Shaw 42 Developers, LLC Chosen to Develop Parcel 42 at 7th and Rhode Island Ave, NW

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And in other big development news – Shaw’s Parcel 42 [1707 7th Street NW] has selected Shaw 42 Developers, LLC to develop the lot. From ANC Commissioner Kevin Chappel:

The Deputy Mayor for Planning and Economic Development (DMPED) has select the Shaw 42 Developers, LLC, a joint venture between TenSquare and the Chapman Development Group to develop Parcel 42. The Shaw 42 Developers’ proposal was most attractive to DMPED because they were the only developers to offer the city a 99 year ground lease, which means after 99 years, the land and the building on Parcel 42 will revert back to the ownership and control of the city government unless and new lease is negotiated and agreed to by the city and the developers.

The proposal detailed the plans:

Shaw 42 Developers proposes 7 floors of approximately 15 residential units each, totaling 105 apartment housing units. In accordance with industry best practices, the 21 units dedicated to affordable housing will be evenly distributed throughout the building on all floors and among all unit types. These units will be available solely to households having annual incomes at or below 50% of Area Median Income (AMI). These market rate households will join the new residents of Progression Place and CityMarket at O in patronizing local small businesses and revitalizing the 7th Street corridor in Shaw. The development program includes the construction of 104,604 gross sq ft, directly across from a Metro Station. The net leasable square footage is 78,239 sq ft of residential space. The development program is supported by up to 114 parking spaces available for both the residential and retail uses. The total development budget for the conceived project is more than $37,000,000 and requires no cash subsidy from the District. The affordable housing component is funded by the sale of 4% Low Income Housing Tax Credits and the land value generated by the market rate uses.

Ed. Note: This is the parcel that became a tent camp back in July 2010.

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29 Comment

  • As a RE banker, I don’t think they have the chops to get this done. Fenty’s main problem in choosing developers for these city properties was that he chose ones with shiny plans but ones without the financial resources (equity) to actually get the projects done. Only a few developers in the city actually have the resources to build projects without bringing in a ton of outside equity (which is hard to come by for all but the best fee developers). It also takes forever to get LIHTCs in place.

    As for the ground lease thing being the reason they were chosen, well that’s just stupid. A 99 year ground lease might was well be an eternity.

    • I also laughed at the 99 years thing. as if ANY of the condo buildings around here will still be standing in 99 years.

      plus everyone knows that DC will be part of the Atlantic by then…

    • As a RE banker, I’d say this is a pretty good team, who has done LIHTC deals in the past. Definitely bankable. It’s a small parcel, but it’s right on top of the metro and in a city with no vacancies; investors will love it.

  • It’s pretty amazing that this lot hasn’t been developed yet. It just oozes with potential. Hopefully things will fall into place quickly. I thought the United House of Prayer for All People owned this lot – apparently not. Whatever development goes in there should feature concrete lions just so it’ll fit in…

  • From “The project includes some 5,000 square feet of retail and commercial uses.” No further information provided on the nature of the planned retail/commercial uses.

  • Fair Grump : )

    I still don’t get the cheaper housing for people who make less money. Why did I have to bust my hump for the past 10 years working full time and putting myself through college at my own expense just to be able to afford to live a mile from the metro. I wish somebody had told me I could have not bothered with all of that hard work and struggle and got to live in a brand new building right over top of a metro while working at a lower wage job. Do they do this in VA and MD? (curious question)

    • I think teachers, police officers, firemen and women have worked hard and “busted their humps” too. Most of those people would qualify for this housing.

    • Feel free to quit your job and take a lower paying one, if that will make you feel more privileged.

    • But then who would stock the shelves at your local grocery, fix your expensive coffee at Starbucks, cook any food you may want to go out and eat……..

      The problem with housing being so expensive is that the workers with the lowest income would have to spend a lot of their paltry income just to get to their jobs in the city. At some point many may decide that is not something they can afford to do. Of course their bosses could pay them more but seriously, you think corporate parents or small business owners are going to pay significantly more. I don’t think so.

      New Orleans learned post Katrina that it relies very heavily on those who make money – even if they never realized it. Most of those living in hard hit areas like the Lower 9th (with lower property value) couldn’t come back right away – and some never came back. It was hard for restaurants, groceries, pharmacies and the like to staff – shelves weren’t stocked as fast, lines were very long, some Starbucks never opened again.

      Many of them do work hard – many at more than one job – and they may be lucky to be making just enough to keep themselves off government assistance.

      • “But then who would stock the shelves at your local grocery, fix your expensive coffee at Starbucks, cook any food you may want to go out and eat……..”

        No one. We’d probably all starve. It would be like a city-wide Donner party. Praise be to Allah for these affordable housing mandates.

    • It continues to astound me, how people can be judgmental and critical of those who are of lesser means than themselves as though they do not deserve the same opportunities: a clean and sometimes safe place to live within city limits.

      I think it’s important to discuss that these opportunities benefit those with lesser incomes whether one accepts government assistance or one has a job that has an income below the city average (non-profit, etc.). Why can’t we live “right over top the metro”?

  • Total load of crap. The only thing keeping anyone from the upper middle class in this country is hard work. Whether or not you want to be a upper middle class cube dweller is another story.

    How can this be you say? It’s very simple simple.

    All you have to do in America is get good grades. That’s it in its most simplified form. Hell you even get unlimited tries to get good grade at some point on the road to college in this country.

    Once you get good grades then go sack up and make it through college. Will this be easy? Probably not. However, it is completely possible.

    Having traveled to enough run down crap hole countries for various reasons I can rest assure you that the good ol’ US of A is one of the only places that affords you this ridiculous ability to propel your lot in life by correctly picking A B C or D.

    High school didn’t work out for you? How about getting your GED.
    High school only partly worked out? How about going to community college.

    The government will give anybody for just about any reason a ton of cash in the form of loans to try these options over and over again.

    Take you newly framed Sci , Finance, or other hard major degree and go get a damn job.

    But the teachers! The teachers aren’t any good in the inner city or wherever you fictitious complainer lives. You know what? I’ve got your ass covered too.

    Teachers are not required to learn. Let that sink in for a few seconds. You can go to the library crack open a book — hell in this day and age just google it – and immediately start working towards some type of computer related certification. The only thing required is determination and hard work.

    I personally know this angle works because I’ve self taught myself numerous tech certifications over the years.

    In the working world you don’t get a teacher holding your hand. You get some lame time frame to go pass X test for Y skill and you make it happen.

    The only constant in all of this hard work, which no one really seems interested in doing anymore. Just look around we’ve become a nation of fat apologists and lazy apologists.

    • I would like to subscribe to your newsletter

    • this is brilliant, and is the lesson that legions of immigrants from ethiopia, eritrea, somalia, el salvador, etc, have taught their children, who are busy climbing that ladder.

      • Yup exactly. You hit the nail on the head. I know my rant works because I’m from the exact same situation you mentioned above. You could say my parents were school crazy.

    • Sounds about right.
      I was born a poor black child in the south, now I’m a middle aged black woman with graduate degrees and real estate in the Mid-Atlantic. My secret, staying in school, saying no to drugs, getting good grades and all that other stuff.
      America is the land of second, and third chances. There are chances for education, a home, a business and such all over the damned place. Like losing weight and getting muscle these can be yours but you have to work for it.

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