Grosvenor, Skanska Close on Ballpark Site, Hope for Construction Next Summer

The Capitol Riverfront neighborhood got another shot in the arm today as developers announced a new project adjacent to the Nationals ballpark.  Developers Skanska USA and Grosvenor Americas closed yesterday on their purchase of the long block on 1st Street, SE, between M and N Streets, just north of the ballpark, and hope to begin construction by next summer.

The site, known as Square 701, will hold four buildings with more than 650,000 s.f. in total:

-An 11-story, 224,000 s.f. office building (built by Skanska, designed by Gensler, see rendering below),

-A 170-room hotel (by Grosvenor),

-Two residential buildings with a total of 285 units and connected by a "trellised glass bridge" (by Grosvenor, designed by Hickok Cole).

In all, the site will offer up to 55,000 s.f. of retail space.  The land had been owned by Potomac-based Willco Companies since 1948, and was cleared of buildings several years ago; in a simultaneous transaction Grosvenor purchased nearly the entire block from Willco and Skanska purchased the northernmost portion of the site from Grosvenor.  The site is adjacent to the hole Monument Realty excavated in 2007 and has left sitting ever since.  Rob Ward of Skanska says that while Grosvenor and Skanska are not technical or financial partners on the project, they will be working in tandem to unify the site.

Ward tells DCMud that while Willco had its own plans for the site, both Skanska and Grosvenor are developing new building designs, which have been wending their way through DC's zoning process throughout the summer.  Ward expects that under the most optimistic circumstances work could be underway on either the residential or office component as early as next summer; to date the developers have been in discussion with the ANC and zoning officials but "don't have enough design to pull permits yet."  Ward says the project is "basically by-right zoning" and "consistent with what the city has in mind for the site."

The new building is being designed to earn a LEED Gold platinum rating.  McCaffery Interests will be representing Grosvenor on construction elements of the project, which include the alley (Cushing Place) between this site and Monument's land.  The alley is expected to be reopened, though Ward notes that he has no news on Monument's projections for work to resume.  Below is a site plan - north is up.

Washington D.C. real estate development news

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McCaffery and Douglas Pick Up Chinatown Corner Site

The last undeveloped corner in one of the most high-traffic areas of Washington has just been acquired by McCaffery Interests Inc. and Douglas Development, at 675 H Street N.W., encompassing the iconic corner building, long since boarded up, and the vacant lot behind it.

"This is the best intersection in metro D.C." said Juan Cameron, Managing Director of McCaffery, comparing it to Georgetown's Wisconsin Avenue and M Street hub. "It is a central location with a lot of pulse, narrow streets, tons of foot traffic, a heavy daytime population, tremendous residential presence, plus the energy of the Verizon Center. In our eyes, its the closest thing Washington has to Times Square."

Though "everyone has their ideas for how the property will take shape," said Cameron, in these early stages the venture is dubbed as a state of the art, mixed use development. "Step one is looking for a marquee tenant," said Cameron.

General partners for the venture Douglas Development and McCaffery Interests acquired the property yesterday at auction. The property had gone into foreclosure thirty days ago, after Yeni Wong of Riverdale International had been unable to secure financing for the building. This past month was the last of many times the building had fallen into foreclosure; in 2009, Wong was given a notice for this property as well as 801 7th Street for $13,491,471 plus attorney's fees. Wong bought the two properties in 2006 for $10 million dollars.

This isn't the just the first or second try at developing this corner. DRI, a Transwestern Company, had slated 675 H Street as a two-building project: one that would restore the corner space and rise nine stories over the arch, the other a Class A office building behind the main storefronts. The total project would have yielded 110,000 s.f. of office space and 50,000 s.f. of retail. McCaffrey owns Georgetown Centre, leased by Barnes & Noble, and Mazza Gallery, which it bought in 1997. Douglas owns pretty much everything else.

Update: Alex Cooper Auctioneers states that the lot was purchased for $9.1 million.

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