The Story:
--- The DC Department of Transportation is considering regulations to create valet parking staging zones where restaurant, nightclub etc. customers could pick up or drop off their vehicles. Spaces will be leased for about $2,400 per year or $200 bucks per month.
View from the Bubble:
--- Stepping up DC parking services certainly could help DC restaurants attract suburban diners.
--- But 200 bucks a month for prime parking seems pretty cheap to us.
The Story:
--- PNC, wich own Riggs Bank, plans to build a new HQ building at 17th and H Sts., NW. The planned 350K sf building will replace existing structures. The expectation is that the building, which will house PNC and other tenants, will be ready to go in 2010.
Bubble View:
--- PNC easily could have used this opportunity to relocate to Bethesda or Arlington. So Kudos to them for staying in the city. But that hardly would be fitting of the most important bank in the most important city in the world, as their slogan used to go.
--- Replacing the old Riggs buildings on 17th St. will surely help bring the area Farragut Square area, blocks from the White House, as DC's most prestigous and impressive.
Link: WashBiz
The Story:
--- Mayor Adrian I ousted zoning administer Bill Crews.
--- Council member Phil Mendelson (D-At Large) delivered a letter Fenty asking why Crews, whom he described as "a respected individual," was removed from "this hard to fill position." "Why would your administration create a vacancy when the Office of the Zoning Administrator continues to struggle with a backlog?"
Bubble View:
--- If Mendleson is correct, this move will complicate many large-scale projects in the pipeline.
Links: WashExam, WaPo
The Story:
--- Under an emerging plan, Apollo Management will help finance and plan the redevelopment of the Capital City Market into a mixed-use project to be called “New Town.”
--- The DC Council last December approved legislation that allows for redevelopment of the market, which sits at the corner of Florida and New York avenues in Northeast, so long as more than half of the merchants agree.
View from the Bubble:
--- Because DC is such a small city and is contrained by the height limit, it must develop every square inch to maximize tax revenue to make it a viable city. So this development is good.
--- Yet it is unfortunate that interesting elements such as the market must be largely blotted out as a result.
Link: WashExam
The Story:
--- Mid-City Urban is marketing a $96 million project near the Rhode Island Metro station to national and local retailers. The town center, modeled after the Shirlington and Bethesda Row projects, will have 70k SF of shops and restaurants in this forgotten DC neighborhood.
--- There has been much interest in DC retail of late.
View from the Bubble:
--- This seems a bit of a long shot in light of the fact that the retail near Home Depot and Giant took so long to fill.
Link: WashBiz
The Story:
--- It will cost $3 billion to properly restore the St. Elizabeth's site. Some say the Dept. of Homeland Security, which is looking at moving its headquarters to the site, will not create enough spin-off development because DHS will be so isolated due to security at the campus.
--- "The area is sorely in need of economic development," said Rebecca A. Miller, executive director of the D.C. Preservation League. "A walled-off citadel on the site is not going to help."
Bubble View:
--- Wishing for better development won't make it so. Only the federal government has the money to restore the property -- either it does the work for its own tenant or someone convinces the feds to pony up the dough.
--- The impact of DHS is being undersold. The Pentagon sure transformed Arlington and it has tight security too. DHS workers will have to live somewhere.
---for new townhouses in Southeast near the Baseball Stadium. Folks are camping out for when the units become available in July.
Bubble View:
---People say the market is soft and say they are crazy. Maybe they are.
Link: WaPo
The Story:
--- Erik Kolar, president of Patriot Equities, which purchased the property said he is exploring the right combination of uses for the building and "the focus has been on industrial, office and retail."
Links: WaPo, Bubbleview
The Story:
--- Metro will open a three-month window for considering offers to relocate its headquarters. Relocation offers can come from all local jurisdictions after Metro adopts criteria for evaluating the proposals.
--- Mayor Adrian Fenty I submitted an unsolicited offer in April for Metro to move to a new building near its Anacostia station as part of the city's efforts to revitalize that area.
Bubble View:
--- Freeing up downtown development space would be great for the city, but its hard to believe Metro employees would relish a move to Anacostia.
Link: WashExam
The Story
--- Developers of the Grant condo in Logan Circle threw a glitzy party to boost sales. The party with a National player drew attention in the WaPo.
--- Why hold these sales parties? "We're in Washington. People love their events and their black tie and their kind of sassy parties," said Tracy Danneberg, special events coordinator for Metropolis Development. "You have to keep up with it and be different."
Bubble View:
--- Do these parties really sell units? Recently I saw a party for the Beauregard and thought to myself looking at all the cliched buff men dressed in black, this would be a turnoff if I were a buyer. (I think the park expensive cars out front and import beautiful people to enhance the look too.) I thought the first rule of effective sales is: make the client feel comfortable, not feel intimidated.
--- I wonder if the sales staff likes this marketing tool because they want to want to throw a party, not because it improves sales. I want to see the balance sheet not be feed sorbet cocktails. Then again, the second rule of marketing is: sell the sizzle, not the steak, especially when the steak is not the best cut.
--- Third rule: The flashier the party, the lousier the deal.
Link: WaPo
Putting an overwrought debate to rest, the DC Zoning Commission gave initial approval to the 5220 Wisconsin Ave. condo project. The seven story building caused one ANC commissioner assert that moving forward with this project is akin to "fxxxin rape our neighborhood."
Bubble View:
--- Please. Admist the Steak and Eggs and cars, people are actually fighting development. This site is blocks from a Metro station. C'mon people time to step up and say no to baloney sandwichs.
Or sell a condo in this market.
The Story:
--- Price it high, and then slowly drop the price as the days and weeks go by as the listing gets older and older.
Take note of this unit at 2020 Lofts. True the condo is sleek and handsome. "Corner unit with huge outside terrace from 2nd floor den with views of capitol." Granite and stainless kitchen. Yada Yada. Parking. A couple of blocks to the Metro. Up and coming neighborhood. Sign me up.
Asking price: $799k. Whoa. And that's after three price drops. It started at $889k in February.
View from the Bubble:
--- It's almost been on the market six months. What's the point? The listing is so old and buried in the MLS the only people who will see it are ones trolling for price drops. I bet if the agent started at $750k in March it would have been bid up to close to their ask by April Fool's Day.
--- Remember the mantra: In a slowing market you must price it right to succeed.
But where? asks WashBiz. Moreover, where should Apple locate a DC retail store? Georgetown, U Street, Gallery Place? Vote here.
The Story:
--- Three of the four apartment towers that JPI is building in SE has broken ground. The latest is 900 New Jersey Ave. SE, a 13-story building that will contain 237 residential units and 6,000 sf of retail.
--- The first two projects expected to deliver in summer of 2008. The 70 Eye St. SE project will have 448 units in two towers designed in an industrial warehouse style; while 100 Eye St. will provide 246 units in a glass and white terrazzo marble building.
--- Next year, JPI plans to break ground for its final building, 23 Eye St., SE with 421 residential units and up to 35,000 sf of retail space.
Link: GlobeSt.
Federated Dept. stores finally found a suitor for the old Hecht's Warehouse on 1401 New York Ave. NE. Wayne, Pa.-based Patriot Equities LP has a contract to buy the Art Deco structure for an undisclosed price.
The massive 750,000-sf warehouse will be turned into a mixed-use complex on the site, with retail, office space, and residential units. No details as of yet.
Link: WashBiz
Bubble View:
--- With Abdo Development's nearby Arbor Place project, which will transform 17 acres at New York and Bladensburg Road, New York Ave. is set for revitalization. No longer will the trip down New York Ave. from or to I-95 be a journey through desolation. New York Ave. will be a destination, not just a place to drive through. Abdo plans 3,500 residential units, 200K of retail, and over 3 acres of open space. The first phase is planned to be completed by 2009.
--- Moreover, a transformation of New York Ave. will set a new tone for DC. People come here and their impression of the city was formed by the journey. Today that journey is depressing, but in ten years it will be a completely different experience.
The Story
--- Gaylord has booked nearly a million room-nights at its National Harbor hotel in PG county.
--- Many bookings are with groups that have met at Gaylord's other hotels. Nearly 80 percent of its business will be with convention groups that look for all-inclusive meeting and resort facilities.
--- At the same time, many DC hotels are going upscale with renovations. Magic Johnson and a group of Los Angeles investors just bought the Hinckley Hilton Washington for $290 million and plan to spend $100 million more on renovations.
View from the Bubble:
--- Perhaps DC is becoming more and more the destination for the affluent and sophisticated. Nonetheless more hotel space over near the convention center would not hurt.
--- Is Gaylord siphoning business as the WaPo suggests? Two ways to look at this. Gaylord will bring more conventions to the DC area that would have otherwise never have come here in the first place. That's good for DC because more conventioneers will wander downtown to see the sites and spend some dough. On the other hand, Gaylord will siphon off conventions that otherwise would have come downtown. The Air Force Assn. will move its convention to Gaylord, as will the AICPA.
--- Much depends on how much shopping and dining these groups do -- the more sophisticated the group, the less likely they will be satisfied by Gaylord. Also it will be hard to get DC speakers, such as members of Congress, to travel down to Gaylord.
--- Some conventioneers could even end up at Gaylord for the conference, and then spend the weekend in DC as a getaway. That's what I did when I went to Opryland in Nashville.
Link: WaPo on Gaylord, WaPo on hotel upgrades
The Story:
--- Just like at Quincy Court, many units at 1010 Massachusetts Ave., that's ten ten Mass, are being offerred as rentals in this "condo" building. Allegedly 70% or so of the units have been sold, so the prospective landlords must be owner-investors. Its surprising how many units are being offerred by investors as seen on craigslist: rentals. Not sure what I make of this.
--- Prices at the 163-unit bulding start at $400k and go up to $1.5m. This one is for sale on craigslist too.
---The building, which should be ready late this summer, will have the usual granite and stainless kitchen. Rooftop pool is nice.
View from the Bubble:
--- No doubt the ability to hold condos off the sales market as rentals is helping to shore the DC condo market up, as seen from the May sales data. Unlike Condos in Chantilly, say, the owners can sell or rent. It's nice in life to have options.
--- This condo is not really in a gentrifying neighborhoods as much as a forgotten one. Not much retail nearby or restaurants for that matter. Nonetheless the Mt. Vernon Sq. area is convenient to downtown and close to Logan Circle etc. Beck is around the corner.
The Story:
--- Can DC schools be saved, the WaPo asks? The story is gloomy and reeks of a suburban perspective. True DC shools are abysmal, but there are some bright spots that are ignored.
--- DC spends $12,979 per pupil each year, ranking it third-highest among the 100 largest districts in the nation. True DC schools must perform many state functions, but $13k/year?
View from the Bubble:
--- Only with good schools can DC truly become a great city. Unless there is more than a handful, the old pattern I-got-pregnant-and-moved-away will continue. Furthremore, DC's underclass will remain as such with a professional class with kids to school to look up to.
---Mayor Fenty I must do something about the excessive admin costs incurred by DC.
Links: WaPo Mashup here.
The Story:
--- Reason One: Commissions are up, says the WaPo. According to a review of revenue and cost data from hundreds of brokerages by the industry publication Real Trends, the average commission rose by nearly one-fifth of a percentage point last year, to just under 5.2 percent.
--- Reason Two: Northwestern University study says sellers without agents did better in head-to-head comparision in Madison, Wisc., where the study was conducted.
The Offer:
--- $245K. 700 SF or so one bedroom for sale at Carrollsburg Condominium at 1250 4th St SW. Mid-range renovation granite and stainless. Parking for another $25K. My guess about 700 SF.
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