District Releases Hurt Home to Developers At Fire Sale Price

Roughly two months ago, the DC City Council voted to release several District properties for redevelopment, but the most noticeable deal in the large release is the transaction that enables Argos Group, in partnership with Potomac Investment Properties Inc., to scoop up the historic Hurt Home mansion at 3050 R St. NW, a "contributing" building in the Georgetown Historic District, for $450,000. The deal is pending, and Jose Sousa of DMPED cautions that "[t]hese numbers are not yet final." But Sousa and Argos Principal Gilberto Cárdenas estimate that all the minor details will be chiseled out in the next couple weeks. Cárdenas has plans to redevelop the former assisted living facility for the blind, and more recently the Devereux Children’s Center for foster children, into a 15-unit luxury condominium. This isn't Argos's first effort at acquiring and transforming a vacant, District-owned, historic property into high-end condos: the development group broke ground on the renovation of the Northeast's historic Firehouse No. 10 and Police Station No. 9 earlier this summer.

Argos has again contracted familiar partners Sorg Architects for the design work, and developers are leaning towards bringing in another interior design specialist to assist with some of the remodeling work. Three poorly executed wood additions will be stripped from the back of the original brick exterior, while the interior will be almost entirely gutted and rebuilt, walls, stairs, mechanicals, and all. The facade of the building will be improved and restored to its original historic charm, accented by giant two story front windows and an entrance stoop railed with hefty white columns. When finished the condos will be a spacious 1200-1700 s.f., each with two to three bedrooms and loft space. Given that the property was put mostly to philanthropic uses over the course of its long history, developers have agreed to offer three of the units at affordable rates and reserve them for blind citizens. Designers plan to link up with the American Council for the Blind to methodically outfit the units to meet the domestic daily needs of those living without sight. The back lot will be extensively landscaped, and a 30 car parking lot will be installed. Developers say there is a strong chance several Zip Car spaces will be included.

Sorg already oversaw the G-town Post Office Renovation

After the City Council meeting in July, Councilman David Catania seemed unsure of the decision: WBJ quoted Catania wondering why they'd "sell a property for $450,000 that’s worth $6.1 million," and asking, "Why not bid that out just to make sure we have the best reimbursement for the taxpayers?” But although at least five or six developers toured the property following the District's Request for Expressions of Interest (RFEI) last summer, Mr. Cárdenas and his partners were the only ones to go forward with an offer, and negotiations went from there. Initial plans called for an addition to the building and as many as 41 units, with the building being offered for more than $1.5 million. But it quickly became clear that community organizations, Zoning Commission, and the Historic Preservation Review Board would combine forces to put a quick stop to a proposal of such proportions, and so the number of units, with some back and forth community dialogue, was slowly reduced to 15.

Cárdenas reckons that other developers were reticent to get involved with the sometimes stubborn and often vocal Georgetown community. "They're a community that knows what they want, are well organized, and have the resources to force compromise," says Cárdenas, "but we came into this project with nothing but a positive attitude, good intentions, and willingness to compromise." Jose Sousa confirmed this, saying: "The development team worked in concert with the surrounding neighbors to address many of the concerns raised regarding parking and unit counts." Although the vetting process has already started, developers don't expect the receive final Zoning and HPRB approval for approximately a year. If all goes smoothly, construction will begin shortly thereafter.

Washington D.C. Real Estate Development News

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Argos Rescues Firehouse, Brightens HPRB's Day

The D.C. Preservation League, which annually issues a list of the District's most endangered properties in hopes of scaring developers into action, and preservationists into sign-painting and check-writing, has recently issued its new list for the year. This year the Preservation Leauge has focused it's 2010-attention on the preservation and renovation of the District's neglected firehouses. A special emphasis was placed on pre-WWII firehouses and police stations. Thankfully, two years ago Argos hammered out a deal with the District to redevelop two foresaken buildings: Firehouse No. 10 at 1341 Maryland Avenue, NE and Police Precinct No. 9 Station at 525 9th Street, NE. Developers refer to the two renovations as the Capitol Hill Condominiums, "The Station" and "The Engine House" respectively. In 2008 the Historic Preservation Review Board designate Engine House No. 10 as a Historic Landmark. While the 115-year history of public use of the firehouse will be sacrificed for the purpose of private residences, the character of both buildings, and their attractive, storied facades will be maintained for the enjoyment of passers by and history-lovers alike.

Designed by architect and firehouse specialist Leon Emile Dessez (1858-1919), erected in 1894, and completed in 1895, HPRB claimed in 2008 that the structure "is probably the best and most characteristic example of a Victorian-era firehouse still owned by the District." Sorg Architects has tackled the challenge of retrofitting the building with two market rate condos and two smaller affordable units. The former police station on 9th Street will be an almost identical project, with just enough room for an additional condo. The footprint of both the Engine House and the Station will be strictly maintained, with both facades to be restored with masonry refurbishment, various touch-ups, and only the slightest of noticeable augmentations. Windows and doors will be replaced, fading paint of old will be stripped away, and the addition of a few small second floor awnings will ready the building for residents. The interiors on the other hand will be completely gutted and overhauled - the roof, walls, flooring, HVAC, plumbing, electricity, and the works will all be replaced.

An unusual occurrence in the development world, construction on both projects began exactly on time, breaking ground two months ago as originally promised. Work is now chugging along with completion of each building expected in April of next year.

Washington D.C. Real Estate Development News

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