commercial real estate

Morning Notes

By ARLnow.com

Northam Declares State of Emergency — “Governor Ralph Northam today declared a state of emergency to respond to impacts from Tropical Depression Ida, which is expected to cause heavy rains and flooding along the I-81 and I-66 corridors. Localities in the southwest region have already experienced heavy rainfall in recent days, leading to flash floods and complicating storm preparation efforts. In addition to the flood threat, there is also a risk of tornadoes across the Commonwealth.” [Gov. Ralph Northam]

Jail to Distribute Fentanyl Tests — “Beginning September 1, 2021, Arlington County will begin to distribute fentanyl test strips to individuals being released from incarceration. This new effort is in response to rising overdose numbers.” [Arlington County]

Pike Apartment Building Sold — “Zurich Alternative Asset Management has sold Siena Park, a 188-unit multifamily community in Arlington, Va., for $80.1 million. The property includes 33,602 square feet of retail and 17,373 square feet of office space. Located at 2301 Columbia Pike, Siena Park is just 15 minutes from Washington, D.C.” [Commercial Observer]

Marymount Testing VR Headsets — “Eric Bubar, a Marymount associate professor of physics, has led 3D printing projects and testing for face masks and other polymer-based personal protective equipment. But more recently, the professor… is working with three other science faculty members to develop virtual reality technology for Marymount chemistry students to take lab classes remotely — and, perhaps in the future, for physical therapy patients.” [Washington Business Journal]

Local Catholic Org Seeking Help with Refugees — “Following the withdrawal of U.S. troops from Afghanistan, diocesan Catholic Charities has issued a plea for resources to support Afghan refugees resettling in Virginia as the Taliban’s rapid resurgence prompted Afghan translators and others who assisted U.S. military forces to flee the country along with their families… Catholic Charities has prioritized finding properties for rent in Fredericksburg, Sterling and Woodbridge, as the agency hopes to place the Afghans near family and friends in the area.” [Arlington Catholic Herald]

It’s National Preparedness Month — “It’s a situation everyone has experienced: The media and public safety agencies warn of an impending storm, chance of power outages, and loss of service. But you find yourself scrambling at the last minute for batteries, water, and ideas to keep your family entertained. Disasters don’t plan ahead — even during a pandemic — but you can.” [Arlington County]

Eagle Cleaners Saved From Closure, Manager Still Plans to Buy Business

By Jo DeVoe
Eagle Cleaners (staff photo by Joseph Ramos)

After its future briefly dangled over a precipice, Eagle Cleaners in Williamsburg will be sticking around.

Last week ARLnow reported that manager of the dry cleaning business, Mathew Srebrow, was given one week to either buy the business for $250,000 or shut it down. He said the directive came from the trustee who controls the ownership interest in Eagle Cleaners and had plans to sell it.

That dispute was resolved — for now — on Friday. The dry cleaning shop can stay put at least until the lease is up in five years.

“Long story short… the landlord presented the trustee with a bill of what it’d cost to break the lease,” Srebrow said. “The trustee has no choice but for us to be here — now he’s begging us to be here.”

Eagle Cleaners has been controlled by a trustee and operated by Srebrow since his father put the business in a trust before he died of cancer in 2019. While Srebrow didn’t disclose the cost to break the lease, he said it was a number that the trustee “would never have been able to afford.”

Srebrow says five years is enough time to hire a lawyer and make an offer on the business.

“We’re going to be here for more than five years,” he said. “Once I buy it, I will get another lease to stay here forever.”

Srebrow will be repurposing the money raised so far from his GoFundMe page toward that end. He started the page five days ago in hopes of raising enough money to buy the business on the trustee’s terms.

So far, the page has collected $8,760 in donations, and Srebrow recently set a new goal of $25,000 to fund his new approach.

“The community has pulled together and shown amazing support,” he wrote on the fundraising page. “We are open for business with our normal business hours. Thank you all who have donated! It’s looking like legal advice with the option to buy the store will be needed to keep the store on [its] current path of staying open. Funds raised will be going towards this effort.”

Srebrow said he wants to hire a lawyer to ensure that his bases are covered, that the GoFundMe passes muster, and that last week’s events are not repeated.

“This was my dad’s store,” he said. “One of his wishes before he passed from cancer was to keep the store running. That’s what I’m trying to do.”

Eagle Cleaners in Williamsburg Starts GoFundMe to Stave Off Closure

By Jo DeVoe

Update on 8/31/21 — The business is staying open.

Earlier: After operating for 25 years and weathering the worst of the pandemic, Eagle Cleaners in Williamsburg is on the brink of closing.

Manager Mathew Srebrow is pinning his hopes on community support to pull through.

His father opened the store at 6402 Williamsburg Blvd in 1996. Before his father died in 2019, he put the business in a trust — but now, the trustee who took over ownership plans to sell Eagle Cleaners and retire. He said the trustee told him on Saturday that he has until Wednesday, Sept. 1 to buy the business for $250,000, or shut it down so that the equipment can be sold.

“It’s really unfortunate what’s happening,” Srebrow said. “I have a lot of customers in tears, some offering legal advice… The way it’s closing just makes no sense.”

Srebrow started a GoFundMe page yesterday (Wednesday) to raise the money. He said he believes the money can be raised, but emphasized he only has one week to reach the $250,000 goal.

“I refuse to go down without a fight,” he wrote on the page. “Let’s make this goal a reality.”

The dry cleaning industry has been hit hard by the pandemic, and loyal patrons have stepped up to help the businesses stay afloat. Last summer, a local veteran started a fundraiser for First Virginia Cleaners and last fall, devoted customers set up a GoFundMe page for Old Dominion Cleaners along Lee Highway.

After pandemic restrictions ended, but before workers began trickling back to offices, Srebrow spoke with ARLnow about how the pandemic and remote work have nearly wiped out 25 years of stable business.

“We had so many people come in [after the article came out], bringing comforters, bedding — no one was using dress clothes, but they were bringing whatever they had, just so we could make it — and we made it.”

Now, Srebrow said he’s hoping the community will help him keep the business open and under his ownership.

“We love all our customers in the community,” he said. “Nobody wants us to go, nobody.”

Morning Notes

By ARLnow.com

Arlington’s Biggest House Numbers? — “In the early days of the pandemic, I went on a quixotic quest to walk every one of the 1,114 blocks in my Arlington, Virginia, ZIP code, cataloging the styles of the address numbers on every house along the way… I have kept an eye on the house numbers in Arlington ever since, and imagine my joy this spring when suddenly, on a street I biked down every week, a new set of enormous house numbers appeared.” [Slate, Twitter]

Stepped Up DUI Patrols Begin Today — “This Labor Day, the Arlington County Police Department (ACPD) is participating in the national Drive Sober or Get Pulled Over impaired driving awareness campaign, which runs from August 18th through September 6th, 2021. This campaign aims to drastically reduce drunk driving on our nation’s roadways through a two-pronged approach of education and enforcement.” [ACPD]

Fallen Pentagon Police Officer Laid to Rest — “A Brooklyn-born Pentagon cop who was stabbed to death while on duty in DC was hailed as a “warrior” and a hero at his funeral Monday… ‘He fought ’til the end,’ his NYPD sibling, Rodney Rubert, said during funeral services at St. Barbara Roman Catholic Church in Bushwick.” [New York Post]

Beyer Proposes Healthcare Provider Vax Mandate — “Rep. Don Beyer (D-VA) today announced the introduction of the Protecting Vulnerable Patients Act, which would require healthcare providers who see Medicare or Medicaid patients to be vaccinated following final FDA approval of a COVID vaccine.” [Press Release]

Arlington Hotels Still Hurting — “Hotel-occupancy rates improved in June but, overall, the first half of the year remained a bust for the Arlington hospitality industry. The occupancy rate of 44.7 percent in June was better than the cumulative 34.4-percent rate recorded over the first six months of the year, according to new data from Smith Travel research and Arlington Economic Development. But that 34.4-percent rate was anemic even compared to the weak first six months of 2020, when it stood at 37.3 percent.” [Sun Gazette]

Arlington Office Vacancy Rate Rising — “The Arlington office-vacancy rate continues to go in the wrong direction, according to new second-quarter data. The overall office-vacancy rate countywide was 19.4 percent for the quarter, according to figures reported by CoStar and Arlington Economic Development. That’s up from 18.5 percent in the first quarter and 16.6 percent a year ago.” [Sun Gazette]

Local Nonprofit Eyes Tysons Development — “The Arlington Partnership for Affordable Housing is adding another project to its new Fairfax County pipeline, pitching a development in Tysons that could become the neighborhood’s first apartment building made up entirely of committed affordable units. The nonprofit hopes to build up to 175 new apartments on about 2 acres on Spring Hill Road near the Silver Line station of the same name, converting car dealership parking lots that are part of the massive Dominion Square development site.” [Washington Business Journal]

Morning Notes

By ARLnow.com

Langston Blvd Plan Meets Resistance — “Following this May’s release of area planning maps and a presentation on density from consultant AECOM, a furious screed was published by Lyon Village Civic Association president John Carten. Though the process is still in the community engagement phase that precedes concrete recommendations, the hint of possible changes in the General Land Use Plan prompted the Lyon Village group to predict a parade of horribles.” [Falls Church News-Press]

New Clarendon Apartment Building Sold — “Trammell Crow Residential has sold the Alexan Earl, a 333-unit multifamily building at 1122 N. Hudson St., to Lincoln Property Co. for $192 million… The Earl represents the first phase of the long-planned Red Top Cab redevelopment… Shooshan continues to plan for the second phase, a roughly 250-unit building fronting Washington Boulevard at the intersection with 13th Street North. It expects to start demolition this fall.” [Washington Business Journal]

Online Fundraiser for Fallen Officer –” The family of George Gonzalez started a memorial fund Sunday for the Pentagon Force Protection Agency officer who was fatally wounded Tuesday on the platform of the Pentagon Transit Center… By 3 p.m. on Monday, the GoFundMe campaign had already raised $15,000, outstripping its original goal of $1,000.” [Patch, GoFundMe]

Local BBQ Joint Competing in ‘World Championship’ — “Arlington’s Smokecraft Modern Barbecue… has been invited to compete in the Jack Daniel’s World Championship Invitational Barbecue.  Taking place in Lynchburg, TN on on October 8th and 9th, ‘The Jack’ as it is known, is widely considered the world’s most prestigious barbecue competition.” [Press Release]

Va. AG Continues to Fight Robocalls — “Attorney General Mark R. Herring today urged the Federal Communications Commission (FCC) to fight back against the scourge of illegal robocalls by moving up the deadline for smaller telephone companies to implement caller ID technology. Attorney General Herring joined a bipartisan coalition of 51 attorneys general have in submitting comments to the FCC.” [Press Release]

Pentagon to Require Vaccinations — “The Pentagon will require members of the military to get the COVID-19 vaccine by Sept. 15, Defense Secretary Lloyd Austin said in a memo on Monday. About 64% of active duty military members are fully vaccinated, a low enough rate to pose concern for potential outbreaks and international deployment.” [Axios]

Morning Poll: School in an Office Building?

By ARLnow.com

The capacity crunch at Arlington Public Schools is not as dire as it once was, particularly after the pandemic, but there is still a need for more school seats in certain areas.

One place where a school might be needed: the National Landing area, where hundreds of new apartments are planned and where the nearest elementary school — Oakridge, in the Arlington Ridge neighborhood — is getting increasingly overcrowded, according to APS projections.

There’s not much contiguous land on which to plop down a full elementary school with fields and a playground in the Crystal City or Pentagon City neighborhoods, but one thing both have in abundance is office space — particularly older, harder-to-lease office space.

The Washington Business Journal reported last week that the City of Alexandria is purchasing an office building on N. Beauregard Street for $18 million, with plans to eventually convert it into a 600-student elementary or secondary school. Might that be an example for Arlington Public Schools to follow?

If not purchase an entire building, APS could potentially lease part of an office building for school use. Of course, some parents and students might not love the idea of having to take an elevator to class, or not having the grassy fields and other amenities of a typical suburban school.

What do you think?

Five Guys Appears to Be Opening in Part of the Former Whitlow’s Space

By ARLnow.com

Whitlow’s recently closed in Clarendon, with hopes of opening elsewhere, but its former space will not be vacant for long.

The owner of the building at 2854 Wilson Blvd, which was unable to negotiate a lease renewal with the long-time local watering hole, appears to be dividing the restaurant — which includes a basement, a ground-level floor and a rooftop bar — into at least three separate tenant spaces, according to building permits.

The first tenant is likely to be Five Guys.

The burger chain confirmed to ARLnow that it will be opening a new restaurant in Arlington, but the opening is not expected until next summer.

“We’re a bit far out to confirm any dates, but we’re intending to open a new location in Arlington around summer 2022,” said Five Guys spokeswoman Jessica Lloyd.

The company has grown from one Arlington burger joint in the soon-to-be-redeveloped Westmont Shopping Center to an international chain with more than 1,400 locations in the United States alone. It currently has two Arlington restaurants: one down the street in Courthouse, at 2300 Wilson Blvd, and another at Reagan National Airport.

Permits posted in the windows, bearing the project name “Five Guys,” indicate that the property owner is first planning an asbestos abatement.

So far there’s no word on what else might open in the building, nor whether Whitlow’s is closer to finding a new location.

Hat tip to David Kinney

De Ferranti Highlights Economic Recovery, Honors Heroes in State of County Speech

By Jo DeVoe

Fewer COVID-19 cases. Lower unemployment. Higher hotel occupancy rates. These and other signs point to Arlington County’s continued recovery, according to Board Chair Matt de Ferranti.

During the annual State of the County address, the chair said Arlington County is well on the road to economic recovery but it has a ways to go before it enters into a period of renewal. The event was hosted virtually yesterday morning (Tuesday) by the Arlington Chamber of Commerce, with a Q&A moderated by ARLnow founder Scott Brodbeck.

“We’re growing, but not as fast as at the start of 2020, before the pandemic, when our prospects seemed truly bright,” he said. “If we’re honest, recovery is not all we’re looking for at this moment. The state that we have not reached — that we must create — is renewal.”

Reaching renewal will mean supporting small businesses, working to eliminate inequities and increasing housing options, he said.

Recent data show the health of Arlington County residents has stabilized, with a 0.6% COVID-19 test positivity rate and about one case per day over the last two weeks. Unemployment is down, as well, from 7.2% this time last year to 3% today, he said. As vaccination rates rise, tourism is recovering, with hotel occupancy rates up to 40% from a low of 20%.

The county has also retained organizations with an Arlington footprint, including the State Department, while attracting new companies, from Microsoft to shipping company ZeBox‘s startup incubator. All along, Amazon continues to meet its occupancy and hiring goals while supporting businesses, he said, and will present its second phase of its HQ2 to the Board later this year.

Plus, new development is continuing.

“The County Board has approved numerous office and residential projects that will drive economic growth… and strengthen our economy in Arlington,” de Ferranti said. “We’re hearing from commercial real estate brokers that there is significant pent-up demand from [office] tenants who delayed real estate decisions in the pandemic. We expect to see these deals come forward in the fall of this year.”

Still, the office vacancy rate is a lingering concern for de Ferranti, who noted that it was 18.7% in the first quarter, up 2.1% from the same time last year.

“Part of the reason I sought this office was to bring down the vacancy rate so that we could invest in schools, housing, transit, transportation and the things that make Arlington a great place to live,” he said. “Our economic development projects show promise, our pipeline is strong, so I’m confident we can bring down the rate over the coming years.”

The county will need to engage with companies already here and those eyeing Arlington while adapting to 21st-century office needs through measures such as office-to-apartment conversions, he said.

“We saw before Amazon that there was a time when we got a touch complacent working on our office vacancy rate,” he said. “That’s no one’s fault but we do need to stay focused on it.”

While it’s mostly larger companies that help to fill Arlington’s office towers, small businesses in Arlington need help, de Ferranti said, so Arlington Economic Development is preparing a grant program using American Rescue Plan funds. It follows up on a similar program last year that helped 393 businesses.

The county still has work to do to fix bugs with the online permit system and improve the customer service experience for businesses — lessons learned from the roll-out of temporary outdoor seating areas, or TOSAs, the chair admitted.

(more…)

How Telework Could Impact Arlington’s Office and Real Estate Markets

By Jo DeVoe

(Updated at 8:40 a.m.) Some federal agencies are looking to continue remote and hybrid working options for employees post-pandemic — a shift with potential impacts on Arlington’s office and residential real estate markets.

The Biden administration expects White House staff to return for full-time, in-person work in July, but on Thursday federal agencies were told that they will be able to offer increased work-from-home flexibility, even after the pandemic. Remote work may become a permanent option for some federal workers, just as is happening for many private-sector workers.

“I think the office market will cool as companies continue to assess what the remote work shift means for their workforce and space needs in the next few years,” said Eric Maribojoc, the executive director of the Center for Real Estate Entrepreneurship at George Mason University.

Arlington has a sizable federal presence despite the Base Realignment and Closure Act, which saw the relocation of military-occupied office space. The experience taught the county some lessons about diversifying its economic base, meaning Arlington today, preparing for more telework, is in a different boat than in 2005 facing BRAC.

Those familiar with the county’s market trends say there will be impacts but they will likely be tempered by a more diverse economy, a trend toward hybrid options that involve some time in offices, and a continued need for in-person work among certain agencies and large tech companies.

“Many companies are just beginning to plan for their potential return to the office and discussing a fully remote future is still largely speculative,” Arlington Economic Development spokeswoman Kirby Clark said. “We anticipate companies will continue to offer telework flexibility during this next stage of recovery. However, we hear from many of our major employers that there is no substitute for in-person collaboration in the office, especially for knowledge-based science and technology industries.”

Arlington’s federal workforce   

Although it took a while, Arlington did experience a significant drop in federally-occupied office space.

From 2003 to April 2021, Arlington’s federal office space dropped from 11.4 million square feet to 6.3 million square feet, according to an AED report and the GSA.gov Lease Inventory.

Today Arlington has 29,200 federal employees — excluding military personnel — and is home to the offices of a number of agencies, including the State Department, U.S. Marshals Service, the Environmental Protection Agency and the Drug Enforcement Agency, Clark said.

Some former government tenants have been replaced with corporate, tech and research anchors and a lot more housing, however. Between 2016 and 2020, Arlington added 5,193 housing units, with 3,175 units under construction and 5,907 units planned for future construction, she said.

“Over the last ten years, the landscape of Arlington’s Urban Villages transformed, becoming more economically diverse and land-use balanced, with residential development replacing old, obsolete office spaces formerly occupied by federal tenants,” said Clark.

As a region, D.C. has the nation’s second-largest pool of potential remote workers, at 49%, behind the San Francisco Bay Area, at 50%, according to a February report from the Greater Washington Partnership. The northern half of Arlington has one of the highest concentrations of remote-capable workers, alongside portions of Northwest D.C. and the Bethesda and Potomac areas of Montgomery County.

The report, which came out before the news of the changing federal work-from-home guidelines was first reported, predicted that some of the largest gains in remote work post-pandemic will likely be among government jobs.

“Two in five federal government workers may spend some time at home, with smaller shares of state and local public-sector professionals working remotely,” the report said.

Among government employees, according to Clark and Maribojoc, these options will likely be expanded for those who perform individual tasks that require focus but not high levels of security clearance.

“Due to the presence of the Pentagon and other defense and security agencies in Arlington, many federal-supporting tenants have security requirements that may require physical office spaces or proximity to major government and defense anchors,” Clark noted.

If more federal government employees go fully remote — a conversation that Clark said is still largely speculative — she predicted that it would be “a challenge not limited to Arlington and has the potential for broader regional impacts in the future.”

(more…)

Morning Notes

By ARLnow.com

Structure Fire Near Ballston — “Units located a detached structure on fire behind a house with minor extension to the house. The fire was quickly extinguished with no reports of injuries to firefighters or civilians. The fire remains under investigation by the Fire Marshal’s Office.” [Twitter, Twitter]

Plane Runs Off DCA Runway — “A Frontier Airlines plane slid off the end of the runway at Reagan National Airport Friday night. Flight 538 from Denver was arriving at the airport at about 10:30 p.m. when the incident happened, Micah Lillard of the Metropolitan Washington Airports Authority said.” [WTOP]

Apparent Drowning in Potomac — “Several agencies said they called off a search for a swimmer in the Potomac River near Fletcher’s Boathouse Sunday. D.C. Fire and EMS called the situation an apparent drowning… Shortly after 3 p.m., a witness reported seeing a person try to swim the river from the Virginia side and not resurface, the fire department said. D.C. Police fire boats and units from the Harbor station, Arlington Fire Department boats and a Maryland State Police helicopter were assisting in the search.” [NBC 4, Twitter]

Arlington Ridge Water Work — From the Arlington Dept. of Environmental Services: “Monday night – Tuesday morning: Water main maintenance work near S Arlington Ridge Road/Long Branch Creek could cause temporary low water pressure or service outages for nearby customers, 8pm to 8am.” [Twitter]

Sheriff Supports New Police Chief — From Arlington County Sheriff Beth Arthur: “Today, more than ever, police chiefs must commit to the principles of trust, accountability and transparency. I believe Andy [Penn] has demonstrated leadership in each of these areas and I look forward serving the Arlington community alongside him in his new role.” [Arlington County]

Mixed-Use Tower in Ballston for Sale — “The owners of Ballston’s tallest building are exploring its sale. Brandywine Realty Trust (NYSE: BDN) and the Shooshan Co., the developers behind 4040 Wilson Blvd., the final phase of the larger Liberty Center project, have put the $217 million tower on the market. The 23-story, 250-foot-tall building, completed last year, includes 225,000 square feet of office on the lower 10 floors topped by 250 apartments.” [Washington Business Journal]

Beyer Supports Fusion Power Research — “”If we do not pursue fusion energy, others will, and U.S. economic interests and influence will diminish as a result,” writes @RepDonBeyer in @sciam, arguing this energy tech can help the climate emergency and create #trillions of $$$ in economic growth.” [Twitter, Scientific American]

Newspaper Editor Attacked by Cicadas — From Sun Gazette Editor Scott McCaffrey’s blog: “The cicadas largely have left me alone, although two did get on my pants over the weekend and surreptitiously made it into Casa de Scotty… I gently removed those buggies and deposited them back outside so they could continue their search for love in what little time they have left on this earth. But yesterday, taking a midday walk around Falls Church, a more aggressive cicada flew right into the back of my shirt and started wriggling his (or her) way deeper in.” [Sun Gazette]

Morning Notes

By ARLnow.com

Free Vax Shots for Kids Ages 12-15 — “Arlington County will begin to administer free COVID-19 vaccines to children ages 12-15 years of age who live or are schooled in Arlington beginning Saturday, May 15. This follows the expansion of Pfizer’s Emergency Use Authorization (EUA) to children 12 and over… Approximately 8,000 children aged 12-15 live in Arlington. Arlington will offer Saturday through Monday clinics over the next two weekends for children 12-17 years of age to help meet anticipated demand for the vaccine.” [Arlington County]

Blowback Over Summer School Limits — “Arlington school leaders are getting abuse from both ends when it comes to criticism of newly announced summer-school restrictions. A group that has pressed Arlington schools leaders for a faster reopening of classes says new limitations show a continued lack of leadership, while at the same time the Arlington Education Association is blasting school leaders for throwing teachers under the bus on the issue.” [Sun Gazette, NBC 4]

Neighborhood ‘Toolkits’ on Race — “Arlington County today released a set of new tools to help advance racial equity efforts in Arlington. The collection of neighborhood toolkits and data dashboards are products of the County’s Realizing Arlington’s Commitment to Equity (RACE) program… The Toolkits for Conversations on Race & Equity are self-guided programs that can be used to spark conversations with family, friends, and neighbors.” [Arlington County]

Lubber Run Performances Return — “After being closed for the entirety of the summer 2020 season due to the pandemic, the Arlington County government’s Lubber Run Amphitheatre will host free programming in July and August. Performances will be Fridays and Saturdays at 8 p.m., Sundays at 11 a.m. The season opens with blues singer-songwriter Chris Pierce performing on Friday, July 9.” [Sun Gazette]

Beyer Suicide Bill Passes — “You’ve heard of 911 for emergencies and 411 for information. Now the House of Representatives is debating a bill that could educate people about a new number for the National Suicide Hotline, 988. Colleen Creighton at the American Association of Suicidology says a bill introduced by Congressman Don Beyer will help spread the word about the new hotline.” [WVTF, Twitter]

Nearby: New Owner for McLean Shopping Center — “McLean’s Chesterbrook Shopping Center has changed hands for the first time since the early 1980s… ‘Chesterbrook Center is well positioned for significant growth and perfectly aligns with our Northern Virginia strategy,’ Barry Carty, Federal Realty’s senior vice president of East Coast acquisitions, said.” [Tysons Reporter]

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