Thursday, June 17, 2010

Shaw's Great Expectations

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Shaw Main StreetShaw will have its renaissance yet. Earlier this week Alexander Padro, the President of Shaw Main Streets, provided positive updates on several long anticipated developments in the Shaw neighborhood. It should make for a busy summer and fall, beginning with Monday's groundbreaking for 1501 9th St., NW, a small development by a small business, Inle Development. It marked the beginning of the groundbreaking "season" with bigger projects, like the Howard Theater, set to follow shortly.

Inle's development will be home to Mandalay Restaurant and Cafe, a Burmese restaurant currently based in Silver Spring. Mandalay will have a ground floor restaurant with outdoor seating, a second floor bar and the remainder will be residential space for the restaurant owner and family members. The restaurant will open next summer.

Ellis Development Group and Four Points will break ground on August 22nd at the Howard Theater, marking the centennial anniversary of its opening. According to Padro, the team recently acquired and demolished a neighboring building and plans to seek approval for an alley closing so that the Theater will get a makeover and an expansion all at once. Construction should take approximately 18 months.


Washington DC retail for leaseAs we previously reported, Roadside Development will "break ground" on the O Street Market in September. At that time the developer will begin the process of bolstering and securing the existing structure with new construction likely to follow in "Spring of 2011." The two-block, mixed-use project will include 611 residential units, 86 of which will be subsidized by the city, senior housing, a 189-room hotel, a 516-space parking garage and 88,000 s.f. of retail: 57,000 s.f. Giant and 31,000 s.f. for additional vendors. The Shalom Baranes-designed project will cover two city blocks between 7th and 9th Streets, and O and P Streets and will re-open 8th Street.

Padro said this forward momentum is leading other developers, small and large alike to begin piecemeal work in other areas. Developers are "already investing in renovating some of the smaller historic buildings that are part of the larger projects." Little by little, one project at the time, Shaw's developers are bringing new energy to the neighborhood.

Washington, DC commercial real estate development news

Wednesday, June 16, 2010

Marriott Readies for West End Demolition

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After years of sitting dormant, plans for the GW Marriott Courtyard Hotel at 515 20th Street, NW are looking increasingly active. In March, the development team was shopping around for a general contractor and in May submitted a raze permit to the Historic Preservation Review Board to demo the six-story, 420-car parking garage the new hotel would replace. The 125,000 s.f. hotel will bring upwards of 150 suites to the GW neighborhood.

Mike Tyler of MJ Tyler and Associates, a representative for the development team, said the team hopes to begin the six-week demolition in "the latter part of July." From there, construction will begin "immediately" and will last for upwards of 20 months, delivering in early summer 2012.

Developer Allstate Hotel Partnership received original project approval in 2006, but was sidelined by a lawsuit from an unhappy ANC chair and the extended financing drought. The ANC and other Foggy Bottom civic organizations opposed the development, expressing concerns about the increased traffic and the likelihood of blocked streets during construction. When asked about these concerns, Tyler responded that the team is "working through that right now" and promised it would be a "very organized and professional operation." Construction noises aside, Tyler said "we're excited to get started, it's been a long time in the works.

Designed by WDG Architecture, the new nine-story building will squeeze in between offices and residences in the West End neighborhood. The general contractor is HITT Contracting.

Washington, DC real estate development news

Tuesday, June 15, 2010

Pete's Apizza Dishes Out Two New Locations

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The owners of Pete's Apizza (pronounced \ah-bēts\) in Columbia Heights are taking that old real estate adage: "location, location, location" literally these days. Just two years after opening their popular, New Haven-style pizza joint in Columbia Heights (1400 Irving Street, NW), the owners have turned their attention to opening two additional stores in Metro-adjacent hot spots throughout the beltway.

First stop: A converted antique/interiors store at 4940 Wisconsin Avenue, NW in the Tenleytown-Friendship Heights neighborhood, opens for business tomorrow (June 16th).

"We're right between two metro stops and [the location] has the buzz factor we were looking for," says Michael Wilkinson, a co-partner in the family and friend-run endeavor. The team toyed with the idea of locations ranging from Navy Yard to Dupont Circle but ultimately decided on the 3,400 s.f., 84-seater in Tenleytown because of its "high concentration of families," fair amounts of foot traffic, and limited (read: crappy) pizza options.

Northern Virginia gets its own slice of the strangely-pronounced, pizza craze by 2011: a Pete's Apizza is slated for the construction-laden, corner of North Clarendon Boulevard and North Garfield Street.
"What we love about this location is that we could have gone to Rosslyn or Ballston, but being situated in Clarendon gets us right into the grouping of five metro stations, within transit-oriented development" says Wilkinson.

Talks with retail brokers went faster than expected and now Pete's Apizza's Clarendon location is happening "a year sooner than we thought it would," says Wilkinson. With building permits already submitted and a construction timeline that spans three months or less, a 4,000 s.f. pizza space could be up and running as early as the end of this year.

Washington DC Real Estate and Development News

Monday, June 14, 2010

Georgetown Apple Store Opens June 18th

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Which is the bigger deal - that Apple now has a Georgetown store or that Georgetown now has an Apple store? Given the recent bleeding-out of retail from Georgetown thanks to the ongoing drama at the Shops at Georgetown Park, Georgetown looks to be the big winner here. The loser is of course the hipsters who will have to find somewhere to lock their fixed-gear bikes when they get their beloved i-Pads serviced. On June 18th at 5 PM, Apple will open its first store within the confines of the District at 1229 Wisconsin Avenue, NW, just north of M Street.

The real triumph for Apple came last year when its fifth design received approval by the various powers-that-be in DC and Georgetown, including the Old Georgetown Board. Original designs featured Apple's ubiquitous glass panel front entrance, but this smacked of modern showmanship as far as the neighborhood was concerned. The final agreement included bay windows and a recessed entrance more harmonious with the surrounding neighborhood.

washington, dc real estate development news

Maryland Lags in Delivering its Share of Bike Trial

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DC bicyclists got their chance to "meet the Met" (i.e. 1.5 miles of the newest section of the Metropolitan Branch Trail) earlier this month at a hula-hoop and dance-laden event hosted by the Rails-to-Trails Conservancy. But it will likely take residents and smart growth advocates in Maryland upwards of eight years before they get to make the acquaintance of their own little piece of hiking and biking heaven.

The Metropolitan Branch Trail (MBT) is an eight-mile stretch of off-road trail that runs from Union Station (almost) to Silver Spring, Maryland. Built atop the old B&O Railroad corridors, the MBT will provide the area's walkers and bikers with their own car-free connections to neighborhoods and Metro stations.

Jennifer Kaleba, Vice President of Communications for the Rails-to-Trails Conservancy, a group dedicated to converting "unused railway corridors to biking and hiking corridors," hoped the "Meet the Met" event would give residents on both sides of the Maryland-DC border a taste of what an "integral bicycle beltway" connecting DC to Silver Spring would feel like.


A look at the 2011 Operating Budget - newly approved by the Montgomery County Council on May 27th - shows that the Trail's funding has now been doubled from its original $6 million price tag. Via the 2011-2016 Capital Improvements Program, $12.1 million will now be allotted toward the design and construction of Phase 1 and the design of Phase 2.

The bad news? Despite the 1,000 person turn-out at the DC event and the funding increase, folks on the Silver Spring side of the MBT will have to wait about nine years to take advantage of their portion of the integral beltway. And that's the new, accelerated timeline.

Just this past February, Montgomery Councilmember Valerie Ervin complained that "this project's lack of progress may signal to residents that the County is uncommitted to non-automotive modes of transportation" in a letter to Montgomery County Department of Transportation Director Arthur Holmes.

In an email to DCMud, Richard Romer, Policy Analyst for Councilmember Ervin's office, explained the Councilmember's frustrations that "So little was occurring in Montgomery County" to build the trail. "After discussion, the Council allocated funding for programming design, land acquisition, and construction of the first phase of the Silver Spring Transit Center to east of Georgia Avenue (including a new bridge over Georgia Avenue), and the design of the second phase from east of Georgia Avenue along the CSX tracks and King Street to Takoma Park."

But with design concepts for the trail still in their infancy and negotiations with track land owners expected to carry on through 2014, the most optimistic estimate coming out of County work sessions is that the final trail will not be available to non-motorists until late 2018/early 2019. Washington DC, on the other hand, has been aggressively completing its share of the bike trail and expects completion within two years.

Maryland Real Estate and Development News

Sunday, June 13, 2010

Symphony Park at Strathmore

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A new Montgomery County-based development firm plans to bring 112 new brownstone townhouses to the front yard of the $100 million Strathmore Music Center and Mansion. Symphony Park at Strathmore is the first signature project for Streetscape Partners, a two-year-old firm that recently won the right to develop the 18-acre site at the southeast corner of the intersection of Strathmore Avenue and Rockville Pike in North Bethesda thanks to the financial backing of Lubert-Adler Partners, LP. The community will offer new residents access to the Grosvenor-Strathmore Metro and select membership with the Strathmore.

According to Ron Kaplan, Co-managing Principal at Streetscape, the four-story townhouses will each have a deck and most will have a "mews," front green space or garden with an alley in the back for access to the two-car garage. The fourth story of each home is a loft. The project offers "significantly more open space than most of these types of developments" added Kaplan. The developer described the finishes as "real materials" meaning brick and stone and solid wood doors. The design team tried to evoke the appearance of Georgetown, and Boston's back bay, a "sophisticated" community, according to Kaplan.

Not all 18 acres will be developed for housing; the team is donating five acres for use by Montgomery County as an outdoor amphitheater for public performances, linked to Strathmore. Additionally, the plan includes a new "Symphony Park Forest," several acres of "forested land created from scratch" with the planting of 200 some odd trees to line a new walk way between the community and the Arts Center, explained Kaplan.

Kaplan described that site as "one of the best pieces of land for residential development in the whole county (Montgomery)." The land previously belonged to the American Speech Language Hearing Association (ASHA) and had been under contract with residential developer Centex; Streetscape snapped it up when market conditions forced Centex to renege on its contract after several years of pre-development planning. Streetscape inherited the footprint, including the agreed upon number of homes from the original buyer and retained architects, Lessard Group, to rework the design. Though Kaplan assured his designs "increase the quality" changing the previous plans "pretty significantly." According to Kaplan, the team has all of its approvals from the County and expects to begin land development in the fall with the first model units appearing next spring. Sales will also begin this fall.

North Bethesda, Maryland real estate development news

Friday, June 11, 2010

NoMa Intersection Gets an Up(?)grade

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The District announced today that it is re-routing a troublesome intersection to make it, well, possibly worse.

The intersection of Florida and New York Avenues has been an anarchist's dream - at First St. hand gestures are more helpful than lights (not to mention the open-air marketeers that seem to have philosophical differences with local drug enforcement policies).

The revised traffic pattern will make Florida Avenue one-way (northwest) for two blocks, rerouting southeast traffic off of Florida, across and onto New York, then to O Street, then back onto Florida. Northbound drivers on First St. will find themselves heading out New York Avenue, like it or not, perhaps somewhat approximating northbound 395 drivers that get sent out New York Avenue for the crime having just avoided traffic signals. Both sets of drivers will now merge as they are sent out of town via New York Avenue.

DCBond Drops Rate

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The DCBond, which officially relaunched in April, is now even more appealing for those who actually qualify. The DC Housing Finance Agency (DCHFA) did low-income home buyers a favor, dropping the rate from 5.25 percent with zero points to 4.25 percent with half of a point on 30-year fixed-rate loans. For now, that is the only change, meaning the bond is currently only available as an FHA loan or a Veterans Administration loan; when DCHFA released the bond in April, industry professionals speculated that financing without FHA or VA might later be made available. DCHFA still offers buyer down payment assistance, i.e. $10,000 towards a down payment or closing costs for qualified borrowers (making less than $57,500 for individuals) who have little to no cash upfront. All loans be purchased by Ginnie Mae.

Adventures in Design and Viticulture: The Jefferson

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Some might say his dual passions for wine and statesmanship fed one another, his lifelong thirst and quest for both taking him places most men of his time would never go. For founding father Thomas Jefferson, the pursuit of happiness was manifested both in extensive European fact-finding/grape growing missions, and in the sense of urgency with which he and his co-founding fathers laid the cornerstones of a brand new nation.

For the eponymous hotel at 16th and M Streets NW that takes its legacy from the third president of the United States, The Jefferson, though small by hotel standards, looms large in the elite world of luxury accommodations, and even larger in terms of the sparkling shadow it casts over a District where privilege and entitlement are pretty much found in the drinking water.

Undergoing a comprehensive 30-month renovation and restoration and reopening in August of 2009, The Jefferson, on its 86th birthday, emerged with an eye toward innovation and a sense of tribute firmly intact. Not only had the hotel succeeded in celebrating a visionary whose interests, in addition to wine and politics, ran the gamut from architecture to food and literature, but it had seamlessly integrated technology, history and design to create a 21st century environment of which Thomas Jefferson would surely approve. According to Managing Director Franck Arnold, that was precisely the goal.

Bones

Built as an apartment building in 1922-23 at a reported cost of $450,000 by Paris-born Beaux-Arts style practitioner Jules Henri de Sibour, The Jefferson was thought to have been converted to a hotel in the late 1940s (no definitive records of the conversion date exist, but a 1948 city directory lists the property as the Jefferson Hotel). With a variety of owners from the 1950s-1980s (a 1953 Washington Post theatre critic called The Jefferson “dear to the show folk” because of its en suite kitchens–kitchens that had not been removed from its days as an apartment building–for après show snacks), the 99-room hotel endured the slings and arrows of well-intentioned incursions into its limestone façade and interior, but not always with the best results.

“All of the mechanical work was replaced for the current renovation,” Arnold said, explaining that in the gutting process, errant columns were discovered including a “rogue column” on the eighth floor that had to be taken out. He also revealed that all 99 bathroom ceilings had to be reinforced with steel beams because “through the years, they renovated without appreciating the structural aspects of the building.”

Architect Mary Oehrlein, whose firm, Oehrlein & Associates Architects, oversaw the restoration aspects of the eight-story project, said that in the hotel industry what the public sees is important, and design and construction dollars are largely focused on that image. To that end, in the current redesign the aforementioned kitchens were walled off, but if somebody wants to reconvert the hotel back to an apartment building in the future, the spaces are still there and usable. In some of the larger suites, Oehrlein added, former kitchen space was converted to a small exercise studio within the suite.

Face

In true glass slipper fashion, The Jefferson’s imposing porte cochere greets its guests with elegance and style, and the anticipation of what lies within. Designed by former Oehrlein & Associates Architects’ Pamela Blom and custom cast by Robinson Iron of Birmingham, Ala., the heated and cooled glass and iron cantilevered structure extends 20 feet from the building’s façade, with a barrel vaulted skylight, side extensions, track lighting and an enclosed vestibule. A sculpted bronze Thomas Jefferson in bas relief looks down on arriving guests, precluding any doubt that this is the place.

“When we closed the hotel for renovation in 2007,” Arnold said, “we had a limited Beaux-Arts inspired canopy that didn’t provide for any sense of arrival or departure. It didn’t say you had come to a luxury hotel.” Arnold explained that initially, the HPRB (Historic Preservation Review Board) jettisoned the concept of the porte cochere, claiming it had no historical basis. Immersing himself in research, Arnold ascertained that the genesis of the old canopy was questionable, with earliest photographs placing it smack in the middle of the 1970s and maybe the ‘80s. The HPRB relented and the porte cochere was born.

Palate

Once inside, a confluence of reverence and reverie punctuate a lobby that honors both Jefferson’s intellect and his aesthetic. Opposing busts of Adams and Jefferson - good friends, political enemies and then friends again before their deaths two hours apart on July 4, 1826 (the 50th anniversary of the signing of the Declaration of Independence) - preside over Jefferson’s signed documents from the second and third Philadelphia Congresses of the United States. A stately glass and wrought iron gate, retained and redesigned from a prior renovation, leads to the hotel’s Plume restaurant, and The Greenhouse, also for dining, and when closed provides a sense of separation from lobby to sustenance. It might also be observed that the gate’s joyful, ornate gold fleur-de-lis might have been prescient: On January 10 The Jefferson was accepted into the luxury hotel industry’s prestigious Relais & Chateaux - the only Washington, D.C. hotel to receive the honor - whose emblem is the fleur-de-lis.

A vaulted ceiling, skylight and accruing lay light in the lobby and dining areas, constructed when The Jefferson was built in the 1920s but which had disappeared under layers of plaster in successive renovations, were rediscovered, and under the stewardship of ForrestPerkins, the architectural design firm that oversaw The Jefferson’s redesign, enhanced with LED lighting to gently manipulate the changing light of day.

In a leap toward melding history with technology, a bar and lounge off the lobby called Quill tips its proverbial hat to Jefferson, who is thought to have said he prefers the prospect of the future to the lessons of the past. With burnished oak paneling, parquet floors and a series of authentic maps on the walls that illuminate Jefferson’s wine expeditions through France, Holland, Italy and Germany, the maps were a gift from hotel guest Scott Ballin who first stayed at The Jefferson with his father in the 1960s. Most illuminating, however, is the actual bar itself, a behemoth of glass panels threaded with a “light tape” that might make the future-thinking president rethink the need for fire in fireside chats (wrong president, but right idea).

Vine

In The Jefferson’s “private cellar,” adjacent to Plume, private parties can dine in wine-friendly temperatures surrounded by 1200 of the hotel’s 6500-bottle wine collection – wines of which perpetual viticulturist (viticulture: the growing of grapes vs. viniculture: the making of wine) Thomas Jefferson would have approved, and some of which he’d even discovered during his years (1784-89) as minister to France and selected for his own cache. After that time, wherein he’d spent 3 ½ months traveling through Europe studying the art of winemaking, grape growing, harvesting, collecting, conserving and serving, according to Arnold, Jefferson returned to Monticello and invented the dumbwaiter to ferry his wines from cellar to what would, in contemporary parlance, be his daytime study. A replica of the Monticello dumbwaiter exists in the hotel’s private cellar, alongside a dining table for 16 (20 if necessary) made from repurposed parquet floors in a nod to sustainability. A 3 X 7-foot hand painted mural with pastoral scenes of Monticello depicts what the nation’s third president would have seen each day, as do various murals in Plume.

“Jefferson believed wine was integral in bringing civilization to a country that was very agrarian back then,” Arnold said, affirming that the cultivation of wine implied sophistication. In fact through the years he was credited with serving as wine advisor to Presidents Washington, Madison and Monroe. But despite Jefferson’s relentless efforts to educate himself in the ways of the vine, and his unofficial partnership with Italian physician, entrepreneur, politico and vintner Philip Mazzei, Jefferson was unsuccessful in decades-long trials to establish vineyards at Monticello. His failure had little to do with climate or soil, as some had speculated, and much to do with the existence of the as yet unidentified phylloxera louse, which attacked his crop at the root.

Repose

Trials withstanding, in spirit and sentiment The Jefferson reflects its namesake’s affinity for wine and his myriad other interests, not only in its public spaces, but also in its elegant and individual guestrooms. While rooms vary in décor, many include Crema Marfil stonework from Spain, in some the choice of toile echoes the textiles from his time abroad, and in others framed quotes provide insight into an intellectual, a visionary and occasionally a humorist. Chandeliers are everywhere and linens are 300-thread count from D. Porthault in Paris, custom linen makers to such dignitaries as the John F. Kennedy’s, Charles DeGaulle, Sir Winston Churchill, Grace Kelly and Coco Chanel (Mr. Jefferson would surely approve). Embracing Jefferson’s penchant for invention, rooms are equipped with Bose systems and iPods, as well as wi-fi and broadband. Bathrooms boast in-mirror TV’s and individually controlled recessed heat above the bathtub. In short, why would one ever leave?

Acquired in 2005 and owned by DC CAP Hotelier, LLC, a subsidiary of NY-based Ogden CAP Properties, LLC, Arnold revealed the owners are “very engaged in the well-being of this property.

“Somehow it is very fortunate,” he said, “because nowadays in the world of international corporations, you don’t get people who are so committed to making the right decision and the long term decision. A lot of choices could have been made much more rapidly and probably in a less expensive way than what was actually done,” he stated. “However as the owners like to put it, they did this for their grandchildren.”

Interior photographs by Stirling Elmendorf

Thursday, June 10, 2010

Brightwood Blight Shines Anew as Condos

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Brightwood neighbors gathered in excitement to mark a day many of them thought would never come - the opening of 6425 14th Street, NW. The Tewkesbury, once the neglected eyesore of a slum lord, now offers 26 renovated condo units to the Ward 4 community, thanks to the District government and developer Blue Skye. The relatively small project drew significant political attention, with Councilmembers Muriel Bowser and Kwame Brown joining Mayor Adrian Fenty in the festivities; even Department of Consumer & Regulatory Affairs Director Linda Argo showed up.

The DC government purchased the property in 2008 for $3 million, after filing suit against its owner for “numerous" building code violations. Blue Skye won the right to develop and invested $3.8 million in the renovation. Half of the building is being sold at market rate, the other half is subsidized for tenants earning from 30 to 80 percent Area Median. Several condos have already sold.

The community expressed relief to be free from the blight that once filled the lot, "[we] almost assumed it would always be [that] way...this makes a huge difference," said Kamili Anderson of the Brightwood Neighborhood Association. The building offers a mix of one- and two-bedroom units and, according to Scottie Irving of Blue Skye, there is no difference between the affordable and market rate units, which range in size from 900 to 1,200 s.f.

Blue Skye served as developer and contractor, partnering with PGN architects and subcontracting to several local businesses for materials and labor. According to Irving, 90 percent of the money put into the property stayed in the District. The Tewkesbury has 10 parking spaces available for an additional fee.

Construction took 14 months, though several last minute touches were being applied as neighbors toured for the first time. Reactions seemed mixed: one neighbor complained about a questionable paint job in the hallway and another criticized the way the flooring was laid in the bathroom. Irving took both praise and complaints, smiling as he showed off his work. Blue Skye is working on "phase 2" of the project, a 54-unit affordable senior housing project, at nearby 1330 Missouri Avenue, NW with partner Donatelli.


Washington, DC real estate development news

Hill Center Ground Breaking

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Capitol Hill's Old Naval Hospital at 921 Pennsylvania Avenue, SE will soon be transformed into the Hill Center - a fully refurbished community center, meeting place and cafe - officially kicking off on Sunday. Built in 1865, the building served wounded and aging Civil War veterans and later was used as a training center for Naval doctors. The structure has fallen into disrepair over the years, though the local ANC continued to use it as a meeting space until just recently. Once at the top of the list of most endangered historic places, the Old Naval Hospital will begin its transformation at Sunday's groundbreaking and "old fashioned ice cream social," beginning at 2 PM. Break out your Sunday best.

After years of debate, the Historic Preservation Review Board in 2009 granted unanimous approval to the historic restoration plans for the hospital, the surrounding fence and the neighboring carriage house, the latter of which in recent years served as a temporary Christmas tree stand. In the 2009 staff report, the HPRB remarks on the architectural integrity of the building, which still has its original windows, roof, interior walls and finishes. The old fence surrounding the property, with period compass circles and stars, was cast by a firm located on the Anacostia river around the time the building was constructed. The architects have undertaken an archeological study to ensure the fence is reconstructed in a historically accurate manner.

When complete, the main building will have 12 rooms to serve as meeting spaces, classrooms, a computer center and even a demonstration kitchen. Several rooms on the second floor will be available for rent to host conferences and events. Sounds like a prime fund-raising space. The adjacent carriage house will be converted to a cafe. BELL Architects, which performed previous updates to the crumbling facade, has led the planning and is responsible for the new design. Gone is the red brick facade, which will be recoated with historic-conforming beige skin.

In February of this year the federal government handed over the property to the District, which will grant a 20-year lease to the The Old Naval Hospital Foundation (ONHF) for use of the building as the Hill Center. ONHF won the right to renovate the building in 2007 after vying for an RFP released by the Office of Property Management (OPM) in 2003; total restoration costs are estimated at $10 million.

The Hill Center builds upon the transformation of the Eastern Market neighborhood, following the recent reopening of the Eastern Market and joining plans for a mixed-use development at Hine Junior High School across the street.

Architect's Update:
DCMud had a chance to discuss the project with architect, David Bell. Bell explained that Hill Center will receive a rehabilitation tax credit, which holds the architects and construction team to higher standards, including stringent National Park Service review. Bell said it was "challenging...to match up a sustainable design and energy goals with historic preservation" but he believes the Hill Center is a "good candidate to show that you can actually meet both criteria." The best example of these efforts is the heating and air conditioning system the team will use. A normal building requires a cooling tower either on the ground or the rooftop, clearly non-starters for the historic site. The team is instead digging wells, 450 feet deep wells, with piping that will use the natural heat exchange of the ground to create heat in the winter and absorb it in the summer. The process avoids the need for an unsightly cooling tower and is actually more energy efficient because it does not require a gas fired broiler or additional energy-guzzling equipment.

Washington, DC real estate development news

Wednesday, June 09, 2010

And I Shall Call You "Capital Bikeshare"

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This fall members of the new Capital Bikeshare will find bike stations in every ward of the District and in Arlington, with plans to expand to new locations in Virginia and Maryland underway. The long awaited expansion was announced last month, and yesterday the District Department of Transportation (DDOT) officially named the new system: Capital Bikeshare. The system will be the largest of its kind, bringing roughly 1100 bikes to 114 stations throughout the region.

DDOT’s Smartbike program originally launched in 2008 in the downtown DC area. DDOT funded the first 10 stations through an advertising deal with ClearChannel, which built the new bus shelters, maintains them and uses them for ads. The ad revenue (or at least an undisclosed percentage of it) initially paid for 10 stations in the downtown area; ClearChannel runs the Smartbikes under the direction of DDOT.

Since then, DDOT Director Gabe Klein has been pushing to expand the program. "Our hope is to create a transit system with bikes" said Klein in a 2009 DCMud interview. Klein posited that an expanded bikesharing system would "hopefully make cycling a primary mode of transportation. It will also be institutionalizing it and bringing it to the masses." You hear that masses? These bikes are for you.

Capital Bikeshare will offer 100 stations in DC and 14 in Arlington. Annual, monthly, and daily memberships will be available for area residents and visitors. Alta Bicycle Share will operate the system. It looks like current Smartbike members will be allowed to use the new system, but DOT spokesman John Lisle said "I don't think the details have been worked out yet...we're still negotiating with ClearChannel."

Washington, DC real estate development news

The Limits of DC - Improving What's Up in The Height Act

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Part IV of our series on height limits in Washington DC By Brian O'Looney, AIA A century has passed since the enactment of the 1910 Height Act, and Washington has benefited greatly from adhering to the code that has shaped the Nation’s Capital. Moving forward, however, it is simply not enough to be content with the status quo, as considerable challenges remain for the Greater Washington region. While DC has been blessed with a very good urban framework, over the past 40 years there have been notable successes in buildings created by talented architects, but mediocre contributions to the public realm have been the norm. One challenge is getting developers to invest more in their facades, a particular difficulty when the ongoing Global Economic Crisis has put extreme financial pressure on the real estate industry. Another challenge is getting architects – who admittedly are all too often headstrong in their visions – to relate their buildings better to the urban context. Finally, questions remain as to how jurisdictions can code this vertical plane to achieve better results. The great challenge for Greater Washington’s future is how to encourage the construction of sympathetic buildings that make better places, to fill out the vision of L’Enfant’s initial 1791 plan, all within the 1910 Height Act that further defined it. On May 18th, the National Capital Planning Commission hosted Larry Beasley, the former city planner from Vancouver, British Columbia, to talk about Washington’s 1910 Height Act, which limits building heights in the District. His masterful presentation, leading us through a 45 minute celebration of good planning with high-rise towers in Vancouver, concluded with a ringing endorsement of the Height Act and a celebration of Washington’s achievements:
I hope you see what an extraordinary accomplishment these height limits represent; what an extraordinary and unique city they have created for you over a hundred years of careful custodianship. And perhaps the most compelling reason for this, and one that I have not really emphasized tonight, is that the city is just so comfortable, so liveable, so humane at it’s current scale.
Beasley added that great value is added by the resulting uniqueness and symbolic power of DC’s skyline. When discussing Washington’s planning successes, we should remember that there are elements in the District’s zoning and planning regulations besides the Height Act; L’Enfant’s initial 1791 plan and the McMillan Commission’s edits have led to the distinctive quality of our public realm. As Sacha Rosen pointed out earlier in this series, the Zoning Code enables the development of façade depth with the ability to have “projections into public space;” beltcourses, bays, pilasters and other façade elements. The code also permits spires, belfries and unoccupied architectural embellishments to extend beyond height limitations, which allows for emphasis in Harvard Lofts columbia Heightsbuildings terminating street views, better architectural emphasis of building corners, and the celebration of ecclesiastical structures. Rather unusually, Washington counts areas of above ground parking structures toward the overall site density allowance. This is the main reason why comparatively few above-ground parking structures exist here; few developers want to waste precious development density and bury the parking, at triple the cost. Washington’s street frontages greatly benefit, as its walls are almost always are activated by windows and the vitality they represent. But with regard to the unevenness of the last 40 years of building in Greater Washington, some of the problem clearly rests with the whims of architectural culture, which can place priority on design trends over urban context and local community identity. As an illustration, it is not a surprise that in the 1970’s minimalist modernism was superseded so quickly by Postmodernism right after Progressive Architecture, Architectural Record and architecture magazines began publication in color. In Washington, Washington DC height limitshowever, Postmodernism was a blessing, because DC’s particular flavor, the “Washington Reds” such as Amy Weinstein and David Schwarz, were some of the first to reassert the importance of contextualism within the national architectural culture. But even today, the negative gravity of the unchecked architectural culture on our civic realm has not subsided; pious claims of sustainability allow for some less than stellar contributions to the urban realm to be blessed by critics, the media, and architects alike. Again, the broader questions are difficult to answer: How do we get developers to invest more in their facades? How do we compel architects to make their buildings relate better to the urban context? How can jurisdictions code the vertical plane to achieve better results? 

One success in Developer Incentives New York City’s J-51 program, which has been in place for years, is a proven example of getting developers to behave through their bottom line. It encourages the renovation of residential apartment buildings with partial property tax exemptions and abatement benefits. The money that would have been spent on taxes is instead spent on renovation, as well as upkeep and improvements to the lot frontage. These lot frontage improvements are particularly noticeable in Morningside Heights, a neighborhood rejuvenated by this policy. In the end, because of the improvements, property values have gone up, and tax revenues have actually improved. Architectural Peer Pressure When it comes to getting architects to work in harmony with their urban context, Mr. Beasley advocates the peer review process utilized in Vancouver and elsewhere: “Good architecture comes from good architects that are supported by a regulatory system that facilitates good design and forces it to be a development priority. One of the easiest things you can do is implement design review and to put peer review in place.” These processes are not without their challenges. They require architects to volunteer their time, or find scarce governmental funding for paid peer reviewers. In many Home Owner’s Associations (HOAs) the reviewers enforcing community standards are not professionals, and the standards are often not well written (set up, on the cheap, by a homebuilder), with results that are mixed, at best. Still, these boards generally serve their communities well. Contrary to some claims, peer review boards rarely stifle creativity; they more often channel it within bounds that serve both the community identity and promote comfortable continuity. Architects and designers on these Washington DC height limitsboards understand the greater architectural culture, but their allegiances lie with the sense of place they are charged to uphold. Although local examples like Kentlands and Georgetown trend neo-traditional, one could see the peer process lead to very different types of design as they have in Vancouver, or perhaps in Tel Aviv, Israel, or Brisbane, Perth and Mawson Lakes in Australia, where the community’s architectural identities have trended modern, yet urbanistically sensitive. Great transcendent architectural icons from their time can result, such as Pei’s East Wing of the National Gallery, approved through the U.S. Commission of Fine Arts. When well run, like Washington DC commercial property for saleKentland’s Process or the Old Georgetown Board, developers and homeowners alike find they are empowered to renovate or build as they like, but the review process accomplishes better results than they would have on their own. That said, these processes often take longer, and landowners typically spend more money. But these are development costs that are generally understood in the marketplace and get factored into land value when the land is purchased by the developer. Coding the Vertical This point leads to one of Mr. Beasley’s more compelling insights regarding economic implications of greater density, and what jurisdictions must do to achieve better results in their coding efforts. He strongly cautioned that if height restrictions are lifted in non-sacred portions of Washington, it should be tied to improved public amenities. The concern is that the financial benefit from the increase in bulk typically benefits land sellers by increasing land value, and rarely benefits the developers who, in turn, could use a large portion of that financial benefit to better the public realm being created. Again, Larry Beasley:
To make a bonus or incentive work, you also have to make sure the land value increase stays in the hands of the developer rather than slipping into that of the previous land owner. This is done according to how you structure the law that vests the additional development opportunity. And then, having done that, you can then look for a portion of that unexpected land value to be invested in the public good that the bonus or incentive is trying to achieve.
Montgomery County’s recently adopted White Flint CR incentive density zoning is a big step in that direction. The “By-right” development allowance in these zones is half the land area. Optional density increases, up to four times the land area, are tied to a menu of public benefits in the following broad categories: Transit Proximity, Connectivity & Mobility, Diversity, Design, and Environment. The development must make significant advances in three of these categories to maximize the potential density. Specific measures include adding additional workforce or moderately priced dwelling units, burying the parking, and providing greater open space. Additionally, in order to achieve the full density allowance, commercial uses must be mixed with residential uses. Unfortunately what was finally adopted by the County Council was weaker than what the planning office proposed, inexplicably not including bonuses for meeting Leadership in Energy and Environmental Design® [LEED] sustainability goals, and not requiring build-to-line frontage requirements outside of retail areas. A further imperfection is that the “mixed-uses” appear that they can exist side by side in stand-alone buildings, as long as these buildings are submitted in a single sketch plan (some may argue that this will accelerate development in the short term). And the CR zone does not include architectural peer review as advocated by Mr. Beasley, substituting an awkwardly worded “Exceptional Design” criterion which will give fits to architects and developers, and ultimately challenge land-use attorneys who will have to explain “original” “innovative” and “new” in proposed designs - a lot of weirdness may result. Perversely, the new zoning also promotes the creation of blank walls on the public realm that can then be covered with a Greenscreen™ or similar products, as this is one of the least costly ways to achieve bonus density under the system. But even with these flaws - which the county’s planners are aware of and will likely correct - the legislation is on the forefront of density design in the United States. 

Hopefully other jurisdictions will follow Montgomery County’s lead and craft better language that builds upon this leap forward. As suggested by Mr. Beasley, additional improvements to this kind of upzoning can include making peer review boards more palatable to public jurisdictions by placing their enforcement costs upon the applicants, perhaps in a process similar to LEED. (One main reason LEED has achieved almost instantaneous acceptance is that it places the cost of documentation and enforcement upon the developer, often exceeding $100,000 per building, making it palatable for jurisdictions to simply adopt LEED standards.) Architectural peer review processes would be significantly less expensive, even small compared to typical public development review costs in Greater Washington. Kentlands reviews around 180 applications a year in a monthly review process, and their annual professional review costs (through Duany Plater-Zyberk and volunteer residents) average $15,000, which also includes DPZ’s monthly open houses with free architectural consulting to residents. Granted, there would be preparation costs for peer review, which take longer, and therefore carrying costs would be a concern. 

But theoretically these costs would be figured into the purchase price. Should the improvements succeed in making the area more desirable, the increased land value may negate or exceed these costs, turning into a win-win for both the developer and the land owner. Most of us cringe at the thought of additional regulation. But Peer review boards add long-term value with nominal short-term costs. Developers are willing to invest more if they know that their neighbors will be held the same standard. In conclusion, Mr. Beasley’s endorsement of the Height Act is not surprising, after all, as the new code for Abu Dhabi’s Al Ain that he helped create limits height to 6 stories, with the hopes of celebrating regional heritage by allowing Al Ain’s historic palaces, mosques and fort turrets to stand proud in their civic context. This plan will clearly contrast Al Ain to the ego-driven building frenzies in nearby Doha and Dubai, and in the long run, I suspect the regional difference will be somewhat akin to that between Savannah and Atlanta. We hope that in the next forty years that Greater Washington’s Land Owners, developers, architects and public officials can come together to put as much attention in the buildings filling our public realms as has been put into the planning of the ground plane. 

Brian O’Looney, AIA LEED-AP, is an Architect and Urban Planner and Partner with Torti Gallas and Partners. He is a former chair of the Kentlands architectural review board. His recent contributions to Washington at Torti Gallas and Partners include the design of the new Social Safeway in Georgetown and as one of the design leaders for their work in Columbia Heights.
 

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