The Ground Floor

Howard University is getting Fro-Yo.  A lease has been signed with fro.zen.yo, a self serve frozen yogurt chain.  It will be located in the Wonder Plaza, the retail strip adjacent to the Howard University bookstore.

Izakaya Seki, a Japanese restaurant, has opened at 1117 V St, NW.  The restaurant, which is housed in a refurbished barber shop, offers Japanese specialties (sushi) plus a variety of grilled dishes, saki, Japanese beers and whiskey.

J. Crew, the traditional-with-a-twist clothing store, has opened their third location in DC in the Penn Quarter neighborhood at 950 F St, NW.  The store will offer both men's and women's clothing.

National Harbor welcomes two new retailers: Blink Blanco, a globally influenced fashion boutique, and Angst Girl, a clothing store for the "edgy, restless, and rebellious" young woman.  Both concepts are from the White House | Black Market group.

Tacos El Chilango, the first brick and mortar location of the popular Arlington food truck, has opened at 1119 V St, NW.  The menu offers nine different types of tacos, agua frescos and Mexican sodas.

Morning Real Estate Review

AIA "modestly optimistic" about construction future (Electrical Marketing) American Institute of Architects says growth in non-residential construction will slowly rise through 2013, and that a spike in industrial construction will make non-residential rise 4.4% this year, much stronger than the 2.2% forecast.

FBI investigating developers' tax deals with DC government (Washington Post)  The District wrote off more than $2.6 billion last year when developers appealed assessments, but appraisers and tax officials complain about the process as feds investigate.

Slowdown in commercial real estate transactions mutes expectations of real estate recovery (National Real Estate Investor) After a strong first quarter, a slower second quarter takes some momentum away from the market.

JBG puts equity stake in L'Enfant Plaza up for sale (Washington Post) The Chevy Chase developer bought the complex in 2003 for around $200m, and is now offering a piece of ownership as it overhauls the underground food court.

HARP refinancing continues to surge (Mortgage News Daily) The federal program grew to a 33% share of all Freddie and Fannie refinances, up from 20%.  The number of homeowners using the program skyrocketed in June.

Douglas Announces Plans for Historic Hecht's Warehouse

Any commercial logos in the rendering are maskings for any large tenant.

In the last five years, the former Hecht Co. warehouse east of Gallaudet University on New York Avenue NE has changed hands and seen plans sparkle and fade.

Lights designed to glow inside the iconic crown tower atop one of the most significant art deco commercial buildings in the region - and perhaps the country - stayed dark. 

But those lights could shine again soon.  According to its new developer, the building will be converted into office space and retail and ground breaking could come in the next 90 days, Douglas Jemal of Douglas Development told DCMud.
 

Tower and lighting element.
Image courtesy of NRHP

Financing secured, architects announced

Jemal said that financing for the project came through at the end of July.  The conceptual design is the work of architectural firms Shalom Baranes and Antunovich Associates and calls for 550,000 square feet of office space, 200,000 s.f. of retail, and 1,400 parking spaces.  The approximately 10-acre site is bounded by NY Ave. NE to the north, Okie Street NE to the south, Fenwick Street NE to the west, and 16th Street NE to the east.

Shalom Baranes will focus on work that involves the original structure, which features tan glazed brick and glass block with ribbon windows around the main facades.  The original structure, built in1937, got additions in 1948, 1961, and 1986, and a renovation in 1992, according to the National Register of Historic Places.  Antunovich will focus mainly on the design for new retail buildings that will replace structures built as additions on the eastern two thirds of the site.  Those structures have not been determined to be historically significant.

Developer plans to offer alternative to expensive downtown office rates

Jemal said plans for the site would meet a growing need for office space in the area, which he said was under-served. "I feel I can offer office at below downtown rates," Jemal told DCMud.  "It has easy parkway access, and you are 15 minutes away from the capitol, you are two miles from 7th and H, and you are one mile away from a Metro," he said. "I will be renting office space there at $25 a foot and downtown space is $45 a foot."

Corner of NY Ave. NE and Fenwick St.
Image courtesy of the NRHP

The announcement comes slightly more than a year after Douglas picked up the title to the 4-parcel property at 1401-1403 and 1545 New York Avenue, NE and 2001 16th Street, NE at auction in July, 2011 with a bid of $20 million.  Douglas already held the promissory note on the property, which, as reported by CityPaper, it bought from U.S. Bank in March of last year after Penn.-based Patriot Equities was unable to keep up with a $66 million loan.

Patriot Equities abandoned plans for "Patriot Yards"

Patriot Equities had initially bought the complex in 2007, for the hefty price of $78 million. The building - a classic Streamline Moderne with a striking facade and extensive glass block - was a canvas for the bubble's finest po-mo dreams.  Developers showed off the art deco gem and there was even talk of a grandiose multi-level car showroom.  But the scheme fell through.

Another developer with eyes on the corridor, Abdo Development, permanently shelved plans for a 16-acre mixed use development called Arbor Place, in 2010.  Patriot Equities scuttled its own mixed-used plan, called Patriot Yards, and the Hecht's Warehouse property went into foreclosure in 2011, when Douglas scooped it up.  It's not the first time Douglas Jemal has moved on New York Ave. properties.  Jemal was behind renovation of the old People's Drug Stores Inc. warehouse on NY and Forida avenues NE, which he also turned into office space.

Good bones

Architect Patrick Burkhart of Shalom Baranes, who will be mainly working on parts of the plan that involve the historic structure, said the building would be a good fit for offices.  "It has really good bones for that - it has tall floor to ceiling heights and a robust concrete frame." Architect Kevin Sperry of Antunovich will be working on the retail portion of the project.

NY Ave. NE, looking west. Image courtesy of the NRHP

The six-story building, designed by engineer Gilbert V. Steel of the New York engineering firm Abbott and Merkt, was part of a plan by the Hecht department store chain of Washington, DC to improve deliveries and add stock space. Burkhart said the Hecht Company also planned to one day open a department store in the building as well, so the design is dual-use, but those plans were sidelined as the U.S. went into World War II. 

Original developers had hoped New York Avenue would become a major corridor into the city, but things didn't quite go like that, Burkhart said.  "New York Avenue went from a major corridor into the city to really a service corridor and a commuter arterial to the city," Burkhart said.  When Macy's bought the Hecht's chain in 2006, the warehouse closed.

Image courtesy of the NRHP

Burkhart compared the structure to the former Trans-Lux Theater and retail space, which opened in 1936 (just one year earlier than the Hecht Co. building) at 738 14th street between H and NY Ave.  The Trans-Lux, which had art deco ribbon windows similar to the Hecht Co. building, was torn down three decades ago.

"Preservation was in its infancy and there just wasn't enough political will to preserve it," Burkhart said.  "It was one of the losses that helped bolster the will for preservation in the city, especially for commercial buildings."

The bottom line, Burkhart said, is that the building is very special.  "I can't think of anything of this size and scale that exists anywhere, in this city or really anywhere," he said.  "It really is a special project and something I really look forward to working on."

And the lights in the facade tower at NY Ave. NE and Fenwick St. are still in good shape.  "The lighting element needs a little renovation, but it still would be capable of producing that magnificent glow," Burkhart told DCMud.  "It has been such a long time."

Washington D.C. real estate development news

Image courtesy of the NRHP archive

Morning Real Estate Review

Regulator bars Fannie and Freddie from reducing principal on troubled mortgages (Washington Post)  The Federal Housing Finance Agency and the Obama administration say the benefits of the program outweigh the risks, which include intentionally defaulting on mortgages - a position the Post endorses.

Washington Post wrong on principal deduction (Progressive Policy Institute)  The Post's endorsement (see above) of the Administration's policy failed to consider the effects of the new policy, and will cost homeowners and the economy in added defaults.

Obama Administration says underwater mortgages now falling (HousingWire)  Administration says underwater mortgages fell from 12.1m to 11.4m over the last quarter, a 5.8% improvement.

Saving Crystal City (Washington Post) Vornado Realty, owner of half the commercial real estate in Crystal City, is trying to project a new image of the concrete canyon one building at a time.

Your Next Place

This fabulous hillside Colonial is located in Barnaby Woods, which sounds like the name of a pro basketball player from the Seventies, but is actually a really swank section of Chevy Chase.  Did you know (no you didn't) that Barnaby Woods has no commercial zoning at all?  Which means it's entirely residential, and almost unnervingly sedate and beautiful.  It also means that if you forget to go on a beer run until like five minutes before the store closes, you're going to be stuck drinking cooking wine for the rest of the night.  (Pro tip:  hold your breath during each drink, then exhale as slowly as possible afterwards.)

This wonderful house boasts a bright, large living room (with fireplace), a formal dining room, and a sporty wood-paneled den.  The kitchen, which was recently renovated, has acres of counter space and top-shelf appliances.  Upstairs, the bedrooms are realllly spacious and have a ton of personality, and the master bedroom has a small adjoining room you can use as a nursery, or sitting room, or the world's nicest walk-in closet.

I also loved the massive screened-in porch.  I have a non-screened-in porch, which means I'm wearing black socks this week so the little spots of blood aren't visible from the mosquito bites all over my ankles that I've scratched until they bled.  There's also a beautiful, private backyard screened off by a wall of greenery - perfect for nude sunbathing!  Growing up in Iowa, a couple lived next door who constantly laid out naked in their backyard, only my bedroom window looked right down into their yard.  Everything I know about sex, I learned by watching a Journey roadie roll around with his girlfriend on a filthy picnic blanket after like eight hits from an apple bong.  (Any of my exes reading this just nodded knowingly and then shuddered.)

6687 32nd Place NW
3 Bedrooms, 2.5 Baths
$725,000

Washington D.C. real estate news

Vacant Lot In 14th Street Corridor to Be Mixed-Use Building

The Zipcar lot at the corner of 14th and Corcoran is likely to be replaced by a seven-story mixed-use development, as the concept design was recently recommended for HPRB approval. The Hickok Cole Architects-designed building at 1617 14th Street, NW would feature ground-floor retail and six stories of dwellings on the site, which was formerly an Amoco gas station. The proposed building would be bookended by "a row of early 20th century commercial buildings" on the north and, to the east on Corcoran Street, "a coordinated row of Italianate rowhouses." On the opposite corner is the historic and Romanesque John Wesley AME church (pictured below), and right next to it is the Central Union Mission building.

According to the HPRB report, the design calls for a "five-story masonry block fronting on 14th Street," with another slightly smaller four-story masonry block facing on Corcoran. Each block would feature "punched windows deeply set within the masonry walls." Along 14th Street, plans call for "projecting storefronts," as well as a "vertical projection consisting of canted glass bay windows extending to the top of the fifth story." The six and seventh crowning stories would be built of metal and glass, with each floor offset with the other, and "wall planes broken between apartment units."  According to the report, "design intent is to provide a contrast between the more formal, disciplined masonry blocks below with the more dynamic canted glazed upper stories."  Developers are seeking zoning variances to decrease the parking spaces requirement, and to increase the building's height to allow for the elevator overrun.

The staff evaluation of the concept design found that "the design has been developed in recognition of its site, influenced by the large auto showrooms along 14th Street (all long since replaced), the smaller-scaled rowhouses on Corcoran, and its location in the Uptown Arts District. The reports finds the height and masonry "compatible and complementary" with the church and the mission, with the building's stepdown and smaller windows on the Corcoran side preserving a successful relation to the adjacent rowhouses. The report goes on to heap praise upon the "exemplary" juxtaposed design of the top floors; whereas most buildings in the area are "begrudgingly recessed simply in an effort to squeeze additional space while trying to make the building appear smaller," this building's "setbacks and unusual geometry" result in "a harmonious juxtaposition of design elements and a distinctive roofline."

The site was formerly approved in 2005 for a similar steel-glass-and-limestone building, designed by Brennan Beer Gorman Architects and developed by FLGA, LLC, a decision that, at the time, created a minor controversy, as the similar "Rapture Lofts" project at 14th and T was rejected by the board, raising accusations of preferential treatment from some community members.

Washington D.C. real estate development news

Morning Real Estate Review

Waiting on Walmart (Examiner)  While Walmart's bold and impending arrival in DC has been missed by no one, the retail behemoth has yet to make make much progress, having broken ground on only one site as it seemingly finds itself mired in the development process.

Montgomery County lagging in filling office space (Examiner)  Maryland office vacancy has remained flat while DC has been low and northern Virginia has been falling as Washington D.C.'s southern neighbor has gotten much more benefit from government stimulus money.  Montgomery County has fallen behind, but PG County is lagging even further.

USGBC to hold first green summit for affordable homes (Realestaterama) The leader in green policy will hold a 2 day "summit" at the San Francisco during the Greenbuild International Conference & Expo.

DC United's new owner sees a pathway to a new stadium (SportingNews)  Despite its long history of failing to get financing for a stadium, owners think now might be the time to get a deal done, and city leaders are backing the plan.

Construction spending reaches highest level since 2009 (Realestaterama)  The good numbers for June are 7% higher than June 2011 numbers, evidencing a small trend in more building in both residential and commercial projects.