Clarendon Project Underway

Clarendon is on its way to getting yet another apartment building. Zom Inc., which is developing USAA Real Estate's parcel at 1200 N. Irving Street in Arlington, finally began construction earlier this month on a 10-story apartment building with ground floor retail that will front both N. Irving Street and Washington Boulevard. The project was designed by Esocoff & Associates.

Formerly known as The Waverly at Clarendon Station, the development has now been christened The Beacon at Clarendon West, according to Greg West, chief development officer for the Florida-based Zom. "We’ve revised the design and rebranded the project," he said.

The company's original condo concept is off the table. Instead, the project will include 187 one- and two-bedroom units averaging 850 square feet, each with de rigeur hardwood floors, granite countertops and stainless steel appliances. About half will have balconies, and a rooftop pool is included in the package.

The building will have "a very unique and interesting radius shape," said West. In part, that curvilinear facade is designed to take advantage of the lot's outline. On the ground floor, lining both N. Irving Street and Washington Boulevard - but not the corner itself - will sit 17,000 square feet of space designed for retail. Zom has hired Asadoorian Retail to fill the spaces, but West claims the development partners have not decided on a specific mix of types. "We have a lot of flexibility as to the size and variety of what we can take," he said. "We just want to find the best tenants who will provide a good amenity value to the building."

Construction of the project, which is being done by Donohoe Construction, is beginning with a major excavation to make room for two floors of underground parking. The development, which will incorporate an historic facade that’s still on the property, should be finished in about two years.

The site, located two blocks from the Clarendon Metro station, has a fairly long history. Zom bought it from Faison in 2006 but the property lay empty for several years. In 2011, USAA bought the property and is developing it together with Zom.

The partners are also involved in a second Arlington venture, located at 1919 Clarendon Boulevard in Courthouse. The Clarendon Boulevard project, which is also currently under construction, is similar to the N. Irving Street one: although it's five stories rather than 10, the development includes 191 high-end apartments and another 17,000 s.f. of ground floor retail. Asadoorian is screening tenants for that property as well. "We'll be selecting retailers soon," said West.

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Penzance Announces Partner and Start Date for Clarendon Office Project

D.C. based Penzance announced today it has partnered with Invesco Real Estate in a joint venture to build its 2-building office project at 3001-3003 Washington Boulevard near the Clarendon Metro station, setting up development for a May groundbreaking.

The partnership with Invesco comes after Penzance had teed up the development, gaining county approval of plans for the 280,000 s.f. project in January, at which time it also leased most of the space - 173,000 s.f. - to federally-funded CNA (the Center for Naval Analyses), which will transfer 600 employees from its Mark Center location in 2014.

Penzance plans two office buildings - 8-stories and 10-stories - with shared 4-level below-grade parking deck and 28,000 s.f. of combined ground floor retail space with outdoor seating area. Several of the older buildings on the block will be kept intact during construction. Noritake Associates designed the project that is expected to earn a minimum ranking of LEED Silver, while holding out the possibility of a Platinum ranking for the site.

Penzance has developed and operates numerous properties throughout Washington D.C. and Arlington, including 455 Massachusetts Avenue in Mt. Vernon Triangle.

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Church and Housing Provider Vindicated in Clarendon Case

A church's involvement in affordable housing subsidies by the state doesn't violate the Constitution. So says another court in the ongoing battle at The Views at Clarendon, which has cleared yet another legal hurdle in its battle to build an apartment building heavily subsidized by the government in place of the First Baptist Church of Clarendon. The U.S. Court of Appeals for the Fourth Circuit this week upheld a ruling, issued last May, that found that Arlington did not violate the state or U.S. constitutions by subsidizing the church-led project.

The struggle may finally wrap up 5 years of lawsuits 7 years after the Church hired the Arlington Partnership for Affordable Housing (APAH) to advise on an affordable housing project. The Church later sold the land to The Views at Clarendon Corporation, a non-profit, for $5.6m, with plans to build 46 market-rate and 70 affordable apartments. The Church retained 3 of 7 seats on the board, and will retain two floors within the new structure and a small building on the side. That lead to a neighbor arguing in Peter Glassman v. Arlington County, et. al that the subsidy amounted to unconstitutional support to a church, an argument that has been repeatedly rejected by both state and federal courts.

The news is a relief for the housing provider, not least because it began construction on the project last January (tearing down) and has just now begun building the 10-story structure, and the courts have refused to enjoin construction. While the case could be appealed - back to the same appellate court or to the U.S. Supreme Court - "further appeals are unlikely to be successful" says Raighne Delaney, an attorney Shareholder with Bean, Kinney & Korman, a law firm representing the non-profit. With plaintiffs having exhausted all automatic appeals, further appeals would be heard only at the discretion of the court.

"The county got a great bargain here," said Delaney. The nature of the bargain was a $13.1m loan the county gave to the developer, for which it got 70 subsidized apartments, with the feds kicking in a $14.5m loan and $20m grant for the project thanks to the American Recovery and Reinvestment Act. "Constitutionally, the only thing that mattered here was what the church got out of it. Even if it was a bad deal, the government is allowed to make bad deals," said Delaney, who stressed that the transaction is unbeatable for the county. Delaney said the real test is not whether the state is doing business with the church, but whether there is any "excessive entanglement" with the church. "The answer to that really is no. The state is not disallowed from doing business with the church, prohibiting regular business with the church would be a sort of anti-religious bigotry, and that's not allowed either."

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Clarendon: Urban Planners Taken with New View of Urban Churches

Late last year, the Views at Clarendon emerged unscathed from a cloud of lawsuits and officially kicked off construction. Now one of the region's more intriguing mixed-use projects is on schedule, and attracting national attention as a model for unique partnerships. The Views at Clarendon Corporation's mixed-use, mixed-income building will hold 70 affordable apartments and 46 market rate apartments, not so outstanding by itself, but that it was done through the auspices of the church is turning the heads of urban planners around the country.

As the First Baptist Church of Clarendon faced a budget shortfall a decade ago, it could have reacted in the typical fashion, selling out to a developer and moving to a cheaper, less urbanized community. That would have shut down the church's daycare center and local mission. Instead, the church chose to protect its historic building, stay local, keep the daycare center and double down on its mission by setting up a non-profit corporation to run an affordable housing project. First Baptist - now the Church at Clarendon - sold its air rights to the non-profit, of which it held 3 of 7 board seats, allowing the non-profit to cater to low-income and disabled residents, consistent with the church mission. Other urban churches have retained a portion of the new structure after selling its land, but the model of expanding its influence is a new one. Architect Michael Foster, a principal of Arlington's MTFA Architecture, thinks of this as a paradigm shift. "This has really been watched closely, and nationally, for mixing an existing church at the base of the building in this way. Most mixed-use is office-retail-residential. One that's dominated by public housing is not totally unprecedented, but as a land-use model, it helps us all think a little differently about preserving the role of churches and communities."

Not all the attention has been positive. Local groups tried to stop the in-fill project, then protested that Arlington's subsidies for the new non-profit Views at Clarendon constituted an Establishment Clause violation, and the organization found themselves twice in the chambers of the Virginia Supreme Court and several times the subject of Washington Post news fodder. Vindicated by the courts, the non-profit has now nearly finished excavating the site and underpinning the church, and expects to start building up by next month. The church "sandwich" will give them two floors as a condominium and a 3-floor building on the side, the non-profit will own the apartments above and the parking garage below.

Of the 70 affordable apartments, the majority will be priced at 60% AMI, six of the apartments will be 100% accessible (visitable and adaptable), 12 units will have "support of services" provided to those with disabilities, and six of them will be offered to families under 50% AMI. The church will continue to operate the 180-child daycare center, Arlington's largest, as well as expanding its urban ministry, all within a block of Metro. Foster, the project architect, thinks this will help churches remain active in the social fabric, and that the importance of this should not be underestimated. "This represents a dramatic change in how the church engages the community," and that planning organizations are taking note. "We've been getting many calls about this" says Foster, whose firm is also working on a similar type of project in Bethesda, with the church as developer rather than outgoing owner. The non-profit Views has hired Arlington Partnership for Affordable Housing (APAH) as a consultant to help them achieve their affordable housing vision.

The old steeple will remain the tallest structure, with the new building rising just below the steeple height by design. Foster says the building is meant to adapt a mid-rise to colonial architectural style. "The base of the building is designed to fit in with the colonial heritage with the church steeple and remaining school. Its not really meant to be pure colonial, and not meant to be neoclassical, but it does represent what remains on site and the compatibility with the adjacent neighborhood."

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Clarendon Center Retail and Office Space Going Fast

By now, everyone inside the D.C. real estate blogosphere knows Trader Joe's is tantalizingly close to being named the major retail anchor at Saul Centers' Clarendon Center development. While it's not official, TJ's is expected to occupy the Center's 10,000 s.f. space as long as the County Board accommodates the grocery giant's request for 76 reserved customer parking spaces in the currently unrestricted, public garage. Developer Saul Centers filed the site plan amendment application on Friday of last week, and if all goes smoothly a hearing would likely happen on November 13th for the new Clarendon Center, with apartments now being readied for December 1st occupancy. County Officials wouldn't commit to granting approval to the exact amount of spaces being requested, but were confident, given the desirability of a tenant like Trader Joe's, that all involved parties will be able to work out an agreement. One doesn't have to gaze too far down the Wilson-Clarendon corridor from the potential TJ spot to recognize the traffic that popular grocery chains generate: horn-blowing SUV's queued around the block in hopes of a spot in the nearby Whole Foods parking lot is a regular rush hour sight.

The mixed-use development consists of three buildings and takes up two whole blocks: two office buildings, and one residential. As local blogs like Arlington Now continue to roll out the news about new tenants, developers have confirmed that the buildings are sealed off, contractors are finishing up interior detailing, and everything will be ready for occupancy before the end of the year. The residential building, situated on the South Block, consists of 12 stories of totaling 244 rental units. The two office buildings will total some 170,000 s.f. divided between the six-story building on the North Block and the nine-story building to the south. Tea Party activists will soon be fed and bred to political perfection on one of the floors, as the Leadership Center ("Training Conservative Leaders") has reserved space in the new complex. The local investment firm Winston Partners has also reserved one of the eight floors in the southern building, leaving six stories available. And Airline Reporting Corporation has leased four of the six available floors in Clarendon Center North.

The 42,000 s.f. of retail space is also drying up. Counting Trader Joe's, half of the 16 spots are spoken for. Several restaurants including the BGR Burger Joint, Dupont's Circa Cafe, Pete's New Haven Apizza, Tangy Sweet Garden/Red Velvet Cupcakery, and Burapa Thai & Sushi Restaurant will join a local bank and a dry cleaners. It won't be long before more restaurants will sign up, as the crowded patios along Clarendon Blvd. attest to that fact that even on weekdays there is no shortage of hungry, moneyed young people in Arlington.

Torti Gallas designed the buildings, while Clark Construction has brought their plans to life.

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