Since January, 2003
            
 Sliding from Before to After

Word is hitting the streets this morning that Akridge has now sold its remaining holdings on the west side of Half Street just north of Nats Park, ending an ownership that began in 2008 but that saw the Fairgrounds as its only development.
Back in February, Akridge sold the southern two-thirds of the block-long lot to JBG, and at the time it was said that the company was also "under contract to recapitalize the northern third of Half Street." It turns out that that "recapitalization" was a sale to an affiliate of Brandywine Realty Trust for $20 million, according to WBJ.
Akridge's arrival on this lot began back in 2007 when the company won a WMATA bidding process for what was then the Southeastern Bus Garage site. But Monument Realty, expecting to have the rights to develop the site, was quite unhappy, and sued, which resulted in the settlement that awarded the bus garage site to Akridge for $46.5 million and the adjacent Metro parking lot across Van to Monument for $22.6 million. Monument then sold its holdings on the south end of the bus garage block to Akridge for $9.66 million.
The company got zoning approvals in early 2009 for its Half Street plans, as a 700,000-square-foot mix of two office buildings, one residential building, and 56,000 square feet of retail. But, of course, none of that ever happened, and in the meantime Akridge provided the space for first The Bullpen, then Das Bullpen, then the block-long Fairgrounds site.
Now we wait to see what the plans for the north end will be, now that JBG has said it will be building two residential offerings on its portion near the ballpark.
(And I know the web site response is atrocious this morning. Guess I'm going to have to stop just wishing it will get better, though the support people tell me that a lot of this is supposedly now the fault of another site on the same server, which has two more days to clean up its act or else it'll be shut down. We Shall See.)
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ZoolanderANDtheBoYz says: (4/13/15 11:10 AM)
"Monument first acquired the lots in Square 700 between Half and Van streets in 2005, three years before Nationals Park opened to fans, for a combined $6.96 million. In August 2008, Monument sold those lots to Akridge for $9.66 million. And now, seven years after acquiring them, Akridge has dispatched those parcels to JBG and Brandywine, in separate deals, for a total of $65 million.
It amounts to an 834 percent increase in value over the course of a decade, reflecting the meteoric growth of the Capitol Riverfront community, between South Capitol Street and the Navy Yard. The blocks immediately surrounding Nats Park are simply exploding with development, and much more is to come in short order."

I know you corrected the permit guy from Washington Business Journal on twitter. But, he still has not corrected it.


ZoolanderANDtheBoYz says: (4/13/15 11:11 AM)
21 million in profit is a healthy and lucrative return for Akridge.


JD says: (4/13/15 11:30 AM)
WBJ's story is corrected now.


ZoolanderANDtheBoYz says: (4/13/15 12:25 PM)
*Correction - Akridge profit is roughly around 9 million not 21 million. Still that is a good return.


Andrew in DC says: (4/13/15 7:36 PM)
@ZoolanderANDtheBoYz 9 million on $56 million invested in 2009 is not a good return. It's not even 20%.

By comparison, you could have put all $56 million in the S&P 500 on the day they closed the deal on Sept 3rd, 2008 and made 63.13% - a return of a cool 32M ... and that was before the market crashed from Oct-March.

Akridge is just happy to get away from this deal with its head intact. This is a huge loss for them. Their investors should be pissed.


ZoolanderANDtheBoYz says: (4/13/15 9:12 PM)
@Andrew, I didn't know Akridge is publicly traded company.


Andrew in DC says: (4/13/15 9:46 PM)
@Zoo they aren't - but that doesn't mean they don't have investors:

link


Scott says: (4/14/15 4:33 PM)
How much do you normalize finance with debt in a commercial deal? I doubt any of these properties are purchased with all cash, so the return of $9 million is not on $56 million, but on whatever you had invested. That's the power of leverage.

So if it was financed 20% with cash in 2008 - or $11.2 million - and you returned $9 million in 2015, that's higher than what you would have made investing the same $9 million in the S&P 500 at the same point in time.

Of course, we probably have no idea what their actual numbers are, either how much they financed in cash, nor their expenses over time that would lead to a real ROI.


Scott says: (4/14/15 4:34 PM)
*normally*


202_cyclist says: (4/15/15 11:10 AM)
Was part of Akridge's motivation in selling the Half St property to get more funding to finance its massive and ambitious Burnham Pl development ( link


ZoolanderANDtheBoYz says: (4/15/15 11:15 AM)
Damn @202, I was about to ask the same question with the same link. 8.5 billion for the next 20 years is a big bet.


JD says: (4/15/15 12:23 PM)
Not really on this subject, but I saw a Michael Stevens quote somewhere recently that talked about the neighborhood now being at the halfway point of its build-out. It kind of startled me that that's about right. And once you get all this Half Street/South Capitol/1st Street stuff underway, it's really just the later phases of The Yards, Florida Rock, and a smattering of potential projects north of M/west of 3rd left to go.

(I know that doesn't make it sound like there's that little left to go, but in comparison to what's been done....)


202_cyclist says: (4/15/15 2:22 PM)
"Not really on this subject, but I saw a Michael Stevens quote somewhere recently that talked about the neighborhood now being at the halfway point of its build-out. It kind of startled me that that's about right. And once you get all this Half Street/South Capitol/1st Street stuff underway, it's really just the later phases of The Yards, Florida Rock, and a smattering of potential projects north of M/west of 3rd left to go."

Maybe CSX will sell some of the huge amount of land it owns next to 70 and 100 I Street after the VA Ave tunnel construction. Residential would be difficult here b/c it is right next the highway but I don't see any reason additional office buildings can't be constructed there. There is also the lot immediately north of McDonalds, as well as the McDonald's property. Additionally, as mentioned in my comment for the marine barrack's post, almost all of the lower 8th Street corridor is still undeveloped-- I don't know if that is considred Navy Yard/Capitol Riverfront, however.


JD says: (4/15/15 7:13 PM)
Lower 8th is within the BID boundaries, although at one of the 2010 barracks meetings Michael Stevens said that if the Marines take any of the private land over there, he will advise the BID board to shrink the boundaries to not include any new Marine facility. Probably spoken in the heat of the moment, but still an indicator of the feeling that any new installation along 8th would perhaps not be considered a net positive from a business standpoint.

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1100 HALF ST SE   THEFT
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Recent Issued Building Permits Archive  
1017 3RD PL SE   
03/14/19 
JAUVON M GILLIAM / null
PP1902068 / POST CARD
1331 4TH ST SE CU   
02/22/19 
FC 1331 LLC / null
P1904018 / SUPPLEMENTAL
   
03/13/19 
FC 1331 LLC / null
E1905237 / SUPPLEMENTAL
   
03/18/19 
FC 1331 LLC / BEN BEDDO
TL1900017 / CONSTRUCTION
REVISION to existing permit TL1700205 submitted to reduce scope of work to the permitted set to reduce costs.
1346 4TH ST SE   
03/04/19 
FC 1346 LLC / BOB BIROONAK; N/A
SG1900084 / CONSTRUCTION
One illuminated building sign and one double face illuminated blade sign
2 EYE ST SE   
03/12/19 
null / MIKE BOONE
AH1900650 / CONSTRUCTION
PEPCO-ALLEN-CREWS NEED TO REPLACE CABLE AT #2-EYE ST SE. 11PM-5AM 3 / 14 / 19-3 / 15 / 19
2 I ST SE   
02/22/19 
MCDONALDS CORPORATION / null
P1904020 / SUPPLEMENTAL
150 I ST SE   
02/21/19 
WILLIAM C SMITH CO / null
E1904635 / SUPPLEMENTAL
   
03/15/19 
SQUARE 737 LLC / WILLIAM MOORE
AH1900647 / CONSTRUCTION
afterhours to take down tower crane with mobile crrane saturday 3 / 16 / 2019 and sunday 3 / 17 / 2019 from 4am tp 1159 pm
328 I ST SE   
02/22/19 
BRIAN HUSEMAN / MATTHEW MALASKA
P1904003 / SUPPLEMENTAL
   
03/06/19 
BRIAN HUSEMAN / JAMES W MONTGOMERY
E1905028 / SUPPLEMENTAL
212 M ST SE   
03/04/19 
SQUARE 769 LLC / BRIAN WARNER
UT1900015 / CONSTRUCTION
Remove an unknown number of USTs as they are encountered during construction activities.
250 M ST SE   
02/21/19 
SQUARE 769 LLC / BRIAN C STROTT
B1813732 / CONSTRUCTION
9 story office building with 3 levels below grade. 188,000 gross sqft
300 M ST SE   
03/08/19 
FEDERAL CENTER LP / SAM HOLLEN
B1906302 / CONSTRUCTION
INSTALL NEW FIRST FLOOR SUITE ENTRY DOOR WITH CARD READER TO VACANT TENANT SPACE. INSTALL INTERIOR CONCRETE RAMP WITH 4 INCH ELEVATION CHANGE. PROVIDE EXIT LIGHT AND EXTERIOR LIGHT FIXTURE. 100 SQUARE FEET.
861 NEW JERSEY AVE SE   
03/11/19 
CONSOLIDATED RAIL CORPORATION / JOHN WYCKOFF
SB1900174 / CONSTRUCTION
An environmental assessment will be conducted at the parcel located 861 NJ Ave., SE involving installing 10 soil borings, 7 soil borings will be drilled to a depth of approimately 20 feet bgs and hree soil borings will be drilled to a depth of approximately 50 feet bgs. The soil borings will be drilled and the soil sampled using direct push technology (DPT) dual tube tooling 3.75. All cuttings ...
880 NEW JERSEY AVE SE   
02/21/19 
880 NEW JERSEY AVENUE LLC / CLYDE HURST; CHRISTOPHER P COWIE
B1901729 / CONSTRUCTION
alterations to an existing 688 SF vacant space to add mechanical, plumbing and electrical fixtures to accommodate a future tenant. Future tenant fit out will be provided under a separate permit. This permit is for the landlord work only. The existing space is recently constructed building shell that has not been occupied by a previous tenant.
1299 NEW JERSEY AVE SE   
03/01/19 
UNITED STATES OF AMERICA / MAHMOUD KHACHAN
SB1900167 / CONSTRUCTION
Temporary Geotechnical Soil Borings Number of Borings: 2 Diameter of Boreholes: 6 inches Depth of Borings: 55 ft Drilling Method: Mud Rotary Abandonment Method: Tremie Grouting with Bentonite grout
79 POTOMAC AVE SE   
03/11/19 
RIVERFRONT HOLDINGS I LLC / null
E1905174 / SUPPLEMENTAL
227 TINGEY ST SE L1   
02/28/19 
UNITED STATES OF AMERICA / JOHN MCDONALD
P1904187 / SUPPLEMENTAL
AH = After Hours; B = Alteration & Repair; D = Demolition; E = Electrical; FB = Boiler; M = Mechanical; P = Plumbing and Gas; PC = Post Card; R = Raze; SG = Sign; TL = Tenant Layout; TN = Tent; RW = Retaining Wall;

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