Community Boycotts Groundbreaking for Affordable Housing

When the development team for the $35 million Linda Joy and Kenneth Jay Pollin Memorial Community Development in northeast DC announced its groundbreaking scheduled for tomorrow, one thing they didn't count on was fierce opposition from the community. But they've gotten it, and then some. ANC7D organized a phone and email campaign that ultimately convinced Councilmembers Kwame Brown and, according to the ANC press release, Chairman Vincent Gray to boycott tomorrow's press conference and groundbreaking scheduled for 10:45 AM at Anacostia Avenue and Hayes Street, NE. Though Gray's office indicated the groundbreaking was still on his schedule. Pollin Memorial Community Development, LLC's planned development would bring 125 new affordable for sale and rental homes to northeast, a site which is a composite of property belonging to 3 government entities – the District of Columbia, the District of Columbia Housing Authority (DCHA), and the National Parks Service (NPS).

The Pollin project will replace one-for-one the 42 affordable rental units on site, known as Parkside Additions. The project was initially spearheaded by the late Abe Pollin and his Pollin Foundation, which courted the approval of all landowners back in 2006 and received approval for the project from NCPC last year. The current Parkside project was described by the National Capital Planning Commission (NCPC) as “functionally obsolete,” so no real loss there.

In July of 2009, ANC7D reviewed a loan request for $7.9 million submitted by the Pollin Foundation to the DCHCD (DC Housing and Community Development), however with only 30 days provided to submit a response, the ANC unanimously rejected the request, and continues to object. ANC7C04 Commissioner Sylvia Brown told DCMud in an email that the "Pollin team have not been transparent and open to communications." Of particular concern is the community benefits agreement and the plan for relocation and return for current Parkside tenants. According to Michael Price, spokesperson for Councilmember Kwame Brown, "the community is adamant that they are looking for a community benefits package and the Councilmember stands by them."

Terri Bolling, Spokesperson for Enterprise Community Investment, one of the development partners on the project,was unaware of the community's recent actions and plans to boycott the groundbreaking. She remarked "this is so strange" since community outreach "is what we do."

John Stranix, formerly of Clark Construction and now of Stranix Associates, is spearheading the construction effort using designs by Torti Gallas & Partners. The project aims to begin construction in early 2010 with the first units available in 2011.

Washington, DC real estate and development news.

FDA Blooms at White Oak

The General Services Administration (GSA) is gearing up for Phase 4 of the $900 million (and counting) Food and Drug Administration (FDA) Headquarters Consolidation at the former site of the White Oak Naval Ordnance Laboratory off New Hampshire Avenue in Silver Spring, MD.

More than 4,500 FDA employees have already taken up occupancy within seven completed White Oak campus buildings designed by KlingStubbins and RTKL and built by Tompkins Builders (a subsidiary of Turner Construction). Assuming additional government funding comes through for the 2.3 million square foot facility, construction on the final building should wrap up in 2013. Upon completion, about 8,000 employees from 39 leased offices across DC will relocate to White Oak, uniting at long last the likes of Center for Devices and Radiological Health and the Center for Veterinary Medicine, and fostering what FDA Commissioner Dr. Andrew C. von Eschenbach promised in a 2008 Consolidation Report will be a new spirit of "scientific collaboration."

Phase 4 of the project is slated to begin construction this February. This $130 million portion of the project will add 560,050 s.f. of office, laboratory, and research space to the campus in two buildings and will ultimately toss another 1,159 FDA employees from the Office of Regulatory Affairs and the Office of the Commissioner into the FDA party mix.

Bids for subcontractors are scheduled to be released any day. Until then, FDA Press Officer Chris Kelly tells DCMud that the FDA will be keeping mum "about the construction project, as it is procurement sensitive."

Silver Spring real estate development news

New Toy for Real Estate Geeks: Interactive DC Zoning Map

For those of you who, like us, spend many a gleeful hour pouring over zoning documents in search of a story, project information or lead on a new contract, you now have a fun new toy. Today the DC Office of Zoning launched its new, interactive Zoning Map along with a glossary chock full of terms related to the zoning process- both excellent tools for decoding public information and being generally nosy. The map allows a user to "determine the zoning classification for any property in the District" and to search by address, parcel, square & lot or by PUD (Planned Unit Development). Users can select from a list of zoning data to display such as Overlays, pending PUD's, Zoning District, etc. A report will appear based on the selected data fields with the information requested, including the most recent case numbers. Happy searching!


DC real estate and development news.

The Policy, Kalorama

Sponsored Announcement

UIP Property Management, Inc. presents The Policy, located in the heart of the Kalorama Triangle at the corner of 20th and Kalorama Streets, NW. The Policy is a fully renovated, depression era building built in 1929. The Policy features 62 light filled, spacious apartments including studios, 1br/1ba and 2br/2ba apartments. The Policy has the luxurious feel of a high-end hotel with its grand lobbies featuring custom mahogany mill work and intricately patterned marble floors. The apartment homes were each fully renovated with condominium level finishes, including granite counters and vanities, stainless appliances, individual combo washer/dryers, individual, central heating and air conditioning, new kitchen and bath tile, restored hardwood floors and many large closets. The building also includes a controlled access entry system with 24 hour video monitoring, a bike storage room featuring a bike ramp, and additional storage lockers available for rent. If you want to live in the heart of the city or if you are looking to upgrade, starting at $2,2000, call us today at 202-244-3811 or visit us at our website www.uippm.com.

DC's Janney School Releases New School Renderings

Janney Elementary School in Tenleytown has released renderings of the addition that will nearly double the size of the existing school. The new plans represent the nearly final design for the 4-story addition to flank the school's western side, taking the place of the current playground. Washington DC-based Devrouax and Purnell Architects have designed a modern structure of brick and glass to accompany the historic school, which was landmarked on November 19th by the DC Historic Preservation Board. Construction is expected to commence in March of 2010, after which the old school will be renovated. The new plans come after several years of acrimony, a result of the original plans to build a library and apartment building next door, with the developer therefore restoring the aged school. The school will hold a public meeting on December 15th to procure feedback on the plans. Meanwhile, several months after the official ground-breaking, work actually began last week on the adjacent public library. 

Washington DC real estate development news

National Museum of African American History and Culture Design Process Crawling Along

The design for the future National Museum of African American History and Culture on the National Mall checked off its first of a series of reviews today, when the National Capital Planning Commission (NCPC) heard a presentation from the Smithsonian Institution and their chosen architect, Freelon Adjaye Bond/SmithGroup, about the plans for the building. Though commissioners praised the quality of the design, many expressed "serious concerns" about the current design's size and massing in relation to the Mall and the Washington Monument. The design process is scheduled to last approximately 3 years, with construction beginning in 2012. The 5 acres of land near the Washington Monument have been the subject of vociferous debate first with the National Park Service opposing its use for anything but the grassy space that exists today, then with 22 designs competing for the site and now with sundry federal and local agencies reviewing the merits of the design that won out over five other semi-finalists this past April. Bounded by Constitution Avenue, Madison Drive, 14th and 15th Streets NW, the site would be the terminus of the Smithsonian museums on the Constitution side of the mall, leading up to the Washington Monument. The current design is what the architect described as a pavilion, its base embracing the mound-like structure at the base of the neighboring "temple" buildings, which include the Museum of Natural History and the American History Museum. The building then opens inwards like a "front porch" to reflect a structure common in both traditional West African and southern African American cultures, according to the architect. The mass of the building is aligned with the Museum of Natural History and it is no higher than the American History Museum. NCPC commissioners generally commented favorably on the concept, especially praising the interior design of the building. However, one after another, members expressed concern that the building would diminish the impressiveness of the Washington Monument because, as one commissioner put it, the design "failed" to maintain "the integrity of the mall." Other commissioners mentioned that part of the design process involved the architects providing three alternative design concepts, a process which would "improve the final project." With the design far from finished, NCPC will hear from the team again in the spring of 2010.

Washington DC real estate development news

Retail vs. Office Space Showdown on DC's H Street

An empty lot could become one of the first new commercial enterprises on the 1200 block of H Street NE, if the developer and the community can see eye to eye. I.S. Enterprises owns the lot and is applying to build a 4-story commercial building in the reemerging restaurant and arts district of H Street, but the developer has some appeasing to do before the Advisory Neighborhood Commission (ANC) gives a seal of approval. An October review before the Board of Zoning Adjustment (BZA) was delayed 60 days to allow the developer time to work with the ANC, which had summarily opposed the planned structure. But with the 60 days up and another hearing scheduled next week, the project has yet to come back to the ANC with any changes or compromises.

The developer's plan is for a four-story building with ground floor professional services "such as investment and or insurance brokerage firms" with the top 3 floors set aside for the owner for office space. The lot is relatively small, so the owner is looking for zoning relief for density, seeking a Floor Area Ratio (FAR) of 3 rather than the permissible 2.5 FAR. The zoning requirements also stipulate that first floor ceiling heights come in at 14' to accommodate ground floor retail, but the owner would like to have 10'6" ground floor ceilings and no retail. In asking for these adjustments, I.S. Enterprise puts itself at the mercy of the ANC and the BZA, which must approve it, and can therefore mandate its standards.

According to ANC records, the organization sees the property as an opportunity to embrace the H Street Overlay and continue to develop uses favored by the community; they are unlikely to change their mind. The group strongly opposed the four story height arguing "all the other structures on the block are two stories." The ANC also objects to the overall design of the project stating "it does not reflect any of the architectural elements found on H Street." The ANC further objects the planned ground floor use, preferring retail. Though the ANC's approval is not required, the BZA will give weight to the ANC's position.

Washington DC real estate development news

The Macklin in Cleveland Park

Sponsored Announcement

UIP Property Management, Inc. is pleased to present The Macklin a fully renovated historic apartment building in the heart of Cleveland Park. The Macklin was built in 1939 and boasts 17 beautiful fully renovated apartments. The Macklin was designed in an art-deco style by renowned architect Mihran Mesrobian (1889-1975), who was a prominent Washington architect. The apartment homes have been completely and beautifully renovated with individually controlled central heating and air conditioning, GE stainless appliances including microwaves and dishwashers, washer/dryer units in each apartment, granite counter tops, restored hardwood floors, tiled kitchens and bathrooms and so much more. The Macklin’s historic exterior features were restored, including the original steel casement windows, glass block art deco entry way, and decorative false balconies and concrete panels. If you want to live in the heart of the city or if you are looking to upgrade, starting at $1,600, call us today at 202-244-3811 or visit us at our website www.uippm.com.

Getting Serious at Howard Town Center

After years of vying for the opportunity and negotiating the development, Castlerock Partners LLC finally has plans to break ground on the 2.2 acre Howard Town Center come Fall 2010. Along with development partners AVCO Interests LLC, Hardie Industries Inc and, of course, Howard University, Castlerock secured the site a year ago. The team is still working through the design phases with architects Devrouax and Purnell. Opting not to pursue a PUD, the team added Tompkins Builders as the general contractor in November, a sign the time for waffling is through.

Tim Kissler, CEO of Castlerock, told DCMud that the design phase moves forward as the team shops around for retail tenants. "First priority is a grocery store. Once that is set, we move on to other spaces and prospects," said Kissler. The grocery store was a prerequisite of the RFP and upwards of 45,000 s.f. has been tossed around as the size. Kissler added "leasing interest is strong, despite the slow economy." The rest of the retail space could total 78,000 s.f. with the University looking to support small local businesses in some of the space.

The developer has yet to commit to firm figures on the actual breakdown of residential units, but most recently has suggested there would be 420 units with the required minimum of 8% set aside as affordable, much to the disappointment of the surrounding community.

DC real estate and development news.

Parking Fuels Anger in Bethesda

LOT 31, Bethesda's stalled mixed-use development, has come under fire again, this time for its $89 million, 1,100-space parking garage. The structures are part of two developments at Woodmont and Bethesda Avenues, a joint project between Montgomery County, PN Hoffman and Stonebridge Associates approved in 2007. In a joint press release this week, The Action Committee for Transit (ACT) and the Montgomery County Group of the Sierra Club blasted the five and four-story parking garages that will comprise Lot 31 as wasteful, poorly-planned targets for taxpayer money.

Designed by SK&I Architectural Design Group, the 3-year project is expected to begin construction at 4712 Bethesda Avenue across from Barnes and Nobel sometime in 2011, but has drawn fire from environmentalists since its inception.

ACT and the Sierra Club object to the what they view as an automobile-centric approach to development so close to public transit, at public expense to boot. As part of the deal to entice developers to build, the county offered to pay for much of the $89m parking garage, or $80,000 per parking space, which developers see as a misallocation of resources that could be better spent on public transit. As in previous requests, ACT and the Sierra Club argue that "the high cost of the garage means that even in the improbable event that the garage fills up, parking fees will not cover the cost of construction," and argue for a 300-space garage instead.

So, why is the cost of construction so high? During a 2008 interview with DCMud, SK&I President, Sami Kirkdil explained that the project is more complex than usual parking structures because it requires construction crews to dig five levels into rock while at the same time "basically, taking Woodmont Avenue away," by slowing the traffic patterns around the garage.

This justification does not sit well with environmental groups who believe the number of Bethesda-area drivers has been over-estimated by the County and that the construction of the planned Purple Line,which could potentially stop just down the street from the planned garage, will further dim the need for parking in downtown Bethesda.

For their part, PN Hoffman and Stonebridge promise a "public atrium" component to the project that will serve pedestrians by acting as a meeting point between existing shops along Bethesda Row and their planned mixed-use buildings, with 357,000 square feet of ground-floor retail and residential space.

Perhaps with all of the drivers heading to Bethesda to take advantage of the safer pedestrian environment, all that extra parking will come in handy.

Bethesda Real Estate Development News

Buzzard Point Recommendations

The American Planning Association (APA) has released its recommendations for Buzzard Point, ideas that include swapping Akridge's planned high-security federal building for mixed-use affordable housing for federal employees and military families, a Sydney Opera House-type structure on its southern point to define the waterfront, and turning the PEPCO building into a cultural center for the community. These broad changes were among many suggested after an APA team did a walk through of the area and met with "key stakeholders" earlier in November. Luckily for the APA, the group is not responsible for designing, executing or paying for any of the suggestions.

If you are still scratching your head trying to figure out where this new land of opportunity is, you're not alone. As APA Team Leader Allan Mallach described it, Buzzard Point is an "in between" neighborhood - not quite SE Waterfront, but not SW Waterfront either. It has a large government presence with Fort McNair, the U.S. Coast Guard and PEPCO, but also a "strong existing residential component" largely made up by a variety of affordable housing. Despite the large industrial and government footprints, Mallach indicated the APA focused on the potential future development of more residences to complement the seismic change in the next 5 to 15 years with the departure of the Coast Guard, the arrival of the street car and reconfiguration of the waterfront and South Capitol Street.

Here are the ideas the APA put forth:

1. The Waterfront: The District should plan to buy the Jamal and Monday properties that are currently occupied by the Coast Guard to ultimately convert it to open space with limited development. Mallach admitted that this would "clearly be an expensive proposition," but suggested the District could recoup the costs by trading the development rights of those spaces for greater density elsewhere in the city.

2. Residential. Residential. Residential: A high security federal tenant on the Akridge site would be, according to Mallach, "a major missed opportunity" and the "whole concept of building a high security installation is predicated on the idea that this is not a community, so it doesn't matter." Instead, the team recommends medium-density residential developed in partnership with the federal government for "families of military personnel and/or new federal government hires." But Mallach acknowledged the challenge in convincing a developer to switch from maximum build out of six to eight stories across two or three city blocks to the modest plans for residential development.

3. Steuart Property: The site should be used for a "strong, iconic structure" that acts as the "gateway" to the SE Waterfront from the Anacostia. Mallach likened to their vision to that of the Sydney Opera House. Lest we strive for mediocrity.

4. PEPCO: Though, according to Mallach, PEPCO has no plans to go anywhere in the near future, the planner recommended taking the long view. As some of the stations go offline over time, the APA suggests that the District and the utility provider work out agreements to shrink the utility footprint in the area in favor of, you guessed it, mixed-use development. Ideally the PEPCO facility could be converted into a museum or cultural center much like the Tate Modern in London. So we've got London and Sydney covered.

The final report of the team's findings will be released sometime between February and March 2010.

Washington DC real estate news

Lacey Champagne Brunch Broker's Open, Tuesday 12 - 2pm

The Lacey, U Street's most inspirational new condominiums, will feature a champagne broker's open Tuesday, December 1st, from 12-2pm. Come see some of the city's best rooftop views and most intriguing design south of Manhattan. Marketing and sales by DCRE.

FHA's Changing Rules

The Department of Housing and Urban Development has announced its newest rules to rescue the condo market. Rules that take effect next week will drop the new-condo presale requirement down from 70% to 30%, a welcome change to any developer, but tack on rules that make some lenders jittery. Back in the days when no-doc loans were de rigueure and lenders financed 95 to 100% of home-purchase loans, FHA was but an obscure agency that few real estate agents even noticed. No more. FHA-based financing now allows 97% financing where lenders otherwise lend a more parsimonious 85 to 90%, and news from FHA is watched more closely than interest rates. The newest rules, just released, take effect December 7th. Under the old regime, developers were obligated to find buyers to write contracts on 70% of the units in a new condominium before FHA would back the mortgage. With so many buyers seeking FHA loans, a building could not begin settling loans before the 70% mark was met, a tough standard in the current market. The new rules bring that threshold to 30%, down from the initially proposed 50%. Spot approval, the process of getting an FHA-approved loan on a building that does not have overall FHA approval, now ends February 1, 2010. Buyers with a ratified contract by that date can still get case by case approval even if the settlement date is later. The quirk in the new rules lies in the two methods developers can use to qualify their project. The first entails "Designated Entity approval" with a bank's in-house licensed underwriters, a process the government intends as a quicker, cheaper approval method. The second is to submit the project to the FHA for approval. While no one is willing to guess at how long the government option will take, the bank approval process comes with a caveat that has bankers worried. Under the new guidelines, the first bank that approves a loan in a new condominium will incur liability for any flaws in all subsequent financing, even if it doesn't make subsequent loans. That can leave banks on the hook for hundreds of units for the profit of one loan, a scenario that banks seem not so keen to jump into. On the other hand, all existing condominiums need to be approved under the new system, leaving some industry watchers fearing a glut of applications on December 8th, with some predictions that rules for bank-approved loans will be relaxed to lighten the burden on the federal government. If not, builders will simply have to wait out the government's own approval process.

Foreclosure Hits Chinatown Landmark

One of downtown Washington DC's most visible buildings may soon be developed into a 9-story retail-centered mixed-use project; that is, if it's not foreclosed on. Sitting next to DC's Chinatown arch, one of the few exceptions to downtown's shiny newness is 801 7th Street. Yeni Wong and her Gallery Towers LLC were served a notice of foreclosure for the two contiguous lots at 675 H Street and 801 7th Street, NW in October for the $13,491,471 note plus attorney's fees. Wong, President of Riverdale International, reportedly paid more than $10m for the property in 2006. The lots were slated for auction on November 17th, but the sale was canceled, according to the office of David Prensky at DC's Department of Consumer and Regulatory Affairs. The corner of 7th and H housed a CVS, but now sits vacant and boarded with signs promising construction that has yet to begin. Owner Wong started a public dispute by filing a law suit in September 2006 against then tenant, CVS, after the store refused to vacate the premises despite an eviction notice in the spring of 2006. Wong wanted the CVS out to facilitate the LLC's plans to develop the site for a mix of uses including office, residential and retail. According to the website of developer DRI, a Transwestern Company, 675 H Street was to become home to two buildings: one would restore the corner space and rise 9 stories over the arch, the other would be a new Class A office building behind the main storefronts. The total project would have yielded 110,000 s.f. of office space and 50,000 s.f. of retail. The planned development never came to fruition and between October 2008 and February 2009 Gallery Towers had 4 liens placed on their Chinatown property. In the meantime, Eichberg Construction briefly began work last summer after fencing off the site, but work quickly halted. 

Washington DC real estate news

The Ever-Shrinking Galaxy

A long time ago (2005), in The Galaxy far, far away (Silver Spring), Scott Copeland, owner of RST Development, began pushing the idea for a 328-unit, 700-parking space condominium development through the Montgomery County application process.

The Galaxy isn't the first project undertaken by RST Development in the Silver Spring neighborhood bounded by Eastern Avenue, 13th and King Streets. In 2004, RST converted the vacant, 15 story office building at 8060 13th St into Gramax Towers, a 182 unit apartment complex. Copeland's company began planning the renovation of the Williams and Willste buildings—two abandoned office buildings on the north side of Eastern Avenue, into the Aurora Condominiums that same year.

In 2005, in the wake of these successful projects, The Galaxy of downtown Silver Spring was born. But by early 2008, the condo market in Silver Springs was not what it used to be and the A.R. Meyer's & Associates - designed condo project shrunk in to a more modest, 241-unit complex with 430 underground parking spaces.

Fast forward to the not-so-distant future date of December 3rd, 2009 and the Montgomery County Planning board is expected to approve two new amendments to The Galaxy development plan - the first splits the project into two phases and the second reduces the number of parking spaces.

The good news, according to Montgomery County Senior Planner, Sandra Pereira, is that "there will still be 3,366 s.f. of ground floor retail." She adds that Phase 1 of the project will not only include "a five story building, but also recreation and public use space" which adds up to 25,816 square feet of space for the public.

A public parking component has been at the center of The Galaxy plans from its beginning. But RST's newest amendment will once again reduce the amount of available parking spaces - this time from 430 spaces to 368. Pereira assures us that this change is quite minor when compared to past amendments and that public parking will still be a component of the development but will now be "divided so that 160 spaces are public and 208 are private."

Despite the assurances, it's noteworthy that the only feature of the Galaxy project to experience a growth spurt in the recent months is the percentage of available moderately priced dwellings units (MPDUs).

In an effort to strengthen an application for 9% tax credits, RST Development went before the Montgomery Housing Opportunities Commission (MHOC) in September for approval to transfer 27 project-based vouchers from the Gramax Towers to The Galaxy. Susan Yancy from the MHOC confirms that "101 Galaxy units" available in Phase 1 of the development "will be offered at an affordable, 30% AMI rate," meaning that roughly 42% of Galaxy's 241 rental units will be available as MPDUs. That's quite a jump, considering RST's original 2005 plan only met the minimum MPDU requirement of 12.5%. And what was once being billed as a swanky new condo development is now going all rental.

Whether or not construction will ever begin on the four story, 46-unit second phase of development remains to be seen. No date for Phase 2's construction has been set. That said, RST Development is pushing forward into the subcontracting stage of Phase 1 despite the setbacks in the market so far. 

Silver Spring commercial real estate news

Highland Addition, HOPE-ing and Waiting

Last night, DC's Highland community was handed another development delay as New Market Investors and developer Crawford Edgewood Managers Inc. (CEMI) received approval to prolong their development schedule with a request for a three year extension. Along with the District of Columbia Housing Authority (DCHA), the team filed to alter the zoning application approved in 2007, which would have expired this month.

The Zoning Commission approved the delay, allowing DCHA and the developers a little breathing room as they scrounge for funds and wait on a recent HOPE VI application for $22 million to develop 17 acres of townhouses. The soonest the group might expect good news about the competitive HOPE VI funding is February; until then they will be holding out hope that the stalled development will finally come to fruition.

According to Knox Hayes, DCHA Project Manager for Highland Addition, the reason behind the stalled development is the lack of funds to build new roads for the PUD. The City was unable to cough up the money for necessary roads, so DCHA took the federal path, applying through HUD'S HOPE VI grants for the maximum project award. In so doing, DCHA expanded the scope of the development from the PUD's 9 acres to include a total of 17 acres of land needing new roads and development.

The PUD will maintain its approved number of residential units at 138, but will increase the number of rental units from 30 to 46. On the remainder of the site, the same group of developers will build more residential units by matter of right zoning, with no PUD required. The proposed site will offer 261 units with 118 rental and 143 for-sale units (including the units in the PUD). Most of the homes will be townhouses, though Hayes indicated the possibility of some condominiums.

The site at Highland Additions used to be home to several public housing buildings, which were torn down in 2001, with the PUD process ensuing in 2004. Nearby are the newly renovated Overlook apartments, which replace the former Parkside Terrace apartments.

Washington DC real estate news