New Project to Add to H Street Corridor

Thanks to small and not-so-small developments along H Street, the once troubled area is enjoying a renaissance and rejuvenation. 301 H Street, NE is the site of the newest project along the H Street corridor.  Located across the street from completed Senate Square and 360° H Street - Steuart Investment Company's project to build a Giant supermarket and apartments now underway (pictured, below) - 301 H Street is a smaller piece of the development puzzle.

The original lot, pictured above, has 5000 s.f. available for multi-family and retail. Capital City Real Estate shared that although they are still in the permitting and design phase, they plan a mixed-use building with 20-plus condominium units and ground floor retail and/or commercial space. They may also build commercial units available on the second floor and basement.  Permits have been submitted to DCRA detailing the project plans. According to Anthony Bozzi, of CCRE's brokerage company, "the project is still so new and delivery is at least a year out."

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DC Gov Puts 1300 H Street on the Market

The District of Columbia government put 1300 H Street, NE - formerly a library kiosk - on the market today as a future development site.  The Office of the Deputy Mayor for Planning and Economic Development (DMPED) solicited development activity on the 10,800 s.f. site this afternoon with a bid for redevelopment of the site into "mixed income housing, community-serving retail, recommended uses of the H Street Arts overlay, and other cultural amenities."

The site has been vacant for 2 years since the District closed the temporary library, even though the site is surrounded by thriving retail development.

Because the site falls within the arts overlay, a maximum density of 3.0 FAR for residential is permitted on the site, or 1.0 FAR for other uses, with a 50-foot height cap under current zoning rules or 65 foot height cap under a Planned Unit Development (PUD).

The District will hold a site conference for interested bidders on June 21st and hopes to select a development team in the fall.


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AvalonBay's "Hipster" Apartment Building Aims for December Move-In

AvalonBay's "AVA H Street" apartment building (which is not actually on H Street - it's at 318 I Street, NE) is set to go vertical any day now, a critical milestone for one of the more unique projects in the booming H Street corridor.

"All the dirt's out of the hole, and they're pouring slabs," said Jeff Wood, development manager at AvalonBay. "We're on schedule for first occupancy in December of this year." The building will be entirely residential, with no ground floor retail.

AVA H Street will offer 140 rental units of "pretty sick apartments," according to the project's Facebook page. Jonathan B. Cox, Senior Vice President of Development at AvalonBay, previously told DCMud the building would be "more contemporary and a more unique architectural style than what's now on the market." Though he was coy at the time about the architect behind the building, it's since emerged that KTGY Group is spearheading the design, and the latest renderings, with their colorful facades and prominent branding, do indeed look more unique that most of what's on the market right now. Blake Dickson represented Avalon in the purchase.

AvalonBay acquired 318 I Street through a lender sale, after original owner Broadway Development lost the property (as well as the adjacent Senate Square) through foreclosure in 2009. AvalonBay, a Ballston-based real estate investment trust (REIT), has posted huge profits in recent quarters by taking advantage of depressed property values to accumulate parcels, and by catering to a rental market that remains strong due to the flagging economy. A recent Wall Street Journal story described AvalonBay's strategy as "hipsters and suburbia" - and if the H Street NE address wasn't a giveaway, AVA's Facebook postings ("so rad!" "awesome!" "sick!") make it eminently clear that this building targets the former group.

AvalonBay had planned to build two more apartment buildings near the future Tysons West metro station, but that project ground to a halt after county officials' request for transportation improvement funds were deemed too high by AvalonBay management. (They did proceed with another Tysons project, the 354-unit Avalon Park Crest.)

AVA H Street broke ground back in November, and is just one of a dizzying number of projects in the immediate area, the biggest of which is the Steuart Investments mixed-use behemoth. It's hard to believe, when you see the flurry of construction on H Street today, that just a handful of years ago over twenty percent of H Street storefronts were vacant - a rate that has been reduced nearly to zero in less than a decade. And when the long-discussed streetcar is up and running, the boom will kick into another, even higher, gear.

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As Streetcar Construction Lifts, J Street Companies Unveils H Street Restaurant

Now that the District has finished street-scaping along H Street NE, including laying tracks for eventual streetcar service, expect more announcements of restaurant and retail openings and re-openings, deals and closings as construction equipment thankfully disappears.

One of those is J Street Companies announcement that Boundary Road restaurant at 414 H Street NE is open for business. The 4,000 s.f. two-story bistro, owned by Karlos Leopold and Brad Walker, was a former barber shop, and now offers 75 seats, including a 20-seat bar along the part of H Street corridor that likes to call itself "Atlas District West" nearest Union Station.

Atlanta-based woodworker, Steve Evans used 150 year-old reclaimed wood beams to help set off exposed brick walls. A Corehaus chandelier from District artist James Kern, sprung literally from a bedspring mattress, hangs in the two-story high atrium.

Boundary Road opens just at the moment when the block wakes up from a two-year plus construction and parking nightmare known as Great Streets.

While many current retail owners complained about the impact of the Great Streets streetscaping improvements and streetcar tracks were having on their business, it turned out to be a perfect time for remodeling of vacant space, including the owners of Boundary Road.

"It was purely coincidental, but it turned out to be good timing," said Anastasia Kharchenko, J Street's vice president for retail leasing, who said the streetcar plans made a difference in where to locate. "The trolley car service was always part of our decision," she said. "Finding a charming street with life on it was key and the streetcar will create a neighborhood and connect neighborhoods." The struggle of H Street to emerge from the ruins of the 1968 riots, which devastated the historically-black neighborhood, is well-known and well-covered, especially when it comes to the familiar District fault lines of race and class.

But in the past decade, once then-Mayor Anthony Williams announced in 2003 a massive plan to redevelop the avenue, key parts of H Street have finally turned a corner. Steuart Investment broke ground last July on its 286,000 s.f. mixed-use project at 3rd and H, which will include a 42, 000 s.f. Giant and 1,500 s.f. of retail.

Still, Boundary Road, along with the other projects, does little to improve H Street's center where unlike the thriving Arts District at 13th and H NE, near the Atlas Theatre, and nearer in, where Boundary Road and the Giant will be, the middle of H Street still lacks development.

J Street's Kharchenko said that may soon change as soon as the District's long-awaited streetcars finally start running in 2013 and Steuart's 360 H Street 215 unit, mixed-use complex completes, forming one retail-centric zone at the western end of H Street and another surrounding the Atlas Theatre along the east end.

The District recently unveiled a study that argued that its $1.5 billion streetcar investment plan would increase District property values by $8 billion over 10 years, including those in the H Street corridor. "(H Street) is a lot like a mall, with two anchors at either end now," Kharchenko said. "Some parts of H Street have turned the corner, others have not. But when you spend millions of dollars on the transportation infrastructure, it's bound to have results, and that will help the rest of the pockets fill in."

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AvalonBay Plans Apartment Building Near H Street Corridor

AvalonBay, a Ballston based corporation that as been augmenting its apartment portfolio throughout the greater Washington DC area, is under contract to purchase and develop nearly a full block just off the H Street corridor. Jonathan B. Cox, Senior Vice President of Development of AvalonBay, confirms that 318 I Street, NE, is currently under contract with the plan of building 140 rental apartments, with ambitions to break ground by the year's end. The site is just one block north of the spot where Steuart Investment Co. has announced plans to build a Giant grocery store and 215 apartments.
Although the size is modest, paired with Steuart's building the added density could help develop viable retail for H Street's western end, which has been stagnant compared to the Atlast District at the opposite end. "We really like the H Street Market," said Cox. "We are investing in it because we think its unique enough to separate from NoMa." The space will only house residential space. "We don't believe retail is viable in this location on I Street," said Cox.

The developer has chosen an architect but remains mum about the plans for now. What we do know: "It's not a typical D.C. architect," said Cox. "I think it'll be more contemporary and a more unique architectural style than what's now on the market." AvalonBay has also been buying and building, including the Avalon Park Crest, a 354-unit building planned for Tysons with construction to start later this year.

318 I Street NE, which AvalonBay will acquire by a lender sale, had been owned by Broadway Development, but had gone into foreclosure in 2009, around the same time Broadway lost Senate Square next door. The lender acquired the property in July of 2009 for $1.69 million. The space currently houses the vacant site of Uptown Baker, eight underground gasoline storage tanks were removed from the property in 2005.

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From U to H, 2 Townhouses and Their Effect on Revitalization

On U Street, near the corner of 14th, a pair of historic - if dodgy - buildings sit, at long last for rent rather than vacant, uncharacteristically forlorn, and out of sorts with U Street's thriving retail. Outward appearances aside, the perpetually run down pair at 1355 and 1357 U Street with a quirky history has had an oversized role in shaping the street, and might even be credited with the rebirth of the H Street corridor.

The townhouses were once the negative of that image, the rare luminescence on a struggling strip, helping deliver U Street's nascent resurgence in the early '90s. Like many properties in the neighborhood, the attractive row houses had remained family-owned for decades, with little attention paid to them as the neighborhood declined. But a group of investors saw the potential for a nightspot, and one, an up and coming restaurateur named Joe Englert, thought a bizarrely themed bar might make it in the rough and tumble neighborhood.

In line with neighborhood, the building at 1357 U Street needed work, having been neglected to the point of instability. "Even back then, the building was a mess," says Stuart Woodroffe, a General Manager of the bar. "We had jury-rigged half the place with reinforcements because we were worried the floor would give."

"It was a wreck when we were there," said Englert of the building. "The place was falling down then." In spite of its decrepitude, Englert and company opened State of the Union, a Soviet-themed bar (appropriate for the decaying infrastructure and outward bravado) that brought together jazz musicians of all ages and later, roots music, house music, and rhythm and blues, a venue that fused the jazz history of the street with trendier club themes for the proletariat. When Woodroffe became the general manager, "he made it much cooler than I would have," said Englert. "I thought we should have a 200 pound go-go dancing babushkas shaking their rumps and table side cabbage roll preparation." Yum.

The crumbling building and divisions within the partnership eventually took their toll on Englert, who pulled out of the project - his fifth or sixth bar - because of differences with the owner of the two buildings, Henry McCall. "He was a real character," said Englert of the man who lived - let's say modestly - on Alabama Avenue in southeast DC, and had little financial capacity or personal wherewithal to improve the building, nor interest in selling. Add the strained politburo-style partnership ("ten people owned it, three did all the work"), and the business folded in 1997. "So we had a revolution," said Englert. "The State of the Union was a failed Socialist republic." In its wake, Englert fled the corridor for H Street's Atlas District, where it might be said he had more success.

And so the building that was once a center of U Street's gentrification continued its decline. Prior to 2007 1355 U Street was worth $1.5 million dollars. Despite their peak value, by 2010 the properties were listed in the Notice of Real Property Tax Sale for arrearages of $73,758.59 for 1357 U and $19,087.20 for 1355 U Street and scheduled for auction. The back taxes were paid, and McCall's family, who inherited it when he died three months ago, plans to keep and rent the one that's in better shape at 1355 U Street. Norris Dodson, the listing agent, notes that the family prefers a tenant that's not a bar or club "though the owners are trying to be open minded," said Dodson. The property has been on the market since September and the rate has dropped at least once to $7500 per floor.

And as for Englert, the businessman behind many of the area's watering holes, from Dupont's Big Hunt and Lucky Bar to DC9, to the Pour House and Capitol Lounge on the Hill, took a special liking to the eastern half of DC, having invested in The Pug, Rock and Roll Hotel, Granville Moore's and The Argonaut, which had reopened recently after a fire. He's sticking with H Street, with plans for more restaurant and bars to come. Next up? Rumor has it Englert is writing a book on the history of H Street, and has plans to open a barbecue joint called Joe's Coal and Ice House, perhaps for this summer. Sounds strange; we'll see if it works.

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An H Street Spring

H Street's gritty, scrappy texture is giving way. In its place, the northeast corridor's devotees will soon find supermarkets, condos, smart retail, upscale apartment buildings, and trolleys clanging by pricey latte vendors. Long predicted, the year 2011 looks ready to bear out prognostications of a gentrification and resurgence that had seemed, until now, like a mirage, always ahead, always retreating. With last week's announcement that Giant officials had signed an agreement to anchor the northeast corner of 3rd and H, kickstarting Steuart Investment Co's long dormant development and blessing H Street with its first full-sized supermarket, the strip has become one of the hottest sites for development plans.

The Steuart project will add 215 apartments above the Giant, along with additional retail space. Around it, development booms. The District just announced a 16-unit residential project by Wall Development at 12th and H that should kick off next year, and at the eastern end Clark broke ground on a 257-unit apartment complex in October, as did an Aldi supermarket destined for the starburst intersection next year. And the biggest project by far will be Rappaport's 400-unit residence that will fill H Street from 8th to 10th Streets, while Dreyfus' plans for Capitol Place, a 300-unit residence opposite the future Giant, are loaded and ready for the right moment. And the trolleys, of course, are on the way.

Things could have been so different. Just two years ago a New York team went bankrupt betting on H Street and lost their 432-unit building at auction. The Giant will sit on the former BP site, a plot that was intended to house an interstate truck-servicing megaplex. Akridge's dreams to connect H Street with downtown by burying the rail yard at Union Station haven't progressed, and the most consequential projects have not yet broken ground, so the volte-face is not guaranteed, but its looking like its going to be a big year for H Street.

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More H Street Development in the Works

Several vacant and blighted District-owned lots on the 1100 block of H Street, northeast are set for considerable improvements, as the Office of the Deputy Mayor for Planning and Economic Development (DMPED) has recently announced their partnership with Wall Development in constructing a five-story residential building with ground-floor retail on the site. Constructed as a matter-of-right project (requiring no Zoning variances), and usurping addresses 1113 through 1117 on the south side of H Street, the 16,000 s.f. building will house 16 one-bedroom units. Approximately 2,000 s.f. of ground floor space will be reserved for a retail component, preferably occupied by a local business.

Still very much in the preliminary conceptual stages of design, H-Street based firm Norman Smith Architecture have offered basic drawings of the planned building but continue to fine-tune their renderings in response to community input. Aside from architectural preferences, community members have communicated concerns about needed repairs to the currently existing drainage system and rear alley. They've also voiced their wish to avoid the likely frustrations of development-generated traffic in the alley. Furthermore, local residents have expressed a desire for additional neighborhood-serving retail beyond new restaurants or bars (of which there are a growing number).

Taurus Development Group will serve as general contractor, overseeing construction that is expected to result in a LEED Certified (the base level of certification) status at completion. Estimated development costs are anticipated to total roughly $4.3 million (including land acquisition costs), according to Stan Wall of Wall Development. Subject to DC Council approval, the official land disposition should be finalized in December. But it will take almost another year to finalize the land purchase and financing, with a groundbreaking following shortly after, and construction completion expected in December of 2012.

Although a ribbon cutting lies at least two years off, developers are still giddy to get the ball rolling, as H Street continues to sprout new projects. Wall explains: "I am excited to have the opportunity to build upon the momentum of redevelopment that has been occurring in the H Street corridor over the past several years." Unlike some of the monolithic super-blocks developed downtown, H Street has been slowly but surely revitalized in what seems to be a more organic fashion. Wall says he's proud to further develop what he articulates as H Street's "own unique look and feel that is eclectic and exciting."

While the development itself will be a much-need community benefit, the District will also require the project to achieve minimum targets for CBE business participation. Wall says he is delighted to cooperate to these ends. Providing affordable housing is also an ever-present and important component: there will be two units at 80% AMI and two units at 50% AMI. Additionally, the development, design, and construction teams plan to partner with Phelps Architecture, Engineering, and Construction High School in order to utilize the development process for valuable learning opportunities (site visits to the project, guest speakers at the school, donations of surplus construction materials, etc.). Sounds like a win, win, win.

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Clark Breaks Ground on Arboretum Place

The Maryland Avenue ray of the officially completed and freshly paved Starburst Intersection has a brand new mixed-use, multi-family development in its future. Like most developments, Arboretum Place, a planned apartment community at 1600 Maryland Avenue, NE, has been continuously delayed by financing complications, originally hoping to break ground in early 2009. But Clark Realty spokeswoman Joy Lutes has confirmed that construction on the project broke ground earlier this month, making the ratio

of hipsters to construction workers in the Atlas District a bit more even.

This will be the first major residential project to get underway in the H Street
vicinity. "We are excited to undertake this project in an area of the city that has continued to experience growth even during the economic downturn and be able to contribute to this historic and vibrant neighborhood," says Clark Development Executive Tracey Thomm.

Originally billed as a 430-unit condo/apartment project, only a smaller initial phase is officially in the works. For the first phase, the $36 million development will deliver 257 apartments, a 250 space parking garage, and 5,000 s.f. ground-floor retail. Units will be offered in a variety of types and sizes: studios as well as one and two bedrooms. According to the developer, the project will bring "high-quality housing to an area that has not benefited from new residential development in many years." Respecting the eclectic and independent nature of the Atlas District, developers say they intend to link up local businesses with the new retail spaces. Clark Realty will also serve as general contractor as the development team aims to deliver the first residencies in the spring of 2012.

Georgia based Preston Partnership provided architectural designs that call for sharp angles and a busy, modern facade of dark red brick, cement, and large glassy bays. The liberal use of glass will offer extensive sight lines into the large central courtyard. Aside from supplying enjoyable outdoor public space, the courtyard helps to disrupt the massing of the buildings, allowing interesting interplays of space, and also blending the development more smoothly with the character of the surrounding residential neighborhoods. Like most residential developments these days, developers have qualified the project with the "luxury" tag, meaning a pool, a business center, a gym, indoor half basketball court, entertainment space, and landscaped gardens complete with fireplace and "meditation courtyard" are all included.

Although H Street currently offers a growing plethora of chic boutiques, trendy bars, and hip restaurants, the area still retains some grittiness: an overabundance of suspect take-out Chinese food spots, liquor stores, and boarded store-fronts. Adding to the aesthetic blight of the area is the scarred H Street, ripped up and littered with orange cones and Jersey barriers while it awaits the ever-delayed streetcars. The only other major residential development on the strip, The Rappaport Companies' large mixed-use redevelopment project running on the south side of H Street between 8th and 10th has been in the works for over three years now, but won't be moving forward soon. Arboretum Place may serve as a beacon of hope, like the Atlas District, a dark horse neighborhood that might challenge 14th & U (or Midcity, if the branding sticks) for the title of most artsy alternative 'hood.

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Rappaport Hits Minor Setback on H Street

It's back to the drawing board for developers and architects working on Gary Rappaport's H Street redevelopment project. The Rappaport Companies' Parcel Seven Associates, LLC has been planning a large mixed-use redevelopment project running on the south side of H Street between 8th and 10th for over three years now. The rather enormous project, stretching two full blocks and replacing an outmoded single-story shopping strip, is expected to begin work on part of the 52,000 s.f. of retail and 400-odd residences within about two years, but save the 2nd half for much later. Developers endured the requisite series of conversations, meetings, and compromises, and were finally able to bring both DDOT and the ANC (6A and 6C) on board. But the Zoning Commission was not entirely wooed by the long line of witnesses pleading for approval of the obligatory zoning change at Monday evening's public hearing, and unanimously decided to delay final action until September 27th. This gives the architects and developers until Friday, September 3rd to officially respond to requests made by the Zoning Commission, and opponents of the project until September 10th to retort and fault Rappaport's modifications.

There were a number of minor issues with the plan in the eyes of the Commission, but the major hold up was the appearance of the project's closest neighbor in opposition to the project. This was not the first time developers had heard this family's concerns, and Rappaport insisted that they had labored to accommodate the neighbor's concerns about building height and traffic flow. But the strong reservations communicated by the 8th street neighbor were not mitigated to the extent the Commission expected, so Zoning requested more careful consideration of their concerns, particularly the family's anxiety over the likely increase in large trucks turning into the alley around the corner of their home.

One Zoning member requested that the architects refine the pavilion design on the opposite corner, at 10th and H Street, to generate a bolder and more interesting beginning to the rest of the building, while also tying together and re-enforcing the entirety of the design. "It lacks the kind of stylings and flavor of the rest of the building," he lamented. Another panel member was disappointed that the amenities package was rather light when weighed against the aggressive amount of FAR being pursued by the project (4.0 FAR of residential and 6.0 FAR of commercial space). The entire Commission also expressed their interest in seeing a slightly more aggressive phasing timeline; at present, phase two construction would not begin for about seven years thereafter, a timeline "that will depend upon the rate of absorption" of Phase 1, according to Rappaport.

But don't mourn for the Rappaport Companies, a somewhat retooled design should afford the developers the PUD they've been seeking, and panel members were generally optimistic and encouraged by the scope and direction of this project. A final action ruling later this fall does not serve as a serious threat to their hopes of beginning construction in 2012.

The process of give and take is not new to Rappaport; the project was even bigger before it was first rejected by the Commission in 2008. Over the last two years, the design team, including project architect Torti Gallas, has appeased the community by situating the massing of the buildings in the middle and the back to better negotiate changes in the roofline (ranging from 50 to 90 ft.) and blend the new building into the existing facade. The once uniform design has also been reformed to feign the appearance of multiple, distinct buildings strung together, replicating the nature of street frontages on the rest of H Street. The architects have offered large setbacks for the bottom floor retail stores to provide for maximum pedestrian traffic flow and the potential for outdoor dining terraces.

Other amenities being supplied to the community include landscaping and improvement of public space. The project will also look to minimize traffic congestion, and encourage environmental responsibility in achieving a LEED Silver Certification upon finished construction. Parcel Seven has also agreed to support a proposal for the creation of a Historic District for H Street NE. Moreover, a small portion of the residential units will qualify as affordable housing. And while one Commission member pointed out that several of these "amenities" are actually requirements (killjoy), the project seems to have convinced the majority of the community that its arrival is much more of a positive contribution than a hindrance.

The public record on this case will be reopened in late September as the developers attempt to appease the development site's most immediate neighbor, as well as reassure the Zoning Commission that their project is ready for construction to begin.

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