The DC Development Report is a summary of the major development and construction projects in the District of Columbia. The Washington, DC Economic Partnership (WDCEP) began tracking development activity in 2001 with the hope of creating a comprehensive database that would answer a number of questions in regards to the construction activity in the city. The Report summarizes our entire database of projects, highlights major projects and what lies ahead for development in the District of Columbia.
This update of the DC Development Report is an overview of development activity and of the expansion occurring in DC. As a resource book, it is a compilation of nearly 14 years of data collection and research that provides an overview of an ever-changing development and construction cycle.
The WDCEP performs an annual “development census” in the month of September and receives contributions from more than 100 developers, architects, contractors and economic development organizations. This outreach results in updates to more than 350 projects. While our database of projects is constantly being updated, for the purposes of this publication all data reflects project status, design and information as of September 2014.
In 2014 the WDCEP partnered with CBRE to provide an economic overview of DC and in-depth analysis of the office, retail and residential markets. Although every attempt was made to ensure the quality of the information contained in this document, the WDCEP and CBRE makes no warranty or guarantee as to its accuracy, completeness or usefulness for any given purpose.
B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
DC Development Report: 2014/2015 Edition
1. Burnham Place at Union Station / Akridge
Development
Report 2014/2015 edition
2. The Washington, DC Economic Partnership
would like to acknowledge our corporate
sponsors whose continued financial support
has made the DC Development Report:
2014/2015 Edition possible.
PUBLIC SECTOR PARTNERS
PRIVATE SECTOR PARTNERS
BOARD MEMBERS
Jeff Miller / Co-Chair
Deputy Mayor
Office of Deputy Mayor for Planning & Economic
Development
Richard Lake/Co-Chair
Roadside Development
Olivia Shay-Byrne/Vice Chair
Reed Smith, LLP
Doug Loescher/ DMPED Representative
Office of Deputy Mayor for Planning & Economic
Development
Jennifer Eugene/Secretary
Washington Gas
Joseph L. Askew, Jr., Esq.
Verizon
Steven C. Boyle
EDENS
Jean-Luc Brami
Gelberg Signs
Kenneth Brewer
H St. Community Development Corporation
Sean Cahill
Property Group Partners
Donna M. Cooper
Pepco
Daniel Duke
Bohler Engineering
Angela Franco
Greater Washington Hispanic Chamber of Commerce
Brett Greene
American Management Corporation
Michael J. Haddad
Capital One Bank
Tonya Hill
Comcast Business
Carl Hairston
M&T Bank
Stan Jackson
Anacostia Economic Development Corporation
Norman Jemal
Douglas Development Corporation
Greg Leisch
Delta Associates
Chester McPherson
DC Department of Insurance, Securities, & Banking
Rafael Muniz
The JBG Companies
Lisa Mallory
DC Building Industry Association
Thomas Nida
United Bank
Chris Niehaus
Microsoft
Scott Nordheimer
Urban Atlantic/A&R Development Corporation
Greg O’Dell
Events DC
Marc Ratner
Streetsense
Eric E. Richardson
DC Office of Cable Television
Rabbiah “Robbie” Sabbakhan
DC Department of Consumer & Regulatory Affairs
Tara Scanlon
Holland & Knight
Michael Stevens
Capitol Riverfront BID
Robert Summers
DC Department of Small & Local Business
Development
Mitchell Weintraub
Cordia Partners, LLC
3. Burnham Place at Union Station / Akridge
ImagecourtesyofAkridge
a publication of the in partnership with
Development
Report 2014/2015 edition
5. 1. DEVELOPMENT OVERVIEW
6 Economic Overview
12 Summary of Projects
14 Most Active Developers, Architects & Contractors
2. DEVELOPMENT BY SECTOR
19 Office
31 Retail
45 Residential
59 Hospitality
69 Education
3. APPENDIX
82 Methodology
85 Acknowledgements
TABLE OF
CONTENTS
6. The JBG Companies and JBGR Retail
proudly support the
Washington, DC Economic Partnership
JBG.COM JBGR.COM
7. cbre.com/dc
TRENDS EVOLVE.
EXPERTS LEAD.
CBRE knows Washington, D.C.
As the industry’s leading provider
of commercial leasing services,
investment sales and property
management, we have the insight
and perspective to anticipate what’s
next and what it means for the
Washington Metropolitan community
we serve.
8.
9. DC Development Report • 2014/2015 Edition 5
DEVELOPMENT
OVERVIEW
Economic Overview / Summary of Projects / Most Active
11. DC Development Report • 2014/2015 Edition 7
Economic Overview
POPULATION GROWTH
Young Professionals
Young professional aged 25 to 44 years continue to constitute a growing share of the population in DC. According to the U.S. Census
Bureau, between 2004 and 2013, the share of the population within that age group grew by 3.6 percentage points, and now represents
36.5% of the overall population.
Birth Rate
The birth rate in DC has been on a downward trajectory over the past five years, but has remained elevated relative to the U.S. In the
past ten years, DC saw the highest birth rate level in 2008, when there were 15.4 births per 1,000 population. The latest available data
show this number has declined to 14.9 births per 1,000 in 2012.
Birth Rate
(# of Births per 1,000) U.S. Birth Rate Total Population (Ths.) Age 25 to 44 Age 25 to 44, (%)
2004 14.3 14.0 567.8 186.6 32.9
2005 14.5 14.0 567.1 185.7 32.7
2006 14.7 14.2 570.7 188.0 32.9
2007 15.1 14.3 574.4 190.2 33.1
2008 15.4 13.9 580.2 193.0 33.3
2009 15.1 13.5 592.2 199.1 33.6
2010 15.2 13.0 605.1 208.0 34.4
2011 15.0 12.7 619.6 218.5 35.3
2012 14.9 12.6 633.4 227.7 36.0
2013 n/a n/a 646.5 235.8 36.5
Sources: U.S. Census Bureau, Moody’s Analytics
EMPLOYMENT TRENDS
Public vs. Private Sector
DC’s public and private sectors have seen divergent employment trends during the past several years. When the U.S. economy was
rocked by the financial crisis, the private sector saw declining job growth. Since the recession, however, the private sector has made
great strides to reach pre-recession levels of employment, growing 13.5% between September 2009 and September 2014. Meanwhile,
public sector employment experienced large job gains in the aftermath of the recession due to the federal government’s stimulus plan.
Since 2009, however, public sector employment has dropped about 0.1% per annum, or 0.5% over the span of five years.
Legal Services
Employment in the Legal Services sector in DC reached its peak in July 2008 with almost 38,000 employees, though it quickly
plummeted thereafter with the onset of the Great Recession. Since 2012, employment has leveled and hovered around the 30,000
employee mark. A subsector of the Professional and Business Services sector, Legal Services has observed dwindling employment with
a 14.7% drop over the ten-year period from September 2004 to September 2014. Most of this employment decline is concentrated in
the latter five years during which the average annual rate of decline measured 2.4%. Law firms are among the top tenants in DC’s 125
million-sq.-ft. office market, occupying approximately one-third of the entire market.
13. DC Development Report • 2014/2015 Edition 9
Economic Overview
ORIGIN OF CAPITAL (January 2009–September 2014)
Country Total Properties Purchased Total Volume ($M)
Germany 9 $1,159.20
Japan 5 $813.60
Canada 9 $739.70
Norway 3 $719.20
South Korea 2 $596.00
UK 4 $586.00
Kuwait 2 $516.00
Israel 6 $305.00
Italy 1 $93.50
Other 3 $111.10
Total 44 $5,639.40
Source: Real Capital Analytics
Foreign Sellers
Over the past two years, foreign capital has been among the least active when it comes to disposition of office assets in DC. Year-to-date
there has only been one disposition in DC from a foreign seller. In 2013, there was a handful, a majority of which came from Wereldhave
N.V.’s sale of 1401 New York Avenue and 701 8th Street, NW.
15. 702 H Street NW, Suite 400
Washington, DC 20001
202.638.6300
www.douglasdevelopment.com
Enhancing communities and creating dynatic places since 1985
CONTACT US:
Douglas Development Corporation is one of the most
dominant and successful real estate developers in the
Washington area controlling nearly 9 million square feet.
The Company and its principals have earned a national
reputation as a leader in redevelopment of historical
properties. Douglas Development’s most notable, visible
and well known projects are in the East End of
Washington, and have served as the catalyst for the
redevelopment of the entire area.
With a current portfolio of nearly 9 million leasable
square feet and over 8 million square feet of
developable real estate in the pipeline, Douglas
Development is well established as one of the most
dominant and successful real estate developers in the
Washington area.
17. DC Development Report • 2014/2015 Edition 13
143.3 MILLION
Square Feet Completed
23.1 MILLION
Square Feet Under Construction
17.4 MILLION
Square Feet Near Term
16.9 MILLION
Square Feet Medium Term
97.4 MILLION
Square Feet Long Term
Summary of Projects
PROJECTS COMPLETED (2001–3Q 2014)
# OF PROJECTS SQ. FT. UNITS ROOMS
¢ Office 236 51,159,364
¢ Retail 286 6,288,615
¢ Residential 501 53,330,182 52,792
¢ Hospitality 166 16,858,596 12,804
¢ Education 159 13,107,526
Total Estimated Value of Projects: $43.4 billion
PROJECTS UNDER CONSTRUCTION
# OF PROJECTS SQ. FT. UNITS ROOMS
¢ Office 17 3,227,871
¢ Retail 62 1,786,853
¢ Residential 87 10,985,135 11,937
¢ Hospitality 22 2,924,757 2,320
¢ Education 21 3,515,317
Total Estimated Value of Projects: $9.2 billion
PROJECTS NEAR TERM1
# OF PROJECTS SQ. FT. UNITS ROOMS
¢ Office 24 8,241,631
¢ Retail 53 1,062,165
¢ Residential 63 7,532,460 8,826
¢ Hospitality 21 1,063,449 1,207
¢ Education 7 492,047
Total Estimated Value of Projects: $4.9 billion
PROJECTS MEDIUM TERM1
# OF PROJECTS SQ. FT. UNITS ROOMS
¢ Office 22 5,419,613
¢ Retail 50 946,108
¢ Residential 69 8,276,012 8,790
¢ Hospitality 23 2,006,455 1,514
¢ Education 6 84,000
Total Estimated Value of Projects: $4.8 billion
PROJECTS LONG TERM1
# OF PROJECTS SQ. FT. UNITS ROOMS
¢ Office 58 34,540,568
¢ Retail 78 3,541,754
¢ Residential 70 35,293,065 35,258
¢ Hospitality 29 2,303,896 2,129
¢ Education 20 4,061,975
Total Estimated Value of Projects: $28.5 billion
1. For further explanation of these terms please see the Appendix
21. DC Development Report • 2014/2015 Edition 17
DEVELOPMENT
BY SECTOR
Office / Retail / Residential / Hospitality / Education
22. 3050 K Street, NW • Suite 125 • Washington, DC 20007 • main 202.719.9000 • MRPRealty.com
Developing Great Places
Developing Great Partnerships
Developing Great Ideas
25. DC Development Report • 2014/2015 Edition 21
DC OFFICE LEASES: TOP 30 DEALS SIGNED (1Q 2014 – 3Q 2014)1
Office Development
project in NoMa, also broke ground in the third quarter, though
on a speculative basis. The project is the third building to break
ground in DC on a speculative basis over the past 18 months,
suggesting developers’ growing sense of confidence that leasing
activity will strengthen in the coming years.
Investment sales held steady across DC in 2014. During the first
nine months of 2013, sales volume totaled $2.85 billion, compared
to $2.86 billion during the same time period this year. The largest
sale year to date was 555 12th Street, NW, which sold for $505
million, or approximately $640 per sq. ft.2
Over the past 20 years,
the price per sq. ft. for Class A and B buildings over 50,000 sq.
ft. has grown 7.6%, as institutional investors continue to seek a
historically stable real estate market.
While employment plays an important role in swaying office
space demand, firms are focused on reducing overhead costs
by employing greater efficiency in space use. As companies
continue consolidation and densification, the expected increase
in employment—particularly in the office-using sector—over the
next two years will not lead to a well-defined expansion in their
corporate footprint.
Approximately 1.3 million sq. ft. of private sector office space is
scheduled to deliver by 2015, and while demand is expected to
strengthen, overall vacancy rates will remain elevated at above
11%. The trophy segment of the market, however, will continue
to outperform other product types, as the development pipeline
remains limited and a high demand for trophy space continues.
Trends in Square Footage per Employee
An emerging trend in the global office market, space
efficiency has been substantially present in DC. A major
driver of this trend is firms’ emphasis on maximizing their
bottom line by cutting overhead costs. Firms, particularly in
the legal services sector within DC, are focusing on reducing
their overall space requirement as well as the average sq.
ft. per employee. Meanwhile, advancements in technology
have enabled for a paper-less environment due to laptops,
mobile devices, and wireless internet. This has led to greater
flexibility in the workplace due to the reduced need for
permanent offices or dedicated office space.
Open floor plans have reduced the amount of space needed
by large offices while simultaneously creating a more
collaborative environment; this is considered a win-win in
today’s increasingly dynamic workplace. The trend is especially
evident among the federal government and law firms, two of
DC’s largest demand drivers.
According to a CoreNet Global Real Estate survey in 2012, the
national average of sq. ft. occupied per person dropped from
225 sq. ft. in 2010 to 175 sq. ft. in 2012 and is expected to reach
151 sq. ft. by 2017. Considering the benefits, it is no surprise
this trend has gained notoriety and prominence. As firms
have turned to more collaborative space use, their real estate
strategy has become more efficient while proving beneficial to
their bottom line. ¾
BY DEAL TYPE
(YTD 2014)
26%
3% 70%
New/Relet
Renewal +
Expansion
Renewal
BY INDUSTRY
(Total Sq. Ft.)
6.1%
42% Government
Creative Industries
38.7% Legal
4.7%
4.0%
1.7%
1.5%
1.3%
Non-profits/
Business Associations
Business Services
Other
Technology
Telecommunications
1. CBRE Research 2. 800 17th Street was sold to TIAA-CREF and Norges Bank Investment Management for $1,075 per sq. ft. ($392 million) in 4Q 2014 (Washington, Business Journal, 10/31/14)
31. DC Development Report • 2014/2015 Edition 27
Development Highlights
The Lumber Shed WARD 6
LOCATION: 301 Water Street, SE
DEVELOPER(S): Forest City Washington
ARCHITECT(S): Gensler
CONTRACTOR(S): Monarc Construction
EST. COST: $13 million STATUS: Completed
TARGETED DELIVERY: 3Q 2013
SPECS: The Lumber Shed project is an adaptive reuse of a former Navy Yard
industrial building used for storing and drying lumber. The two-level 29,500
sq. ft. building was transformed into restaurant space on the first floor (Osteria
Morini, Agua 301, Ice Cream Jubilee) and office space on the second floor (Forest
City Washington).
Association of American Medical Colleges (AAMC) WARD 6
LOCATION: 655 K Street, NW
DEVELOPER(S): Hines/JM Zell
ARCHITECT(S): Shalom Baranes Associates
CONTRACTOR(S): Clark Construction Group LLC
LEED: Gold EST. COST: $115 million
STATUS: Completed TARGETED DELIVERY: 2Q 2014
SPECS: The AAMC’s new 290,000 sq. ft. headquarters includes 14,300 sq.
ft. of retail space. The four existing buildings on the site were renovated and
incorporated into the final design.
Storey Park WARD 6
LOCATION: 1005 1st Street, NE
DEVELOPER(S): Perseus Realty/First Potomac Realty Trust
ARCHITECT(S): HKS PC
LEED: Gold
STATUS: Near Term
TARGETED DELIVERY: 2017
SPECS: A 683,000 sq. ft. mixed-use development will be built on the former
Greyhound Station site in NoMa. Plans call for 350,000 sq. ft. of office space,
65,000 sq. ft. of retail space and 300 residential units. Construction could
start in 2015.
National Square WARD 6
LOCATION: 500 D Street, SW
DEVELOPER(S): Trammell Crow Company
ARCHITECT(S): Gensler
CONTRACTOR(S): Clark Construction Group LLC
LEED: Silver EST. COST: $140 million
STATUS: Under Construction TARGETED DELIVERY: 3Q 2015
SPECS: National Square will be a new 12-story, 342,000 sq. ft. highly secure office
building located at the corner of 6th & D Streets, SW across the street from the
L’Enfant Metrorail Station. The existing 134,000 sq. ft. Class-B office building on
the site was demolished.
ImagecourtesyoftheTrammellCrowCompany
ImagecourtesyofFirstPotomacRealtyTrust
33. DC Development Report • 2014/2015 Edition 29
Development Highlights
600 Massachusetts Avenue WARD 2
LOCATION: 600 Massachusetts Avenue, NW
DEVELOPER(S): Gould Property Company/Oxford Properties Group
ARCHITECT(S): CORE
CONTRACTOR(S): Clark Construction Group LLC
LEED: Platinum EST. COST: $206 million
STATUS: Under Construction TARGETED DELIVERY: 3Q 2016
SPECS: 600 Massachusetts Avenue will be a 10-story, 401,000 sq. ft. class-A office
building with 19,418 sq. ft. of retail space. Venable will be the anchor office tenant.
The project involves renovating and moving two row houses on the site.
900 G Street WARD 2
LOCATION: 900 G Street, NW
DEVELOPER(S): MRP Realty/ASB Real Estate
ARCHITECT(S): Gensler
CONTRACTOR(S): James G Davis Construction Corporation
LEED: Gold EST. COST: $65 million
STATUS: Under Construction TARGETED DELIVERY: 1Q 2015
SPECS: The former YWCA building was demolished and will be replaced by
nine-story, 110,000 sq. ft. office building with 6,500 sq. ft. of retail space.
Capitol Crossing WARD 2
LOCATION: I-395 at 3rd St. & Massachusetts Avenue, NW
DEVELOPER(S): Property Group Partners/Center Place Holdings LLC
ARCHITECT(S): Kevin Roche John Dinkeloo & Associates LLC/SOM/
Kohn Pedersen Fox & Associates
CONTRACTOR(S): Balfour Beatty Construction
LEED: Platinum EST. COST: $1.3 billion
STATUS: Under Construction (Platform)
TARGETED DELIVERY: 2017 (Ph I)
SPECS: Capitol Crossing will be a 2.2 million sq. ft. mixed-use development
built above I-395. Upon full built-out the project will offer 1.9 million sq. ft. of
office space, 63,000 sq. ft. of retail space, 150 residential units and a new Jewish
Historical Society Synagogue. Utility work began in 1Q 2014 with the delivery of
the office buildings (954,000 sq. ft.) in the North Block expected in 2017.
Square 5914 WARD 8
LOCATION: 1290 Alabama Avenue, SE
DEVELOPER(S): City Partners LLC/Sanford Capital
ARCHITECT(S): Maurice Walters
LEED: Gold EST. COST: $95 million
STATUS: Medium term TARGETED DELIVERY: 2017
SPECS: The project is adjacent to the Congress Heights Metrorail Station and will
be developed into a 236,000 sq. ft. office building with 8,600 sq. ft. retail space
and a 206-unit apartment building with 6,500 sq. ft. of retail space.
ImagecourtesyGouldPropertyCompany
ImagecourtesyofCityPartnersLLC
ImagecourtesyofPropertyGroupPartners
37. DC Development Report • 2014/2015 Edition 33
Retail Development
DC RETAIL SALES GROWTH (Q2 2014 over Q2 2013, trailing four quarters)
The openings of DBGB, Del Frisco’s Double Eagle Steakhouse
and Le Diplomate illustrate this restaurant-centric trend. Rose’s
Luxury, which recently opened in DC, was ranked as the number
one restaurant in the U.S. in 2014.8
These high-end openings
coincided with numerous quick-serve openings. DC claimed
the third best growth market for quick service restaurants in a
2014 study that examined quick-serve restaurant traffic growth
forecasts for 2013 to 2018.9
The restaurant industry’s growth
indicates the ever-evolving character of DC’s retail landscape.
While sales increased for food services and drinking places, the
increase was even more dramatic for other sectors, including:
clothing & clothing accessories, food & beverage, general
merchandise, furniture, and health & personal care stores.
Over the past year, retail sales for general merchandise have
increased an estimated 27.3%, by roughly the same percentage
that non-store retailer sales have declined. Thus, DC retail sales
have experienced an overall increase from 2013 to 2014, but
performance has varied considerably according to segment.10
Finally, the opening of CityCenterDC, a 1.6 million-sq.-ft.,
mixed-use development (with 185,000 sq. ft. of retail space), was a
capstone event for DC’s growing urban retail market. In planning
and design since 2003, CityCenterDC has provided a high-
end retail anchor in the downtown with retailers such as Allen
Edmonds, Hugo Boss, Burberry, Longchamp and Arc’teryx. ¾
-25% -20 -15 -10 -5 0 5 10 15 20 25 30%
Food services and drinking places
Total Retail Sales
Clothing & clothing accessories stores
Food & beverage stores
Furniture & home furnishing stores
Health & personal care stores
Electronics & applicance stores
General merchandise stores
Sporting goods; hobby; book; & music stores
Gasoline stations
Nonstore retailers -25.5%
-4.4%
1.8%
4.5%
5.4%
6.0%
9.5%
12.7%
14.7%
18.6%
27.3%
Source: Moody’s Analytics
AVERAGE RETAIL RENTAL RATES PER SUBMARKET
SUBMARKET PER SQ. FT. RANGE
Capitol Hill High $30s - $65
Capitol Riverfront $35 - $50
CBD $45 - $125
East End $45 - $125
Georgetown $55 - $200
H St. NE $35 - $55
NoMa $35 - $50
Northeast $30 – High $40s
Southwest Low $30 - $55
Uptown $35 - $70
West End $40 - $55
Source: CBRE Research
8. Bon Appetit (8/19/14)
9. The NPD Group/QSR
10. Moody’s Analytics
41. DC Development Report • 2014/2015 Edition 37
Development Pipeline
1. may include non-retail components & pipeline values may include additional phases ($ in millions) 2. delivery date may reflect phase I delivery or final phase delivery for pipeline projects
PROJECT WARD LOCATION DEVELOPER(S) RETAIL SF
EST. VALUE
($M)1
DELIVERY2
TOP RETAIL PROJECTS COMPLETED (4Q 2013–3Q 2014)
1 The Shops at Georgetown Park 2 3222 M St., NW AG Georgetown Park Holdings/Vornado/CES 330,000 $32 4Q 13
2 CityCenterDC 2 9th, 10th, 11th, H, & I Sts., NW Hines/The First Investor 185,000 $700 4Q 13
3 Walmart on Georgia Avenue 4 5929 Georgia Ave., NW Foulger-Pratt 106,000 4Q 13
4 77 H 6 1st & H Sts., NW The JBG Companies/Bennett Group 86,000 $90 4Q 13
5 CityMarket at O (Ph I - Giant) 6 1400 7th St., NW Roadside Development 75,000 $35 4Q 13
6 L’Enfant Plaza Redevelopment (Ph II) 6 950 L’Enfant Plaza, SW The JBG Companies 93,000 $17 2Q 14
7 Twelve12 6 1212 4th St., SE Forest City Washington 88,000 $100 2Q 14
8 Monroe Street Market 5 700 - 800 blocks of Monroe St., NE Abdo Development/Bozzuto Group/Catholic University 56,915 $150 2Q 14
9 The Louis at 14th 2 1420 U St., NW The JBG Companies/Georgetown Strategic Capital 44,000 $100 2Q 14
10 The Swift 4 3830 Georgia Ave., NW Duball LLC/Safeway 62,000 $65 3Q 14
TOP RETAIL PROJECTS UNDER CONSTRUCTION
11 Cathedral Commons 3 3336 & 3400-3430 Wisconsin
Ave., NW
Giant Food/Bozzuto Group/Southside Investment Partners 125,000 $130 4Q 14
12 Hecht Warehouse District 5 1401 New York Ave., NE Douglas Development Corporation 200,800 4Q 14/2015
13 2251 Wisconsin Avenue 3 2251-2255 Wisconsin Ave., NW Altus Realty Partners/Chesapeake Realty Partners 28,277 $32 1Q 15
14 Fort Totten Square 4 South Dakota Ave. & Riggs Rd., NE The JBG Companies/Lowe Enterprises 130,000 $120 2Q 15
15 The Shops at Dakota Crossing (Ph II) 5 New York Ave. &
South Dakota Ave., NE
Fort Lincoln New Town Corporation/Trammell Crow
Company/CSG Urban Partners
266,000 $40 3Q 15
16 800 New Jersey Avenue 6 New Jersey Ave. & H St., SE WC Smith 35,000 $135 3Q 16
17 Apollo 6 610 H St., NE Insight Property Group LLC 75,000 $190 4Q 16
18 ART Place at Fort Totten (Ph I) 5 5180 South Dakota Ave., NE Cafritz Foundation 104,000 $117 2Q 17
19 The Wharf (Ph I) 6 Southwest Waterfront Hoffman-Madison Waterfront 190,000 $806 4Q 17
20 Skyland Town Center (Ph I) 7 Alabama Ave. & Naylor Rd., SE Rappaport/WC Smith/Marshall Heights CDO 220,000 $150 2017/18
TOP RETAIL PROJECTS PIPELINE (Near Term)
21 Capitol Gateway Marketplace 7 58th & East Capitol Sts., NE A&R Development/DCHA/Henson Dev. Co. 167,450 $120 2016
22 Georgia Eastern 4 7828 Georgia Ave., NW Douglas Development Corporation 60,000 2016/17
23 Hine Junior High School 6 700 Pennsylvania Ave., SE Stanton Development Corp./EastBanc/Dantes Partners/
Jarvis Co.
40,000 $190 2016/17
24 The Line DC 1 1780 Columbia Rd., NW Friedman Capital Advisors/Foxhall Partners/Sydell Group 20,903 $100 2016/17
25 The Riverfront 6 100 Potomac Ave., SE FRP Development Corp./MRP Realty 18,650 $100 2016/17
26 Storey Park 6 1005 1st St., NE Perseus Realty/First Potomac Realty Trust 65,000 2017
27 Prospect Place 2 3220 Prospect St., NW McCaffery Interests 27,600 2017
28 Gateway Market 5 340 Florida Ave., NE LCOR Inc./EDENS 27,410 $55 2017
29 CityCenterDC (Conrad Hotel) 2 10th & New York Ave., NW Hines 70,000 2018
30 Uline Arena 6 1140 3rd St., NE Douglas Development Corporation 50,000 $120
43. DC Development Report • 2014/2015 Edition 39
Development Highlights
1270 4th Street WARD 5
LOCATION: 1270 4th Street, NE
DEVELOPER(S): EDENS/Level 2 Development
ARCHITECT(S): Shalom Baranes Associates
STATUS: Near Term
TARGETED DELIVERY: 2017
SPECS: This proposed 11-story, 408,000 sq. ft., 420 to 520-unit residential
building will offer up to 40,000 sq. ft. of retail space. The project is part of the
eight million sq. ft. Union Market District proposed redevelopment vision.
Skyland Town Center (Phase I) WARD 7
LOCATION: Alabama Avenue & Naylor Road, SE
DEVELOPER(S): Rappaport/WC Smith/Marshall Heights CDO
ARCHITECT(S): Torti Gallas & Partners
CONTRACTOR(S): WCS Construction LLC/L. F. Jennings Inc.
LEED: Silver EST. COST: $150 million
STATUS: Under Construction TARGETED DELIVERY: 2017-2018
SPECS: The planned redevelopment of the 18.5-acre Skyland Shopping Center will
occur in phases and result in up to 323,000 sq. ft. of retail space, 485 residential
units and nearly 1,700 parking spaces. Phase I is scheduled to include 220,000 sq.
ft. of retail space (120,000 sq. ft. Walmart) and 250-270 apartments.
Capitol Gateway Marketplace WARD 7
LOCATION: 58th & East Capitol Streets, NE
DEVELOPER(S): A&R Development/DC Housing Authority/
Henson Development Company
ARCHITECT(S): Bignell Watkins Hasser Architects/
Massa Montalto Architects/
CONTRACTOR(S): WCS Construction LLC
EST. COST: $120 million
STATUS: Near Term TARGETED DELIVERY: 2016
SPECS: The 12-acre site will be redeveloped into approximately 167,000 sq. ft. of
retail space, anchored by a 135,000 sq. ft. Walmart, and 304 apartments.
800 New Jersey Avenue WARD 6
LOCATION: New Jersey Avenue & H Street, SE
DEVELOPER(S): WC Smith
ARCHITECT(S): SK & I Architectural Design Group LLC
CONTRACTOR(S): WCS Construction LLC
LEED: Silver
EST. COST: $135 million STATUS: Under Construction
TARGETED DELIVERY: 3Q 2016
SPECS: 800 New Jersey Avenue will consist of 336 loft-style apartments with 10-
foot ceilings and a 35,000 sq. ft. Whole Foods with two levels of grocery parking
above the store. It is the second phase of the 1.4 million sq. ft. mixed-use Square
737 development.
ImagecourtesyofRappaport
ImagecourtesyofEDENS
ImagecourtesyofSK&IArchitecturalDesignGroup
ImagecourtesyofWalmart
45. DC Development Report • 2014/2015 Edition 41
Development Highlights
Cathedral Commons WARD 3
LOCATION: 3336 & 3400 - 3430 Wisconsin Avenue, NW
DEVELOPER(S): Giant Food/Bozzuto Group/Southside
Investment Partners
ARCHITECT(S): JCA Architects
CONTRACTOR(S): Bozzuto Construction
LEED: Silver EST. COST: $130 million
STATUS: Under Construction TARGETED DELIVERY: 4Q 2014
SPECS: The former Giant on the site was demolished in 2012 and a new 56,000
sq. ft. store will be built along with an additional 69,000 sq. ft. of retail space and
145 residential units on two separate parcels. The Giant grocery store opened in
November 2014.
Monroe Street Market WARD 5
LOCATION: 700 - 800 blocks of Monroe Street, NE
DEVELOPER(S): Abdo Development/Bozzuto Group/Catholic University
ARCHITECT(S): Torti Gallas & Partners/KTGY
CONTRACTOR(S): Bozzuto Construction
LEED: Certified EST. COST: $150 million
STATUS: Completed TARGETED DELIVERY: 2Q 2014
SPECS: This mixed-use project delivered 57,000 sq. ft. of retail space and 562
apartments in Blocks A1, B and C. Project anchors include The Arts Walk (27
artist studios), Busboys & Poets, Brookland Pint and &pizza. Some portions of
the project started to deliver in 4Q 2013.
Twelve12 WARD 6
LOCATION: 1212 4th Street, SE
DEVELOPER(S): Forest City Washington
ARCHITECT(S): Shalom Baranes Associates
CONTRACTOR(S): Walsh Construction
LEED: Silver EST. COST: $100 million
STATUS: Completed TARGETED DELIVERY: 2Q 2014
SPECS: Twelve12 features a 218-unit apartment building above 88,000 sq. ft. of
retail space, including a 50,000 sq. ft. Harris Teeter (November 2014 opening)
and a 28,000 sq. ft. VIDA Fitness.
Walmart on Georgia Avenue WARD 4
LOCATION: 5929 Georgia Avenue, NW
DEVELOPER(S): Foulger-Pratt
ARCHITECT(S): Massa Montalto Architects
CONTRACTOR(S): Foulger-Pratt
STATUS: Completed
TARGETED DELIVERY: 4Q 2013
SPECS: The former 3.56-acre Curtis Chevrolet dealership was redeveloped into a
106,000 sq. ft. Walmart with approximately 40,000 sq. ft. dedicated to groceries,
348 parking space and 37 bicycle spaces.
VisualizationbyInterfaceMultimedia
ImagecourtesyofFoulger-Pratt
47. Plan Early Sell Faster with Natural Gas.
Natural Gas. Efficient by Nature.
Including natural gas in
our project was a very
smart decision.
If you don’t incorporate natural gas as a primary energy source into your plans, you’re missing a big opportunity.
Savvy builders know that their clients prefer natural gas because of the comfort, cost savings, reliability and environmental
benefits it affords.
It’s easier than ever to include natural gas.
• Attractive design alternatives are available through the use of the industry’s latest meters. They’re smaller, allowing for their
placement in aesthetically pleasing locations.
• Innovative piping options such as 2 psi delivery systems, and flexible copper and corrugated stainless steel piping help to
reduce first costs.
• Distributed Meter Rooms (DMR) provide the flexibility for individual unit meters to be installed in vertically stacked central gas
meter rooms on each floor in a high rise multifamily building.
Call Washington Gas for a free consultation.
The Engineered Sales Team at Washington Gas is the resource you can count on for all multifamily development natural gas applications.
Our representatives include a variety of professionals with the technical skills to understand your requirements and walk you through each
stage of the process.
To learn more about incorporating natural gas into your next project, email our Engineered Sales Team at EngineeredSales@washgas.com
or visit PlanEarlySellFaster.com.
48. ENERGY CREATES
OPPORTUNITIES
We're proud to support the
Washington, D.C. Economic Partnership.
Pepco DC Econ Part Ad:Layout 1 9/12/13 9:40 AM Page 1
COMING 2017
At the intersection of First and L streets, NE, Storey Park will be at the center of NoMa in every way.
51. DC Development Report • 2014/2015 Edition 47
Residential Development
Looking ahead, the population, employment, and income
of the region are forecast to grow. DC is projected to see its
population increase by 10.2% between 2014 and 2019, while
median household income is projected to rise by 15.0% to
$77,143 during the same time frame.3
According to Moody’s
Analytics, total metropolitan employment as well as office-
using employment is expected to gain traction between 2015
and 2017.
DC Apartment Size
The average size of a one-bedroom apartment in DC has been
on a downward trajectory over the past decade. While the
previous unit average was approximately 850 sq. ft. through the
early 2000s, this figure has dropped to around 725 to 750 sq. ft.,
excluding the new phenomenon of micro-units. Renters have
become more interested in assessing the total monthly rent,
rather than the quoted rent per sq. ft. Moreover, the size of
apartments is a function of both the proximity to the Metrorail
as well as the overall monthly rent.
DC Supply and Absorption
There are approximately 12,000 units set to deliver in the next
36 months in DC, compared to about 10,000 units during the
same time last year.4
Though most new product is concentrated
in new markets—including Capitol Riverfront, H Street, Mt.
Vernon Triangle and NoMa—the developed markets continue
to see new projects coming online. Given the recent surge in
DC’s population, absorption has remained stable.
DC Average Rents per Neighborhood
According to Axiometrics, the Downtown-Logan Circle
neighborhood had the highest asking and net effective rents
during Q3 2014 at $2,498 and $2,474, respectively. Meanwhile,
the Howard University-Mt. Pleasant-Brightwood neighborhood
had the highest occupancy rate at 97.2%, followed closely behind
by Capitol Hill-SW with 97.1% occupancy. Brookland-Ft. Totten,
located in northeast DC, observed the lowest asking and effective
rents, while Anacostia-NE DC recorded the lowest occupancy
rate of 93.0%. ¾
APARTMENT RENTAL RATES (Q3 2014)
NEIGHBORHOOD ASKING RENT
EFFECTIVE
RENT
OCCUPANCY
RATE
Anacostia-NE DC $1,755 $1,738 93.0%
Brookland- Ft.Totten $1,675 $1,655 96.3%
Capitol Hill-SW $1,954 $1,951 97.1%
Downtown-Logan Circle $2,498 $2,474 95.7%
Dupont- Adams Morgan $2,004 $1,999 96.8%
Howard University-
Mt. Pleasant-Brightwood
$1,815 $1,767 97.2%
NW DC- Georgetown $1,948 $1,940 94.3%
Woodley Park- Cleveland Park- Van Ness $2,190 $2,176 96.0%
Source: Axiometrics
DC POPULATION GROWTH RATE (year-over-year)
0.00
1%
2%
3%
4%
5%
2008 2009 2010 2011 2012 2013
1.4%
3.2%
4.5%
5.0%
4.2%
3.5%
1.0%
2.1% 2.2%
2.4%
2.2% 2.1%
Age 25–44
DC Population
3. Nielson
4. Washington, DC Economic Partnership
55. DC Development Report • 2014/2015 Edition 51
Development Pipeline
1) APT = rental; HO = home ownership/condos 2) may include non-residential components ($ in millions);
3) delivery date may reflect phase I delivery or final phase delivery
PROJECT WARD LOCATION DEVELOPER(S) UNITS TYPE1
EST. VALUE
($M)2
DELIVERY
TOP RESIDENTIAL PROJECTS COMPLETED (4Q 2013–3Q 2014)
1 CityCenterDC 2 9th, 10th, 11th, H, & I Sts., NW Hines/The First Investor 674 Apt/HO $700 4Q 13
2 Camden NoMa 6 60 L St., NE Camden Property Trust 321 Apt $100 4Q 13
3 77 H 6 1st & H Sts., NW The JBG Companies/Bennett Group 303 Apt $90 4Q 13
4 Monroe Street Market 5 700 - 800 blocks of Monroe St., NE Abdo Development/Bozzuto Group/Catholic University 562 Apt $150 2Q 14
5 CityMarket at O Street (Ph I) 6 1400 7th St., NW Roadside Development/Dantes Partners 497 Apt $265 2Q 14
6 The Louis at 14th 2 1420 U St., NW The JBG Companies/Georgetown Strategic Capital LLC 268 Apt $100 2Q 14
7 Elevation at Washington
Gateway
5 100 Florida Ave., NE MRP Realty 400 Apt $130 3Q 14
8 Park 7 7 Minnesota Ave. & Benning Rd., NE Donatelli Development/Blue Skye Development LLC 376 Apt $60 3Q 14
9 2 M Street 6 North Capitol & M Sts., NE WC Smith/Warrenton Development Group 314 Apt $95 3Q 14
10 Jefferson at Market Square 6 1550 7th St., NW The Jefferson Apartment Group 281 Apt $80 3Q 14
TOP RESIDENTIAL PROJECTS UNDER CONSTRUCTION
11 Fairway Park Apartments 5 21st, 22nd St. and Maryland Ave., NE WC Smith/Enterprise Community Partners 406 Apt $54 4Q 14
12 415 L Street 6 415 L St., NW Steuart Investment Company/Paradigm
Development
393 Apt $100 4Q 14
13 Station House 6 701 2nd St., NE Fisher Brothers 375 Apt $100 1Q 15
14 Park Chelsea 6 880 New Jersey Ave., SE WC Smith 429 Apt $150 2Q 15
15 Atlantic Plumbing (Parcel
A & B)
1 2030 & 2112 8th St., NW The JBG Companies/Walton Street Capital 372 Apt/HO $124 2Q 15
16 Fort Totten Square 4 South Dakota Ave. & Riggs Rd., NE The JBG Companies/Lowe Enterprises 345 Apt $120 2Q 15
17 Camden NoMa (Ph II) 6 60 L St., NE Camden Property Trust 406 Apt $130 1Q 16
18 Apollo 6 610 H St., NE Insight Property Group LLC 431 Apt $190 4Q 16
19 ART Place at Fort Totten (Ph I) 5 5180 South Dakota Ave., NE Cafritz Foundation 520 Apt $117 2Q 17
20 The Wharf (Ph I) 6 Southwest Waterfront Hoffman-Madison Waterfront 872 Apt/HO $806 4Q 17
TOP RESIDENTIAL PROJECT PIPELINE (Near Term)
21 1001 4th Street 6 4th & K Sts., SW Waterfront Associates/Forest City Washington/
Vornado/CES
365 Apt 2016
22 Ballpark Square 6 1st & N Sts., SE Grosvenor USA/McCaffery Interests 325 Apt $150 2016
23 The Riverfront 6 100 Potomac Ave., SE FRP Development Corporation/MRP Realty 321 Apt $100 2016
24 Capitol Gateway Marketplace 7 58th & East Capitol Sts., NE A&R Development/DCHA/Henson Development Co. 304 Apt $120 2016
25 Georgia Eastern 4 7828 Georgia Ave., NW Douglas Development Corporation 220 Apt 2016
26 Arcadia at Brookland Station 5 901 Monroe St., NE The Menkiti Group/Horning Brothers 213 Apt $50 2016
27 West End Square 37 2 24th & L Sts., NW EastBanc/Dantes Partners/Warrenton Dev. Group 164 Apt/HO $150 2016
28 Hine Junior High School 6 700 Pennsylvania Ave., SE Stanton Development Corp./EastBanc/Dantes
Partners/Jarvis Co.
156 HO $190 2016
29 Rhode Island Avenue
Gateway
5 2313 - 2321 4th St., NE H Street CDC/E&G Group 116 Apt $37 2016
30 Gateway Market 5 340 Florida Ave., NE LCOR Incorporated/EDENS 188 Apt $55 2017
57. DC Development Report • 2014/2015 Edition 53
Development Highlights
Park Van Ness WARD 3
LOCATION: 4455 Connecticut Avenue, NW
DEVELOPER(S): BF Saul
ARCHITECT(S): Torti Gallas & Partners
EST. COST: $75 million
STATUS: Under Construction
TARGETED DELIVERY: 1Q 2016
SPECS: Park Van Ness will replace a seven-story office and retail building with an
11-story residential building with 271 apartments, 10,000 sq. ft. of retail space and
224 underground parking spaces.
Ontario 17 WARD 1
LOCATION: 2550 17th Street, NW
DEVELOPER(S): Peterson Companies
ARCHITECT(S): Eisen Group
CONTRACTOR(S): Ellisdale Construction & Development
EST. COST: $30 million
STATUS: Under Construction
TARGETED DELIVERY: 2Q 2015
SPECS: The former site of the Ontario Theater at the corner of 17th & Columbia
Road is being redeveloped into 80 condominium units and 9,000 sq. ft.
of retail space.
Trinity Plaza WARD 8
LOCATION: Atlantic & South Capitol Streets, SW
DEVELOPER(S): Far SW-SE CDC/MissionFirst HDC
ARCHITECT(S): Grimm + Parker & Associates
CONTRACTOR(S): Hamel Builders
LEED: Silver
EST. COST: $17 million
STATUS: Under Construction
TARGETED DELIVERY: 1Q 2015
SPECS: Trinity Plaza will be a new development consisting of 49 affordable rental
units and 6,000 sq. ft. of retail space.
Lyric WARD 6
LOCATION: 440 K Street, NW
DEVELOPER(S): The Wilkes Company/Quadrangle Development
ARCHITECT(S): Davis, Carter, Scott Ltd
CONTRACTOR(S): HITT Contracting Inc
EST. COST: $65 million
STATUS: Completed
TARGETED DELIVERY: 1Q 2014
SPECS: 440 K Street delivered 234 market rate apartments and 9,500 sq.
ft. of retail space in early 2014. Baked & Wired will open a 4,231 sq. ft.
cafe/bakery in 2015.
ImagecourtesyofBFSaul
ImagecourtesyofthePetersonCompanies
ImagecourtesyofMissionFirstHDC
59. DC Development Report • 2014/2015 Edition 55
Development Highlights
Gallery at Capitol Riverfront WARD 6
LOCATION: 1111 New Jersey Avenue, SE
DEVELOPER(S): Donohoe Companies
ARCHITECT(S): WDG
CONTRACTOR(S): Donohoe Construction
LEED: Silver EST. COST: $50 million
STATUS: Under Construction TARGETED DELIVERY: 3Q 2016
SPECS: The vacant site adjacent to the Navy Yard Metorail Station will be
developed into a 13-story, 342-unit apartment building with about 11,000 sq. ft. of
retail space.
1421 Euclid Street WARD 1
LOCATION: 1421 Euclid Street, NW
DEVELOPER(S): Dantes Partners/The Menkiti Group
ARCHITECT(S): Grimm + Parker & Associates
CONTRACTOR(S): Hamel Builders/Capital Construction Enterprises
EST. COST: $12 million STATUS: Completed
TARGETED DELIVERY: 3Q 2014
SPECS: 1421 Euclid Street is a five-story, 28-unit affordable apartment community,
located on the former Justice Park site.
82 Eye Street WARD 6
LOCATION: 82 I Street, NW
DEVELOPER(S): Greystar Development/RCP Development Company
ARCHITECT(S): R2L Architects PLLC
CONTRACTOR(S): Moriarty
STATUS: Near Term
TARGETED DELIVERY: 4Q 2016
SPECS: Plans call for a 220 to 234-unit residential building with the potential for
4,000 to 8,000 sq. ft. of retail space.
1336 8th Street WARD 2
LOCATION: 8th & O Streets, NW
DEVELOPER(S): Roadside Development/Dantes Partners
ARCHITECT: Shalom Baranes Associates
LEED: Gold
STATUS: Medium Term
TARGETED DELIVERY: 2017
SPECS: Plans call for 70 condominiums and 6,900 sq. ft. of retail space.
The project was awarded to the development team in September 2014
by the DC government.
ImagecourtesyofWDG
ImagecourtesyofRoadsideDevelopment
ImagecourtesyofR2LArchitectsPLLC
61. CONTACT US
1717 K STREET, SUITE 1010 | WASHINGTON, DC 20006
P: 202.778.3100 | WWW.DELTAASSOCIATES.COM |
Gregory H. Leisch, CRE
Chief Executive
Greg.Leisch@DeltaAssociates.com
David Weisel, CRE
President
David.Weisel@DeltaAssociates.com
Alexander (Sandy) Paul, CRE
Executive Vice President
Alexander.Paul@DeltaAssociates.com
DELTA ASSOCIATES
Leading advisor and information provider
to the commercial real estate industry
Delta Associates is a firm of
experienced professionals offering
consulting, valuation, and data
services to the commercial real
estate industry for over 30 years.
Services Include:
• Market Studies
• Repositioning Analyses
• Asset Valuations
• Feasibility Studies
• Litigation Support
• Market Data and Publications
• Boardroom Presentations
DC
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