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Near Southeast DC Past News Items: Homewood Suites
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In the Pipeline
25 M
Yards/Parcel I
Chiller Site Condos
Yards/Parcel A
1333 M St.
More Capper Apts.
Yards/DC Water site
New Marine Barracks
Nat'l Community Church
Factory 202/Yards
SC1100
Completed
Thompson Hotel ('20)
West Half ('19)
Novel South Capitol ('19)
Yards/Guild Apts. ('19)
Capper/The Harlow ('19)
New DC Water HQ ('19)
Yards/Bower Condos ('19)
Virginia Ave. Tunnel ('19)
99 M ('18)
Agora ('18)
1221 Van ('18)
District Winery ('17)
Insignia on M ('17)
F1rst/Residence Inn ('17)
One Hill South ('17)
Homewood Suites ('16)
ORE 82 ('16)
The Bixby ('16)
Dock 79 ('16)
Community Center ('16)
The Brig ('16)
Park Chelsea ('16)
Yards/Arris ('16)
Hampton Inn ('15)
Southeast Blvd. ('15)
11th St. Bridges ('15)
Parc Riverside ('14)
Twelve12/Yards ('14)
Lumber Shed ('13)
Boilermaker Shops ('13)
Camden South Cap. ('13)
Canal Park ('12)
Capitol Quarter ('12)
225 Virginia/200 I ('12)
Foundry Lofts ('12)
1015 Half Street ('10)
Yards Park ('10)
Velocity Condos ('09)
Teague Park ('09)
909 New Jersey Ave. ('09)
55 M ('09)
100 M ('08)
Onyx ('08)
70/100 I ('08)
Nationals Park ('08)
Seniors Bldg Demo ('07)
400 M ('07)
Douglass Bridge Fix ('07)
US DOT HQ ('07)
20 M ('07)
Capper Seniors 1 ('06)
Capitol Hill Tower ('06)
Courtyard/Marriott ('06)
Marine Barracks ('04)
 
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75 Blog Posts Since 2003
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The front page of Tuesday's Post has "Building Slowdown Turns Grand Visions into Vapor," a look at projects in the DC area that are on hold because of the slumping economy: "The economic boom of recent years promised to deliver gleaming homes and high-end retail to struggling and newly forming neighborhoods across the Washington region. But that quest is running headlong into a withering economic slowdown and paralyzed credit markets, bringing new construction to a virtual stop and fueling anxiety among those who dreamed that their neighborhoods were the next frontiers."
Among the examples in the article are three delayed projects near the ballpark--WC Smith's 250 M Street office building, the residential and hotel portion of Monument's Half Street project, and also the Corcoran's Randall School development at Half and I, SW (which Monument pulled out of recently): "Perhaps no area is more central to the District's long-term ambitions than the streets around Nationals Park. At every opportunity, Fenty talks of a cosmopolitan destination featuring new parks, offices, stylish apartments and restaurants, all of it along the Anacostia River. Yet, how soon that vision materializes is fraught with uncertainty."
(Full disclosure: I provided a bit of basic status on ballpark-area projects for the piece, hence the "contributed" line.)
Some additional perspective: Certainly there's a slowdown afoot. (It's almost like there's some sort of cycle of boom and bust in commercial real estate!) I've been joking that I should just put a "Gone Fishin'" sign up here at JDLand during 2009, and come back in 2010 to see what's cooking, because other than the first offerings at the Yards and perhaps Canal Park {cough}, I'm not expecting much to get underway in the next little while. On the other hand, Capitol Quarter is moving forward, 1015 Half Street is now out of the ground, Diamond Teague Park is expected to open in the spring, and 100 M and 55 M and 909 New Jersey and Velocity will all be opening their doors before long, and perhaps the lure of another season of baseball will get some retail into the empty ground-floor spaces of those buildings and 20 M.
So, it's not like tumbleweeds are blowing down M Street or vines are growing on buildings a la Logan's Run--and it would be hard to make the case that it's the neighborhood's fault or the stadium's fault when the entire region is feeling the pain. The expectation would be that when the market improves, development in Near Southeast should pick up again. But we'll all just have to wait and see, won't we?
 

The cover story of this week's Washington Business Journal (online for subscribers only) asks: "With Wall Street imploding, regional banks running for shelter and life insurance companies pulling up the ladders, if 1000 Connecticut couldn't get construction financing before the financial storm took on epic proportions, who can get it now?" It also quotes an expert as saying: "For any speculative project, both inside and outside the city -- even in core locations downtown -- it's basically impossible."
The article mentions two of Near Southeast's spec projects in the pipeline:
* "Others, like the William C. Smith Cos. project near Nationals Ballpark at 250 M St. SE, don't intend to pursue financing or break ground until they have a signed-and-sealed tenant."
* "James 'Jad' Donohoe IV, whose company plans a 200,000-square-foot office building at 1111 New Jersey Ave. SE, said he has no choice but to broaden his financing net to include nontraditional sources of funding, such as syndication arrangements with multiple banks, sovereign wealth funds and equity from hotels that will be part of the development. " 'We're still in the early stages now, but we've already been searching those things out for this and for other projects we have out there,' he said."
I'd also note that another office spec project in the neighborhood, DRI/Transwestern's Plaza on K on the northwest corner of First and K, had previously mentioned a Fall 2008 start date for its first phase, but there have been no recent announcements and no building permits filed.
And, there's also three spec office buildings currently under construction--55 M, 100 M, and 1015 Half, with only 100 M having so far announced any tenants (Parsons is expected to occupy 30 percent of the building, in early 2009). But, according to WBJ, "industry experts say they are not too worried about the future of the 36 local buildings that are under construction but not under contract to a tenant."
Will the bailout deal change any of this? [insert "We shall see...." comment here.]
 

* Monday's Post has a couple of pieces on the state of the area's commercial real estate market, and looks specifically at how NoMa doesn't have tenants racing in despite the high-profile acquisitions of NPR and the Justice Department. It also compares NoMa to Near Southeast, and quotes Russell Hines of Monument Realty as saying that "although the slow economy has made leasing the building more complicated, the company had seen interest from some associations and other private companies looking to escape high rents downtown." Alas, the piece mentions "50 M" as Monument's 275,000-sq-ft office building scheduled for completion next year when it means 55 M. (50 M is Monument's project, too--a proposed 130,000-sq-ft office building on the old Sunoco station site, but they are looking for tenants before starting construction there.)
* A Sunday Examiner piece looks at the temporary zoning rules covering where gun stores can be located in DC: "Firearms dealers who apply for a D.C. location will be largely restricted to high density commercial areas downtown and kept at least two football fields away from where people live, play and pray, according to emergency rules now in place." Included in the allowed zones are C-3-C areas, which means that the area of Near Southeast between South Capitol, Second, M, and the freeway (my "North of M" area) is covered. (See the map on page 8 of the OP report for exact boundaries.) Other restrictions: "All applicants, under the new rules, must appear before the Board of Zoning Adjustments to obtain a special zoning exception. Retail stores will be limited to the downtown area, generally between Massachusetts and Pennsylvania avenues Northwest, in addition to about 25 square blocks between Independence Avenue and M Street in Southwest. No dealer will be allowed within 600 feet of a residence, school, library, church or playground." Of course, the gun stores would have to be able to afford the rents in the pricey new buildings going up, since there aren't too many other places left in the neighborhood.
* Late notice (unless you're subscribed to my Twitter feed, in which case you heard about this yesterday), but there's a Live Online chat today at noon with the author of the Post magazine's piece on the drag queens of Near Southeast, and the man known as "Mame Dennis" who was the focal point of the article will be participating, too.
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While the focus lately has been on the start of the Capitol Quarter townhouses, there is more to the redevelopment of the old Capper/Carrollsburg public housing complex. There are the two completed seniors buildings (Capper Seniors #1 and 400 M Street), now providing 300 of the 700 old Capper public housing units that are being replaced. The first phase of Capitol Quarter includes 39 subsidized rental units, and the second phase (which is probably not going to start delivering until 2011) will have another 47 subsidized rentals; this is in addition to the sales of 121 market-rate and 91 workforce-rate townhouses throughout both phases. That leaves a little over 300 public housing units to come, which will be included in the 1,300 apartments expected to be constructed at Capper over the next five years or so.
There are five new apartment buildings slated to be built, three of which along the east side of Canal Park where the temporary parking lots are, and another at New Jersey and K on the trash transfer site. And there is a new plan for a fifth apartment building, on L Street across from the Marine Bachelor Enlisted Quarters (B.E.Q), on the northern portion of the old Capper Seniors footprint.
Under the original Capper plans, there was to be a strip of 61 townhouses built on this spot, but the DC Housing Authority has recognized that these homes would be dwarfed by the B.E.Q. to the north and the two planned office buildings directly behind them at 600 M Street. So DCHA has now filed a request with the Zoning Commission to allow an expansion in the total number of housing units allowed at Capper to 1,747, which would allow the construction of a four-story 189-unit apartment building (with a massing very similar to the B.E.Q.) on this stretch of L Street known as Square 882N. This Zoning Commission request is also looking to expand the number of units in the planned apartment building on the south side of L Street between Second and Third (let's call it Square 769N) to 171 units, as a result of its block-mate 250 M Street having recently gotten approvals to be built higher than originally requested.
I've updated the map and descriptions on my Capper Overview page to reflect these latest plans for the area, and it's worth taking a look at if you're not really familiar with exactly how wide-ranging the Capper Planned Unit Development is. (Reading the 2004 zoning order establishing the PUD and laying out the requirements isn't a bad idea, either.) I should also note that the apartment and office buildings will combine to have about 50,000 square feet of ground-floor retail. There should also be a new community center at Fifth and K, but it doesn't seem to be on the front burner just yet.
Of course, the question then becomes: when? Timelines are always dicey and should be taken with a couple pounds of salt, but it appears that these two L Street apartment buildings (882N and 769N) would be first up on the agenda, perhaps being delivered in 2011. The other two buildings on Second Street would come next, and the anticipated 400-unit building on the trash transfer site would probably be the last one to be built, finishing maybe sometime in 2013. The three office buildings and the second phase of Capitol Quarter townhouses would be sprinkled throughout that time frame as well, with 250 M Street probably being the first office building to get underway, possibly even later this year. (Have I thrown in enough "maybe"s and "possibly"s and "perhaps"s for you?)
At least these plans don't have to wait until school buses get moved!
 

There was a big pile of news this past week from Near Southeast, so I'll boil it down to bullet points and links in case you couldn't keep up:
* Construction is really about to begin on the first townhouses at Capitol Quarter, now that financing has been closed for the public housing units;
* The first phase of the waterfront park at The Yards got the thumbs up from the Zoning Commission, and is expected to be completed by summer 2009;
* Onyx on First will be opening its first five floors of apartments in late July or early August, and initial rents have been announced;
* 100 M will be substantially completed in November, and tenants should start moving into the office building early in 2009. SunTrust Bank is the first retail tenant, and the developer is looking for restaurants for the other spaces;
* The planned office building at 250 M got Zoning Commission approval for a modification to its design; and
* Street vendors will start popping up for ballgames north of M Street on Tuesday (June 3). You can see the map of where they'll be.
 

Last night the Zoning Commission voted 5-0 to extend the allowed building height and expand the total square footage of the proposed office building at 250 M Street in what is technically a modification to the Capper/Carrollsburg second-stage PUD that this office building is part of. The building, which will be going for LEED silver certification and which will have ground-floor retail, will now be 130 feet high and have 233,405 square feet of space. The discussions at the hearing centered mainly on the penthouse structure, the "next generation" elevator technology that allows for less overhead space, and how exactly the agreement with ANC 6D should be viewed.
William C. Smith's Brad Fennell testified that the developer has agreed to additional amenities beyond those in the original PUD (which included $325,000 toward the funding of Canal Park). He described the new amenities as "recruiting construction workers from ANC 6D by purchasing quarterly ads in the Southwester, creating an overall goal of 20% first-source employment for qualified ANC 6D residents, and providing contracting and new hiring opportunitiess for local residents and subcontractors by giving tiebreaking preferences to subcontractors headquartered in ANC 6D and for qualified construction workers living in that area." On May 12 the ANC tied 3-3 on the project, but apparently some subsequent tweaking of the proffer into this final form resulted in a letter from the ANC indicating that four commissioners would support the project with these additional amenities. The Zoning Commissioners felt that, since this was not an official vote of the ANC, it couldn't be given the required "great weight," but could be looked at the same as any feedback from a neighborhood association. The fact that no ANC members appeared at the hearing to testify in opposition also was noted.
You can read the Office of Planning report for all the specifics you could ever want about the changes in the design; if you're really interested, you can also read the original second-stage PUD approval of 250 M from last July, that last night's ruling is modifying. (The original Capper PUD is worth a look as well if you aren't familiar with what's been approved for the area's redevelopment.) Also, since I haven't mentioned it lately, it should be noted that this office building is technically a joint venture between WC Smith and the DC Housing Authority, with the monies from it helping to "financially leverage" the rest of the redevelopment of the Cappers.
This was the first vote; final action on this modification will be scheduled for a month or so from now. Earlier this year a WC Smith representative had told me that construction could begin in the middle of this year, but there was no mention of start dates at the hearing.
 

There's two Near Southeast projects with hearings in front of the Zoning Commission this week:
* On Wednesday (5/28) the ZC will hear the request to extend the height of the office building planned for 250 M Street. I've written about this here, and you can read the Office of Planning's final report for much more detail on the request (and see the latest design). OP recommends approval of what is technically a modification to the Capper/Carrollsburg second-stage PUD (yes, this office building is part of the Capper redevelopment). After initially refusing to vote on the plan because of a lack of community benefits, ANC 6D voted 3-3 on it at its May meeting, which means there will be no support from the ANC. (I wasn't at this meeting, so I can't give you the specifics of what the developer offered to the ANC, or why the resolution didn't pass.) It's possible that 250 M will begin construction this year, but there's no confirmation of that.
* The next night (Thursday 5/29) the ZC will undertake a Southeast Federal Center Zoning Overlay District Review for the first-phase plans of the 5.5-acre waterfront park at The Yards. This design was approved by the National Capital Planning Commission back in February (with some suggestions for refining the pedestrian bridge that is one of the focal points of the design). The Office of Planning report for Thursday's hearing gives a lot of good detail on the plans for the park, as does my original entry from when the design was unveiled. OP supports the design for the park, while also hoping for refinements to the bridge and noting that there should be additional bike racks. You can all sorts of cool renderings of the plans on my Yards Park project page. The first phase of the park is expected to be finished by the end of 2009; subsequent phases, which will include piers and retail pavilions, will come later.
 

The agenda for Monday's ANC 6D meeting has been sent around (although not posted on their web site, sigh), and it has a couple of Near Southeast items. There will be a presentation on the plans for the Waterfront Park at The Yards, in advance of a May 29 Southeast Federal Center Overlay District Review covering new structures that will be built to house retail pavilions at the park. There's also apparently a public space permit application from the Onyx folks at 1100 First Street for a fence along L Street, plus garden masonry piers and light fixtures. And the developers of the 250 M Street office building are back again, after having not gotten very far at last month's meeting with their request for support for a second-stage PUD modification at a May 28 zoning hearing to increase the building's height (but not its square footage) from what was originally approved, since the commissioners wanted a new round of community benefits in return for their support, which W.C. Smith balked at given that the project isn't requesting to take any new amount of public space. We'll see if there were any negotiations since then. The meeting will be at 7 pm at St. Augustine's church at 6th and M streets, SW.
 

With the ballpark now humming along like it's been here forever (Tom Boswell has a litany of good things to say in today's Post) , interest is starting to turn toward what sort of retail/restaurant options are going to come to the neighborhood, and when. For your Friday time-killing pleasure, I've tossed together a quick a survey of what's either available now or will be coming within the next two years. (I'm not including already existing retail; I'm just looking at where new stuff could arrive.) As of now, I've seen no announcements of tenants for any of these spaces, but maybe if residents, workers, and ballpark fans clap their hands and wish real hard....
* 20 M - Completed in March of 2007, its 11,000 sq-ft of ground-floor retail space would seem to be an enticing location (just across the street from the Navy Yard subway station's ballpark exit), but so far there's been no takers. "Coming soon" signs that were in the windows last year for Wachovia and Kinko's are now gone.
* Capitol Hill Tower - A 7,000-sq-ft restaurant space in the ground floor of this co-op building has been advertised ever since the building opened in 2006, but no takers so far.
* 100 M - The 240,000-square-foot office building at First and M is scheduled to be completed later this year, and they're offering 8,500 sq ft of "corner restaurant/retail space" with "great ceiling heights, storefront and outdoor seating." (There's no ground-floor retail planned for Onyx on First in the same block.)
* 55 M - The first part of Monument's Half Street project is this 275,000-sq-ft office building now under construction at Half and M (it's the building on top of the subway station entrance). It has over 10,000 sq ft of retail spaces on Half, M, and Cushing, and should be completed by mid-2009. (See retail spaces 1 through 4 on this page at the official web site.)
* 909 New Jersey - For the folks who choose to walk from the Capitol South Metro station, the under-construction residential building at New Jersey and K is going to have 6,000 sq ft of ground-floor retail space when it's completed in summer 2009.
* Velocity - The ground floor of this 200-unit condo building at First and L will have retail (I can't find how much), and will be finished by late 2009.
* The Yards - By the end of 2009, the renovation of the old Boilermaker Shop at Third and Tingey into a 46,000-sq-ft retail space should be completed, and there is also 10,000 square feet of ground-floor retail space planned for the Pattern Shop Lofts building on the south side of Tingey, which should have its conversion into a rental building completed by the end of next year as well. Both of these are situated on the route that most Nats Express users walk along to get from the shuttle stop at 300 M to the ballpark. (But will the Nats Express run after this year?)
* Half Street Part 2 - The southern part of the east side of Half Street north of the ballpark is going to be a combination of a 200-room hotel and two residential buildings totaling 340 units, with about 40,000-sq-ft of ground floor retail to entice the throngs that walk along Half Street before and after games. (See retail spaces 5 through 8 on this page at the official web site.)
* 1015 Half - Opus East hasn't yet committed to whether there will be ground-floor retail in this 410,000-sq-ft office building at Half and L, though about 10,000 sq ft of space will be there.
* 23 I - If this 420-unit apartment building does indeed begin construction in September of this year, there could be 15,000 sq ft of retail available at Half and I by the end of 2010.
That's about 200,000 square feet of space to be filled within the next few years--and this doesn't include the retail spaces in the ground floor of the baseball stadium along First Street (who knows when those will be occupied). It's possible other buildings slated to have ground-floor retail could pop up between now and the end of 2010--1111 New Jersey and 250 M are the main candidates.
And there will also could be more offerings at the Yards by 2011 (including that grocery store planned for 401 M as well as the Lumber Storage Shed and other to-be-built pavilions at the Waterfront Park). And maybe the first building at Florida Rock, across from the ballpark's grand staircase, could be done by the end of 2011. But this is getting a little too far down the road....
 

The northeast corner of Half and M is home to Nats Lot J these days, with the Sunoco station that used to be there having closed in 2006 (taking with it my first Gas Prices in the Hood location). The land was purchased in 2007 by Monument Realty for $14.3 million, and they're currently marketing the site as 50 M Street, a 135,000-square-foot build-to-suit office building, targeting associations in the area as possible tenants. Monument was nice enough to pass along this early conceptual rendering of the building (bigger version here). Waiting for a tenant means that this building probably won't get started anytime soon.
The project's M Street location means it will have to go through a Capitol Gateway Overlay Zoning Review, which includes the requirement that all the building's non-entrance frontage along M Street be devoted to retail space, and that no less than 35 percent of the entire first floor be retail. (See page 15 for more of the overlay's M Street requirements.)
As for the one-story red brick building behind the 50 M lot, that's a warehouse owned by the Feds, which as of now doesn't seem to be going anywhere. But that little spot is getting kind of valuable, isn't it?
And, since I don't have much else to show you these days, take a few minutes to "drive" M Street, first heading east then back west, to see the changes since 2003. Remember to click on the Click to see all available photos of this location. icon for any location where you'd like to see the photos between the before and the after....
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