commercial real estate

Morning Notes

By ARLnow.com

Hurricane Florence Update — The Tomb Sentinels at Arlington National Cemetery will remain on guard at the Tomb of the Unknown Soldier, as they have for 81 years, regardless of what happens with Hurricane Florence. However, according to forecasters, “there is no need to cancel outdoor plans, events, or travel in the Washington region this weekend” due to the hurricane. [Twitter, Capital Weather Gang]

DEA Lease Renewal Is Official — “The Drug Enforcement Administration will remain in its Pentagon City headquarters for at least 15 more years. The General Services Administration announced Wednesday it signed a 511,487 SF lease renewal for the DEA at 600-700 Army Navy Drive, two buildings owned by the California State Teachers Retirement System.” [Bisnow]

Neighbors Still Peeved Over Salt Dome Plan — “This is an emergency caused by rust. I know Neil Young says rust never sleeps but it doesn’t move that fast,” said Michael Hogan, president of the Old Dominion Citizens Association, regarding the “emergency” plan for a temporary salt storage facility next to the deteriorating salt dome near Marymount University. “This is just a terrible land-use decision.” [Washington Post]

Living in Arlington On a $80,000 Salary — Not much of interest happens in this millennial money diary, set in Arlington, but there is this discussion of tea vs. coffee: “I drink my third green tea. I’m trying to drink less coffee, so today I’m trying tea instead, but this is not cutting it. To all those people who say green tea gives them as much energy as coffee — I’m calling shenanigans.” [Refinery 29]

Flickr pool photo by Kevin Wolf

Plans Coming Together for Redevelopment of Ballston Harris Teeter

By Alex Koma
1/7

Plans seem to be taking shape for a full redevelopment of the Harris Teeter and adjacent Mercedes Benz dealership lot in Ballston.

The grocery store’s owners are hoping to team up with a Georgia-based developer to build 700 residential units on the property with 83,600 square feet of retail on the ground floor of two buildings, including a newly renovated Harris Teeter store to replace the existing location.

The plans match the county’s long-term goal of transforming the Glebe Road property into a mixed-use community.

Though the plans are still conceptual at the moment, the developer provided some details to owners at the neighboring Hyde Park Condominiums — an anonymous tipster provided a copy of a presentation sketching out the redevelopment to ARLnow. Helen Duong, a spokeswoman for the county’s planning office, said that there’s a meeting scheduled today (Tuesday) for the developer to submit preliminary plans on the project.

A lawyer working on the development effort declined to comment. But the presentation, dated July 30, shows that the developer is envisioning buildings anywhere from six to eight stories tall, in addition to adding a half-acre park on the site. The plans also call for as many as 974 parking spaces to serve the new buildings.

Back in 2013, the County Board approved some policy changes to allow for more density on the site, in light of Ballston’s rapid development along Wilson Blvd. County staff wrote at the time that redeveloping the area would enhance “the southern gateway of Ballston” and transform N. Glebe Road into “an urban boulevard.”

The Board even approved zoning changes to allow buildings anywhere from 12 to 14 stories tall, so the current proposal, backed by the development firm Southeastern, is less dense than the county envisioned. However, it does call for many of the same transportation improvements the county sketched out at the time, including an extension of N. Tazewell Street from where it meets with N. Carlin Springs Road, running through the property.

Harris Teeter envisions building a new, 70,600-square-foot store on the site, complete with an “improved layout” and “improved customer experience and offerings,” according to the presentation. The old store would remain open as workers built the new one, complete with 390 housing units stacked on top.

Plans are a bit less set in stone for the height of each residential building. One option included in the plan calls for both buildings to be eight stories tall, provided the developer can win some policy changes from the county — another option envisions an eight-story building located on the current pre-owned Mercedes lot, and six-story building where the Harris Teeter is currently, closest to the Hyde Park condos.

Ballston Business Improvement District CEO Tina Leone declined to comment on the exact details of the plans, but said “we are very pleased and supportive to see community-building development happening here.”

Map via Google Maps

Report: Crystal City Leads D.C. Region in Winning Business Relocations

By Alex Koma

Crystal City has convinced more businesses to move to the area from elsewhere in the D.C. region than any other neighborhood since 2014, according to new research.

New data compiled by the commercial real estate consulting firm Jones Lang LaSalle shows that Crystal City has convinced a total of 32 office tenants to move to the area over the last four years, including 20 previously based in D.C. and the remaining 12 from other parts of Northern Virginia.

The Rosslyn-Ballston corridor wasn’t far behind, luring a total of 28 businesses to relocate, with 21 from D.C. and seven from Northern Virginia, the firm found. In all, the two Arlington neighborhoods far outpaced other contenders like Tysons Corner or Old Town Alexandria, winning a combined 60 of the 113 commercial office tenants to move around the D.C. region since 2014. Even still, the corridor and Crystal City alike have grappled with persistently high office vacancy rates over the last few years, squeezing the county’s coffers.

Rob Sapunor, JLL’s senior research analyst for Northern Virginia, found that Crystal City won a total of 580,174 square feet of new tenants over the last few years, with 367,597 square feet worth of businesses coming from D.C. alone. Of those companies to make the jump, he found that five were nonprofits and 11 were professional associations.

He noted that three buildings earned the bulk of those new tenants — 1400 Crystal Drive, the Presidential Tower at 2511 Jefferson Davis Highway, and 251 18th Street S. The analyst attributed Crystal City’s relatively low rent prices to helping lure businesses out of D.C., predicting that it will “continue the trend of cost-conscious tenants exploring this market.”

Sapunor added that the Rosslyn-Ballston corridor added 482,545 square feet of new businesses, including 314,443 square feet from D.C..

“Among tenant types, no one particular industry dominates, a sign of the corridor’s shift away from a heavy reliance on government agencies and contractors,” he wrote. “New tenants include tech, media, lobbying, education, consulting and nonprofit.”

He predicts that the area will remain an “attractive market” for businesses looking for “monument views,” but he also expects competition from elsewhere in Northern Virginia to ramp up in the coming years. In particular, he foresees Tysons and even Loudoun County becoming more formidable competitors for businesses moving out of D.C. as Metro wraps up some of its long-awaited expansion work.

“As the market increasingly becomes increasingly transit-accessible with Phase 2 of the Silver Line opening in 2020, migrations within Northern Virginia will favor on-Metro relocations,” Sapunor wrote.

File photo. Chart via JLL

Morning Notes

By ARLnow.com

Fire at Retirement Home — A fire broke out in the laundry room of the Sunrise at Bluemont Park senior assisted living facility Sunday morning. The blaze was quickly extinguished, but not before filling part of the building with smoke. No injuries were reported. [Twitter]

Serious Crash on Arlington Blvd — Arlington County police investigated a crash involving critical injuries and a reported vehicle rollover last night on Route 50 at N. Pershing Drive. One person was transported to a local hospital. [Twitter]

DEA Staying in Pentagon City — “A federal judge has ruled against an Alexandria building owner’s efforts to lure the Drug Enforcement Administration from Pentagon City… Judge Loren Smith’s judgment, issued Thursday, effectively clears the way for the General Services Administration to award a new lease for the DEA to CSHV Lincoln Place LLC, the agency’s current landlord at 600-700 Army Navy Drive.” [Washington Business Journal]

Dragonfly Population Booming — “Your eyes are not deceiving you – there really are more dragonflies (and their cousins, damselflies) in the local area this summer. And according to Arlington naturalists, that’s a good thing.” [InsideNova]

No, Arlington’s Recycling Program Is Not Ending — Apparently a rumor has been circulating that Arlington County was ending its recycling program. A local TV station fact checked that and found, unsurprisingly, that the rumor is not true. [WUSA 9]

Flickr pool photo by Kevin Wolf

Morning Notes

By ARLnow.com

Crash Closes WB Lee Highway — All lanes of westbound Lee Highway were closed at Spout Run for part of the morning after a crash. [Twitter, Twitter]

Flyover Planned Today — A flyover of Arlington National Cemetery, in support of a funeral, is scheduled for 3:15 p.m. today. [Twitter]

More Buses for Rosslyn Commuters — “After initially providing no additional backup options for riders during the Blue Line shutdown and major Orange and Silver Line work that began Aug. 11, Metro is now making some changes… Without much fanfare or notification to riders, Metro said this week it will add four additional Route 5A buses between Herndon-Monroe Park and Ride and Rosslyn and L’Enfant Plaza each morning.” [WTOP]

Rep. Jim Jordan Coming to Arlington Fundraiser — Rep. Jim Jordan (R-Ohio) will be the special guest at a fundraiser for Rep. Dave Brat (R-Va.) in Arlington next month. The fundraiser is being held Sept. 7 at Washington Golf and Country Club. Jordan has been in the news this summer over accusations that he turned a blind eye to the sexual abuse of wrestlers while an assistant coach at Ohio State. [TrailBlazer]

Ballston Apartment Building Sold — “The Ballston Place transaction… has closed with Akelius Residential AB buying the 382-unit apartment complex for $170 million, or $445,026 per unit.” [Globe St.]

Photo courtesy Patricia Kime

Report: Residential Development Surged in Arlington This Spring

By Alex Koma

Arlington added more homes this spring than it has during any three-month period dating back to last summer, according to a new county report.

Between April 1 and June 30, the county saw construction work wrap up on a total of 278 new homes, including 236 apartments and townhomes and 42 single-family homes. The county totaled up these latest numbers as part of a quarterly analysis of development in Arlington.

That number far outpaces the 103 homes that became available over the same time period a year ago, and represents the most new homes to hit the market since the third quarter of 2017, stretching from July 1 through September 30. The county added 456 homes, including 411 in multifamily structures, during that period, according to county data.

The latest spike in new homes was largely generated by the completion of the 672 Flats project on N. Glebe Road in Ballston, a project that included 173 new apartments. The Key and Nash development in Rosslyn also wrapped up work this quarter, adding 63 new condos.

The completion of the Central Place project in Rosslyn accounted for the bulk of the rest of the construction to wrap up in Arlington this spring. The massive new building includes roughly 570,500 square feet of office space and roughly 11,000 square feet of retail space as well.

The 672 Flats project also included 4,300 square feet of retail space underneath the new apartments. The addition of nearly 4,600 square feet of office space at 383 N. Cathedral Lane, just off S. Glebe Road, rounds out the list of projects completed this spring.

The county’s data show that another 3,700 homes are currently under construction around Arlington, in addition to 910,000 square feet of office space and 334,000 square feet of retail space. During the same time last year, the county projected about 2,025 new homes on the way, with 67,500 square feet of retail and 1.4 million square feet of office space.

Perhaps unsurprisingly, the bulk of the new development on the books is concentrated in Ballston and Rosslyn, with Crystal City and the Columbia Pike corridor not far behind.

Morning Notes

By ARLnow.com

Plan for Decaying Salt Storage Facility Tweaked — “Arlington government officials have come up with a slightly altered placement for a new North Arlington salt-storage container, one that may assuage the concerns of some – if not necessarily all – critics of the move. A new schematic drawing moves the footprint of the new storage facility closer to the existing, dilapidated salt dome on the 7.5-acre parcel along Old Dominion Drive between 25th Road North and 26th Street North.” [InsideNova]

New Office Option in Rosslyn — A local commercial real estate firm is opening a new office concept in Rosslyn which will combine the “office on demand” flexibility of co-working space with larger floor plans and suite configurations more common in traditionally leased office space. [Washington Business Journal]

Operating Costs a Question for Aquatics Center — A groundbreaking has been held for the new Long Bridge Park aquatics center, now the county has commissioned a survey of residents to help determine pricing and offerings, which will in turn help the county calculate the center’s yearly operating costs. The latest estimate pegs the subsidy from taxpayers at about $1 million per year. [InsideNova]

Rosslyn-Based Nestle Continuing to Hire — “Global food and beverage giant Nestle plans to boost hiring in the U.S., where it has just opened a headquarters in Virginia, the company’s U.S. chief said Wednesday. Steve Presley, Nestle USA CEO, said on FOX Business’ ‘Mornings with Maria’ that job creation will include positions at the new headquarters in Arlington County as well as production facilities in the commonwealth. [Fox Business]

It’s August — The calendar has turned a page, to August, but the current rainy weather pattern is expected to continue. [Capital Weather Gang]

Photo courtesy Jeremy Galliani

Morning Notes

By ARLnow.com

Arlington Named Top Digital County Again — “Arlington County is the No. 1 digital county in the nation for a third straight year. The Center for Digital Government and National Association of Counties 2018 award recognizes Arlington for its best technology practices in areas of open government, transparency, public engagement, planning, cyber security and operations.” [Arlington County]

Robbery in Courthouse — Two men reportedly robbed the Dunkin’ Donuts on Wilson Blvd in Courthouse yesterday evening. The men demanded money and fled the scene with cash but did not display any weapons during the robbery, according to initial reports. [Twitter]

Kaine to Campaign in Arlington Today — Sen. Tim Kaine (D-Va.) tonight “will host a ‘Neighbor to Neighbor’ community conversation in Arlington to engage Northern Virginia voters on the critical issues facing our country and take their questions.” The event is taking place at the Barcroft Park Picnic Shelter (4200 S. Four Mile Run Drive) at 6:30 p.m.

Britney Spears Touches Down in Arlington — Britney Spears arrived at Reagan National Airport ahead of the kick off of her summer tour. Photos and video show her walking through the terminal with a small entourage. [Daily Mail]

Arlington to Pay to Help Retain Federal Tenant — “Arlington taxpayers will be on the hook for nearly $8 million over 10 years to subsidize a lease that will retain the Office of Naval Research in the county. County Board members on July 14 are expected to approve an incentive package that will keep the federal agency in its current 314,000 square feet of office space in Ballston.” [InsideNova]

Suspect Hailed Cab After Pike Burglary — “A burglar made his getaway from a scene in Arlington by hailing a taxi, according to officials. The Arlington County Police Department said the burglar targeted a business in the 3100 block of Columbia Pike near the Westmont neighborhood at about 10:25 a.m. on Sunday.” [Fox 5 DC]

George Mason Drive Detour — A “small detour” will be in place this weekend on N. George Mason Drive “as crews above remove the old half still remaining from the soon-to-be-replaced Carlin Springs Road Bridge.” [Twitter]

White Ford Bronco Profiled — Prolific local 90s cover band White Ford Bronco is the subject of a newspaper profile that dubs it the “undisputed king of D.C. cover bands.” The profile recounts that “at a recent concert at the Clarendon Ballroom, guys in button-down shirts and Birkenstocks pumped their fists to the chorus of ‘Mr. Jones.'” [Washington Post]

Metrobus Delays This Morning — Metrobus passengers reported delays and missed routes this morning, which WMATA says was the result of “bus operators reporting late to work as part of a collective labor action by their union.” [Twitter, WTOP]

Morning Notes

By ARLnow.com

RCA Building Redevelopment Nixed — Plans to tear down the aging RCA office building at 1901 N. Moore Street in Rosslyn and replace it with a 24-story residential tower have been placed on hold “indefinitely.” Instead, owner Weissberg Investment Corp. is now seeking to lease up vacant spaces in the building. [Washington Business Journal]

New County Board Clerk Announced —  “The Arlington County Board today named Kendra M. Jacobs the Clerk to the County Board. She will join the County Board Office in her new role on Monday, July 9. Jacobs comes to Arlington County Government from the City of Alexandria, where she has managed the Department of Planning and Zoning’s Boards and Commission Unit since 2003.” [Arlington County]

LWV to Host Gerrymandering Forum — The Arlington League of Women Voters is hosting a forum entitled “Gerrymandering in America and the Future of Popular Sovereignty” on Thursday, July 12 at 7:30 p.m. at the Arlington Mill Community Center. [League of Women Voters, InsideNova]

More ART Mechanical Issues — The bus serving the ART 43 route today “died on [Route] 50 right before the Crystal City exit,” a rider reports. Per the transit agency, which has been plagued by problems recently: “Due to mechanical issues ART 43 to Court House Metro from Crystal City Metro at 8:51 AM will not operate. We apologize for your inconvenience.” [Twitter, Twitter]

Flickr pool photo by Eric

Morning Notes

By ARLnow.com

FBI Renews Search for Hotel Rapist — A cold case is getting hotter as the FBI steps up the search for a man who raped hotel employees in the D.C. area, including in Arlington, between 1998 and 2006. Authorities still don’t know who the suspect is, but in a first for the region, the man’s DNA profile has been indicted for the crime. [FBI, NBC Washington, WTOP]

‘Unaccompanied Minors’ Housed at Local Facility? — “The feds may use a local juvenile detention center to house some of the nearly 2,000 children they’ve separated from their parents at the Mexican border. Alexandria Mayor Allison Silberberg said she’s expressed ‘strong concerns’ with the board that runs the Northern Virginia Juvenile Detention Center, which has a contract to hold as many as 30 unaccompanied minors. The detention center is jointly run by Alexandria and Arlington.” [WUSA 9]

ACPD Helps Kid’s Dream Come True — “After over 900 days in foster care, Cameron’s wish came true when he found his forever family. During last week’s @Capitals visit, we were able to help him with his 2nd wish-touching the #StanleyCup! Today he stopped by to thank Officer Rihl for helping make his dream a reality!” [Twitter]

Local Tech Firm Signs Rosslyn Lease — As expected after being selected for a $60,000 Gazelle grant from Arlington County earlier this year, local tech firm Higher logic has signed a lease and is moving employees into a new 31,000 square foot headquarters space at Waterview Tower (1919 N. Lynn Street) in Rosslyn. The company, which makes community engagement software, acquired four companies last year. The new office offers “floor-to-ceiling windows with views of the Potomac River, an open, collaborative environment, and much needed room to expand.” [Washington Business Journal]

Firefighters Help Cool Kids Down — Earlier this week, with sweltering temperatures putting a damper on outdoor activities, an Arlington County fire engine helped Patrick Henry Elementary students cool down during their field day. [Twitter]

ACFD Trains for Water Rescues — The Arlington County Fire Department has a water rescue team, and before yesterday’s rains the team was training in the rapids at Great Falls. [Twitter]

Morning Notes

By ARLnow.com

What Arlington Residents Think About Arlington — “Arlington residents of all ages are concerned about housing costs. Many like new urban amenities and denser development but are worried about displacing lower-income neighbors. Others point to the county’s affluence and pockets of racially homogenous communities and wonder what that says about their progressive values.” [Greater Greater Washington]

Salt Storage Facility to Be Torn Down — Arlington County is planning to dismantle the rusted-out road salt storage tank on Old Dominion Drive near 25th Road N. later this year, deeming it unsafe for use during the upcoming winter season. In its place, the county hopes to build a temporary facility that could remain functional for several years. [InsideNova]

New Restaurant Kiosks Planned in Crystal City — “Two new funky restaurant spaces could be coming to Crystal City in 2019… JBG Smith wants to build two unusual standalone restaurant buildings, one that resembles a green house and one that calls to mind a tree house, in green space that sits in front of 2121 Crystal Drive. The green is currently a mix of walking paths, open seating, trees and lawn.” [Washington Business Journal]

How Critics Could Fight W-L Name Change — Those opposed to changing the name of Washington-Lee High School have floated the idea of a community-wide referendum, though state law does not currently allow Arlington to hold an advisory referendum. One more fruitful path may be convincing the Republican-controlled state legislature to block the name change, though any such action would likely not survive Gov. Ralph Northam (D)’s veto pen. [InsideNova]

Employer Moving Out of Rosslyn — Amid a series of economic wins for Rosslyn and Arlington, there are also some losses. Among them, The Carlyle Group is planning to consolidate its Rosslyn office — with some 300 employees — into its larger D.C. office on Pennsylvania Avenue NW, after striking a deal to expand its lease and modernize its space. [Washington Business Journal]

Photo courtesy StardogCZ

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