budget for the project is forthcoming, and Norton will be holding a town hall meeting tonight from 5:30 - 7:30 PM at the UPO /Petey Greene Community Service Center (2907 MLK Jr. Ave SE) to disclose more details and listen to questions from the public. Another community meeting will be held at St. Elizabeths on October 28^th.

Construction Underway at 1015 Half Street

Concrete poured into the ground in Southeast last Friday as construction at 1015 Half Street got underway. A product of a partnership between Opus East, LLC and Prudential Real Estate Investors, 1015 will feature 442,000 square feet of office space, complemented by 21,000 square feet of ground- level retail, in the thick of Washington DC's burgeoning Capitol Riverfront neighborhood.

Aiming for March 2010 completion, the 10-story, WDG-designed building boasts a 2-story lobby, 8 1/2' ceilings, and views of the Capitol and Anacostia River. The development team also plans a green identity, employing recycled building materials, water-saving plumbing features, a 60% green roof and taking advantage of the site's proximity to the Navy Yard Metro to achieve a LEED Silver certification. Opus East is serving as the general contractor for the project.

The site may be notable to longtime District residents as the former home of the Nation nightclub and, for those with longer memories, the Capitol Ballroom. The project was initially under the control of Potomac Investment Properties, which turned it over to Opus in July of last year for a pre-bailout price of $41.5 million. The project is currently budgeted at $135 million - a small figure compared to what the development team stands to gain, if 1015 and the glut of other Capitol Riverfront projects currently underway can weather the economic downturn.

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.

Industry Insight: Sami Kirkdil and Meral Iskir of SK&I Architectural Design Group

Since its' inception in 1999, the SK&I Architectural Design Group has been one of the go-to names for striking, sophisticated architecture in the DC area. With mixed-use projects like Wisconsin Place in Friendship Heights, Union Row in Columbia Heights and an upcoming slate that includes Lot 31 in Bethesda, and the Washington Gateway and Constitution Square in NoMa, their designs will soon be more prominent than ever. Sami Kirkdil, President of SK&I, and Meral Iskir, Executive Vice President, took the time to sit down with DCMud and talk about their approach to architecture, the current effects of the housing market on an architectural firm, and what the District might look like a few years down the line.

How did you get your start in architecture? 

MI: I originally studied back in Turkey and then studied again here at Catholic University. I’ve continued to work steadily since I initially came here 40+ years ago. I spent some years with CHK, then Sami and I started this firm. We’ve been doing all kinds of architectural projects and just working, working and working. 

SK: I think my introduction to architecture was through my father’s friend – an architect friend. When I was a kid, he used to do sketches of buildings and give them to me, and that kind of intrigued me. I was basically good at math, science and art, so I thought, “Hey, this might be the thing for me” in high school. I knew what I wanted to do, so I went to college and have been practicing for the past 25 years. I think that you are the most happy when you’re working hard and designing. Obviously, there’s a lot of red tape and a lot of things that you have to do, but designing and doing a project is the fun part of it. I think that’s what drives us towards the future. Somewhere along the line our specialty became mixed-use, residential design. In the last 8 or 9 years, we’ve done a lot of big residential projects. It was just the right time and the right place. There weren’t that many firms focusing on residential and we’ve had a head start on that game. We’ve grown from a two person firm to a 50+ person firm. We’ve kept that steady, but didn’t want to grow out of control and maybe lose the quality of our work. 

What kinds of projects appeal to you personally and, by extension, your firm? 

SK: Generally, our cup of tea is more complex projects that play in the urban realm, fit into the neighborhood and create a nice home for the people who live in it. There are always new ways to put together interpretive designs with the way buildings go together, basically. 

How would you typify the developer /architect relationship? Are some harder to please than others?  

SK: We might be a little different than a lot of other firms. I think our expertise is that we understand the development process as well the developers. Basically, what works and what doesn’t work. We can reason with them when it comes to what design ideas might propel them in a specific area. They don’t necessarily have to educate us; sometimes we try to guide them. We want to become their partners. We want to understand their theme and their dilemma. We want to give them an edge. 

MI: Of course, our position allows us to work with different developers. This is kind of an advantageous position in the sense of understanding and thinking about a project through our own experience. It kind of enriches our understanding of what goes on in the market and allows us to show leadership through our designs. We’re not doing the architecture for ourselves, but for our clients. At the same time, we can control the quality and accomplish the best we can within the given conditions. 

If you change one thing about the DC development process, what would it be? 

MI: Getting to a better place where there is an appreciation for the architect’s efforts. That is lacking in general, as far as I’m concerned. 

SK: Well, there are good things and bad things about building height. I think that’s one thing that would be good to look at. There are some instances where it creates a very walkable city. On the other hand, architecture becomes challenging when everything’s 13 or 14 stories. It couldn’t be a bad idea to have more height in some locations. I think, given that our resources are now more limited, we have to densify our cities. To me, densifying

the city, outer suburbs, or Metro locations with higher height and higher density is probably something that would be good for Washington. 

On that note, you built Union Row above a Metro station. What kind of challenges did that pose? 

SK: Lots, actually. Part of the problem with that site was that it was an assemblage – a bunch of little pieces. But our real plight was the Metro tunnel running from 14th Street and curving down towards 13th Street. That part of the site we couldn’t actually build on. What we did was have the building’s shape follow the route and then we put our girders and columns right along it. We could only put two levels of parking there, while the rest was three levels. It was a long, lengthy process of getting approval from Metro and testing and excavation. 

MI: In addition to that, we also had to provide access to the existing warehouses that were there – in addition to upgrading and renovating them. We tried to create a kind of plaza-like structure there. I think we were successful in the view from the main street and were able to manipulate the design in such a way that it gets your attention. 

You have also been contracted for one of the largest projects in NoMa (Constitution Square). Can you give us a bit of insight into how NoMa might look in, say, 5 years? 

SK: Well, instead of 5 years, let’s say 10 years. I think, potentially, people are wishing for the same thing that happened to Chinatown. We were there 9 years ago with Massachusetts Court at 4th and Mass and couple of other projects that did not go through. Today, if you look at Chinatown, they have all the nicest restaurants in the city. In a way, it’s surpassed DuPont, northwest Connecticut Avenue, in terms of pizazz. NoMa wishes that they’ll be seeing the same quality and caliber of that development. Obviously, the Verizon Center and all that retail is a big advantage and we want to see similar kinds of things in NoMa. The project we’re doing is mixed-use – an office building, a hotel, a Harris Teeter grocery store and apartments. The hope is to create a critical base of retail, residential and office space, so that you’re not building up an area that shuts down at five o’clock. Since 2000, if you look at the city and our projects, we are trying to create a 24-hour living space that has a life cycle with offices and retail. You’re not necessarily commuting; you’re living, shopping and working in the same place. You’d hope that NoMa becomes that. 

MI: I think the fundamental approach is understanding how neighborhoods and areas stay alive, rather than just a being a place to go to in the daytime and empty in the nighttime. I think they want a good foundation for a better future this time. 

How much work do you do outside the metro area? SK: We have done international work over the years and, if you look at our career, we’ve done all that stuff. If you look at the past 9 years, we were really busy and did not want to grow. We used to turn down almost 20% of the work that came in the door. We were cherry-picking the projects that we’d do. Obviously, circumstances have changed, so we’ll probably be looking at doing projects outside the area. We’ve done projects up and down the East Coast from Miami to Boston.

MI: We were involved with many projects outside the area, for example, Harbor East in Baltimore. We did an 18-story project there that was mixed-use – again, with retail. 

How does the current economic situation affect an architecture firm? 

SK: I’m sure the whole development world is living on fumes. Obviously, with the current financial market, there’s very little money available. There are two things going on. There are great projects that have secured financing to do private work; and there is some entitlement work that will go forward. People are hoping that the market will turn around and it’s that optimism that’s the driving force. I’m sure there will be a great opportunity to have any kind of product out there in a year or two. Once the economy turns back, the first people out of the gate will make out the best. Once the market steams up, you jump in to catch a piece of it. We have some clients that are in a cycle where they’ll be delivering in 2011, 2012, 2013 and they’re hopeful that their financing is intact. Other clients think the market is going to shrink. And it is shrinking because the capital behind what you can finance is zero. We are hearing it every day, it’s tough out there. We’re going to see a lot more competitive pricing. For the first time since we’ve opened our doors, we’re actually out there chasing RFPs. 

MI: Generally, lots of architecture firms are actually shrinking. At the time, some of the other ones are looking abroad to the Middle East and so on. But everyone’s affected. 

What was the most challenging project you’ve ever worked on? 

SK: I think every project’s a challenge. Our specialty is – even though we’re a mid-size firm – we tackle really complex projects. One of our projects that’s under construction, Wisconsin Place, had basically three or four different teams. The garage was done by different architect and structural engineer and parts of the building were done by another architect and structural engineer, so there was a lot of interface coordination and collaboration between all these different teams. A “who does what?” type of deal, so Meral championed that effort and it took us a while. We had to wait for other firms to finish their work. The other project we’re currently working on is going to be very complex - Lot 31 in Bethesda, which is now two parking lots across from Barnes & Noble. There was a very complicated entitlement process and we’re now full throttle in the design process. It’ll take a while to get it built because what we’re doing is, basically, taking Woodmont Avenue away [laughs]. We’ll be digging into the rock for five levels and building a column-free garage. Then, we’re doing a 9-story building on one side and a 5-story building on the other. 

MI: Thinking about it while Sami was talking, I think every project has its’ own challenges. You have to try to design it in such a way that the building will look unique, but still serve the neighborhood and be able to get through the approval processes. You have to work with the contractors and combine with the developer’s needs to make the project as successful as it could be. I don’t want to sound conceited, but I think our experience is such that we are good listeners and can point any issues before they become a problem. It forces us to make every project a 360 degree success. Every project has its’ own unique expectations and character. They’re like your children. Every one of them has a different personality and the challenge is having happy and successful children, in a certain sense. 

If you could work on any project, what would it be? A dream project... 

MI: Is there such a thing as a dream project? Human beings always change and what you liked yesterday could change tomorrow. When I look back at some of the projects I’ve done, I liked them then, but not necessarily today. At the time you might think of it as a dream project, but tomorrow you could always say, “Was it really?” 

SK: It’s tough, but the kind of project that allows me to be wild and think freely is a dream project. That said I can’t design a house for myself because I’m my own worst critic. When it comes to designing your own thing, it’s not easy. I’m very deliberate and straightforward in designing projects for others. For myself, I’m terrible because I want to accomplish much more than I can handle – the program, the aesthetics, the budget. If you design something today and look back at it in a few months, you might say, “No, maybe that wasn’t the right thing to do.” Your tastes change. It’s a process that keeps your brain sharpened.

Washington DC commercial real estate news

Donatelli Bringing 'Downtown' to Minnesota-Benning

Mayor Fenty today announced the District’s selection of Donatelli Development and Blue Skye Development as the developers of a 5-acre parcel at Minnesota Avenue and Benning Road, NE, adjacent to the Minnesota Avenue Metro station.

The $108 million mixed-use project will bring 40,000 square feet of retail space, 375 affordable housing units and 60 market units to the major hub of Ward 7. These developments will be coupled with “a 5,000 square foot retail incubator” reserved for local businesses and 2,500 square feet of “community space.” Architects Eric Colbert & Associates are designing the project.

“This area is what some are now calling ‘Downtown Ward 7,’” said Fenty. “That is because of the energy, the already existing activity level and also the great potential of Minnesota Avenue and Benning Road.” The intersection currently houses several strip malls, an auto parts store and a parking garage dedicated to Metro parking (pictured).

Once completed, the project will neighbor the new, already under-construction Department of Employee Services headquarters. Fenty went on to point out that several other developers have also expressed interest in remaining lots on all four corners of the busy intersection.

This announcement follows an RFP for the site issued last spring and a competing proposal from City Interests, LLC. Christopher Donatelli, President of Donatelli Development, said he expects construction on the by-right development to begin “as quick as possible,” with a probable start date sometime in the next 18 months. He went on to say that the project should be open for business “36 months from today” – meaning the first signs of a true downtown for Ward 7 should start to crop up in late 2011.

The project is being fast-tracked by the District, as it requires no subsidies from the local government and no changes in zoning. Donatelli is also taking advantage of federal lending programs targeted at affordable housing development that will allow them to move forward with the project during the current economic slowdown.

“As long as there is a need for affordable housing - and we know that there is - this project will be addressing the supply,” said Donatelli. Donatelli has substantial cred with the Mayor, after having transformed Columbia Heights from a similarly vacuous site to a thriving metro center. Blue Skye was chosen just last week for redevelopment the Tewkesbury, a blighted District-owned apartment building in Brightwood that will convert to condominiums. Lacey

Low Density, Low-Income for U Street Lot

The ever-changing U Street corridor is likely to receive another housing project - this time courtesy of the Public Welfare Foundation (PWF) and the Metamorphosis Development Group (MDG). The development team is planning on constructing 10 new, affordable houses on Temperance Court, NW - an alley between 13th and 12th Streets containing a surprisingly large (13,000 s.f.) vacant lot just steps from U Street and next to the Metro station.
Designed by Amy Gardner of Gardner Mohr Architects LLC, the single-family town homes envisioned for the site will be available to those making less than 60% of the Area Median Income and will include a mix of one and two bedroom floorplans.

Given Temperance Court's designation as a historically protected site, the development team has filed paperwork with Historic Preservation Review Board (HPRB) and expects notes on their plan in December. They’ll also be meeting with the local ANC board next week - the commissioner of which, coincidentally, lives adjacent to the alley. If everything goes according to plan, Metamorphosis expects to file for a Planned Unit Development (PUD) in December of next year, and to begin construction in late 2010.

The Temperance Court development marks the PWF’s first foray into affordable housing. According to their website, they typically provide grants for “scholarships and occupational training, medical equipment, [and] clinics.” But, according to Christopher Donald, Managing Partner of MDG, the project isn’t entirely out of their purview. “The project is kind of an anomaly, but because of the historic nature of the project, they wanted to return it to its former use to serve some of the same families that they would serve in other ways,” he said.
It should also be noted the PWF is headquartered at 1200 U Street, NW (AKA the “True Reformer Building”), a stone’s throw from Temperance Court. Not a bad commute to the job site.

Washington DC real estate development news

Nothing But Blue Skies Ahead for Brightwood Apartment

Yesterday, the District of Columbia announced its selection of Blue Skye Development and the Educational Organization for United Latin Americans to redevelop the Tewkesbury, a long-abandoned Brightwood apartment building.

A piece of real estate DC Mayor Adrian Fenty called "a disgrace" and "a blight on the Brightwood community for more than 20 years," the 26-unit apartment building at 6425 14th St., NW, dates from the mid '50's and has been vacant (officially) since 1985. The District had cited Vincent Abell, the former owner, with over 100 housing code violations, and initiated a suit against him and several other landlords in April for repeated code violations. Not a bad deal for Abell then, who received $3,000,000 for the property from the District, or $115,300 per blighted, disgraceful unit.

Deputy Mayor Neil Alpert's office moved quickly through the selection process, issuing the RFP just this May, selecting the winning bid from the four received by the August deadline. In addition to the Blue Skye team, the District had received bids for the 30,000 s.f. building from Mi Casa, Inc., PML Real Estate, LLC, and 14th Street Partners - a group including UrbanMatters Development Partners LLC, Northern Real Estate Urban Ventures, and Emory Beacon of Light, Inc. A plus factor that appeared to cinch the deal for Blue Skye was its inclusion of a 54 unit building at 1330 Missouri Avenue, a property the developer now controls and will turn into a senior living center.

Mayor Fenty announced that the building will be converted into 13 market-rate condos and 13 "affordable" units, without specifying that nature of those units. The Deputy Mayor's Office for Planning and Economic Development predicts that construction "could begin" by summer of next year.

Washington, DC real estate and development news

Wheeler Terrace Goes Green in Southeast

The Community Preservation & Development Corporation (CPDC) today led a groundbreaking ceremony for the all-green renovations currently underway at Wheeler Terrace public housing project. Once stigmatized as a "crime hotspot," the newly refurbished, seven-building development is being touted not only as being beneficial to the environment, but as a (healthy) shot in the arm for Southeast as well.

"You saw this big, beautiful tent and thought you were in Georgetown, but you're not. You're in the new Ward 8," said councilman and former mayor Marion Barry during his remarks at the event. "Southeast Washington has had a negative image for a long time. We're going to turn that around."

CPDC and the architects behind the project, Wiencek + Associates, are seeking to lead by example by outfitting Wheeler Terrace with a cadre of green features usually unheard of in public housing. The 116 affordable housing units – located at 1217 Valley Avenue SE - will feature energy efficient insulation and appliances, clean-air systems, white reflective vinyl roofs, a green roof demonstration project, and – in a first for District public housing – heat supplied by a geothermal pump. Upon completion, it will be the only such project in the city to merit a LEED gold certification – another point of pride for the developers and tenants alike.

“[The current tenants] are absolutely thrilled. The fact that they have the opportunity to go green is a big deal for them,” said the CPDC’s press contact for the project, Michelle Darden Lee. “It saves on utility costs and one of the things that this project shows is that going green isn’t just for upper income projects.”

Funds for the $33 million project were drawn from a variety of sources – primarily a $4 million loan from the Enterprise Community Partners (ECP) and City First Bank, and another $1.9 million loan from the Housing Partnership Fund. ECP also made two further contributions to the project: a $50,000 grant for “green design and planning expenses” and a $25,000 grant for “organization development.” Other financial partners on the project include the District of Columbia Department of Housing and Community Development, the District of Columbia Housing Finance Agency, PNC Bank and Union Bank of California.

According to Mark James, CPDC’s Project Manager for the development, Wheeler Terrace’s troubled past didn’t preclude the developer from having any shortage of investors:

One of the reasons we selected ECP and the bank is that they were not only aware of who we were as developers, but also very committed to doing green building. They felt as though CPDC has done a number of projects in areas that had experienced blight and significant reinvestment over the years. When we put the idea of being green along with our experience as affordable housing developers, they felt extremely comfortable.

Plans for redeveloping the blighted housing project stretch back to 2006, when the residents of Wheeler Terrace exercised their right to purchase the land under the District’s Tenant Opportunity to Purchase Act (TOPA). The new owners, the Wheeler Terrace Tenant Association, selected CPDC as developer shortly thereafter. Turner Construction is currently spearheading the renovation efforts at the 133,000 square foot site. Construction is expected to be completed in July of 2009.

High-Style and Mixed-Income Meet at Parc Rosslyn Opening

This Thursday, the new Parc Rosslyn high-rise - located at 1531 North Pierce Street - will open its doors to the public and solidify its' place as one of Arlington County's greatest affordable housing accomplishments. The product of more than 10 years of work by the Arlington Partnership for Affordable Housing (APAH), the Parc Rosslyn is a 15-story, 238 unit building that sports 96 units of affordable housing and amenities otherwise unimaginable in such a development - floor-to-ceiling windows with views of the DC skyline, patio grills, a business center, a concierge and, perhaps most surprisingly, a rooftop swimming pool.

"I think people will be stunned by this beautiful building," said Nina Janopaul, Executive Director of APAH. "It represents a very efficient use of government resources to create this wonderful opportunity for a mixed-income, diverse property.”

Located in the Rosslyn-Ballston corridor, the Collins & Kronstadt-designed building satiates the area’s needs for high-density, affordable, green housing (a LEED silver certification is pending for the project) in one of the region’s biggest and busiest thoroughfares. “We’re really fulfilling this goal that the Arlington County Board had back in the 1960's to create transit-oriented development,” Janopaul told DC Mud. “We’re using density near public transit corridors - and what a wonderful thing that is for the environment, too.”

At a total cost of $68 million, more than two-thirds of Parc Rosslyn budget came from tax exempt bond-issue financing – making it the largest ever such project approved by the County. "Essentially, the term of art is a conduit financier," says Ken Aughenbaugh , Director of Arlington County's Housing and Neighborhood Division. "These bonds are sold on the market by an investment bank to others who buy the bonds as investments - usually larger corporations or mutual funds. This is a mechanism that other jurisdictions around the country use to finance affordable housing developments." The rest of the funds for the project came from low income housing tax credits and soft second mortgage financing provided by the County.

APAH originally acquired the site - which formally housed a 1940s-era, 22-unit garden apartment development - from Arlington County in 1994 at no cost, but did not begin construction until January of 2007. Residents began to move in this past July, while the finishing touches – swanky pool included – were finally completed in September. Construction was handled by Paradigm Development, the company which will also be serving as the building manager of the project.

In order to mark the occasion, Parc Rosslyn will hold its’ gala grand opening this coming Thursday, October 16^th, on site at the new building. Congressman Jim Moran (D), Chairman J. Walter Tejada of the Arlington County Board, Executive Director Susan F. Dewey of the Virginia Housing Development Authority, APAH Chairman Caroline Settles, and Executive Director Janopaul will all be on hand to remark on the occasion. The ceremonies begin at noon and will include a tour of the facilities. The event is open to the public.

Years Late, Old Post Office May Deliver

President George Bush has signed a bill into law that seems to finally set in motion the redevelopment of the Old Post Office building at 1100 Pennsylvania Avenue, in downtown DC's Federal Triangle. The law specifically encourages the General Services Administration (GSA) to develop the building upon authority it received back in 2001, but which the GSA failed to implement.

The federal law specifically faults the GSA, given authority to redevelop the building in 2001, for dallying to produce its 2004 Request for Expressions of Interest, a document which generated substantial buzz and private sector feedback at the time, but which the GSA miscarried, leaving it unchanged. GSA could not be reached for comment.

GSA and the Office of Management and Budget had been evaluating redevelopment options for the famed edifice on Pennsylvania Avenue for a number of years. Federal Triangle’s Old Post Office was the largest government building and the first steel-framed building in the capital when initially built as the headquarters of the Post Office Department in an attempt to revitalize the surrounding neighborhood.

Complete demolition is not a threat as it was after WWII, but under the National Historic Preservation Act the government space can be leased to private tenants, providing endless possible uses for the building. In the 80’s, the GSA tried to take advantage of this by creating retail space on the first two floors, a project that has since proved financially unsuccessful. Congress suggested that the use of the lower level space not be predetermined, but rather this redevelopment project to be used as an opportunity for developers to submit unique ideas for the building – with the stipulation that any changes made to the inside of the building during redevelopment be reversible.

The bill calls for the facility to put to a better use than its’ current incarnation as the home of a food court and a dwindling number of government offices. This would mark the first step towards the realization of one of the key tenets of the National Framework Plan (which DC Mud reported on last Friday). Specifically, the Plan calls for the 109-year-old historic building to be incorporated into the grounds of a new, mixed-use development that would stretch from 9^th Street to 12^th Street NW. How this would affect any current tenants remains to be seen. The GSA is given specific authority to move the current federal tenants into other buildings.

The speed of the redevelopment does seem a bit, well, postal, given that the idea was initially put forth…wait for it…44 years ago. The Pennsylvania Avenue Commission - initiated by President John F. Kennedy in 1962 - recommended the demolition of the Post Office to allow for completion of Federal Triangle and revitalization of what was then a decaying strip of Pennsylvania Ave. Nancy Hawks, the Chairman of the National Endowment for the Arts at the time, led a crusade against the measure that included letter writing campaigns and full blown street protests. Eventually, the government backed away from the matter and the building was added to the National Register of Historic Places – a status that will protect it against demolition during any redevelopment efforts that take place. Metropole

3 Teams Bid for SW Firehouse Site

If you've ever dreamed of living out your childhood fire fighter fantasy by sliding down a brass pole to get to your office, the Office of the Deputy Mayor for Planning and Economic Development (DMPED) has good news for you. DMPED recently received three responses from local development teams concerning the District's redevelopment proposal for two sites at 4^th & E Streets SW - including turning the current home of Fire Engine Company 13 at 450 6^th Street SW -- into a mixed-use development.

The proposals come from three differing alliances of local developers. JLH Partners, Chapman Development, and CDC Companies comprise the first team; Trammell Crow, CSG Urban Partners, and Michele Hagans as the second; and Potomac Investment Properties, City Partners, and Adams Investment Group (together calling themselves E Street Development Partners LLC) the third.

The proposals for the site include plans for rebuilding the 34,000-s.f. Engine 13 station (either on site or within a two block radius), up to 465,000 square feet of office space, a 130-208 room hotel, and the inclusion of ground level retail. According to a statement released by the OMPED, two of the submissions include “proposed community space,” while one set out plans for “an 11,000 square foot atrium-covered public indoor park.” This jives with the District’s insistence on seeing a community center incorporated into any prospective design. The proposals presumably align with the initial RFP’s insistence that at least 35 percent of any contracts go to certified local, small or disadvantaged businesses, and that at least 51 percent of the new jobs created by the project go to District residents.

The projected construction would also envelop the second site included in the District’s RFP – a 19,000 square foot vacant lot bounded by 4^th Street, E Street and the Southwest/Southeast Freeway. Deputy Mayor Neil Albert's choice should be known by December, the District's deadline for selecting the best team. Groundbreaking could take place as early as summer 2010.

Located behind the Metropolitan Police Department’s (MPD) First District headquarters, this marks the second such construction project the District has planned for the block. After their last location proved too expensive, the MPD building at 415 4^th Street SW will undergo demolition in order to make way for a new, 240,000 square foot Consolidated Forensics Lab (CFL) - construction of which is expected to begin in December. BIDs for that project are due to the District’s Office of Property Management by November 7^th.

Axis

Framework Plan Re-Envisions Downtown DC

With development occurring throughout the District of Columbia, many local and government agencies called earlier this year to establish a scheme to orchestrate continuity between Washington’s most visited areas and the up-and-coming projects now in the pipeline. The rejoinder has finally arrived. The National Capital Framework Plan (NCFP) - co-authored by the National Capital Planning Commission (NCPC) and the US Commission of Fine Arts (USFA) - outlines several strategies to "enhance Washington's reputation as a walkable, transit-oriented, sustainable city" for residents and tourists alike. The plan focuses on four distinct areas of District development: the Northwest Rectangle, the Federal Triangle (including Pennsylvania Avenue), the Southwest Rectangle and East Potomac Park. In all, the plan highlights 5.5 million square feet of land that it aims to dedicate to 4 new museums, 75 acres of “civic gathering space,” 32 acres of recreational area, 13 acres of parkland, “numerous” memorials, federal office space and mixed-use development.

The Northwest Rectangle (defined by F Street to the north, Constitution Avenue to the south, the Potomac to the west, and 17th Street to the east), first on the docket, requires “a symbolic and physical connection” to be established between the Kennedy Center and the Lincoln Memorial. That would include extending E Street NW and establishing it as a one mile “landscaped boulevard” that would connect to the Kennedy Center, the White House and President’s Park - resulting in a new public park on Virginia Avenue NW between 19th and 22nd Streets NW. New residential and shopping areas would be installed on a deck above the Potomac Freeway, which would also allow 25th & 26th Streets NW to be reintegrated in the street grid. The infrastructure modifications don't stop there - the plan also suggests a realignment of the Theodore Roosevelt Bridge to free up desirable public space along the shoreline.

Over in the isolated Federal Triangle, the Plan reimagines Pennsylvania Avenue NW as space that will live up to its status as “America’s Main Street.” The Plan critiques federal installations such as the Old Post Office and the J. Edgar Hoover FBI Building as not living up to their potential and suggests, politely of course, that the government simply find a new home for these tenants elsewhere in the city (no rush, any time in the next 30 days would be fine). In their stead, the plan calls for the creation of new grand mixed-use development between 9^th and 12^th Streets and a new National Aquarium (already planned to front Constitution Avenue) - in addition to other “cultural and hospitality destinations” for the area, including the Freedom Plaza, a “Federal Walk” history and arts trail and public outlets that would supply the area with some semblance of a nightlife. "Mixed-use" is also the word of the day in the Southwest Rectangle. Described accurately as an “uninviting federal enclave” - albeit one the federal government created with an earlier plan intended to "revitalize" an existing neighborhood - The Plan proposes an extensive rebuild of 10^th Street SW. Smithsonian Castle to a refurbished Overlook (current home of the Maine Avenue Fish Market), transform The new street would run from the Maryland Avenue SW, link the US Capitol to the Jefferson Memorial and serve as a gateway to the emerging Southwest Waterfront. By taking advantage of 18 acres worth of air-rights, the NCFP proposes a new “mix of office, cultural, entertainment, hospitality, and residential” development that would terminate at a newly decked out Overlook. The hope is for new street-level projects on the north side of Maine Avenue SW - across from the waterfront – including (yet another) new museum on the site. The Liberty Loan building (14th & D Streets SW), the Whitten building (1400 Independence Avenue SW) and a portion of the Forrestal complex (1000 Independence Avenue SW) are also identified as possible museum locations. Plans for Maryland Avenue consist of a new park at the intersection of Maryland and Virginia Avenues SW and the reclamation of the original street grid that is currently sliced-and-diced by train tracks and tunnels leading to Union Station.

The NCFP aims to integrate East Potomac Park into the fabric of daily life in the District by making it more than just a golfing and jogging destination. This would be primarily achieved by improving connections between the Park and the city proper through the construction of a canal by Buckeye Drive SW, a new Jefferson Memorial Metro stop, and a new foot bridge at P Street SW “to improve boat, pedestrian and bicycle access.” Additionally, the area surrounding the Memorial would be expanded and improved by eliminating the numerous “infrastructure barriers” dividing the park. Along the shoreline, the waterfront esplanade presently on site would be raised and widened so as to showcase memorial sites (like Hains Point), maritime areas and natural wetlands. The Plan also recommends the inclusion of stops for proposed water taxi service that would connect Nationals Stadium, the Southwest Waterfront, Alexandria, Georgetown and National Harbor. The area which the Plan identifies as the most ripe with potential, however, is the northern side of the park on the Washington Channel, being dubbed Potomac Harbor. Envisioned as the location of “new low-scale, one to two story, development,” Potomac Harbor would host cafes and water-based recreation activities that would serve as a complement to the numerous mixed-use projects occurring directly across the river.

Washington DC commercial real estate news

RFP Issued for Deanwood Rec Center

Hot on the heels of last week’s Strand Theater announcement, Northeast’s Deanwood neighborhood is now in line to receive a new $20 million, 63,000 square foot community center. Banneker Ventures LLC (also the developer behind the Strand revitalization initiative), Reagan Associates LLC, DC Housing Enterprises and the Program Manager of the center’s current incarnation, have jointly issued a request for qualifications to builders that aims to have the new Deanwood Community Center (DCC) open and operational by May 2010. The project is the product of a partnership between the Office of the Deputy Mayor for Planning and Economic Development (OMPED) and the Department of Parks and Recreation (DPR).

Located at 49^th & Meade Streets NE, the new DCC will sport “an in-door leisure swimming pool," gymnasium, game rooms, full library, a child care center, and dedicated senior space, as well as swanky designs by Ehrenkrantz Eckstut & Kuhn Architects (EEK) and a projected LEED silver certification. Everything currently on the site – including the swimming pool, tennis courts and the existing building – will face demolition in the coming weeks.

Proposals are due to Banneker by 12 PM on Monday, October 20^th.