San Francisco Team Plays in Nationals’ Yard

San Francisco-based MacFarlane Partners, looking to capitalize on the new Nationals ballpark, is making big plans to continue playing in the Southeast DC residential and commercial market. The real estate investment management company, which has already made a 25 percent investment in the new $2 billion Southeast Federal Center (pictured), the 44-acre, mixed-use annex next to the Navy Yard, sees the nearby ballpark area as the logical next step for its development plans. To that end, the company is indicating that it plans to announce three new mixed-use projects (residential, office, and retail) near the stadium by the end of the year, totaling almost $400 million and covering up to 2 million sf – a significant addition to the crowded development field already committed to the neighborhood.

Tuscany Condos in Alexandria Terminates Sales

Bozzuto’s Tuscany condo project in the Landmark section of Alexandria is shutting down its sales office to convert to rental units when the building is completed early next year. Maryland-based Bozzuto broke ground on the project and began sales on the 104-unit building in early 2006, but recently the project website was taken down and Bozzuto’s main office has confirmed that the project will now become a rental building. Locally, the company is still completing work on its project in Capitol Heights, MD, called the Addison at St. Paul, and has not yet completed sales on the Fedora, a condo at DC’s Meridian Hill Park which completed earlier this year.

Alexandria Virginia new condo sales news

New Condos Come to Adams Morgan

The Adams Investment Group is has broken ground on a new condominium at 2426 Ontario Street between Adams Morgan and Meridian Hill Park. The Viya is replacing 3 townhouses formerly on the site with 16 "loft-style" units designed by Bonstra Haresign architects, overlooking a shared courtyard. The project will feature 10' ceilings and wood floors. Sales are not expected start until the Spring, and pricing is likely to start in the mid $300's for a 1-bedroom condo, going up to the mid $800's. The project will be adjacent to the long-awaited Harris Teeter supermarket, someday.

Onyx on First to Break Ground by Start of November

According to developers Faison and Canyon-Johnson Urban Funds (yes, that Magic Johnson), the Onyx on First - a 14-story, 226-unit condominium located at 1st and L Streets NE, just one block form the new Nationals ballpark - is expected to break ground by the end of October. This $100 million project, which will rise next to Opus’ planned 13-story office building at this location, will also feature a four-level underground parking garage with approximately 210 parking spaces and 65 storage spaces. Pricing is expected to start in the upper $200,000 range to the high $300,000s, with units averaging 725 sf. Completion is expected sometime in 2008, when the new ballpark should be ready.

Washington DC real estate development news

The Incredible Shrinking 2000 Wilson Boulevard

Elm Street Development’s planned project at 2000 Wilson Boulevard in Arlington is likely to get smaller, according to new plans it intends to submit to the Arlington County zoning board. Original plans called for 175 condo units, but the zoning board had objected to the "height and mass" of the building, forcing the developer to rescale the project. The new plans, to be submitted in February 2007, will likely bring the project down to 140 units. If approved, construction is not likely to start until 2008, giving a reprieve to Dr. Dremo’s and Taco Bell, which currently occupy the site – a temporary victory for beer and taco lovers.

Anacostia Waterfront Corp. Reveals Poplar Point Plans

The Anacostia Waterfront Corp. (AWC) is keeping itself quite busy these days, first with selecting a development team to work on its $800 million redevelopment of the Southwest waterfront along the Washington Channel, and now announcing at a recent community hearing its preliminary plans for its 110-acre Poplar Point project, located across the river from the Washington Navy Yard at the eastern foot of the South Capitol Street bridge in Southeast DC. The AWC expects the federal government to transfer this land to it in November. In addition to the site possibly hosting a new DC United soccer stadium and a hotel, initial plans also call for townhouses and mixed-income rental developments to be built, along with new retail and parks. Skidmore, Owings & Merrill LLP has been assigned the task of creating a design for Poplar Point.

Jair Lynch Announces $30 Million Project in Petworth

With the excitement surrounding Donatelli Development’s new Park Place project on top of the Georgia Avenue/Petworth metro station and the soon-to-begin-sales Jefferson Condos at 5401 9th Street, more developers are finally starting on their long-planned buildings for this hot neighborhood. The latest is Jair Lynch, which officially announced this week that it will build a $30 million residential project at 3910 Georgia Avenue, between Randolph and Shepherd Streets. (Jair Lynch received the development rights for this plot last May from the National Capital Revitalization Corporation.) Georgia Commons, as the project is called for now, will have 110 mixed-income apartments, as well as 19,500 sf of "neighborhood-serving" ground floor retail, including a 14,500-sf Results Gym. Design will be by Frank Schlesinger Assoc. and EDG. Delivery is expected in 2008.

Council Nixes Funding Plan for Stadium Parking

The DC Council yesterday failed to advance legislation to fund two above-ground (and one underground) parking garages adjacent to the new Nationals ballpark, punting (sports puns being appropriate) the issue out of the Council.  Mayor-in-wait Adrian Fenty had proposed a funding mechanism for the new garages (the city is required to provide 1225 parking spots for the stadium) that would not raise the previously agreed $611 million spending cap for the new stadium – of course, this creative accounting would require $56 million to be taken from non-stadium city funding, a method only a budget director could love. The new owners of the Nationals have proposed less expensive free-standing, above-ground parking, but Mayor Anthony Williams has proposed below-grade parking to allow for mixed-use development above the garage. The Council’s vote - for an emergency declaration to proceed – was 7 for, 6 against, which failed to meet the required supermajority for emergency measures. The worst-case scenario, if all options fail, is for the city to simply pave over the five-acre northern parcel to provide some parking spaces – a solution nobody wants. It is unclear whether the issue will next be taken up by the Council or by the DC Sports and Entertainment Commission.

Washington DC commercial property news

New Condo Development Rises in Mount Pleasant

With a majority of the new residential developments seemingly going up in long-neglected areas of the city, it’s always a pleasant surprise to see new condos being delivered in long-established and desired neighborhoods. This past week saw the beginning of sales at one such development: The Mount Pleasant, located at 3155 Mount Pleasant Avenue, just steps away (and above) the shops of this street and near Adams Morgan. This condo conversion of a three-story, 19-unit apartment building originally built in 1915, is owned by JGJ Properties, LLC, and was awarded the “Best Commercial Renovation” by Historic Mount Pleasant (HMP), and features studios and 1-bedroom units (some with vaulted 14-foot ceilings) starting at $169,000. Another perk: Wireless Internet for your surfing pleasure.

Alexandria Approves Developer’s New Fire Station in Potomac Yard Project

Despite community activists who fear the loss of quick fire response time, this weekend the Alexandria City Council approved plans for the developer of the Potomac Yard project to build a new $7 million fire station within the development. Potomac Yard Development LLC (a collaboration between Pulte Homes and Centex Homes) is pursuing a $700 million project over 165 acres along Route 1 just north of Alexandria with more than 1,973 condo and townhouse units, plus shops, offices and a 300-room hotel. The developer offered to build the new fire station for Alexandria after it was learned that the planned roads in the development might not be able to accommodate a turning fire truck (a nice way of saying that the trucks’ ladders would take swipes out of the sides of the deluxe new townhouses being built). The new fire station, because it will be built to the north and east of the current one, will have different approaches to the neighborhood that will help the turning radius of the trucks. In addition to the new station, the developer is also building 60 apartments above the station for low-income tenants. Residents have protested the plan for a new station, citing fears that moving fire trucks and staff from the station in nearby Del Ray to the new station across Route 1 would delay response times. However, city officials see this as a win-win situation, especially given the aging condition of the old station.

National Gateway Project To See Additional Office Towers

The National Gateway project, the mixed- use development slated for the Potomac Yard area along Route 1 between Crystal City and Alexandria next to Reagan National Airport, appears to be moving forward to its next phase, with this week’s announcement by developers The Meridian Group and Archon Group that they intend to develop an additional six office buildings with over 1.6 million sf of space to join their already planned two 12-story office buildings (440,000 sf, including a 45,000 sf health club) Meridian and Archon expect to start construction on the first two office buildings later this year, with completion targeted for 2009. When finally built (no completion date has yet been set), the overall National Gateway project - which also includes developers Comstock and Camden Realty – will cost over $1 billion and contain the above office space as well as another seven office buildings totaling 2.2 million sf, plus1,550 apartments and condo units totaling 880,000 sf, retail space totaling 210,000 sf ,and a 625-room hotel.

Myerton Abandons Condo Sales

The Myerton Condominiums has closed shop and gone the rental route. The 74-unit building, located just South of Arlington Boulevard on Courthouse Rd., was purchased by JBG and renovated over the past year. Sales began in the Spring but were withdrawn in September. JBG, which bought 555 Mass and converted the new apartment building into condominiums in 2005, has so far retained ownership of the Myerton apartments.

New Townhome/Condo Project Breaks Ground in SoFlo

They may call it Capitol Hill, but to you and me it's in SoFlo (south of Florida Avenue) near Gallaudet University. Ground has officially been broken on Capitol Hill Oasis, a 10-townhome development at 915-935 12th Street, NE - the southern intersection of 12th and K Streets at Florida Avenue, NE. Each townhome supposedly consists of one fully self-contained, four-story dwelling unit — each unit with elevator, five bathrooms and five bedrooms (if you're stylin' enough for a 'vette, judging from the image on the project's homepage). In addition, the developers - 12th Street Partners, LLC, G. B. Herndon & Associates, Inc., and International Concept Homes, Inc. all - are constructing a four-story building containing 16 condo units (a mix of 2 and 3-bedroom units) behind the townhomes. Construction is expected to be completed in Spring 2007, though this might be ambitious. Pricing for the townhomes is believed to be $1.5 million each – quite a hefty price tag. Then again, this up-and coming neighborhood has not seen luxury five-bedroom townhomes before, so we shall see....

Christopher Condo Sales to Begin Next Week

Sales are expected to begin this week for the Christopher condominium project, according to a representative from the Cornerstone Group (which has taken over sales for this project from the Tenacity Group). The Christopher, a renovated 84-unit building located at 3109 Naylor Rd. SE, near the Naylor metro station in Hillcrest, offers some of the most affordable unit prices inside (barely) the DC line, with 1-bedroom units starting at $140,000 (there are also 2-bedroom units available). Delivery is expected for the end of this year.

Cityhomes at 1200 East-West Project in Silver Spring "On Hold"

According to the sales center for Centex Cityhomes, the company’s proposed condominium building at 1200 East-West Highway is officially "on hold" for now, with no other details available at the present time on whether this project is still going to happen. The "Cityhomes at 1200 East-West" project, to be built on the site of an old auto-repair garage and lot across from the recently completed Silverton, was to contain a 14-story, mixed-use building, including 247 condos (ranging in size from 715 to 1365 sf) and approximately 10,600 square feet of retail space on the first floor. Centex purchased the property last May, and was supposed to begin construction this year, with a 2008 completion date. While the Silver Spring plan is now uncertain, it appears Centex is still moving forward with its nearby "Cityhomes: The Pavilions at Takoma" project, a four-story "green" building to be build one block form the Takoma metro station.

Centex Development in Falls Church Stalls

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

Eckington Fairfield Residential Groundbreaking Now Set for June 2007

Despite earlier reports that it would be breaking ground this October, it now appears certain that Fairfield Residential and CSX Realty Development will officially break ground on their $150 million mixed-use development at Eckington Place and Harry Thomas Way, NE, in June 2007. This project, located on 4.3 acres across the street from XM Satellite Radio (pictured) and north of the Fedex center just off the intersection of New York and Florida Avenues, will feature three buildings containing up to 675 condo units (though some of these may become rentals depending on the market), 15,000 sf of retail, and almost 800 parking spaces. About 70 of the units will be reserved for workforce housing (for households earning less than 80% of the area median income). One interesting fact about the project is the plan to extend Q Street NE through the project, and connect it to the nearby Metropolitan Branch Trail (which travels under New York Avenue and then becomes elevated over Florida Avenue alongside the Red Line tracks), which will permit residents to reach the New York Avenue metro stop without having to risk their lives crossing traffic on New York/Florida Avenues. The first phase of construction (a 173-unit building and all retail) is scheduled to be done in September 2009.

Washington D.C. real estate development news

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

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

Washington DC retail and real estate news

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

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

Major Residential Project Planned for Fort Totten Area

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

Apartments Just a Fly Ball Away

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

Akridge Receives Air Rights for Burnham Place at Union Station Project

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

Anancostia Waterfront Project Selects Winning Developer for $800 Million Project

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

Mount Vernon Place Church Square Project Breaks Ground

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

Previews Begin This Weekend for The Takoma Condos

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

Luzon to Break Ground in Early October

After years of sitting vacant and

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

District of Columbia retail and real estate development news

Ecco Park Sponsors Open House Today

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

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

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

NCRC Announces Rhode Island Ave. Development

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

ClubCondo DC Launches Condo Blitz

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

Just Put That Condo on My Card...

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

Brentwood Shopping Center Nears Completion

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

Developer, CVS Battle Over Gallery Place Location

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

Capitol Hill's Medlink Site Receives Downsized Zoning Approval

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

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

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

New $175 Million Complex in Howard County Anticipates Planned Growth

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

Braddock Metro Boom

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

As the Turnberry Turns...

In our latest installment of the Turnbery Towers tale, the Best Western Hotel, located at 1850 North Fort Myer Drive in Rosslyn, has officially closed, making way for construction of this new high-end condominium building. The Turnberry Group is expected to strip the interior of the hotel down to the studs, as well as start demolition of the exterior of the building this October. Official groundbreaking for the new residential building is set for January 2007. The 247 condos at Turnberry Towers (ranging from 1-bedroom to 3-bedroom (configurable to 5-bedroom) units) start at $800,000 and go up to $7 million for the penthouse (slightly higher than the typical night’s stay at the Best Western) – Turnberry reports that approximately 30 percent of the units have already sold. While all units feature amenities such as Miele appliances and terraces, the units are to be delivered "designer-ready" – it’s up to you to finish them. When complete, Turnberry Towers, designed by BBG-BBGM, will be the tallest building in Rosslyn, and the most expensive in the DC region to boot.

Arlington Virginia commercial real estate news

Eight-Story Office Tower Planned for Silver Spring’s City Place Mall

According to F. Scott Fitzgerald, there are no second acts in America, but it looks like Silver Spring never got the memo. Derided for years as the failed White Elephant of development dreams past, the City Place Mall in downtown Silver Spring is ready for its rebirth as a retail/office complex. Dierman Realty, the majority owner of City Place Mall, is planning an eight-story office tower of 160,000 sf over the existing mall space, which was opened in 1992 on the site of the old Hecht's department store. While no tenants are signed, the developer believes downtown Silver Spring's recent boom will prove attractive. The office tower will have a "contemporary" design by the architectural firm Morris Ritchie & Associates, and is expected to include environment-friendly features such as "green roof" to provide natural insulation and limit run-off. Construction is not expected to begin until all approvals and permits are set, possibly in two years.

Silver Spring Real Estate development news

New Condo Project Develops in Shaw

Georgetown-based MCN Corporation has announced that sales have begun on a 15-unit condo downtown called the Marion. The condominium will be built on quiet and historic Marion Street in the Shaw neighborhood of DC, 2 blocks to the Shaw Metro Station, in the shell of what is now a 3-story ‘50’s apartment building. The condo conversion is one of the larger condo projects undertaken by MCN, which has designed and built a number of single family suburban homes and several downtown commercial spaces. Prices will range from the mid to upper $100k’s for studios, and mid to upper $200k’s for a 1-bedroom condo, with two 1-bedroom units offering “private” gardens and parking available on site. The Marion is said to have an “architecturally contemporary” – but largely unmodified – exterior, with interior spaces offering granite countertops, GE Ranges, dishwashers, microwave/ranges with hoods, double glazed energy-efficient windows, and maple, oak or cherry bathroom vanities with cultured marble counters and sinks. Sales by Domus Realty are now underway, delivery is expected within a few months. The surrounding blocks will be home to the Broadcast Center One project – the mixed-use project atop the Metro Station – as well as a number of large, historic shells intended to be commercially rejuvenated in the near future.

A Conversation with Jair Lynch and Tania Jackson of the Jair Lynch Companies

Live-work housing innovation comes to DC.  Real estate developer  Jair Lynch believes diversification in development is essential to being successful. “Last summer,” he said in an interview with DCMud, “we knew the writing was on the wall regarding the development market; it was time to adjust.” Looking back at the past few years of the development boom, Lynch, who is working to bring along his Solea condominium project, reflected on the incredible growth the DC area has experienced. 

“From 2000 to 2004, 7500 units of rental housing went primarily to condo conversion,” he said, “and in 2004 alone it was 2500; an astounding number. Our team is always looking at economic indicators and we analyze the trends and the information.” Lynch views Solea, located at 1414 Belmont St., between U Street and Columbia Heights, as a model for a new kind of development that works with the community and is in line with the evolving real estate market in Washington DC. Solea is being designed by the architectural firm of Sorg and Associates, a Washington DC-based company. “We’re actors on a stage for a few years, “ he says, “but a building is a presence in a community for 50 years; perhaps 100 and we must be aware of that as we work with the community. That’s why community input was vital to our Solea project.” Tania Jackson, Director of Community Policy for Jair Lynch Companies, agreed, adding “We had a ‘Community Committee’ we worked with; people from Columbia Heights who we informed about style issues, budget realities and our vision, but who were essential members of our development team; we listened to what they were concerned about, what they wanted in their community. What they wanted the building to look like.” 

The $20 million Solea project is a joint venture with NCRC – National Capital Revitalization Corporation, and includes a development innovation new to the DC area – “live-work” units. Live-Work homes are a recent design trend that was sparked in the San Francisco Bay Area during the dot.com boom years. The idea is that given the high cost of rents and office space, and the realities of today’s mobile-technology-based workforce, a home could be designed to include a living-space (traditional areas for a living room, kitchen, etc) and a loft-area for sleeping and a comfortable, presentable work environment for the entrepreneur and their customers. Lynch and Jackson view these unique housing units as a reflection of the changing realties of urban life. “One and two person firms are a growing part of the American business scene” said Lynch, “the technological changes of recent times have generated whole new paradigms in how people live and work and the ‘live-work’ concept recognizes that people need a space that has a different typology than what has been available previously in the traditional condominium market.” 

The live-work concept at Solea will offer a variety of options, such as units with the work space below, and living space above – these “loft-style” apartments will have a more permeable work space than traditional condos. Lynch views it as a fairly radical departure from the urban-work and suburban-live model that has been the norm. “Solea is size-appropriate,” he said, “it works with the scale of the Columbia Heights, Shaw area, and the project, the process of development, allowed us to get to know the people in the neighborhood; that’s unique for a development project, and I think it’s a good model for future development projects.” “The soul of a place matters,” said Jackson, “Solea is going to be part of the soul of the neighborhood, not an intrusion.” Lynch was expansive in his comments about the changes he sees and the responses he views as essential to how he wants development to work. “Three worlds in DC have tended to stay separate,” he said, “Local, or neighborhood interests, federal employees or federal concerns, and the international, or expatriate community in DC. I think those worlds are starting to come together far more than they have in the past, and development in DC must answer that; it has to respond to it and blend with it, and I think we’re poised to catch that trend.” Adding an acronym he hopes won’t annoy a certain West Coast firm of modest means, Lynch describes his vision further by referring to what he calls ‘ipods’ – ‘Interactive Places of Diversity.’ “Solea, with its live-work spaces, and the way it blends into the neighborhood rather than intruding and forcing the people who live there to adapt to it, represents the change in the structure of the DC environment; diversity is not just about race and class, it’s about different communities, federal and international and local, it’s about shared experience in a thriving dynamic urban environment. Solea reflects that, and we want to continue to grow this model of development. We feel it can and will succeed.”

Washington DC commercial property news

Plans for Silver Spring Music Venue Announced

While it has been the southeastern side of the Colesville Road-Georgia Avenue intersection in Silver Spring enjoying all the artistic revitalization in recent years (the Round House Theatre, AFI Silver Theater), it appears that the northwestern side might soon be hearing the sounds of major musicians in the near future, as well as enjoying some of the redevelopment occurring in downtown Silver Spring. On Wednesday, Montgomery County officials announced a partnership that would provide $4 million in state and county money to bring the Birchmere Music Hall to the old art-deco J.C. Penny building at the corner of Colesville Road at Fenton Street. The Birchmere – a long-time stalwart of the Del Ray, Alexandria, scene on Mount Vernon Avenue (old-timers like us will also remember its original location in Old Town), has supported many major singer-songwriter talents, including well-known performers such as Mary Chapin Carpenter, Lyle Lovett, and John Hiatt. According to officials, this plan – if it receives final approval from the Montgomery County Council - would see the Lee Development Group donate 9,000 sf of land to the county, and the Birchmere make an unspecified investment of money as well as lease the renovated building from the county for its second area venue. Birchmere owners said in a statement Wednesday that they expect to open in 2009, assuming negotiations are finalized. This project is seen as a boost to development of the northwestern side of downtown Silver Spring, which has watched while the major redevelopment enveloped the rest of downtown. Bruce H. Lee, president of the Lee Development Group, told the Washington Post that he is supporting this proposal because he believes it will have a "Broadway effect that will really animate [this] side of [Colesville Road], which desperately needs it."

The Greening of Development: Eco-Conscious Development in DC

Part II in a Series:

A mixed-use development along I-270 at Wootton Parkway in Rockville is about to get bigger, and though the size is not notable by a city in the midst of a development boom, the developer hopes to attract national attention. Tower Companies, a North-Bethesda based developer, has already completed office space at Tower Oaks, a gleaming silver highrise overlooking the highway, a familiar but little-contemplated building the developer sites as "Washington DC’s first green office building."

Tower now intends to expand the site into one of the largest LEED Gold Certified mixed-use projects in the country, including 200,000 s.f. of office space, 100 "luxury" condominiums, a 200-room hotel and a 75,000 s.f. executive-style health club and spa. The "gold" designation is the premier LEED certification for measuring the environmental impact of the development. The existing office space earned its awards by features such as super energy efficiency and air-scrubbers that ventilate the air every 55 minutes.

"Going Green is a major trend in housing development across the country," says Marnie Abramson of the Tower Companies. Tower Companies, founded in 1947, began a major shift in its approach to real estate at the beginning of the 1990’s, when the company began to pursue a policy of environmentally conscious development in Washington DC. Today, The Tower Companies sites itself as the 20th largest purchaser of Green Energy in the country and are internationally recognized as authorities on Green Building Technology, setting new standards for green development in business, residential, and retail real estate environments.

The Tower Oaks project will be green throughout: condos, a green hotel, a fitness center and a green office building. Another office building is already under construction and Abramson expects it to be completed by June 2008. "Green gives you more buck for your condo dollar," she said, adding, "it comes down to good business sense; the technology is improving and as it improves and people get better at using it, the prices will continue to drop for developers and construction companies."

Abramson described the growth and cost benefits to firms like Tower over the past few years. The investment in green technology is paying off and it’s going to continue to trend upwards. "It is the next big thing in development." She added that the condos will begin construction after that and will be built to coincide with the construction of the hotel.

In another project, Tower Companies announced today that it is teaming with the real estate firm Lerner Enterprises (whose owners have killer seats at all Washington Nationals games) to purchase wind-renewable energy to power a D.C. office building called Washington Square at 1050 Connecticut Avenue, as well as for their combined headquarters in Bethesda.

Arlington-based Pepco Energy Services, a subsidiary of D.C.-based Pepco, will supply more than 64 million kilowatt-hours of renewable energy for the two buildings, which total more than 1 million square feet, making Tower Pepco’s largest commercial purchaser of green energy. Lerner's and Tower's use of eco-conscious energy will help offset carbon dioxide, a key greenhouse gas. Tower partner Jeffrey Abramson says in a written statement that the agreement "demonstrates that wind renewable energy credits can also be a viable option to meet our country's energy needs through a sustainable resource and reduce air pollution and the threat of global warming at the same time."

Part I: Going Green - New Condo Roofs Will No Longer Pollute

Furioso Condo Project on Hold – Commercial Development Considered

Giorgio Furioso’s project to develop the vacant lot on 14^th Street, next to the organic restaurant Veridian, is on hold, a representative of Furioso Development said. Furioso had been approved by the Historic Preservation Review Board to build an ultra-modern condominium next to and above 1515 14^th Street, but may instead pursue opening a second restaurant or boutique hotel on the site.

Speculation about the reasons for the plan’s demise centered on potential construction costs. Construction companies may have perceived the project - designed to have a large, curving glass and steel facade - as being so architecturally sophisticated as to exceed reasonable construction costs.

Furioso is known for his background in the arts, having redeveloped the former Hudson Automobile showroom building at 1515 14^th Street into a center for the arts, with his restaurant Viridian on the ground floor featuring regularly changing art shows, and art galleries on the second and third floors. The building, originally constructed in the 1930s was part of the 14^th Street "auto-row" – a series of car dealerships.

The aborted condo project, which was to include additional arts-oriented retail, had been delayed in zoning and permitting. Emma Saal, an associate of Furioso, describes his style as very modern. She added that he was one of the originators of a now much-used mixture of glass and steel that makes use of the classical attention to detail. Saal points to one of Furioso’s signature projects as an example of his style. "Solo Piazza," she says (SoLo – or South of Logan) "is a perfect illustration of his combination of classical detail within a modern structure." Saal points to Solo Piazza’s floor to ceiling fenestration and multiple colors for the masonry as capturing the essentials of that style’s attention to detail while reinterpreting the building in a modern manner. "It’s very Giorgio," said Saal, "old and new in a modern setting; clean lines with a crown of steel and wood."

Saal added that regardless of what Furioso does with the 14^th Street property, she’s certain it will be a great architectural addition to the Logan Circle area. "The restaurant, or a boutique hotel; either will be designed with the same great attention to detail and the wonderful modern flair that makes Furioso unique."

Washington DC real estate development news

Jair Lynch, NCRC Plan U Street - Columbia Heights Condo Project

Jair Lynch Companies has made a deal with NCRC – the National Capital Revitalization Corporation, to develop a property above the U Street corridor at 14th and Florida, NW, in Washington DC. The project, called the Solea, is going to be a mixed-use property which will include low-income housing. NCRC has 2,000 housing units in its pipeline, of which 27% are designated as affordable to very low income buyers. Sorg and Associates, the architectural firm designing the Solea, has had a productive relationship with NCRC. A representative of Sorg described the building design as unique and said that it will stand out among the recent development along U Street.

The project has allocated three retail spaces, with two already rented by Trade Secrets and Zawadi. Gilford Corp. is the builder for the $18 million Columbia Heights project. The Solea project is comprised entirely of LSDBEs or, Local Small Disadvantaged Business Enterprises.

Matt Morrin of NCRC views the Solea as an excellent example of cooperation between public and private entities working together during the development boom. "It’s a good model and you can see it across the country," said Morrin. "It’s one of several types that work to facilitate the development of private projects that take into account the needs of the local community by providing affordable housing."

Morrin added that NCRC wanted to make sure a voice representing the local community was heard, and said Jair Lynch, with its experience, made the process a success. "It worked out well,” said Morrin, "this is a positive trend for future development projects.” Sorg expects the project to be completed by late 2007.

PN Hoffman Plans New Condo in Penn Quarter

Following up information first reported this May, Washington DC PN Hoffman has announced preliminary plans to redevelop the church located at 10th & G Sts., NW, into a 140-unit condominium building. The developer will raze the First Congregational Church currently on the site to construct a "super contemporary" building. The agreement has not yet been finalized, leaving details about the project’s design still fluid. No construction or sales dates will likely be available this year. The project is located adjacent to the old Convention Center, slated to become an enormous mixed-use development by 2009. This latest acquisition adds to the 4 large projects the developer is already building in the area, and to several other sizable projects in the developer’s pipeline.

NDC Begins Another Mass Ave. Condo Conversion

National Development Company (NDC) has begun a new condo project at 12th and Massachusetts Ave., in Northwest DC. The New Plaza will feature 37 condominiums in a historic 7-story, Victorian-style building. NDC, also in the midst of developing the Lofts of Brightwood, will offer condos in two phases, with the first phase apparently geared for less renovation and quick occupancy, and a second phase of the project to more fully renovate the remainder of the units. Pricing for the first phase will begin below $200k for a studio, with sales to begin in 2 weeks, nearly matching pricing for the Grant across the street at 1314 Massachusetts, which began sales several weeks ago.

Going Green - New Condo Roofs Will No Longer Pollute

The Chesapeake Bay Foundation has been working to provide "green" grants to building development projects in Washington DC.

Doug Siglin, Director of Federal affairs, is optimistic about the impact of eco-friendly designs on the environment.

"This is all pretty new," he said, "but the anecdotal evidence is starting to give us a good sense that we’re on the right track with these grants." Siglin and the Chesapeake Bay Foundation are currently reviewing grants for "green" roofs in certain areas of DC such as the project by developer ICP at 801 Virginia Ave. in Southeast DC. Several green roofs are already under way; PN Hoffman is currently building one at the Alta and developer Bogdan Builders recently announced plans to include green features on the roof at Logan Station, a condominium now going up on 12th & R.

The Foundation has been working to protect the bay from run-off that flows from the Potomac River. The environmentally friendly "green" roofs cut down on the amount of rain water going directly from the roofs to the Potomac. The roofs act as small forests and lower the amount of toxins going from the roof to the river and from the river to the bay.

Among the major projects the Foundation has been involved with are the greening of the roof for the new Federal Department of Transportation in the Anacostia Waterfront Project. The Foundation provided $100,000 for the roof. "That this really is the way to go," said Siglin. "In Germany we’re hearing that green roofs are lasting 45-50 years versus only 20 years for a conventional roof. That adds up to substantial savings over time."

"DC is ahead of the rest of the country on this; we’re pointing the way and it’s a worthwhile change in development."