Crystal City Office Project Gets Started Thursday Morning

Lowe Enterprises will host a "groundbreaking ceremony" Thursday on a $70 million office redevelopment project at 1400 Crystal Drive in Crystal City. Fox Architects designed the new building.

The company will seek LEED Gold certification for the project to convert an existing 300,000 square-foot office building in Jefferson Plaza into "Class A" office space complete with a glass facade and roof top terrace. The lobby will be moved to Crystal Drive.

Demolition will bring the building back to its concrete frame before new construction begins, keeping a quick turnaround time and earning LEED points as a retrofit.

"When we acquired the building, we new knew it had good bones," said Harmar Thompson, Vice President of Lowe Enterprises Real Estate Group. "So we knew it had a good structure, that we could work with that structure, and not have to do ... ground-up development."

Thompson said the 30-by-30 column grid is solid and lends itself to flexible configuration of the new building, compared to the 20-by-20 grid common in the area that makes renovation more difficult.

Other elements incorporated to achieve LEED Gold certification include using high-efficiency glass the facade and upgrading HVAC to a dedicated outdoor air system that brings cold water to many units throughout the building instead of having it in a centralized basement location.

The new building is scheduled to open in early 2013, with 30,000 square feet more space than the old building, creating more corner offices and pushing it out into the view corridor. "The views out of this building are spectacular," Thompson said.

Lowe acquired the building in 2008. Thompson said the company had the opportunity to initiate the rebuilding project because the National Guard Bureau vacated, leaving it empty. Rebuilding on top of the existing frame allowed the company to create an essentially new building in a short period of time and open it to tenants earlier than other projects in the area. Lincoln Property Company will handle leasing.

The groundbreaking ceremony is set for 8:30 a.m. Thursday.

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Lowe Enterprises to Convert Wheaton Office Building to Residential High-Rise

Continuing Wheaton's rapid transformation from a withering suburb to a residential development hotspot, California-based Lowe Enterprises submitted a sketch plan to Montgomery County planners at the end of January that would transform the 5-story Computer Building at 11411 Georgia Avenue in Wheaton from a modest five-story office building into a 14-story residential high-rise.

The site, which Lowe purchased last fall for just over $8.2 million, is nestled between the Archstone Wheaton Station Apartments and the Metro Point Apartments, and across Reedie from the already approved 17-story Safeway/residential project from Patriot Realty. Two blocks down, Washington Property Co. is building 221 units on the former site of the First Baptist Church of Wheaton. Up a block is the Wheaton Metro station, whose bus bays are to be converted by B.F. Saul into an office complex. B.F. Saul is also consulting with the county about converting Wheaton Triangle, right across Georgia, into a massive mixed-use development that would bring nearly a million square feet of office space, retail, a hotel, and a public plaza to the area.

Interestingly, developers plan to build onto the existing building 11411 Georgia, rather than demolish and start from scratch.

"The building has very good bones," says Mark Rivers, Senior Vice President at Lowe Enterprises, by way of explanation. "The concrete structure can easily support the additional floors. It would just be a waste of time, money, and landfill space to tear it down and rebuild. Also, this building is narrow for an office building - about 60 feet wide. Residential buildings are generally narrower than office buildings, so that was a nice bit of luck."

The sketch plan application promises to "substantially transform the building aesthetic through comprehensive facade changes," listing balconies, vertical bays, and a "strong vertical element" at the northwest corner of the building, to lend it a "distinguishable identity." Developers intend to convert the building from glazed brick and boxy to "a contemporary slender tower clad in composite panels, glass and masonry." The Bonstra Haresign-designed tower will include up to 200 studios and one-bedroom dwellings, as well as 60-plus parking spaces on-site (though zoning doesn't require any).

Developers haven't yet decided if they'll include retail space on the ground floor, though they have plenty of time to decide, as construction is targeted for the beginning of next year. Though another residential tower in the area might seem excessive, developers, following a familiar blueprint, are confident that the expanding housing market in Wheaton will organically lead to an increase in demand for retail. Since county planners adopted the new, updated Wheaton Sector Plan in 2010, which aimed to revitalize the moribund area, development in Wheaton has revved up to high gear, even leading local uberdeveloper Leonard Greenberg to compare the area to Adams Morgan.

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Hilton Residential Addition Gets 2-Year Extension from HPRB

After purchasing the iconic Hilton for $290 million in May of 2007, a pair of California dreamers (and developers), LA-based Lowe Enterprises Inc. and Beverly Hills-based Canyon-Johnson Urban Funds (CJUF), are still hoping to follow through on their intentions of adding an apartment tower to the 1,119-room hotel. Unfortunately the market has been rather uncooperative, to say the least, since their vision first started taking shape. With architectural drawings in hand, courtesy of Hany Hassan of Beyer Blinder Belle, developers earned the support of the Historic Preservation Office (HPO) in 2008. There has been little action since.

As Deputy State Historic Preservation Officer Steve Calcott explained to the Review Board (HPRB) earlier this week, like so many others development, "this project has been put on hold due to the depreciation in real estate values, increasingly stringent lending requirements for residential projects, and general economic downturn." This time represented by Architectural Historian Andi Adams of Goulston Storrs, developers successfully acquired a two-year extension on their nearly expired HPRB consent as per Calcott's recommendation. It was a more somber success than their 2008 victory.

The extension is precautionary, as their approved plans and stated course of action are far from set in stone. Project developers recently submitted construction plans and a permit application, and reviewers determined that the plans are inadequately detailed and proposed alterations that would require further HPO vetting and HPRB final approval. VP of Construction Managment Mike Mansager at the Lowe's Washington Hilton confirmed that the project was on hold, and that details like number of units and architectural specifics remain up in the air. "This is entirely market-driven," he explained, "everything is in flux and subject to change." Dansinger did admit that a two year extension doesn't mean two years of inaction, as the project could get moving again quickly if the market continues to improve.

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CityVista Apartments Sells to Gables

Gables Residential has announced it has purchased The CityVista apartment building in Mt. Vernon Triangle from Lowe Enterprises. The 244-unit "V at CityVista" was completed in August of 2008 but had been on the market before its completion, with numerous suitors having come close to reaching an agreement to purchase from Lowe. The sales price of the building was undisclosed.

The CityVista complex, developed through a partnership with the DC government, which still owns the land with a long-term lease, was the most successful of the residential developments in Mt. Vernon Triangle. The 441-unit condominium is also selling its last few units this month, the retail section is now almost fully leased.

Atlanta-based Gables Residential owns numerous large apartment buildings throughout the greater Washington DC area, as well as nationally, with over 38,000 apartment units under management, according to its website.

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