DC Cleans Up Eckington?

Driving around today I ran into menagerie of DC city workers cleaning up the building at 1831 2nd Street in Eckington. The building is a massive brick finished classic built in 1929 and is controlled by the DC government. I have had my eyes on this building for some time because of its size, location, and neglect.

Stopping to talk to a few of the city workers I found out that they received an order to secure the building and clean up the yard. Being the curious type, I decided to have run an associate run a title search on the property and I found out some interesting things.

The building, now controlled by the city and rumored to be in the middle of a lawsuit, sits on three individual lots all with leans on them. The assessed value by the city is drastically lower than the actual value of the building and annual tax on the building is just under $12,000 a year.

I enjoy the city taking a moment out its day to fix the broken windows and replacing them with brown painted wooden panels. If you had a chance to develop this property what would you do? How would you use this amazing building to improve the community?

Condos Without Parking? How about the option to purchase?

Correct me if I'm misconstruing my perception of the market (which has been rather accurate so far), but with real estate as prime as what is available here, in DC, how can one consider purchasing a condo without parking???? Obviously depending on the buyers needs one may not need parking but take a look around. Seriously! This city is only becoming more dense, real estate is only going up, both literally and figuratively, and parking is going to be a strong selling point within 3-5 years if it already hasn't affected buyers.


According to my research, deeded parking can go for as high as $75,000 as I experienced with a buyer looking in the Beekman Place community off of 16th St. Talk about prime real estate. According to DC law a legally deedable parking spot must be 9ft x 18ft. At a total of 162 sq ft, thats nearly $463 /sq ft. Condos in the same community are currently selling for $528 /sqft. Could it be a good investment? You tell me! (On Adams Mill there is a 124 sq ft spot selling for $75,000....$605 /sqft. PPPHHHHHEEEEEEW, thats as much as a luxury condo by BrookRose Development!)

Oh Macy...

Letters to Macy Development, by a former & understandably enraged client!

To preface the story, we settled on a condo built by Macy Development nearly two months ago, since then Macy has been nothing but difficult about making the necessary changes...please refer to my previous post; Macy, Macy, Macy, Oh why have you done this Macy Development

Leading up to the following is my clients interaction with Macy & their HVAC company.

6/29
Devender informed me that this situation has reached a point where Kort MUST get involved. To call it a total mess is an understatement. Our situation and the way it's been handled has put new meaning to the word, "reasonable".

We have given you a "reasonable" amount of time to solve this issue or to at least form a plan to solve this issue. We are not asking for anything that is un"reasonable" as it is "reasonable" for us to assume that when we bought a brand new home, the air cooling system would be in top working order. Please try and view our situation from a customer point of view. If you guys (Macy) would bend a little, we could work this stuff out, but you have fought us at every turn. We're coming to the end of our road.

6/29
Devender hasn't informed you of his "master plan"? It's in M's email:

"Devender's solution now is to install a large pipe in the back of the furnace. This pipe would then go into our master bedroom walk-in closet and head directly downstairs to the ceiling above the kitchen."
I recommend that you give us a written proposal of the intended work prior to any "repair" on your part for us to approve first. And Aaron, per legal council, I don't need your writen approval for me to correct your errors. The legal system will collect for us.
Tony

6/29
I am not sure what you are referring to "putting duct work through my closets". As you guys (M, Tony) are aware 1900 Fourth Street , LLC is attempting to repair your warranty requests. I recommend you allow us to proceed. When we are completed if you are still not satisfied you can take whatever action you feel necessary.

In addition 1900 Fourth Street, LLC will not be responsible for any fees you incur without our written agreement to do so which we are not providing at this time.

6/29
Devender started work at 10:15am (6/29/07) and installed a large damper into the flume on top of the furnace. This damper's job was to redirect the air to the little bridge that Devender's men built that attaches the giant furnace flume to the feeder pipe that feeds the downstairs ducts. The damper minorly increased the airflow. Not enough to satisfy any of us.

Devender brought a little blower with him (on the recommendation of the furnace rep) and seeing that the damper didn't improve things much, he called the furnace rep to ask his advice. The rep (Greg) said that installing the blower would not increase the air flow to the downstairs. In fact, installation of the blower might actually DECREASE downstairs air, because it's going to take up so much space in the pipe. So, we're at a standstill again.

Devender's solution now is to install a large pipe in the back of the furnace. This pipe would then go into our master bedroom walk-in closet and head directly downstairs to the ceiling above the kitchen. A large vent with a damper would be installed to control the airflow, but this vent would deliver a large amount of cool air to the kitchen and living room. It would operate separately from the existing ductwork already installed in the first floor. It would involve the cutting of dry wall. It appears that we are at a stalemate with the existing duct work.

I must say that I'm very disappointed that's it's come to this. I am not thrilled at the idea of having a large pipe installed into my closet that will cut through the floor and end up in the ceiling above my kitchen. I'm frustrated that the existing ductwork doesn't do that job it was installed to do. I'm even more frustrated that it has taken over 2 months for us to reach this decision. Devender's man, Sonny was supposed to install the large damper (that Devender installed today) a few weeks ago. Much time could have been saved, but that's in the past now. Devender said he's going to talk to Kort regarding the construction plans so he can locate the water pipes and electrical wiring in the walls and ceiling so the new "pipe vent" can be properly installed.
That's the update from here. Macy Development, please contact me when you have some new information.

Today,
Jesse,
My latest message to Macy.
I'm documenting everything.

They say that the rep from the window manufacturer will be by this week to measure our windows to make sure we get window screens. It's been 3 months and still NO window screens. Here's the latest on the AC issue.

They refuse to pay for us to get a rep in for a 2nd opinion and are threatening us with a loss of furnace warranty if we go with someone else.
I think that if they were truly interested in solving our problem, they'd pay for a 2nd opinion and then pay for the fix, if that opinion was better than their own guy. They have ZERO customer service. ZERO. It's like they've never sold homes before.

INVESTORS, DEVELOPERS, Condo applications projected to cut in half over the next two years

I just came across an article by DCMUD, a publication by dcrealestate.com, that stated their prediction is that condo developments may be cut in half during the next two years when compared to the last two years. What does this mean? Well the simple answer is that an investment in SE DC will reap significantly more benefits than an investment in NW DC. Conisdering the article published last week, "Anacostia from Buy to Strong Buy" I cannot help but support the development of the cheapest land in Washington DC.

According to the estimates stated in the report, only 7600 condos will become available over the next 2 years, versus 13000 in the previous two. My impression of this downturn in release may come in part from a number of reasons:
-DCRA is horrible at aiding the process of condo conversion in Washington DC and based on my interation with many local developers, has scared many developers to maintain their development growth in areas outside the city.
-The real estate market has maintained steady but is unable to provide the growth rates once offered to any developer.

For those of you who are considering investing in our city or developing condos or townhomes, consider the SE Market. Even with sceduled production of unit releases, the earliest a development begun now would be sold is early spring next year. GET STARTED!

New Condo Spotlight: 5220 Wisconsin Ave

Akridge Development was recently approved for a 70-90 unit building in the lot on Wisconsin Ave where the car dealership currently exists. The address is 5220 Wisconsin Ave NW. I spoke with their development representative this past week, DT, who mentioned that they are looking to list the condos in the 900/sq ft range, even higher than PN Hoffman's building, named Chase Point, selling upwards of $800/sq ft. My impression is that this building will be a great success, hopefully more than the Chase Point condos around the corner, then again PN Hoffman doesnt have the best reputation for building a quality product. My feeling of the building's best selling points is the limited space for a non-'bulkified' lot in a somewhat dense commerical area. The lot is quite large, according to the tax record it's an R5B zoned lot at nearly 1/3 of an acre. Thats 15,000 sq ft in leymans terms.

Here is the sites description.

Page 1
Akridge owns the Friendship Motors property (often called the Buick Site)
located at 5220 Wisconsin Avenue NW between Harrison and Jenifer Streets
(less than 300 ft away from the Friendship Heights Metro Station).
Currently the site contains a used car lot, an auto body repair shop and a
flower store. We propose building a 60 to 70 unit condominium building with
ground floor retail space on the site. Along with related upgrades to adjacent
areas on this block described on the reverse side, we believe this project will
substantially enliven this block. See reverse for details.
5220 WISCONSIN AVENUE
Proposed Condominium Project in Friendship Heights
Conceptual rendering of the project.
Friendship Motors and a PEPCO substation to the south.

ADDITIONAL PROJECT DETAILS
There is a PEPCO substation to the south of 5220 Wisconsin
which has bricked-over windows. The building façade and sidewalk
areas are in disrepair. As part of this project,Akridge will
upgrade and repair the façade and replace the sidewalk, thereby
enlivening and reactivating an additional street front section
of Wisconsin Ave.
�� On The PEPCO Substation, Akridge Plans To:
• Install new retail storefront-type windows to be
used for public display of art work, school-related
activities and public service announcements. Use of
these windows would be administered by an appropriate
neighborhood organization.
• Restore the limestone and terra cotta building
façade.
• Replace the existing entry door and clock to give
the appearance of an attractive retail storefront.
Akridge is a Washington DC-based real estate services firm. We have been working in the local market for more than thirty years.
WE WOULD LIKE TO HEAR FROM YOU. If you have ideas, reactions, comments or suggestions including what type of retail uses
you would like to see at this location, please email wisconsin@akridge.com.
YOU MAY ALSO VISIT www.5220wisconsin.com for more info
PROPOSED FACTS AND FIGURES
�� 60 – 70 for-sale condominium homes with approximately 13,000 SF of ground floor retail space
�� 2 levels of underground parking: at least 1.2 spaces per residential unit and 15 validated retail spaces
�� Half of the building is 5 stories or lower; the other half is 7 stories
�� Parking and loading will occur via the Harrison Street alley, thereby eliminating three existing driveway
entrances which frequently involve hazardous left-hand turns on to and from Wisconsin Ave.
5220 WISCONSIN AVENUE
Aerial image of conceptual model, looking north on Wisconsin Ave.
Wisconsin Ave
.
Harrison St.
�� We will provide streetscape improvements including upgraded sidewalk pavers, trees and planters on approximately 250 ft of
Wisconsin Ave. (includes area in front of substation).
�� Affordable housing units will be included as part of the project (approximately 7%).
�� To minimize traffic impacts and neighborhood parking ‘spillover,’ we will market the retail space to neighborhood-serving businesses
(not “destination retail”), include: 2 parking spaces for car sharing programs (Zipcar and/or Flexcar), 3 visitor spaces for guests of residents,
bicycle storage, a shower and changing room. Also,we will prohibit project residents from obtaining Residential Parking Permits.
�� The building will be LEED Certified (Leadership in Energy and Environmental Design). This includes sustainable or “green” design features
including a roof which stores and filters storm water; a reduction in water and energy use; and the recycling or reuse of at least 50% of all
construction materials waste. These are just three of many such features. No residential building in DC has yet received this distinction.
�� The Sierra Club’s DC Chapter endorsed this project, saying it will set “new standards for green urban development.” In a press release, the
Sierra Club suggested that residents should insist on developments like this one which cut down on pollution and traffic congestion.
�� The Smart Growth Alliance (SGA) has recognized this project as exemplary in achieving smart growth objectives. This distinction commends
projects which help “the Washington region accommodate growth in a manner that achieves economic, environmental, and
quality-of-life objectives.” The SGA represents five organizations including the Urban Land Institute and the Chesapeake Bay Foundation.
�� With community input,Akridge has selected additional community benefits and amenities as part of this project. These include $500,000 for
the Lisner-Louise-Dickson-Hurt Home, $100,000 for Janney Elementary School, $30,000 for IONA Senior Services and $40,000 to fund a
“Friendship Heights Transportation Management Coordinator.” Please click here for more information.
Proposed Building

Low Income Housing with European Finishes. Too Good to Be True? Maybe not!

A gentlemen, whom I'll call RG, was referred to me through another developer client of mine, Stu Kushner to whom I owe MANY thanks. Stu and I have been working together for about six months and have had much success on our first project together at Maricor Gardens Condominiums. Apparently, after our first meeting RG has several 12-15 unit buildings in NE DC that he is looking to develop. Talk about a wonderful opportunity! RG is looking to have a team represent him in the listing of the units, but that's not all, he is looking for a team to help him develop, manage, oversee and design the entire development himself. Having worked with many developers before I couldn't help but offer my team's services to him and guess what, he accepted. After our last meeting this past Friday he is basically turning over the entire project to me! From design, to co-branding with Eagle Bank and a chair member and owner of Paramount Title, Ben Soto, for financing and title work, to project management under the possible direction of the infamous Jim Delgado, of Delgado Home Inspections (and one of my closest and most respected business associates) as well as staging and interior design by Melanie Moses, we might just have a winning project!!!!

What's that you say? The condo market is going soft?

Well, I can't argue that the market has slowed down a bit but soft, not so much. At least not with differentiation. Can you imagine a new generation of luxury-esque 1 bedroom condos for under $222k. How is this possible you ask? Well, here's my proposal....

ABOVE ALL ELSE, CONSTRUCTION COSTS MUST REMAIN UNDER $100/sq ft.

In one of RG's buildings there are 14-one bedroom units. Now, I'm sure anyone searching heavily for a new condo has seen the run-of-the-mill unit, granite counter tops, cherry cabinets, ceramic floor in the bathroom, stainless appliances, hardwood floors, neutral painted drywall, etc. Am I wrong yet? Well, quite frankly, I'm sick of seeing them. I want something different. The client wants something different. We need to differentiate ourselves from the competition. So imagine this....you walk into your unit, as you open the door to your right you glance over to the left wall and see an in-wall stereo running to speakers located in the ceilings of each room in your house. You look down, what's that 6" x 6" niche cut out in the wall below the stereo...well...it's the first generation of a fully integrated ipod dock linked directly to your entire house. YES, that's right, FULLY INTEGRATED. Not bad eh? Well as you take your eyes off the stereo you look to the right and see a completely exposed brick wall. Not just any brick wall, but a brick wall painted with thick white lacquer, helping to brighten the unit but guess what's hanging in the center of the wall...Your very own 42" plasma TV. Still not good enough? So you walk across your light colored bamboo flooring to the kitchen in the far left corner of the unit and look around. What's on the floor? It's a new generation of flooring, deep amber colored stone filled in with tan grout? The texture is perfect and smooth enough to walk around bare-foot. As you look up you notice the white lacquer cabinets complemented by the brushed steel accents. The counter is a deep black silestone and the appliances are all stainless steel.

Back to the imagination....picture yourself 24 years old, ready to buy your first home. What would you want to bring your friends home to? I see it too! Pretty cool eh?

Update coming soon!'

TWO BUILDINGS I CANNOT EXPLAIN!!

I thought I would write two blogs on two different buildings that have recently undergone condo conversion that have been sitting...and sitting...and sitting...





The first of the two is 1626 5th st NW. Its a four unit conversion, each with 1200+- sq ft, two bedrooms & two baths. The interiors are attractive and the layount is generic...you walk into the living room/dining room combo, the kitchen is on the left about a third into the property, to the right is the hallway leading back to two baths and two bedrooms both on the left side of the unit. On the top of the building is a somewhat amazing roofdeck. The fact is that the property has been on the market close to a year now and the prices have been reduced by $150k a piece since they first came on the market. I can only remember when I first showed this property to a good friend of mine, Jen L. She was in the market for a two bedroom, two bathroom unit in the $450k and under range. (We found a great property for her near the intersection of Missouri and Georgia in Petworth) It was about three weeks after that HEAVY rainstorm we had for three days straight towards the end of last year. So we go inside the first unit...aka the basement unit...and it was a MESS. The water from the rain has poured inside the unit and flooded the first two feet of the unit. You may be asking yourself how I knew that. Well upon first entering the unit all of the floors were buckled from the water saturation and the corners were bent up and edgy. That was the first sign. The second sign was the thick, dense MOLD growing on every wall two feet above the ground. It was frightening.


So Jen decides the basement isnt for her (and I dont recommend the basement unit to many people, just ask the owner of the basement unit in Melanie Moses' building). So we head upstairs to the first floor unit and everything looks fine. The unit is well set up, its clean, the place is well kept etc. Second floor; the same. As we head around the common area staircase to the third floor, we immediately notice our second problem. The roof was leaking where the staircase joined the levels, and it was leaking badly. The drywall tape was hanging off the ceiling nearly 3 feet after being finished and to make matters worse, there was still water dripping from the floor above. I can only wish that the developer took the time to build and drain the foundation correctly because they have a mess on their hands. To this day all four units are still on the market. To my estimates, if they borrowed hard-money they are paying around 15k a month in holding costs and I dont see the properties going anywhere fast.

P.S. none have parking!!! Ill have another blog on condo's without parking!!!


The second of the two is 726 8TH ST NE. This one is a two unit conversion. One of the units is a single floor basement unit and the second unit is a bilevel top floor unit with a fantastic roof deck. Parking is available. So the big question, as of now both units are approaching their 250th day on the market and why havent either sold. To be as frank as possible, this building is probably one of the poorest examples of workmanship I have seen in my career. It was my experience that floors were unlevel, countertops were linoleum and looked really cheap, hallways were too narrow and I wouldnt be surprised if the roofdeck on the top floor wasn't built with a permit. Upon entering the building with my clients several months back all I can recall is that the stairway to the roof was barely 24 inches, it didnt have a handrail (god forbid a client falls while viewing the property, can someone say lawsuit city) and if a handrail was added, I dont think I would have been able to get up to the roof. Thats right...none of the steps were level either, all leaned forward, down the stairs. I dont know what else to say. I feel bad for the developer and the agent to be quite honest. Had the develper done their work right & to code they wouldnt be in this mess & its nobody but the agents job to market the property... lets just say it will be on the market for quite a while longer if its not permanently used as a rental property.