Arts at 5th and I Finally Moving Forward?

At a Mount Vernon Square Neighborhood Association meeting last night, a Donohoe Companies representative explained the firm’s new plans for the long, long, long awaited Arts at 5th & I project, which was initially announced back in September 2008.

The good news: the project, located just off Massachusetts Avenue at the corner of 5th and I streets NW, is apparently finally moving forward, according to its developers. The bad news: completion won't be until 2016, and the ‘arts’ element that gave the project its name has largely disappeared, and the development itself seems to have been distinctly scaled back from earlier iterations.

Renderings from the project's website

Jad Donohoe explained the company’s plans to roughly 15 residents gathered for the community organization’s monthly meeting, though he didn't have any new visual images to release. The new concept includes a boutique hotel with an entrance on 5th Street, and an adjoining apartment building facing I Street that will hold roughly 140 units and max out the height. The project will include at least 4,000 square feet of ground floor retail space; most of that will be dedicated to a large restaurant connected to the hotel and also accessible from 5th Street, but plans include a smaller space on I Street as well. Three levels of underground parking will be accessible from an I Street entrance.

The firm’s initial plans were considerably more ambitious. They included a high-end hotel, residential units (including almost a third that would be tagged as affordable), intriguing artsy elements like a jazz club and art gallery, and a range of retail options like a bicycle store, hardware shop and bookstore.

Not all of those bells and whistles are totally gone. Approximately 8 percent of the new apartment building’s units will be affordable, and Zenith Gallery may utilize some space in the hotel’s lobby. And Donohoe pointed out that the company is still communicating with the Boisdale Jazz Club, a London-based chain of nightclubs.

But the new plans are much more somber, and that’s largely the result of unfortunate timing. Donohoe Companies won the city’s bidding process in 2008, and funding for projects like this one simply dried up (though that funding had dried up before the bid). Since then, a range of plans have been presented but never acted upon, and the site is currently used as a parking lot and weekly outdoor market. That gives this version a distinct advantage—as long as it becomes a reality. “This isn’t as grand as we’d have liked, but we want to get it done,” said Donohoe.

The timeline goes something like this: On November 13, the Deputy Mayor’s Office for Economic Development will hold a surplus meeting to sign the land over to the Donohoe Companies. The city will package the documents and pass them along to the City Council by the end of November, and the City Council should approve them sometime early in 2013. The company will spend the next 13 months working with architects, getting permits, and acquiring financing before breaking ground in early 2014.

“That’s generally pretty quick, though it sounds far away,” explained Donohoe. The project would be done 24 months later.

The gathered residents didn’t seem to mind the long time horizon; most were relieved to hear that the project was finally moving forward. Donohoe acknowledged the long wait. “I know this has been a slog,” he admitted.  And its not over yet.

Washington, DC, real estate development news

The Gallery of Bethesda Demolition Complete, Excavation Underway

With a $55 million construction loan recently secured, and demolition complete, developers Donohoe Companies and MPM Investments are aggressively moving forward on the Gallery of Bethesda, its 17-story 234-unit residential tower at 4800 Auburn Avenue.

“Donohoe Construction is making great progress on the site," said Jad Donohoe of Donohoe Companies.  "Excavation will finish up in November. The 17-story building will 'top out' in July of next year. And then by early 2014, residents will be moving in. The Gallery of Bethesda is going to bring more life and more activity to this part of Bethesda, and it’s going to prove all over again why Bethesda is one of the best places to live in the Washington region.”

The Gallery will be a quarter-million-square-foot tower featuring a 0.25-acre public plaza, a rooftop pool, and 4.600 s.f. of ground floor retail space.  The project is one of three towers that will make up downtown Bethesda mega-development in Woodmont Central; an additional residential tower is slated to be built at 4850 Rugby, with a six-story office building at 8280 Wisconsin Avenue (possibly breaking ground this summer), completing Donohoe's trifecta, not to mention JBG and Bainbridge, both of which are building 17-story residential projects in the neighborhood.  When all three phases are complete, WDG-designed Woodmont Central will bring nearly 600,000 square feet of residential, office and retail space to downtown Bethesda.

The $55 million construction loan, secured in mid-May, is financed by AXA Equitable Financial Services LLC, and sister company Donohoe Construction is the general contractor.

Bethesda, Maryland real estate development news