Washington DC Development Report: 2020/2021 Edition

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DEVELOPMENT REPORT 2020 / 2021 EDITION

In Public-Private Partnership with 801 NEW JERSEY AVE NW | DESIGNED BY WDG | DEVELOPED BY WOOD PARTNERS WOOD BY WDG | DEVELOPED NW | DESIGNED BY 801 NEW JERSEY AVE The Washington DC Economic Partnership would like to acknowledge our public and private sector board members whose continued financial support and guidance has made the Washington, DC Development Report 2020/2021 Edition possible.

PUBLIC SECTOR PARTNERS

OFFICE OF THE CHIEF TECHNOLOGY OFFICER

PRIVATE SECTOR PARTNERS

BOARD MEMBERS

EXECUTIVE COMMITTEE Anitra Androh Angie Gates Mike O'Hara Partner, Nelson Mullins Director, DC Office of Cable Television, Partner, Bohler DC John Falcicchio / Co-Chair Joseph Askew Film, Music & Entertainment (OCTFME) Lindsey Parker Deputy Mayor, Vice President, Government Relations, Dr. Brent Glass Chief Technology Officer, Office of the Deputy Mayor for Verizon Executive Director, Office of the Chief Technology Officer (OCTO) Planning and Economic Development Jack Boarman National Building Museum William Rich Donna Cooper / Co-Chair Managing Partner, BKV Group Roslyn Hopkins-Fernandes President, Delta Associates Region President, Pepco Steven Boyle Director of Account Management, Tara Scanlon Major Accounts & Public Sector Markets, Richard Lake / Co-Chair Emeritus Chief Development Officer, EDENS Partner, Practice Group Leader, UnitedHealthcare Managing Principal, Jean-Luc Brami Holland & Knight Roadside Development Principal, Gelberg Signs Emmanuel Irono Shawn Seaman President & CEO, Motir Services President, Hoffman & Associates Omar McIntosh / Vice Chair Anita Butani Stanley Jackson Regional Executive, Senior Vice President, Project Executive, HRGM Corporation Joseph Torraca President & CEO, Anacostia Economic Smoot Construction Vice President of Sales & Emmanuel Irono Development Corporation (AEDC) President & CEO, Motir Services Business Development, RCN Kenneth Brewer / Secretary Caroline Kenney Andrew Trueblood Executive Director, Ernest Chrappah Managing Director for Public-Private Ventures, Director, Department of Consumer & Director, DC Office of Planning H Street Community Development Corporation Urban Atlantic Regulatory Affairs (DCRA) Mitch Weintraub Timothy F. Veith / Treasurer W. Wolfgang Lewis Managing Partner, Cordia Partners Regional President, United Bank Brunson Cooper Senior Director, Enterprise Services Managing Director, for the Beltway Region, Comcast Business Kristi Whitfield Olivia Byrne / General Counsel Corenic Construction Group Director, Department of Small & Local Partner, K&L Gates Lisa Mallory Business Development (DSLBD) Colette Dafoe CEO, DC Building Industry Association (DCBIA) Keith J. Sellars / President DC Office Managing Partner, Nixon Peabody Donna Woodall Thomas Nida President & CEO, Director of Citizenship & Public Affairs, Josh Etter Executive Vice President, Washington DC Economic Partnership Director, Development, Foulger Pratt Microsoft City First Bank Sybongile Cook / Jennifer Eugene Karima Woods Kristina Noell Commissioner, DC Department of Insurance, DMPED Representative Manager, Utility Sales, Executive Director, Anacostia BID Securities and Banking (DISB) Director of Business Washington Gas Development & Strategy, Greg O'Dell Kim Dreux-Kelly President and CEO, Events DC Office of the Deputy Mayor for Executive Director, Think Local First Planning and Economic Development WASHINGTON, DC DEVELOPMENT REPORT 2020 / 2021 EDITION

801 NEW JERSEY AVENUE DESIGNED BY WDG ARCHITECTURE | DEVELOPED BY WOOD PARTNERS

A publication of the In partnership with WDCEP The Washington DC Economic Partnership based on (WDCEP) is a non-profit, public-private independent organization whose core purpose is to thinking and actively position, promote, and support objective insights. economic development and business We stay one opportunities in Washington, DC. step ahead of the vibrant and evolving economic Our mission is to promote DC’s economic landscape by monitoring the pulse of and business opportunities and support DC’s developers, startups, entrepreneurs, business retention and attraction activities. and large and small businesses. Through historical knowledge of the city’s business and economic climate; WDCEP Real Estate Services accurate analytics, data, and research; and • DC Real Estate Search tool community partners and access, WDCEP is (search.wdcep.com) the central organization in Washington, DC • Development Data that connects public and private sectors, (wdcep.co/dcdr) neighborhoods, and communities to local, • Local Market Intelligence national, and international audiences. (wdcep.co/neighborhoods) • Maps (wdcep.co/maps) WDCEP works with its partners in the city: to • Site Location Assistance facilitate dynamic relationships with technology visionaries, artists, real estate entrepreneurs, Learn more at wdcep.com or non-profits, and global enterprise leaders engage with us @WDCEP.

THE DC DEVELOPMENT REPORT The DC Development Report is a summary of projects is constantly being updated, of the major development and construction for the purposes of this publication all projects in the District of Columbia. WDCEP data reflect project status, design, and tracks major developments throughout the information as of December 2020. year and performs an annual “development census” in the month of December. This Although every attempt was made to involves soliciting contributions from ensure the quality of the information more than 80 developers, architects, contained in this document, WDCEP and contractors, and economic development Delta Associates make no warranty or organizations to provide updates to more guarantee as to its accuracy, completeness, than 300 projects. While our database or usefulness for any given purpose. DEVELOPMENT OVERVIEW 4 ECONOMIC OVERVIEW 12 DEVELOPMENT OVERVIEW 14 20 YEARS OF GROWTH 16 MOST ACTIVE DEVELOPERS, ARCHITECTS & CONTRACTORS

DEVELOPMENT SECTOR 21 OFFICE 35 RETAIL 49 RESIDENTIAL 63 HOSPITALITY 75 QUALITY OF LIFE

NEIGHBORHOOD DEVELOPMENT 88 BUZZARD POINT 89 SAINT ELIZABETHS EAST

APPENDIX 92 METHODOLOGY 93 ACKNOWLEDGMENTS DEVELOPMENT OVERVIEW

DEVELOPMENT OVERVIEW

ECONOMIC OVERVIEW DEVELOPMENT OVERVIEW MOST ACTIVE OVERVIEW ECONOMIC OVERVIEW

ECONOMIC OVERVIEW By: Jonathan Chambers, Vice President, Delta Associates U.S. ECONOMIC RECOVERY

The COVID-19 pandemic has wreaked havoc on the nation’s growth in the third quarter. Personal consumption, which has economy since spring 2020. In perhaps the most economically been the backbone of the nation’s economic growth over the volatile year in American history, real GDP plunged by -31.4% in last decade, was somewhat more stable, falling by -33.2% in the the second quarter, but recovered by 33.1% in the third quarter, second quarter and rebounding by 41.0% in the third quarter. closing the year with annual growth of -3.5%—the weakest GDP For all of 2020, personal consumption decreased -3.9%, while growth since 1946. Economic growth was initially dragged business investment decreased -5.3%. The only positive growth down by a precipitous decline in economic activity triggered sector during the year was federal spending, increasing 4.4%. by widespread “stay-at-home” orders related to the COVID-19 The pandemic-triggered recession ended the longest economic pandemic but rebounded during the summer as businesses expansion in U.S. history, but the current focus is the strength of reopened and new virus cases declined. the economic recovery, which has waned in the fall.

Business investment has been on a wild see-saw ride, plunging However, the economic fallout and subsequent pace of recovery by -46.6% in the second quarter before recovering to 86.3% have been stronger than many economists had expected. Despite

THE DISTRICT’S GDP YEAR-OVER-YEAR GROWTH RATE

8.0%

6.0%

4.0% 3.2%

2.0%

0.0% -0.9% -2.0% -2.8% -2.9% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* DC Total DC Public DC Private U.S. Total

Source: Bureau of Economic Analysis, Delta Associates; December 2020. *Q3 2019–Q3 2020 growth..

some economic recovery over the summer, it appears that mid-2021. Even after the vaccines become widely available at both economic output and employment could hit a ceiling and pharmacies and supermarkets, the majority of Americans will stabilize at lower levels than they would have remained in the likely not be inoculated until summer. absence of the pandemic. That gap could take several years to close, especially in more vulnerable industry sectors such as DISTRICT OF COLUMBIA leisure/hospitality. ECONOMIC RECOVERY Consumer spending was the primary and most consistent driver of economic expansion during the last recovery period Following a year of renewed economic growth, the Washington but fell precipitously during the initial stages of the pandemic. metro area economy was upended by the COVID-19 pandemic The good news is that this critical pillar of the economy has in March, when most private business in the region came bounced back. Although consumer sentiment remains about to a virtual standstill. Many area businesses were forced to 20% lower than a year ago as of December, outstanding dramatically reduce the size of their active workforce, to closer consumer credit has rapidly expanded over the summer and match costs to the drop in revenue, although service firms home and auto sales are booming thanks to lower interest were able to continue operating remotely. While much of the rates. The bad news is that stimulus policies that included businesses initially affected have reopened or switched to remote checks issued to every household and significantly increased operations, there is still a long way to go before the regional unemployment benefits have long been exhausted in most economy returns to full output. cases and there is serious concern of the cycle restarting absent additional federal government intervention (which has not The decline in local business transactions can be directly traced been forthcoming as of early December). to pandemic social distancing efforts, including stay-at-home orders in the spring. In April and May, the amount of time that Economic growth in 2021 and beyond, including whether the District residents stayed at home increased over 20% compared ideal “V-shaped” recovery can be sustained, will continue to to January, but the time difference has steadily shrunk to just depend heavily on two factors: 1. The Federal Government 16% as of November. Retailers, restaurants, transit stations, and 2. Control of the COVID-19 pandemic (via vaccination and and workplaces saw foot traffic reduced by over -60% in April, social distancing policy). The former inaction of the federal although the deficit has shrunk to about -50% for retailers/ government in the provision of additional financial relief to restaurants and workplaces and -65% for transit stations as of residents and businesses last fall threatened to deal a significant November. The decrease in foot traffic has caused the number blow to the economic recovery. However, as economic conditions of open businesses in the District to decline by -45% as of worsened Congress finally passed a stimulus package in November compared to January. Total business revenue has also December, with additional economic assistance likely under the fallen by -44% in the District since February as of December. Biden administration. In the second quarter of 2020, at the onset of the pandemic, As of mid-December, distribution was underway of highly total economic output in the District of Columbia plunged at effective COVID-19 vaccines developed by Pfizer and Moderna, an annual rate of -20.4%. This was significantly better than while three other vaccines developed by AstraZeneca/Oxford the national economic nosedive of -31.4%, but well short of University, Johnson & Johnson, and Novavax were also the District’s 1.6% annual rate of growth in 2019. Leisure/ contenders for securing emergency FDA approval. Realistically, Hospitality was hit hardest of all major economic sectors, both a slow return to “normal” is unlikely to begin until at least in the Washington region and the nation. The sector’s two main

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 5 ECONOMIC OVERVIEW

UNEMPLOYMENT RATE

15.0%

12.0%

9.0%

6.0%

3.0%

0.0% 2015 2016 2017 2018 2019 2020

U.S. District of Columbia Washington MSA New York MSA Chicago MSA

Boston MSA Los Angeles MSA San Francisco MSA Dallas/Fort-Worth MSA

Source: Bureau of Labor Statistics, Delta Associates; December 2020. industry components—Arts/Entertainment/Recreation and PROJECTED JOB GROWTH (THOUSANDS) Accommodation/Food Services—both saw economic output WASHINGTON 130.0 47.0 in the District plunge by over -90% in the second quarter. MSA TOTAL: Unsurprisingly, the Federal Government is the only local 150 economic sector that has maintained positive growth through the pandemic. Between Q3 2019 and Q3 2020, the District ‘s GDP 120 declined -0.9%, but this outperformed the national GDP decline 35.0 of -2.8% over the same period. 90 There is still a great deal of uncertainty on what the “new normal” will even look like when the pandemic is over and the 55.0 dust settles, in terms of how many businesses will remain, how 60 many jobs will return, and what permanent behavioral and 15.0 spending patterns will persist in the workplace and at home. 30 The good news is that the Washington metro area remains better 40.0 25.0 positioned than virtually every other region to weather the 7.0 current economic downturn. 0 2021 2022

District of Columbia Northern Virginia Suburban Maryland

Source: Delta Associates; December 2020.

ANNUAL JOB GROWTH (THOUSANDS)

2020 ANNUAL AVERAGE (2010–2019)

DISTRICT OF DISTRICT OF COLUMBIA WASHINGTON MSA U.S. COLUMBIA WASHINGTON MSA U.S. Education/Health Services -9.6 -31.2 -1,198.0 2.2 9.0 465.9 Federal Government 4.6 9.2 52.0 -0.7 -0.1 3.1 Financial Activities -2.2 -4.8 -51.0 0.3 1.6 106.2 Information -2.0 -4.5 -241.0 0.2 -0.5 14.0 Leisure/Hospitality -29.4 -83.5 -3,616.0 2.2 8.1 381.9 Professional/Business Services -8.9 -11.1 -876.0 2.6 10.7 497.8 Retail Trade -0.8 -6.6 -347.1 0.6 1.8 129.6 State/Local Government 0.2 -26.8 -1,298.0 0.6 3.3 14.0 other -4.0 -18.5 -1,570.9 2.0 7.1 613.1 Total -52.1 -177.8 -9,146.0 9.9 41.0 2,225.6

Source: Bureau of Labor Statistics, Delta Associates; December 2020.

While economic growth during the boom period lagged many more regionally, the metro area is outperforming its Northeastern high-growth metros in the South and West, the Washington area peers by a wide margin, particularly New York and Boston which ranked second in GDP growth and fourth in payroll job growth have seen total employment shrink by over 10%. While no sector among the 30 largest metro areas in the nation during the Great of the region’s economy (except Federal Government) has fully Recession. The region again looks to be better prepared than recovered from the initial job losses caused by the pandemic, most its peers for the gloomy days ahead. As of December 2020, the have recorded at least some positive job growth in recent months. Washington metro area’s unemployment rate was 5.6%, 300 basis points higher than a year prior, but significantly lower than most Despite the strong job growth in the summer, there was some every other major metro areas. deceleration in the fall, and most sectors remained in the red for all of 2020. The Federal Government will continue to provide a WASHINGTON METROPOLITAN strong positive boost to the region’s workforce, which will offset some of the private sector declines. We anticipate that job growth AREA’S LABOR MARKET in the rebound will rebound in 2021, with approximately 130,000 net additions through the year. The economic cornerstones of Positive monthly job growth through the summer and fall each substate: tech and federal contracting in Northern Virginia, brought back much of the Washington region’s jobs that life sciences in Suburban Maryland, and the Federal Government were initially lost in the spring, but job growth for all of 2020 in the District will continue to be well insulated from negative remained sharply negative at -177,800. This compares to the shocks in the period ahead. all-time low figure of -315,700 for the 12 months ending May 2020. The District accounted for about a quarter of job losses in Leisure/Hospitality the region, with 52,100 positions shed in 2020. Unfortunately, the bulk of job losses occurred in lower-wage sectors, including The Washington area’s Leisure/Hospitality sector experienced Leisure/Hospitality and Transportation/Utilities. the largest net loss of jobs in 2020 at -83,500. Although Leisure/ Hospitality has also been the worst performer nationally, the Among large metro areas, Washington remained in the middle Washington region has a relatively high exposure to shocks in in terms of both absolute and employment growth. However, the sector. The District is one of the top 10 tourist destinations

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 7 ECONOMIC OVERVIEW

in the country and the metro area boasts the nation’s largest A new presidential administration and Congress is mostly good concentration of hospitality headquarters. Many large news for the Washington region heading into 2021, especially local hotel properties have had to wind down operations or in the midst of the current pandemic. A new set of spending shutter entirely, including the Washington Four Seasons and priorities, initiatives, and new residents at the beginning of a new Hay-Adams Hotel in the District. administration provides a boost to the region’s economy. With Democratic in control of both the House and the Senate (the Although leisure travel picked up nationally through latter by a tie-breaker), the region has likely avoided being in the the summer, economically lucrative business travel has midst of a political tug-of-war that could have resulted in budget continued to be virtually nonexistent. In addition, targeted sequestration, debt ceiling battles, government shutdowns and self-quarantine restrictions have placed a damper on travel even mass layoffs. to the region. Tourist destinations such as museums, stadiums, parks, and theaters were prohibited from Professional and Business Services opening or required to operate at very low capacity. The Professional/Business Services sector was the strongest Restaurants in the region (particularly in the District and performing sector in the last economic cycle and we expect that Maryland) that were forced to close their seating areas for trend to continue in the current recovery. Net job growth in months during the spring, were allowed to re-open in the the sector in 2020 was -11,000, but we expect growth to quickly summer with very limited indoor seating or outdoor dining turn positive in 2021. Demand for services remains high and the only. Many restaurants and bars have attempted to adapt white-collar office using nature of the sector has allowed most to the restrictions with new or enhanced carry-out and firms to continue operating remotely. The sector will bounce delivery options. In response to a local rise in COVID-19 back much quicker than others and continue to be the primary cases, new restrictions lowering indoor dining capacity private job creation source in the region in the long term. from 50% to 25% were put in place in early December. The tech industry has ballooned in the Washington region in Federal Government recent years, primarily in Northern Virginia, but also in the District and Suburban Maryland. Amazon’s growing HQ2 Unlike every other economic sector, the federal presence in Arlington County is the obvious regional juggernaut, government has maintained positive employment growth but many other tech companies have planted stakes or expanded through most of the pandemic, as expected. In fact, the in the region in 2020 including NGP VAN and EveryAction in the 4,900 positions added in August was the highest monthly District and Microsoft in Northern Virginia. Nationally, the tech total in just over 10 years. However, monthly job growth industry has been largely insulated from the negative economic trended slightly negative in the fall, as temporary census effects of the pandemic, and some industry sectors such as workers left the workforce. Nevertheless, for all of 2020 videoconferencing and cloud services has seen demand swell. the Federal Government sector has the highest 12-month However, not every business is immune. Commercial clients have employment tally at 9,200. The strong performance in the shrunk IT budgets, which has weighed on tech revenue. Smaller, sector is obviously good news for the Washington metro undercapitalized companies (particularly startups) have been area as the federal government is the region’s largest especially vulnerable to cash-flow challenges. In addition, IT employer and economic bread and butter, despite recent companies have to contend with the same supply chain, travel, diversification efforts. and workforce disruptions as every other industry.

POPULATION GROWTH

Retail Trade The District’s population grew by more than 3,000 or 0.5% in 2019 to 705,749, extending its positive growth streak to 19 Job growth in the beleaguered Retail Trade sector remains in straight years. Population growth in the District was due to a net the red, but the sector has experienced a remarkably strong natural increase of about 3,800 and international migration of resurgence in recent months, especially compared to most other approximately 2,600. However, net domestic migration remained sectors. Net employment growth in 2020 was -6,600 in the metro negative at approximately 2,200. The District’s median age, area and -700 in the District. This was a dramatic improvement which has been steadily but very slowly trending upwards for from the -31,900 (metro area) and -2,700 (District) 12-month job nearly a decade, accelerated in 2019 to 34.3. Younger households, growth figures recorded in May. especially those seeking to buy homes, have been increasingly priced out of the District in recent years. Many nationwide and regional retailers have been repositioning for survival amid online shopping by belt-tightening, closing The COVID-19 pandemic has triggered unplanned relocations low-performing stores, and increasing efficiency overall, so nationwide for several reasons including perceived safety, school they happened to be better situated in advance of the pandemic closures, and loss of employment. One of the purported relocation compared to businesses in other sectors. The grocery store trends that has dominated headlines since March is a supposed industry has been a major bright spot in the sector as most food mass migration from large cities and dense urban areas to more retailers have recorded very strong sales through the pandemic suburban and rural areas. With the majority of white-collar and have accordingly increased their workforces to meet workers working remotely from home, square footage has become demand. The COVID-19 recession has unfortunately claimed more important while proximity to the workplace has become less multiple victims in the sector, particularly higher-end national important. While much of the discussion is based on speculation chains. Most recently IT’SUGAR, Tailored Brands (Jos. A. Bank/ and anecdotal evidence, there has been some data that would Men’s Wearhouse), and Lord & Taylor have declared bankruptcy. indicate the trend could be existent at some level in certain areas.

WASHINGTON METRO CRE INVESTMENT VOLUME (2019 vs. 2020)

Oce

Industrial

Retail

Apartment

Land/Dev. Site

-100% -80% -60% -40% -20% 0%

Source: Real Capital Analytics, Delta Associates; December 2020.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 9 ECONOMIC OVERVIEW

According to a Pew Research Center survey conducted in any major city in the nation (according to C2ER’s Cost of Living June, due to the pandemic: 3% of Americans have relocated, Index), the data is not surprising. That said, comprehensive, hard 6% had someone move into their household, and 14% know evidence of any migration still won’t be available until Census someone who relocated. Note that this survey does not identify population figures are released in 2021. the geographic origin or destination of those who moved. Many people have been forced to relocate within the same Given that the District of Columbia is a coastal city with a high community for economic reasons, despite a pause in evictions cost of living, there has been speculation on whether the city-to- in most states. The surging housing market—one of the few suburbs trend has manifested here. According to HireaHelper economic components that has thrived through most of the data, this might in fact be the case. The District experienced pandemic—has also been interpreted as evidence of a wave of 58% more move-outs than move-ins between March and June. pandemic-related relocations, but rock-bottom interest rates Interestingly, Alexandria and Arlington County in Northern likely play a major role as well. Virginia experienced an even greater discrepancy at 63% and 78%, respectively. Data from moving companies do present a more geographically-specific, but still somewhat vague, picture MLS data on regional home sales (primarily resales) between on where out-migrations may be occurring. Two cities in March 2020 and October 2020 compared to the same period particular, New York and San Francisco, seem to be epicenters in 2019 seems to mostly confirm this trend. Home sales during of this trend. the period in the urban core of the District, Arlington, and Alexandria, as well as the Inner Suburban Ring, were less than According to HireAHelper’s records of its clients, over 1% higher than a year prior. Meanwhile in the Outer Suburban 80% more people sought help to move out of a home in San Ring and Exurban Ring, sales ballooned 11.8% and 20.8%, Francisco and New York than to move in between mid-March respectively. It remains to be seen how this trend will play out and the end of June. Given that New York City and San in the long-term, especially as the pandemic abates and area Francisco have the highest and third-highest costs of living of residents return to the workplace.

THE DISTRICT20 ’S CHANGE IN BUSINESS REVENUE SINCE JANUARY 2020

-20 -33% -40 -41% -43% -44% -60

-80 -88% -100 February March April May June July August September October November December

Total (All Businesses) Transportation Professional/Business Services

Education/Health Services Leisure/Hospitality

Source: Womply via Economic Tracker, Delta Associates; December 2020.

COMMERCIAL REAL ESTATE INVESTMENT

The U.S. commercial real estate investment market has types, particularly office and hotel, that could be in store for been hammered by the COVID-19 pandemic, but the effect potentially major market restructurings. Some opportunistic has varied considerably among different property types investors are also waiting for the dust to settle before they or geographic locations—a key difference from the Great swoop in and acquire distressed assets. For offshore investors, Recession. The total volume of all commercial real estate the U.S. remains the most attractive location to park their properties sold in the U.S. was 32% lower than in 2019. Trade capital, primarily due to the relative stability of the market. volume is deeply negative year-over-year across all sectors. However, the greatest disparity between property types was in The District has not been immune to the greater CRE market pricing. While prices of warehouse, apartment, and suburban struggles, despite the stabilizing presence of the federal office properties increased 7.4%, 8.5%, and 6.6% on average government. Total CRE trade volume was down -51% in respectively, CBD office, retail, and hotel prices fell -0.2%, 2020 compared to 2019. Based on the limited number of -6.7%, and -6.8%, respectively. transactions, office prices in the District declined -10.5% in 2020, while apartment prices declined -3.3%. It’s also worth CRE investors stepped back to await further guidance and noting that for most deals sellers are still realizing positive certainty on investment risk. Specifically, the lack of comparable long-term gains on their investments, the obvious exception transactions and extremely high uncertainty during the global being distressed asset sales (which are predicted to increase pandemic has made underwriting assets and tracking pricing in coming quarters). Cap rates nationally have budged little trends challenging. This is especially true for certain property from a year ago, except for hotel properties.

THE DISTRICT’S POPULATION GROWTH BY AGE (2018–2019)

5,000 4,128 4,000

3,000

2,000 1,911

1,000 687

-1,000 -1,070 -2,000 -2,362 -3,000 Under 18 years 18–24 years 25–39 years 40–64 years 65 years and over

Source: Census Bureau, Delta Associates; December 2020.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 11 DEVELOPMENT OVERVIEW

DEVELOPMENT OVERVIEW

THE DISTRICT'S DEVELOPMENT GROUNDBREAKINGS (DECEMBER 2020, SF IN MILLIONS)1

15 14.4 13.4 13.9 12.7 12.0 11.8 11.9 12 10.6 10.4 10.5 10.2 10.5 10.2 9.8

9 7.5 101 90 92 89 86 6.5 80 80 79 81 6 77 76 65 69 4.3 65 4.3 50 45 41 3

0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

No. of Projects Total SF

SUMMARY OF PROJECTS (DECEMBER 2020)

PROJECTS SF ESTIMATED VALUE ($B)

Completed 1,573 216,478,505 $72.0 2001 – 2010 803 109,678,947 $31.0

2011 – 2020 770 106,799,558 $41.1

2011 54 5,489,253 $2.3 2012 68 7,848,994 $2.5 2013 80 11,619,129 $4.8 2014 71 11,533,842 $4.6 2015 70 6,224,685 $2.6 2016 99 12,870,149 $4.5 2017 85 13,276,702 $5.3 2018 80 11,236,779 $4.1 2019 88 13,443,702 $6.0 2020 75 13,256,323 $4.4

Under Construction 110 20,427,917 $10.3 2021 delivery 83 9,867,709 $4.8 2022 delivery 23 8,833,673 $3.8 2023+ delivery 4 1,726,535 $1.7

Pipeline 444 120,394,407 $37.1 Near Term 197 29,633,149 $8.8 Long Term 247 90,761,258 $28.3

Source: Washington DC Economic Partnership

1. Includes new construction and major renovations.

PROJECTS COMPLETED (2001–2020) # OF PROJECTS SQ. FT. UNITS ROOMS ¢ Office 305 65,467,061 -- -- ¢ Retail 478 9,933,705 -- -- ¢ Residential 785 90,046,217 91,524 -- 216.5 MILLION ¢ Hospitality 141 21,628,536 -- 21,193 Square Feet Completed ¢ Quality of Life 323 24,492,561 -- --

Total Estimated Value of Projects: $72.0 billion

PROJECTS UNDER CONSTRUCTION (DECEMBER 2020) # OF PROJECTS SQ. FT. UNITS ROOMS ¢ Office 20 2,776,597 -- -- ¢ Retail 46 1,093,947 -- -- ¢ Residential 70 12,898,040 13,777 -- 20.4 MILLION ¢ Hospitality 18 1,910,949 -- 1,414 Square Feet Under Construction ¢ Quality of Life 19 1,535,662 -- --

Total Estimated Value of Projects: $10.3 billion

PIPELINE PROJECTS # OF PROJECTS SQ. FT. UNITS ROOMS ¢ Office 104 31,931,477 -- -- ¢ Retail 203 4,896,392 -- -- ¢ Residential 294 59,485,705 66,498 -- 120.4 MILLION ¢ Hospitality 47 3,515,819 -- 5,867 Square Feet in the Pipeline ¢ Quality of Life 59 5,283,661 -- --

Total Estimated Value of Projects: $37.1 billion

Despite the health pandemic more than 4.6 million SF of projects broke ground between March and December 2020. During this time the month of August experienced the most project starts with five, totaling just over one million SF. The vast majority of projects were multifamily residential showing the continued investor interest in this sector.

PROJECTS STARTED DURING COVID-19 (MARCH–DECEMBER 2020) # OF PROJECTS SQ. FT. UNITS ROOMS ¢ Office 4 188,600 -- -- ¢ Retail 8 183,581 -- -- 4.6 MILLION ¢ Residential 22 3,699,686 4,007 -- Square Feet Under Construction ¢ Hospitality 6 418,403 -- 472 ¢ Quality of Life 4 38,215 -- --

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 13 20 YEARS OF GROWTH

YEARS OF GROWTH

Over the past 20 years, the District has Howard University, U Street, Shaw, and experienced 216.5 million SF of new Union Market, New York Ave., NE/Ivy City. development resulting in 65.5 million SF of new and modernized office buildings, The neighborhoods that have experienced the 91,500 housing units, 21,200 hotel rooms, largest share of development have also seen and nearly 10 million SF of retail space.1 the most residential construction during the past 20 years with the Capitol Riverfront (10,770 The two preceding decades have seen similar units), DowntownDC, Mt. Vernon Triangle, development levels, with 109.7 million SF of Northwest One (10,263), and H Street NE, deliveries between 2001–2010 and 106.8 NoMa, Union Station (7,812) leading the way. million SF from 2011–2020. Construction in the 2000s was concentrated in the As development continues to head east, current DowntownDC, Mt. Vernon Triangle, Northwest hotspots of construction will continue One neighborhood cluster where nearly a to see growth and new areas such as quarter of the District’s development took St. Elizabeths (8 M SF), Anacostia, Barry Farm place. However, the 2011–2020 development (4.5 M SF), and Minnesota & Benning cycle expanded and intensified into other (2.6 M SF) anticipated to experience neighborhoods such as Capitol Riverfront, significant investment over the next decade.

SELECT NEIGHBORHOOD DEVELOPMENT (SF IN MILLIONS)

COMPLETED UNDER NEIGHBORHOOD(S)* 2001–2010 2011–2020 CONSTRUCTION PIPELINE 1. DowntownDC, Mt. Vernon Triangle, Northwest One 25.6 13.8 1.6 12.7 2. H Street NE, NoMa, Union Station 8.2 9.1 2.8 15.3 3. Capitol Riverfront 9.2 10.6 2.1 9.9 4. Buzzard Point, Southwest Waterfront, The Wharf 8.0 9.3 2.5 11.6 5. Eckington, North Capitol, Rhode Island Ave., NE/Brentwood 1.6 4.0 1.7 11.2 6. Union Market, New York Ave., NE/Ivy City 0.9 3.8 1.5 6.3 7. Capitol Hill 1.3 2.7 0.1 5.8 8. Congress Heights/St. Elizabeths 0.6 1.9 0.3 8.0 9. Anacostia, Barry Farm 0.9 0.9 0.2 4.5 10. Minnesota & Benning 0.6 0.4 0.0 2.6

*Boundaries are based on the Office of Planning's Neighborhood Clusters. Names are based on WDCEP's Neighborhood Profiles and Office of Planning's Neighborhood Clusters.

1. Includes major renovations

TOTAL SF TOTAL SF ■ n/a ■ n/a ■ < 2.5 M SF ■ < 2.5 M SF ■ 2.5–5 M SF ■ 2.5–5 M SF ■ 5–10 M SF ■ 5–10 M SF ■ > 10 M SF ■ > 10 M SF

DEVELOPMENT PROJECTS UNDER DEVELOPMENT PROJECTS IN THE CONSTRUCTION (DECEMBER 2020) PIPELINE (DECEMBER 2020)

TOTAL SF TOTAL SF ■ n/a ■ n/a ■ < 500,000 SF ■ < 2.5 M SF ■ 500,000–1 M SF ■ 2.5–5 M SF ■ 1 M–2 M SF ■ 5–10 M SF ■ > 2 M SF ■ > 10 M SF

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 15 MOST ACTIVE DEVELOPERS, ARCHITECTS & CONTRACTORS

DEVELOPMENT OVERVIEW

The figures below list the developers, architects, and contractors that have been the most ¢ Completed active in contributing to DC’s development activity since 2015. ¢ Under Construction ¢ Pipeline MOST ACTIVE DEVELOPERS SINCE 2015 (# OF PROJECTS)4 JBG Smith1 16 2 13 31 Douglas Development Corporation 20 6 26

Brookﬁeld Properties2 11 1 11 23 WC Smith 11 3 5 19 MRP Realty 6 5 6 17 If measured by square feet the most active developers include JBG Smith (11.0M SF), Urban Atlantic (10.3M SF), Brookfield Properties (10.0M SF), Akridge (6.9M SF), and MRP Realty (6.5M SF).

MOST ACTIVE ARCHITECTS SINCE 2015 (# OF PROJECTS)4 Bonstra | Haresign Architects 17 5 21 43 Shalom Baranes Associates 13 6 16 35 Torti Gallas + Partners3 11 9 15 35 WDG Architecture 22 5 7 34 Hickok Cole 18 3 12 33 Eric Colbert & Associates If measured by square feet the most active architects include Shalom Baranes Associates (18.4M SF), WDG Architecture (13.5M SF), Perkins Eastman DC (13.2M SF), Torti Gallas + Partners (12.2M SF), and SK+I Architectural Design Group (11.6M SF).

MOST ACTIVE GENERAL CONTRACTORS SINCE 2015 (# OF PROJECTS) 4 Clark Construction Group 38 4 4 46

MCN Build 23 4 3 30

James G. Davis Construction Co. 20 4 24

Gilbane Building Company 16 4 4 24

Hamel Builders 14 4 4 22

If measured by square feet the most active contractors include Clark Construction Group (15.5M SF), Balfour Beatty (6.9M SF), Donohoe Construction (6.8M SF), James Davis Construction Corporation (5.6M SF), and CBG Building Company (5.5M SF).

1. Includes projects developed as The JBG Companies. 2. Includes projects developed as Forest City Washington. 3. Includes Torti Gallas Urban projects 4. Projects completed since January 2015, under construction or in the pipeline as of December 2020 (excludes government agencies and colleges/universities). Only companies with 10 or more projects since 2015 are included in SF calculations.

AC HOTEL BOATHOUSE

2100 L

801 NEW JERSEY PARC RIVERSIDE II

38 4 4 46

1331 MARYLAND

www.wdgarch.com Washington DC Dallas TX DEVELOPMENT SECTOR DEVELO PMENT DEVELO PMENT BY SECTOR

OFFICE RETAIL RESIDENTIAL HOSPITALITY QUALITY OF LIFE

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“ALONE WE CAN DO SO LITTLE, TOGETHER WE CAN DO SO MUCH” - HELEN KELLER OFFICE

OFFICE DEVELOPMENT IN WASHINGTON, DC

Image courtesy of Brookfield By: Jonathan Chambers, Vice President, Delta Associates

While the long-term nature of leases in the office sector have provided better protection from the COVID-19 shock compared to other sectors such as hospitality and multifamily, it has not escaped unscathed.

OFFICE INVENTORY 1 NET ABSORPTION 1 DIRECT VACANCY RATE 1 AVERAGE FACE RENT 1 111.1 M 430 K 13.9% $56.69 SQUARE FEET (Q4 2020) SQUARE FEET (2020) (Q4 2020) PER SQUARE FOOT (Q4 2020)

Office vacancy has climbed virtually across the board nationwide definitively assess their future space needs in the post-COVID and rent growth has turned negative, yet the full impact of world. Renewals and subleases have dominated since the start of the economic dip on the office market remains in flux as the the pandemic, while new leases have dwindled. Nationwide, the pandemic persists. The current damper in office demand will inventory of sublease space has increased by at least 25% through likely continue in the short-term as most tenants are unlikely to the year. In the District, sublease space increased by about 20% move forward with major moves or expansions until they can since February according to Transwestern data.

GROWTH OF OFFICE-USING EMPLOYMENT SECTORS IN THE DISTRICT (2010–2020)

TOTAL: 8,300 -600 5,000 -4,900 -1,400 5,600 4,700 -1,100 700 7,100 -9,200

8,000

6,000

4,000

2,000

-2,000

-4,000

-6,000

-8,000

-10,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Federal Government Financial Activities Information Professional & Business Services State/Local Government

Source: BLS, Delta Associates; February 2021.

1. REIS, Delta Associates; February 2021 (does not include owner-occupied buildings)

The District's office market had a solid year of growth in The pandemic’s effect on office asking rents has been adverse 2019, but the pandemic-triggered recession brought a halt but minimal. Average asking rent growth in the District in 2020 to positive momentum in early 2020. On the surface, net was 0.3%. There have also been isolated stories of property absorption for 2020 remained positive at 430,000 SF, but owners slashing rents to fill large blocks of vacant space. this figure includes nearly one million SF of pre-leased new Lease concessions have skyrocketed, with the average tenant construction space that delivered during the year. Removing improvement (TI) package for new deals reaching triple digits for pre-leased space that delivered in 2020, net absorption the first time in history. TI allowances for new first-generation totaled -745,000 SF. space have climbed even higher as developers seek to quickly stabilize their assets. Meanwhile, lease terms for new deals have Office vacancy in the District has steadily trended upward fallen over the past year by roughly 10% to 5.9 years on average— over the year from 12.7% in Q4 2019 to a new record high of the lowest in nearly a decade. These generous terms could end up 13.9% in Q4 2020. Class A vacancy has also increased from a weighing on property valuations over the longer term, even in the rate of 13.1% in Q4 2019 to 13.9% as of Q4 2020. unlikely event that teleworking doesn’t markedly affect demand.

DISTRICT OFFICE LEASING CONCESSIONS METRICS (CLASS A/B/C BUILDINGS)

$102.50

8.0 $100.00

7.0

6.0 5.9

$80.00

5.0 $ PER SQ. FT.

4.0 3.7

TIME MONTHS/YEARS 3.0 $60.00

2.0

1.0

0.0 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020

Avg. Months of Free Rent Avg. Lease Term (years) Avg. Tenant Improvement Package/SF

Source: REIS, Delta Associates; February 2021.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 23 OFFICE DEVELOPMENT

Unlike its suburban neighbors (where most construction has If a significant number of current office tenants decide to been for pre-leased space), there has been a lot of speculative commit to a telework-heavy operational model, this could heavily construction in the District for the greater part of a decade. crater office demand and trigger a long-term depression in the While a little over two million SF of space delivered over market. However, there has been no hard evidence of such a the past year, there is still another 2.8 million SF of space major structural change being imminent. None of the largest currently being constructed or under extensive renovation/ tenants in the District have yet committed to shedding most or rebuild. We anticipate that the construction boom has all their physical office presence and pivot to remote operations, come to a grinding halt, with very few (if any) speculative although a handful in the suburbs have, as well as smaller groundbreakings for at least the duration of the pandemic. tenants in the District. Still, roughly a third of employers in the metro area plan to shift at least a portion of their workforce to With the exception of the Federal Government, job growth permanent telework after the pandemic is over, and more than among the primary office-using employment sectors have 80% of employers plan to allow for greater telework flexibility, plunged in the District, including the lucrative bread and according to the Capital COVID-19 Snapshot. butter Professional & Business Services sector. The good news is that none of these sectors have been among the If employers do follow through with plans to shift workers off- worst performers, and all have regained a significant share site, it will likely be a slow, gradual change, especially for tenants of the lost positions. Unfortunately for office owners, the locked into long-term leases or occupying their own space. bulk of the workforce at most of these tenants are working Natural demand generated by economic growth will also offset remotely as their space sits under-utilized. In the District some of the demand deficit. It is also worth noting that dedicated only about one-quarter of workers continue to work on-site.2 office space provides value to both employers and workers that extend beyond simple productivity measures.

NET ABSORPTION BY QUARTER (2020)

TOTAL: 1,364,000 -620,000 1,196,000 -349,000 1,500,000

1,200,000 372,000 NET ABSORPTION 468,000 900,000 99,000

BY QUARTER 600,000 893,000 749,000 300,000 180,000

SQUARE FEET SQUARE 0 -125,000 -21,000 -121,000 -317,000 -300,000 -374,000 -212,000 -600,000

-900,000

Q1 2020 Q2 2020 Q3 2020 Q4 2020

District of Columbia Suburban MD Northern VA

Source: Delta Associates; February 2021.

2. Capital COVID-19 Snapshot: Safe Return to Work survey sponsored by the Metropolitan Washington Council of Governments (MWCOG) and Greater Washington Partnership, August 2020.

Regardless of future teleworking trends, the pandemic is Tenants may reconsider densification and open-work spaces, prompting office developers, owners, managers, and tenants to although open floorplans, which foster in-person interaction rethink how they provide, manage, and consume space. In the and collaboration—a key advantage of the physical office near-term, the pandemic will likely lead lease agreements and environment—will likely persist. office contracts to incorporate a reassessment of liability under emergency circumstances. The rapid expansion of coworking firms in the Washington region has likely come to an end. Even prior to the pandemic In addition, long-term contingency plans will need to be there was concern over the risk that the coworking industry more clearly defined by building managers, who are already, brought to office investors, especially since the industry has not promoting safe and comfortable environments through a yet proven how well it could weather an economic recession. variety of measures such as temperature checks, motion- So far it already appears that these fears were at least partially sensing hand sanitizer stations, HVAC/air filtration upgrades, valid as leasing activity has not only dried up (in concert with operable exterior windows, mandatory mask policies, the overall market trend), but tenants have been actively ultraviolet lighting, elevator and building circulation controls, reducing their footprints across the nation. and robust and frequent cleaning/disinfecting schedules.

TOP NEW OFFICE LEASES (2020)

TENANT LOCATION SUBMARKET SQ. FT. INDUSTRY TIMEFRAME DC Government (Dept. of General River East 322 40th St., NE 250,000 Local Government Q2 2020 Services) (Minnesota & Benning) Wiley Rein LLP 2050 M St., NW Central Business District 166,000 Legal Q2 2020 Non-Governmental National Endowment for Democracy 1201 Pennsyvania Ave., NW East End 82,000 Q2 2020 Org. Wells Fargo 1700 K St., NW Central Business District 69,000 Finance Q1 2020 American Trucking Association 80 M St., SE Capitol Riverfront 60,000 Trade Assoc. Q1 2020 Mintz 701 Pennsylvania Ave., NW East End 57,000 Legal Q4 2020 DC Government (Dept. of Employment 400 Virginia Ave., SW Southwest 56,400 Local Government Q3 2020 Services-Labor Standards Bureau) DC Government (Dept. of Housing and 1909 Martin Luther King Jr. Ave., SE River East (Anacostia) 55,000 Local Government Q2 2020 Community Dev.) McGuireWoods 888 16th St., NW Central Business District 50,600 Legal Q1 2020 Morning Consult 1025 F St., NW East End 49,000 Tech Q4 2020 Texas A&M University School of 1620 L St., NW Central Business District 47,400 Education Q3 2020 Government Public Sevice GSA (Treasury Inspector General 370 L'Enfant Plz., SW Southwest 38,000 Federal Government Q2 2020 for Tax Admin.) The Atlantic 610 Water St., SW Southwest 35,000 Information Q4 2020 EveryAction 655 15th St., NW East End 35,000 Tech Q1 2020 NGP VAN Inc. 655 15th St., NW East End 34,000 Tech Q2 2020 Axinn, Veltrop & Harkrider LLP 1901 L St., NW Central Business District 33,900 Legal Q2 2020 Media Matters for America 800 Maine Ave., SW Southwest 31,400 Advocacy/Lobbying Q2 2020 NAEYC 1401 H St., NW East End 28,000 Advocacy/Lobbying Q1 2020 Hickok Cole 301 N St., NE NoMa 25,000 CRE/Architecture Q2 2020

Source: Delta Associates; February 2021.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 25 OFFICE DEVELOPMENT

Coworking industry giant WeWork was wrestling with its at weathering a downturn, thanks primarily to its own financial challenges before the year even began, and the heavy reliance on federal tenants, which are unlikely pandemic has only compounded its troubles. WeWork is the to drastically decrease their physical presence in the largest private sector tenant in many coastal gateway cities, city, whether due to large-scale teleworking or agency including the District, where it occupies over one million SF. relocations to other regions. The longstanding uncertainty In 2020 WeWork placed 56,000 SF of its 100,000 SF Dupont surrounded the federal sector has evaporated somewhat Circle space on the market for sublease and closed three of following the election of President Joe Biden and unified its oldest locations in the District totaling about 100,000 party control of Congress. The results of the recent SF of space. Another three locations in the District totaling elections will almost certainly have an outsized impact over 200,000 SF are slated for closure in 2021. WeWork’s on future federal spending, and indirectly the local office sudden reversal in fortunes hits the District particularly hard market. The growing GSA backlog of leases in extension in comparison to its suburban neighbors, as WeWork has or holdover status, the large-scale shift from leased space accounted for more net positive office absorption in the city to federally-owned properties, the recent trend of moving over the last few years than any other private sector tenant, by federal agencies to other regions, and historically weak a wide margin. WeWork isn’t alone in reducing its footprint, federal hiring, could all be resolved or reversed in the Regus, MakeOffices, and spaces have all closed locations in District’s favor with a new Democratic government in the District or completely shut down operations altogether. power.

Despite the somewhat bleak and uncertain overall outlook, the District’s office market is better prepared than most

THE DISTRICT’S AVAILABLE OFFICE SPACE FOR SUBLET (DECEMBER 2019–DECEMBER 2020)

2.0

1.9

1.8

1.7

1.6

1.5

1.4 MILLIONS OF SQ.FT.

1.3

1.2

1.1

1.0

Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 July-20 Aug-20 Sept-20 Oct-20 Nov-20 Dec-20

Source: Transwestern, Delta Associates; December 2020.

OFFICE DEVELOPMENT GROUNDBREAKINGS COMPLETED PROJECTED (DECEMBER 2020, OFFICE SF, IN MILLIONS) PRIVATE GOVT PRIVATE GOVT PRIVATE GOVT

2004 4.9 0.4 5.3 2004 2.0 1.2 3.2 2005 2.8 1.4 4.2 2005 3.6 3.6 2006 3.8 0.4 4.1 2006 4.4 1.5 5.9 2007 4.7 4.7 2007 3.7 0.6 4.3 2008 3.0 0.5 3.5 2008 2.0 1.2 3.2 2009 0.9 1.1 2.0 2009 5.6 0.4 6.0 2010 0.7 2.8 3.4 2010 2.7 0.7 3.4 2011 1.3 0.4 1.7 2011 1.2 0.8 2.0 2012 1.3 0.4 1.7 2012 0.8 1.0 1.8 2013 1.1 0.2 1.2 2013 2.0 2.1 4.1 2014 3.0 0.9 3.9 2014 0.9 1.0 1.9 2015 1.8 0.7 2.4 2015 0.6 0.1 0.7 2016 2.7 0.3 3.0 2016 2.0 0.3 2.2 2017 2.6 0.2 2.8 2017 1.3 0.8 2.1 2018 1.2 1.2 2018 2.9 0.3 3.1 2019 1.8 0.2 2.0 2019 3.4 0.5 3.9 2020 0.3 0.1 0.3 2020 1.6 0.2 1.8 2021* 1.3 0.2 1.4 2022* 1.2 0.1 1.2

*projections based on targeted delivery dates of projects under construction as of December 2020

OFFICE DEVELOPMENT (DECEMBER 2020)

PROJECTS OFFICE SF COMPLETED (SINCE 2001) 305 65,467,061 2010 10 3,408,455 2011 8 1,987,719 2012 9 1,818,359 2013 20 4,127,439 2014 11 1,925,674 2015 4 651,500 2016 19 2,211,006 2017 11 2,125,785 2018 15 3,139,202 2019 18 3,897,360 2020 7 1,766,846

UNDER CONSTRUCTION 20 2,776,597 2021 DELIVERY 14 1,427,435 2022 DELIVERY 5 1,217,162 2023+ DELIVERY 1 132,000

PIPELINE 104 31,931,477 NEAR TERM 41 5,859,577 LONG TERM 63 26,071,900

TOTAL 429 100,175,135

80 M Street, SE addition

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 27 ■ COMPLETED ■ UNDER CONSTRUCTION ■ PIPELINE

SOUTH DAKOTA AVE

MASSACHUSETTS 17AVE

CONNECTICUT AVE

GEORGIA AVE

ROCK CREEK PARK 14TH ST.

U ST.

RHODE ISLAND AVE

G E O R G E W A S NEW YORK AVE H IN G T O N M E M O R IA L P K W Y

4 14 3 21 8 6 5 7 1 H ST. VIRGINIA 12 19 18 2 UNION 66 29 22 STATION 16 24

NATIONAL MALL E. CAPITOL ST. VIRGINIA U.S. CAPITOL 28 27

20 FORT DUPONT 26 15 PARK 11 9 M ST. NATIONALS13 PARK PENNSYLVANIA10 AVE

395 30 25

M . E 1 V A

. R J

M G

R E

M NATIONAL H

AIRPORT T

N I

R A 23 Alexandria M

ALABAMA AVE

All project locations are approximate. OFFICE DEVELOPMENT PIPELINE

EST. VALUE 2 PROJECT WARD LOCATION DEVELOPER(S) OFFICE SF ($M) 1 DELIVERY

TOP OFFICE PROJECTS COMPLETED (Q4 2019–Q4 2020)

1 Sentinel Square III 6 45 L St., NE Trammell Crow Company 545,000 $250 Q2 20 2 250 Massachusetts Avenue 2 250 Massachusetts Ave., NW Property Group Partners 507,764 $275 Q4 19 3 2050 M Street 2 2050 M St., NW Tishman Speyer 353,200 Q1 20 4 1900 N 2 1900 N St., NW JBG Smith 259,000 $230 Q4 19 5 1901 L Street 2 1901 L St., NW The Meridian Group 202,000 Q1 20 6 2100 L Street 2 2100 L St., NW Akridge / Argos Group 182,000 $47 Q3 20 7 888 16th Street 2 888 16th St., NW Trammell Crow Company / Meadow 150,000 Q4 19 Partners 8 1050 17th Street 2 1050 17th St., NW The Lenkin Company 148,610 Q2 20 9 1 M Street 6 1 M St., SE Monument Realty 129,536 Q1 20 10 Shops at Penn Branch (Phase I) 7 3200 Pennsylvania Ave., SE Jair Lynch Real Estate Partners 17,000 $25 Q4 19

TOP OFFICE PROJECTS UNDER CONSTRUCTION

11 The Wharf (Phase II) 6 Southwest Waterfront Hoffman & Associates / Madison Marquette 547,000 $1,150 Q3 22 12 2100 Pennsylvania Avenue 2 2100 Pennsylvania Ave., NW Boston Properties / George Washington 423,562 $360 Q2 22 University 13 1275 New Jersey Avenue 6 1275 New Jersey Ave., SE Brookfield Properties 296,176 Q4 21 14 Signal House 5 1255 Union St., NE Carr Properties 214,000 $135 Q1 21 15 250 M at Canal Park 6 250 M St., SE WC Smith 180,600 $133 Q1 21 16 H. Carl Moultrie Courthouse 2 500 Indiana Ave., NW DC Superior Court 176,000 $97 2021 17 City Ridge 3 3900 Wisconsin Ave., NW Roadside 170,000 $715 Q2 22 18 699 14th Street 2 699 14th St., NW Lincoln Property Company / Cara Real 149,000 Q1 21 Estate 19 The Milken Center for 2 1501–1505 Pennsylvania Akridge / Milken Family Foundation 132,000 2024 Advancing the American Dream Ave., NW & 730 15th St., NW 20 80 M Street 6 80 M St., SE Columbia Property Trust 112,000 Q4 21

TOP OFFICE PROJECTS IN THE PIPELINE

21 2100 M Street 2 2100 M St., NW Meadow Partners / Network Realty Partners 369,097 2022 22 600 5th Street 2 600 5th St., NW Stonebridge Associates / Rockefeller Group 355,000 $300 2025 23 Saint Elizabeths East (Parcel 17) 8 Saint Elizabeths East Campus Redbrick LMD / Gragg Cardona Partners 267,000 $170 2023 Northeast Heights 7 Minnesota Ave. & Cedar Realty Trust / 265,000 $420 2022–28 24 Benning Rd., NE Trammell Crow Company 25 Reunion Square (Building 4) 8 Shannon Place & W St., SE Four Points / Curtis Development 229,859 2023 26 5 M Street 6 5 M St., SW JBG Smith 226,132 27 Cannon House Office Building 6 27 Independence Ave., SE Architect of the Capitol 206,500 $188 2022 Renewal (Ph III) 28 300 7th Street 6 300 7th St., SW Jair Lynch Real Estate Partners 203,414 $122 29 615 H Street 2 615 H St., NW Monument Realty 69,000 $55 30 MLK Gateway II 8 1909 Martin L King Jr Ave., SE Menkiti Group 60,000 2022

1) may include non-office components & pipeline values may include additional phases ($ in millions) 2) delivery date may reflect phase I delivery or final phase delivery .

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 29 DEVELOPMENT HIGHLIGHTS Image courtesy of CoStar

WARD 6 WARD 2

1 M STREET 1050 17TH STREET

LOCATION: 1 M Street, SE LOCATION: 1050 17th Street, NW DEVELOPER(S): Monument Realty DEVELOPER(S): The Lenkin Company ARCHITECT(S): HOK ARCHITECT(S): Gensler CONTRACTOR(S): Lendlease CONTRACTOR(S): Clark Construction Group LEED: Gold LEED: Gold STATUS: Completed STATUS: Completed TARGETED DELIVERY: Q2 2020 TARGETED DELIVERY: Q2 2020

SPECS: 1 M Street is an 11-story, 131,000 SF office building with 4,100 SF of SPECS: 1050 17th Street is a new 12-story, 153,000 SF office building with 4,300 SF ground-floor retail space. It is the new headquarters for the 150-employee of retail space. The building features a 3,600 SF fitness center, a 4,700 SF rooftop National Association of Broadcasters (NAB). NAB purchased the building for lounge, 200 parking spaces in four below-grade levels, and a "triple-scrubbed" $63 million in 2019. fresh air delivered to each occupied space via a Dedicated Outdoor Air System, exchanging 100% of the air every 55 minutes. Photo by Alan Schindler (courtesy of WDG Architecture) Image courtesy of Boston Properties

WARD 2 WARD 2

2100 L STREET 2100 PENNSYLVANIA AVENUE

LOCATION: 2100 L Street, NW LOCATION: 2100 Pennsylvania Avenue, NW DEVELOPER(S): Akridge / Argos Group DEVELOPER(S): Boston Properties / George Washington University ARCHITECT(S): WDG Architecture / Martinez & Johnson ARCHITECT(S): Pelli Clarke Pelli Architects / WDG Architects CONTRACTOR(S): James G. Davis Construction Corporation CONTRACTOR(S): Balfour Beatty LEED: Platinum LEED: Gold EST. VALUE: $360 million STATUS: Completed STATUS: Under Construction TARGETED DELIVERY: Q3 2020 TARGETED DELIVERY: 2Q2 202

SPECS: 2100 L Street is a 10-story, 190,000 SF trophy office building with 8,000 SPECS: 2100 Pennsylvania Avenue will be an 11-story, 454,000 SF trophy office SF of retail space. The building offers floor-to-ceiling glass, a two-story lobby, an building with up to 30,000 SF of neighborhood-serving retail. The building will art gallery with private outdoor terraces, a penthouse conference center, and an have two wings interconnected by a central atrium space and about 325 parking outdoor pocket park. spaces. WilmerHale is the anchor tenant, leasing about 288,000 SF of office space.

WARD 6 WARD 2

250 M AT CANAL PARK 699 14TH STREET

LOCATION: 250 M Street, SE LOCATION: 699 14th Street, NW DEVELOPER(S): WC Smith DEVELOPER(S): Lincoln Property Company / Pearlmark Real Estate ARCHITECT(S): Hickok Cole Architects ARCHITECT(S): Shalom Baranes Associates CONTRACTOR(S): HITT CONTRACTOR(S): Manhattan Construction Company LEED: Silver/Gold EST. VALUE: $133 million LEED: Gold STATUS: Under Construction STATUS: Under Construction TARGETED DELIVERY: Q1 2021 TARGETED DELIVERY: Q1 2021

SPECS: 250 M at Canal Park will be a 189,000 SF Class A office building with SPECS: The historic National Bank of Washington building will be restored 6,700 SF of ground floor retail and 177 parking spaces across three levels and renovated, and a new 11-story Class A office building addition will be of underground parking. It will be the new headquarters for the District constructed on the adjacent lot. The entire development will offer 157,000 SF of Department of Transportation (DDOT) and designed to meet LEED Silver for office space and up to 25,000 SF of retail uses. base building and Gold for tenant improvements. Photo by Ron Blunt (courtesy of Hickok Cole)

WARD 2 WARD 2

ANTHEM ROW 2100 M STREET

LOCATION: 700 K & 800 K Streets, NW LOCATION: 2100 M Street, NW DEVELOPER(S): The Meridian Group DEVELOPER(S): Meadow Partners / Network Realty Partners ARCHITECT(S): Hickok Cole ARCHITECT(S): M orris Adjmi Architects CONTRACTOR(S): Clark Construction Group CONTRACTOR(S): Grunley Construction LEED: Silver EST. VALUE: $142 million STATUS: Pipeline (Near Term) STATUS: Completed TARGETED DELIVERY: 2022 TARGETED DELIVERY: Q3 2019 SPECS: The redevelopment plan for 2100 M Street calls for a full building SPECS: Anthem Row was the result of an extensive renovation of an existing renovation and the addition of three floors (87,800 SF) and a penthouse (8,600 office building into a 12-story, 420,000 SF office building with up to 70,000 SF SF). The new 388,500 SF office building will offer 19,440 SF (with potential for of retail space. The new mixed-use development provides double-height retail up to 46,440 SF) of retail space. space and an enhanced 8th Street pedestrian plaza.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 31 DEVELOPMENT HIGHLIGHTS Image courtesy of Menkiti Group Image courtesy of Brookfield

WARD 8 WARD 6

MLK GATEWAY I 1275 NEW JERSEY AVENUE

LOCATION: 1205–1215 Good Hope Road, SE LOCATION: 1275 New Jersey Avenue, SE DEVELOPER(S): The Menkiti Group DEVELOPER(S): Brookfield Properties ARCHITECT(S): Cunningham + Quill Architects ARCHITECT(S): Gensler CONTRACTOR(S): Consigli Construction CONTRACTOR(S): James G. Davis Construction Corporation EST. VALUE: $23 million LEED: Gold STATUS: Under Construction STATUS: Under Construction TARGETED DELIVERY: Q2 2021 TARGETED DELIVERY: Q4 2021

SPECS: Five DC government-owned parcels are being redeveloped into 20,000 SPECS: The Yards (Parcel G) is being redeveloped into an 11-story, 310,000 SF SF of office space (anchored by Enlightened’s new HQ & tech incubator) and office building with 13,400 SF of retail space. The building will have a double- approximately 14,000 SF of retail uses. The retail space will be home to a story ground-level podium with a nine-story, dual-axis tower above. Chemonics Capital One Café and is also expected to have a sit-down restaurant and other International is expected to occupy the entire building (1,200-1,400 employees). neighborhood-serving tenants. Image courtesy of Four Points, LLC

WARD 8 WARD 8

REUNION SQUARE (BUILDING 4) SAINT ELIZABETHS EAST (PARCEL 17)

LOCATION: Shannon Place & W Street, SE LOCATION: Saint Elizabeths East Campus DEVELOPER(S): Four Points, LLC / Curtis Development DEVELOPER(S): Redbrick LMD / Gragg Cardona Partners / DMPED ARCHITECT(S): Hickok Cole Architects ARCHITECT(S): Winstanley Architects & Planners LEED: Gold LEED: Gold STATUS: Pipeline (Near Term) STATUS: Pipeline (Near Term) TARGETED DELIVERY: Q2 2023 TARGETED DELIVERY: Q1 2023

SPECS: Building 4 is part of the 1.57 million SF Reunion Square development SPECS: As part of the 15.8-acre Phase I redevelopment of the historic St. Elizabeths located in Anacostia. It will consist of 236,000 SF of office space, 6,640 SF of retail East Campus, a new 120,000 SF, six-story office building to be occupied by space, and 241 parking spaces. The DC Department of Health will relocate its Whitman-Walker Health and Whitman-Walker Health System will be constructed headquarters to Building 4. adjacent to the Congress Heights Metrorail Station. There is the potential for up to 18,000 SF of retail uses in the building. A second 160,000 SF office building, designed by Hickok Cole, with 23,000 SF of retail space is also planned on the site.

WARD 6 WARD 5

SENTINEL SQUARE III SIGNAL HOUSE

LOCATION: 45 L Street, NE LOCATION: 1255 Union Street, NE DEVELOPER(S): Trammell Crow Company DEVELOPER(S): Carr Properties ARCHITECT(S): SmithGroup ARCHITECT(S): Gensler CONTRACTOR(S): Clark Construction Group / Rand Construction CONTRACTOR(S): John Moriarty & Associates LEED: Silver EST. VALUE: $250 million LEED: Gold EST. VALUE: $135 million STATUS: Completed STATUS: Under Construction TARGETED DELIVERY: Q2 2020 TARGETED DELIVERY: Q1 2021

SPECS: The third building of the 1.3 million SF Sentinel Square development is SPECS: Signal House will be a 10-story, 227,000 SF office building with 12,000 SF an 11-story, 556,000 SF office building, anchored by the Federal Communications of retail space. The building will feature ceiling heights of 11’ 11” (slab-to-slab) and Commission (473,000 SF), with 11,000 SF of retail space. Phases I and II were wide column spacing (30’x38’). Signal House is part of the 1.4 million SF mixed- delivered in 2010 and 2013, respectively. use Market Terminal development located in the Union Market neighborhood. Image courtesy of Hoffman & Associates Image courtesy of Brookfield

WARD 6 WARD 6

THE WHARF (PHASE II) THE YARDS (PARCEL F)

LOCATION: Southwest Waterfront LOCATION: 1st & N Streets, NE DEVELOPER(S): Hoffman & Associates / Madison Marquette DEVELOPER(S): Brookfield Properties ARCHITECT(S): OD A Architecture / WDG Architecture / ARCHITECT(S): Selldorf Architects Rafael Vinoly Architects / Morris Adjmi Architects / LEED: Gold Studios Architecture / Hollwich Kushner / STATUS: Pipeline (Near Term) Perkins Eastman DC / SHoP / S9 Architecture TARGETED DELIVERY: 2023 CONTRACTOR(S): Balfour Beatty Construction / Donohoe Construction / DPR Construction / Cianbro SPECS: Parcel F will be developed into a nine-story mixed-use building LEED: Gold EST. VALUE: $1.2 billion containing approximately 267,500 SF of office space, 22,800 SF of ground-floor STATUS: Under Construction retail, an 8,350 SF habitable penthouse, and two levels of underground parking. TARGETED DELIVERY: 2Q3 202 The building will contain several levels of outdoor terrace/amenity space and have a two-story ground-level podium. SPECS: Phase II of The Wharf will deliver 547,000 SF of office space in three buildings, 95,000 SF of retail space, a 131-room Pendry hotel, 351 residential units (apartments & condos), two below-grade parking garages, a 200+ slip marina, and four acres of public park/open space. Williams & Connolly LLP will be the anchor office tenant. DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 33 The Wharf Phase 2 Coming 2022

wharfdc.com RETAIL

RETAIL DEVELOPMENT IN WASHINGTON, DC By: Jonathan Chambers, Vice President, Delta Associates

2020 has been a tumultuous year for the District of Columbia’s retail and restaurant market as the COVID-19 pandemic has heavily curtailed demand, with the notable exception of grocery stores. Prior to the pandemic, the retail landscape in the District was robust and recorded strong growth in 2019 into the first quarter of 2020.

2019 TAXABLE RETAIL & RESTAURANT SALES1 RETAIL DELIVERIES IN 20202 DC'S POPULATION GROWTH3 NEW GROCERY STORES4 $16.4 B 665 K 17.8% 42 5.3% INCREASE FROM 2018 ~ SQUARE FEET 2010–2020 SINCE 2010— 7 MORE IN THE PIPELINE

Taxable retail and restaurant sales totaled $16.4 billion in fiscal pivoted to delivery and carry-out business models in March year (FY) 2019, a solid 6.3% increase over FY 2018. Notably, and April by leveraging a variety of services and platforms. restaurant sales grew 8.1% in FY 2019 after experiencing a However, delivery platforms—specifically Grubhub, DoorDash, decline in FY 2018, the first time in six years. Uber Eats and Postmates—have exploited the skyrocketing food delivery demand by charging elevated fees and commissions The District was one of the first jurisdictions in the country to (up to 30% in the spring), which has drastically cut into require the closure of retailers and restaurants to customers restaurant profit margins, with some making losses on delivery (in addition to schools, entertainment venues, and hotels) in orders. Typical profit margins for full-service restaurants response to the community spread of COVID-19 beginning ranges between three and five percent. In response, the District in mid-March 2020. Notably, grocery stores and other Council passed legislation, signed into law by Mayor Bowser in essential food retailers were exempt from the order. Under May, capping delivery fees at 15% of the bill. District's Phase 2 reopening plan that commenced in June, all restaurants and retailers were allowed to re-open with The pandemic has been especially tough for independent strict social distancing measures in place, including capacity retailers, many of whom lack sustained capital to lean on in the capped at 50% and a minimum six-foot distance between near-term. Service oriented retailers which require physical tables in indoor dining rooms. Bars (where much of the interaction, such as barbershops and salons, were forced to shut District’s restaurants generate a considerable share of their down for months during the spring. Craft alcohol producers revenue) were limited to seated guests only six feet apart, have had to shut down tasting rooms, although some have with no bartender service. The District’s Phase 2 restrictions shifted to direct-to-consumer sales models (which was heavily remained in place as of December 2020.5 regulated pre-COVID) and some distilleries augmented their revenue streams by producing hand sanitizer. Retailers and restaurants in both the District and around the world have adopted different methods to adapt to the current In sum, approximately 40% of restaurants in the District ceased reality with varying degrees of success. Primarily, restaurants, operations at least temporarily during the early stages of the including those that were dine-in only pre-COVID, swiftly pandemic, while the remaining 60% saw sales fall by at least

1. Office of the Chief Financial Officer (FY 2021 Proposed Budget & Financial Plan). Year denotes fiscal year (October–September). Taxable retail & restaurant sales include retail, liquor & restaurant sales (categories are based on tax rates and may include other categories). 2. Washington DC Economic Partnership (December 2020, projections based on projects under construction). 3. Census Bureau, Population Division 4. Washington DC Economic Partnership (November 2020) 5. For the most up-to-date information please visit coronavirus.dc.gov/.

SELECT RETAIL AND RESTAURANT OPENINGS 70% according to ReOpenDC.5 This resulted in net Retail job DURING COVID-19 (MARCH 2020–DECEMBER 2020) growth of -3,500 between March and May in the District, TENANT LOCATION NEIGHBORHOOD and net Leisure/Hospitality job growth (including restaurant Atlas Brew Works 1201 Half St., SE Capitol Riverfront positions) of -45,000. Following the Phase 2 re-opening, Baan Siam 425 I St., NW Mt. Vernon Triangle 2,000 Retail jobs and 12,600 Leisure/Hospitality jobs have Baker's Daughter 1402 Okie St., NE Ivy City returned to the city. Bammy's 301 Water St., SE Capitol Riverfront Bar & Lounge 54 1207 19 th St., NW Dupont Circle Unfortunately, many retailers and restaurants in the District BeauTea 1073 Wisconsin Ave., NW Georgetown have shut their doors permanently because of the pandemic. Brine 1359 H St., NE H Street In June, the Restaurant Association of Metropolitan Call Your Mother 3428 O St., NW Georgetown Washington predicted that the metro area could lose Colada Shop 10 Pearl St., SW Southwest between 25% and 30% of independently owned restaurants. El Cielo Restaurant 1280 4th St., NE Union Market Notable closures since the beginning of the pandemic include th Fight Club 623 Pennsylvania Ave., SE Capitol Hill the 14 Street NW location of Matchbox, Momofuku, Post Pub, Eighteenth Street Lounge, Ghibelina, Naf Naf Grill, Georgetown Social 2920 M St., NW Georgetown Firehook Bakery, and Fado Irish Pub. Ghostline 2340 Wisconsin Ave., NW Cathedral Heights Gypsy Kitchen 1825 14th St., NW 14th Street Meanwhile, retailers and restaurants have engaged in intense KitchenCray 1301 H St., NE H Street negotiations with property owners to stay afloat. In October La Famosa 1300 4th St., SE Capitol Riverfront 2020 the District Council passed a law mandating that Levain Bakery 3131 M St., NW Georgetown rent payment plans be available for retail tenants that lease Lulu's Winegarden 1940 11th St., NW U Street under 6,500 SF during the public health emergency and for Lupo Pizzeria 1908 14th St., NW 14th & U Streets one year after. Retail rent collection rates nationally have Mah-Ze-Dahr Bakery 1201 Half St., SE Navy Yard generally improved from a low of just 57% in May to 80% in Martha Dear 3110 Mt. Pleasant St., NW Mount Pleasant September according to Datex Property Solutions. Locally, Melange 449 K St., NW Mt. Vernon Triangle property owners have been offering deep rent concessions Menya Hosaki 845 Upshur St., NW Petworth (up to 50%) or deferrals to tenants. Mercy Me 1143 New Hampshire Ave., NW West End Momo Chicken & Grill 1001 4th St., SW Southwest Despite the grim situation, a number of new retail leases Muchas Gracias 5029 Connecticut Ave., NW Chevy Chase have commenced since the start of the pandemic, indicating Other Half Brewing: DC 1401 Okie St., NE Ivy City confidence in the long-term prospects of the sector in the Oyster Oyster 1440 8 th St., NW Shaw District. One of the most notable leases executed was signed Proper 21 2033 K St., NW Golden Triangle by Whole Foods for 40,000 SF at the Parks at Walter Reed Pupatella 1801 18 th St., NW Dupont Circle mixed-use development in Q4 2019. Additionally, renovations RASA 485 K St., NW Mt. Vernon Triangle are commencing at the Glover Park Whole Foods which Roaming Rooster 1301 U St., NW 14th & U Streets has been shuttered for over three years. Amazon has also th Rumi’s Kitchen 640 L St., NW Mt. Vernon Square committed to occupy about 8,000 SF on 14 Street NW for a Saint-Vincent 3212 Georgia Ave., NW Petworth/Park View retail presence under a yet-to-be-determined brand with a Shelter 1401 Pennsylvania Ave., SE Capitol Hill second location on H Street NE. Shibuya Eatery 2321 18th St., NW Adams Morgan Smokin’ Pig 1208 H St., NE H Street Tabla 3227 Georgia Ave., NW Parkview Taïm Dupont Circle 1514 Connecticut Ave., NW Dupont Circle The Roost 1401 Pennsylvania Ave., SE Capitol Hill 5. ReOpenDC Advisory Group Recommendations to the Mayor, May 2020

Source: Delta Associates, Yelp, Washington Business Journal, Eater Washington DC; December 2020.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 37 RETAIL DEVELOPMENT

NOTABLE RETAIL LEASES IN THE DISTRICT (2020)

TENANT PROPERTY ADDRESS NEIGHBORHOOD SIZE (SF) DATE

City-State Brewing Co. 705 Edgewood St., NE Brookland 13,000 Q1 2020 Love, Makoto 200 Massachusetts Ave., NW Downtown DC 9,000 Q3 2020 Blu Dot 3333 M St., NW Georgetown 8,950 Q1 2020 Amazon 1701 14th St., NW 14th & U Streets 8,000 Q1 2020 Lolita Cocina & Tequila Bar 2201 14th St., NW 14th & U Streets 7,200 Q1 2020 Handle19 319 Pennsylvania Ave., SE Capitol Hill 6,000 Q2 2020 Ilili 100 District Sq., SW Southwest Waterfront 5,000 Q1 2020 Capital One Café 1909 Martin Luther King Jr. Ave, SE Anacostia 3,700 Q3 2020 Bistrow du Jour 99 District Sq., SW Southwest Waterfront 1,770 Q4 2020

Source: Bisnow, Eater, Washington Business Journal, Delta Associates; December 2020.

Across the metro region, no single community has suffered Entertainment/Recreation spending, and -66% decrease in more from the pandemic’s effects on brick-and-mortar retail Transportation spending. Notably, spending for all retail than the urban village of Friendship Heights on the District- purchases was only down -2% compared to January, thanks Maryland border. Once billed as the “Rodeo Drive of the East” primarily to a transition to online shopping. In addition, and boasting one of the wealthiest demographics in the nation, grocery expenditures have actually increased in the District the mixed-use hub had struggled to retain retailers even before through the pandemic, with sales ballooning 40% in March the pandemic arrived. Over the last few years, luxury boutique compared to January and up 7% in December. The increase in tenants in Friendship Heights such as Saks Jandel, Gucci, sales came despite a jump in prices for produce triggered by Bulgari, Louis Vuitton, Dior, and Cartier closed altogether or supply constraints. moved to CityCenterDC. However, the pandemic ushered in a wave of larger tenant closures, such as P.F. Chang’s, Lord & The near future looks somewhat bleak for retailers and Taylor, Neiman Marcus, and Brooks Brothers. Notably, nearly restaurateurs in the District. While we expect demand to all the recent closures are the product of a national crisis among return eventually, the timing remains very uncertain. Even after luxury brick and mortar retailers. Elsewhere in the District, vaccine distribution commences it will likely be months before Brook Brothers closed its Georgetown store, J. Crew closed in shoppers feel entirely safe again in stores. In the immediate Logan Circle, and Jos A. Bank closed in Union Station. future, the struggle for survival of restaurants in the District and other temperate climate cities will only intensify as cold While consumer spending is still far below pre-pandemic weather arrives, removing the option of outdoor seating. levels, it has improved dramatically since the spring. As of The Office of the Chief Financial Officer reported a sales tax December, total spending by District residents (as measured by revenue declined of -23.5% in FY 2020 (including a -46% credit card transaction volume tracked by Affinity Solutions) decline in hotel and restaurant tax receipts) and gross sales was down -25% compared to January. This includes a -57% tax revenue in FY 2021 is forecasted to decline -9% before decrease in Restaurant/Hotel spending, -63% decrease in rebounding by 27% in FY 2022.6

6. Office of the Chief Financial Officer September 2020 District of Columbia Revised Revenue Estimates, December 2020.

THE DISTRICT’S CHANGE IN CONSUMER SPENDING SINCE JANUARY 2020

40%

30%

20%

10% 7% Feb Dec Feb Dec Feb Dec Dec 0% Feb Dec Feb -2% -10%

-20% -22% -30%

-40%

-50%

-60% -57% -70% -65%

-80% Restaurants/Hotels Entertainment/Recreation Apparel & General Merchandise Grocery All Retail Spending

Source: Affinity Solutions via Economic Tracker, Delta Associates; December 2020.

The retail landscape will likely be permanently affected by in an October article from Bloomberg. Many of these the pandemic, even when demand does return. Unfortunately competitors have adopted Whole Foods’ successful strategy of for small retailers, the rise of the one-stop-shop mega- accommodating pickup and delivery of online grocery orders. retailers will likely accelerate. While smaller mall and in-line Other reasons for the grocer’s struggles are its infamously retailers have seen sales plummet, big-box stores such as high prices which are less tenable with customers during a Home Depot and Best Buy, and especially discount stores like recession, as well as the lack of lunchtime crowds for its large Walmart and Target, have seen sales increase. This trend will selection of prepared food options. likely continue after the pandemic, even in urban areas like the District. Online retail orders and take-out, curbside pickup, and delivery options are likely here to stay, although customers The pandemic has also accelerated consumers’ shift to will also return to restaurants to enjoy the dining experience e-commerce, requiring brick-and-mortar retailers to adapt once the pandemic abates. In the near-term, social distancing and move business online. In a somewhat ironic twist of and enhanced sanitary protocols will certainly persist, as will fortunes, high-end grocer and Amazon subsidiary Whole improved restaurant kitchen efficiency measures, including Foods hasn’t been experiencing the same level of sales as the continued proliferation of “ghost kitchens” as a lean its mainstream and discount competitors, as discussed service model without customer seating.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 39 WDCEP REAL ESTATE

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[email protected] wdcep.com (202) 661-8670 1495 F Street NW, Washington, DC 20004 RETAIL DEVELOPMENT

RETAIL DEVELOPMENT (SF IN THOUSANDS, DECEMBER 2020)

1,200

REAL ESTATE 1,000

800 665 611 SERVICES 600 473

400 318

200

0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021* 2022*

GROUNDBREAKING COMPLETED PROJECTED DELIVERIES*

*projections based on targeted delivery dates of projects under construction as of December 2020

RETAIL DEVELOPMENT (DECEMBER 2020) PROJECTS RETAIL SF COMPLETED (SINCE 2001) 478 9,933,705 2010 11 330,700 2011 11 312,345 2012 16 314,324 2013 26 1,041,942 2014 27 690,259 2015 24 473,626 2016 37 749,671 2017 29 637,469 2018 30 330,439 2019 29 673,434 2020 39 664,811

UNDER CONSTRUCTION 46 1,093,947 2021 DELIVERY 34 473,110 2022 DELIVERY 11 610,715 2023 DELIVERY 1 10,122

PIPELINE 203 4,896,392 NEAR TERM 91 1,366,700 LONG TERM 112 3,529,692

TOTAL 727 15,924,044

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 41 ■ COMPLETED ■ UNDER CONSTRUCTION 17 ■ PIPELINE

22 SOUTH DAKOTA AVE MASSACHUSETTS AVE11

CONNECTICUT AVE

GEORGIA AVE

ROCK CREEK PARK 14TH ST. 18 7

U ST.

RHODE ISLAND AVE

G E O 1 R G E W A S NEW YORK AVE H IN 15 8 G T O N M E M O R IA L P K W Y 26 16 20 19 H ST. VIRGINIA 6 9 66 UNION STATION

NATIONAL MALL E. CAPITOL ST. VIRGINIA U.S. CAPITOL 3

FORT DUPONT 13 10 PARK 28 M ST. 5 29 NATIONALS PARK PENNSYLVANIA AVE 24 4 M

395 2 30 M . E 12 23 1 V A

. R J

M G

R E

M NATIONAL H

AIRPORT T

N I

R A 25 Alexandria M 27

ALABAMA AVE

All project locations are approximate. RETAIL DEVELOPMENT PIPELINE

EST. VALUE EST. PROJECT WARD LOCATION DEVELOPER(S) RETAIL SF ($M) 1 DELIVERY2

TOP RETAIL PROJECTS COMPLETED (Q4 2019–Q4 2020)

1 Hecht Warehouse 5 1515 New York Ave., NE Douglas Development Corporation 93,000 $27 Q4 19 (1515 New York Avenue) 2 Riverpoint 6 2100 2nd St., SW Akridge / Western Development / Orr Partners / 70,400 $220 Q4 20 Jefferson Apartment Group 3 Beckert’s Park 6 415 14th St., SE Foulger-Pratt / Safeway 68,000 $138 Q3 20 4 Shops at Penn Branch (Phase I) 7 3200 Pennsylvania Ave., SE Jair Lynch Real Estate Partners 65,000 $25 Q4 19 5 The Kelvin 6 1250 Half St., SE Jair Lynch Real Estate Partners 59,000 $155 Q3 20 6 250 Massachusetts Avenue 2 250 Massachusetts Ave., NW Property Group Partners 58,400 $275 Q4 19 7 The Wren 1 965 Florida Ave., NW MRP Realty / JBG Smith / 49,200 $153 Q3 20 Ellis Development Group 8 Hecht Warehouse District 5 1401 Okie St., NE Douglas Development Corporation 46,800 Q4 19 (Pappas Building) 9 AVEC 6 901 H St., NE Rappaport / Lustine Family / WC Smith 43,700 $200 Q2 20 10 West Half 6 1201 Half St., SE JBG Smith 42,000 $228 Q3 20

TOP RETAIL PROJECTS UNDER CONSTRUCTION

11 City Ridge 3 3900 Wisconsin Ave., NW Roadside Development / North America 196,000 $715 Q2 22 Sekisui House 12 Crest at Skyland Town Center 7 Alabama Ave. & Naylor Rd., SE Rappaport / WC Smith / Washington East 117,000 $199 Q1 21 13 The Wharf (Phase II) 6 Southwest Waterfront Hoffman & Associates / Madison Marquette 95,000 $1,150 Q3 22 14 ART Place at Fort Totten 5 5300 South Dakota Ave., NE Morris & Gwendolyn Cafritz Foundation 95,000 Q4 22 (Phase II) 15 Eckington Yards 5 1625 Eckington Pl. & 1500 Harry The JBG Companies / LCOR 67,300 $265 Q2 21 Thomas Way, NE 16 Armature Works 6 1200 3 rd St., NE Trammell Crow Company / High Street 60,000 $400 Q2 22 Residential / MetLife 17 The Hartley 4 6900 Georgia Ave., NW Hines / Urban Atlantic / Triden Development / 60,000 Q1 22 Bridge Investment Group 18 Bryant Street (Phase I) 5 680 Rhode Island Ave., NE MRP Realty / FRP Development Corp 40,400 Q3 21 19 NoMa CNTR 6 1005 1st St., NE Perseus TDC / Four Points / Buccini Pollin Group / 39,900 $330 Q4 22 Sunwater Management 20 Press House at Union District 6 301–331 N St., NE Foulger-Pratt 27,282 $180 Q2 21

TOP RETAIL PROJECTS IN THE PIPELINE

21 Northeast Heights 7 3924–3968 Minnesota Ave., NE Cedar Realty Trust / Trammell Crow Company 194,600 $420 2022-28

22 Upton Place 3 4000 Wisconsin Ave. NW Donohoe Companies 100,000 2024 23 Skyland Town Center (Block 3) 7 Alabama Ave. & Naylor Rd., SE Rappaport / WC Smith 42,400 $17 2022 24 113 Potomac Avenue 6 113 Potomac Ave., SW Toll Brothers 41,000 $250 2023 25 Saint Elizabeths East 8 Saint Elizabeths East Campus Redbrick LMD / Gragg Cardona Partners / 31,000 $170 2023 (Parcel 17) DMPED 26 North Building 5 1329 5th St., NE EDENS / Gables Residential 23,100 $140 2023 27 Saint Elizabeths East 8 Saint Elizabeths East Campus Neighborhood Development Company / 21,000 2024 (Parcel 13) MCG Capital / DMPED 28 Waterfront Station II 6 1000 4th St., SW Hoffman & Associates / CityPartners / 19,700 $165 2023 Affordable Housing Developers / Paramount Development Corp. / DMPED 29 The Yards (Parcel I) 6 Canal & N Sts., SE Brookfield Properties 16,000 2023 30 The Clara on Martin Luther 8 2313 Martin Luther King Jr. Ave, SE Banneker Ventures / Masjid Muhammad 14,000 $43 2022 King, Jr. Ave

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.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 43 DEVELOPMENT HIGHLIGHTS Image courtesy of Perkins Eastman

WARD 5 WARD 6

ART PLACE AT FORT TOTTEN (PHASE II) AVEC

LOCATION: Fort Totten Metrorail Station LOCATION: 901 H Street, NE DEVELOPER(S): Morris and Gwendolyn Cafritz Foundation DEVELOPER(S): Rappaport / WC Smith / Lustine Family ARCHITECT(S): P erkins Eastman DC / Studio Shanghai ARCHITECT(S): Torti Gallas and Partners CONTRACTOR(S): L.F. Jennings CONTRACTOR(S): WCS Construction STATUS: Under Construction LEED: Silver EST. VALUE: $200 million TARGETED DELIVERY: 2Q4 202 STATUS: Completed TARGETED DELIVERY: Q2 2020 SPECS: The second phase of the 2.0 million SF ART Place at Fort Totten mixed- use development, located on the 5.1-acre Block B, will consist of two buildings SPECS: AVEC is a two-block redevelopment project with multiple facades. The totaling 270 multifamily units, the Explore! Children's Museum, a family 419-unit multifamily residential building offers 44,000 SF of retail space and a entertainment zone (anticipated to be anchored by Meow Wolf ), an Aldi grocery three-level underground garage that provides off-street parking for residents store (25,000 SF), 30 units of artist housing/workspace, additional retail, and (309 spaces) and retail patrons (126 spaces). Retail tenants include [Solidcore], 930 parking spaces. Urban Nail Lounge, AT&T, Heart & Paw, and a grocery store. Courtesy of BKV Group Image courtesy of Neighborhood Development Company

WARD 6 WARD 7

BECKERT’S PARK BENNING MARKET

LOCATION: 415 14th Street, SE LOCATION: 3451 Benning Road, NE DEVELOPER(S): Foulger-Pratt / Safeway DEVELOPER(S): Neighborhood Development Company ARCHITECT(S): BKV Group ARCHITECT(S): 2-POV CONTRACTOR(S): Foulger-Pratt EST. VALUE: $5.2 million LEED: Silver EST. VALUE: $138 million STATUS: Under Construction STATUS: Completed TARGETED DELIVERY: 2021 TARGETED DELIVERY: Q3 2020 SPECS: This mixed-use project will provide 12,400 SF of innovative office SPECS: Beckert's Park consists of 325 residential apartment units and 68,000 SF space and a 7,000 SF food-focused, neighborhood-serving retail, anchored by of ground floor retail, anchored by a new 60,000 SF Safeway grocery store. The Market 7 (food hall/market), in the River Terrace neighborhood of Northeast site was formerly home to a standalone Safeway with surface parking. Washington, DC.

WARD 6 WARD 1

BLACKBIRD BOND BREAD

LOCATION: 1401 Pennsylvania Avenue, SE LOCATION: 2114 Georgia Avenue, NW DEVELOPER(S): May | Riegler Properties DEVELOPER(S): Edens / Menkiti Group / Fivesquares Development / ARCHITECT(S): Antunovich Associates Howard University CONTRACTOR(S): Tishman Construction / AECOM ARCHITECT(S): Studios Architecture LEED: Gold EST. VALUE: $80 million EST. VALUE: $275 million STATUS: Completed STATUS: Pipeline (Near Term) TARGETED DELIVERY: Q3 2020 TARGETED DELIVERY: 2025

SPECS: Blackbird is a mixed-use project with 167 residential units (346–1,220 SF) SPECS: Howard University selected the Bond Partnership to redevelop the and 25,700 SF of retail. The retail space offers ceiling heights up to 17 feet 2.2-acre site. Plans include 450 residential units, 55,000 SF of retail, up to 300 and is anchored by The Roost, a culinary clubhouse, a food hall, and a parking spaces, and potentially a 180-room hotel. The two historic industrial neighborhood gathering place. There is one level of underground parking buildings onsite will be incorporated into the development. with 59 spaces. Image courtesy of Roadside Development

WARD 5 WARD 3

BRYANT STREET (PHASE I) CITY RIDGE

LOCATION: 680 Rhode Island Avenue, NE LOCATION: 3900 Wisconsin Avenue, NW DEVELOPER(S): MRP Realty / FRP Development Corp. DEVELOPER(S): Roadside Development / North America Sekisui House ARCHITECT(S): SK+I Architectural Design Group ARCHITECT(S): Shalom Baranes Associates LEED: Gold CONTRACTOR(S): Whiting-Turner Contracting Co. STATUS: Under Construction LEED: Gold EST. VALUE: $715 million TARGETED DELIVERY: Q3 2021 STATUS: Under Construction TARGETED DELIVERY: 2Q2 202 SPECS: The 13-acre Rhode Island Avenue Shopping Center will be redeveloped into a mixed-use project with up to 1,600 residential units and 275,000 SF SPECS: The former headquarters for Fannie Mae (~10 acres) will be redeveloped of retail/entertainment space. Phase I will consist of three buildings totaling into 1.15 million SF of mixed-use development. The plan calls for nine 487 residential units, an anticipated nine-screen Alamo Draft Cinema, and mixed-use buildings totaling 690 residential units, 196,000 SF of retail space approximately 40,400 SF of additional retail space. (anchored by an 82,000 SF Wegmans grocery store), and 170,000 SF of office/ cultural uses. Portions of the original building will be incorporated into the overall development plan to house the International Baccalaureate’s Global Centre for the Americas. The grand front lawn will be heavily programmed with events and cultural activities.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 45 DEVELOPMENT HIGHLIGHTS Image courtesy of Perkins Eastman DC Image courtesy of WC Smith

WARD 1 WARD 7

COLLECTION14 CREST AT SKYLAND TOWN CENTER

LOCATION: 2122 14th Street, NW LOCATION: Alabama Avenue & Naylor Road, SE DEVELOPER(S): Madison Investments DEVELOPER(S): Rappaport / WC Smith / Washington East ARCHITECT(S): Perkins Eastman DC ARCHITECT(S): Torti Gallas and Partners CONTRACTOR(S): McCullough Construction LLC CONTRACTOR(S): WCS Construction / L.F. Jennings LEED: Silver EST. VALUE: $100 million LEED: Silver EST. VALUE: $199 million STATUS: Under Construction STATUS: Under Construction TARGETED DELIVERY: Q3 2021 TARGETED DELIVERY: Q1 2021

SPECS: The 2100 block of 14th Street will be redeveloped into a seven-story, 233- SPECS: The redevelopment of the 18.5-acre Skyland Shopping Center could unit residential building with up to 29,800 SF of commercial space (5,300 SF result in up to 320,000 SF of commercial space and 500 residential units. office, 20,500 SF retail, 4,000 SF for arts uses), 70 parking spaces, and at least 105 The Crest at Skyland will deliver roads and infrastructure, in addition to 263 bicycle spaces. The existing structure at 2100 14th Street will be incorporated into apartments, over 117,000 gross SF of retail (84,000 SF net rentable). Future the development. phases include 41,000 SF of retail anchored by DC’s first Lidl grocery store on Block 3 in 2022. A video of the project can be found at wdcep.co/skyland-video. Mary Parker Photography (courtesy of Hickok Cole)

WARD 1 WARD 6

J LINEA NOMA CNTR

LOCATION: 2009 8th Street, NW LOCATION: 1005 1st Street, NE DEVELOPER(S): Jefferson Apartment Group / Stars Investment Management DEVELOPER(S): Four Points / Perseus TDC / Buccini Pollin Group / ARCHITECT(S): Hickok Cole Sunwater Management CONTRACTOR(S): CBG Building Company ARCHITECT(S): HKS PC LEED: Silver EST. VALUE: $75 million CONTRACTOR(S): John Moriarty & Associates STATUS: Completed LEED: Silver EST. VALUE: $330 million TARGETED DELIVERY: Q2 2020 STATUS: Under Construction TARGETED DELIVERY: 2Q4 202 SPECS: The new 132-unit mixed-use residential building sits above 16,400 SF of street-level retail and 57 parking spaces. The avant-garde boutique residence has SPECS: NoMa CNTR will be a mixed-use development with 500 residential a unique angular geometry and a cascading gold fins series, while preserving the units, a 235-room Marriott hotel, and up to 40,000 SF of retail space. The pedestrian scale of the narrow side street. building's west wing will be residential, while the east wing will include residential and hotel uses.

WARD 7 WARD 6

NORTHEAST HEIGHTS PRESS HOUSE AT UNION DISTRICT

LOCATION: Minnesota Avenue & Benning Road, NE LOCATION: 301 N Street, NE DEVELOPER(S): Cedar Realty Trust / Trammell Crow Company DEVELOPER(S): Foulger-Pratt ARCHITECT(S): P erkins Eastman DC / Moya Design Partners / ARCHITECT(S): Torti Gallas Urban / AA Studio SK+I Architectural Design Group CONTRACTOR(S): Foulger-Pratt EST. VALUE: $420 million LEED: Gold EST. VALUE: $180 million STATUS: Pipeline (Near-Long Term) STATUS: Under Construction TARGETED DELIVERY: 2022–28 TARGETED DELIVERY: Q2 2021

SPECS: The 13.2-acre site, bisected by Minnesota Avenue, involves the SPECS: This project will deliver 356 residential apartment units, 25,700 SF redevelopment of two distinct existing shopping centers. Total build-out of office space, and 27,300 SF of retail space. The project will rehabilitate could result in 265,000 SF of office space (anchored by the 700-employee DC and incorporate the historical structure onsite to serve as the new home for Department of General Services), 1,355 residential units, 194,600 SF of retail Hickok Cole. A future phase may include a hotel/condo building. uses, 1,127 parking spaces, and 706 bicycle spaces. Image courtesy of Bonstra | Haresign ARCHITECTS

WARD 6 WARD 8

RIVERPOINT SAINT ELIZABETHS EAST (PARCEL 13)

LOCATION: 2100 2nd Street, SW LOCATION: Saint Elizabeths East Campus DEVELOPER(S): Akridge / Western Development Corporation / DEVELOPER(S): Neighborhood Development Company / MCG Capital / Jefferson Apartment Group / Orr Partners DMPED ARCHITECT(S): Antunovich Associates ARCHITECT(S): Bonstra | Haresign Architects CONTRACTOR(S): CBG Building Company CONTRACTOR(S): GCS-Sigal LLC LEED: Silver EST. VALUE: $220 million STATUS: Pipeline (Near Term) STATUS: Completed TARGETED DELIVERY: 2024 TARGETED DELIVERY: Q4 2020 SPECS: Redevelopment plans for the 2.9-acre site call for a seven-story, SPECS: RiverPoint is an adaptive reuse of the former U.S. Coast Guard 421-unit residential rental building with 126 affordable units, 21,000 SF of headquarters at Buzzard Point into 481 residential apartments and up to commercial space, and 240 underground parking spaces. The retail will be 70,400 SF of restaurant and retail space, anchored by a seafood restaurant by anchored by the restaurant Halfsmoke and social services organization A Greg Casten, and a waterfront restaurant, a food hall by Spike Gjerde, and DC Wider Circle. The project will also include pedestrian access to the Congress Central Kitchen's new HQ. Heights Metrorail Station.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 47 DEVELOPMENT HIGHLIGHTS Image courtesy of Urban Atlantic

WARD 7 WARD 4

STRAND THEATER THE PARKS AT WALTER REED (THE HARTLEY)

LOCATION: 5119–5127 Nannie Helen Burroughs Avenue, NE LOCATION: 6900 Georgia Avenue, NW DEVELOPER(S): The Warrenton Group / Washington Metropolitan CDC / DEVELOPER(S): Urban Atlantic / Hines / Triden Development Group NHP Foundation ARCHITECT(S): Torti Gallas Urban, Inc. ARCHITECT(S): PGN Architects PLLC CONTRACTOR(S): CBG Building Company CONTRACTOR(S): WCS Construction STATUS: Under Construction LEED: Gold EST. VALUE: $38 million TARGETED DELIVERY: 2Q1 202 STATUS: Under Construction TARGETED DELIVERY: Q3 2021 SPECS: The Hartley (Building I/J) is a mixed-use project located on the former Walter Reed medical campus. The building will include 323 rental apartments and SPECS: The Strand Residences will be built adjacent to the historic Strand 60,000 SF of retail space, anchored by a 40,000 SF Whole Foods grocery store. Theater and will feature approximately 1,400 SF of retail space on the ground- The Hartley is the first component of the "town center" portion of the 3.1 million level, 1,200 SF of community/business incubator space, and 86 affordable SF Walter Reed redevelopment master plan and is being constructed on the site of residential units. The historic theatre will be renovated and become home to the former 2.6 million SF hospital building. Deanwood Smokehouse, from the owners of Ivy City Smokehouse.

WARD 1 WARD 6

THE WREN WEST HALF

LOCATION: 965 Florida Avenue, NW LOCATION: 1201 Half Street, SE DEVELOPER(S): MRP Realty / Ellis Development Group / JBG Smith DEVELOPER(S): JBG Smith ARCHITECT(S): Hord Coplan Macht / PGN Architects ARCHITECT(S): Eric Colbert & Associates / ODA Architecture CONTRACTOR(S): John Moriarty & Associates CONTRACTOR(S): HITT LEED: Silver EST. VALUE: $153 million LEED: Gold EST. VALUE: $228 million STATUS: Completed STATUS: Completed TARGETED DELIVERY: Q3 2020 TARGETED DELIVERY: Q3 2020

SPECS: MRP and Ellis Development Group won the RFP from the DC SPECS: West Half is an 11-story mixed-use building featuring 465 residential government (July 2013) to redevelop the site into a 400,000 SF mixed-use rental apartment units (some with large terraces facing Nationals Park) and project. The Wren features 433 residential rental apartments (130 affordable), 42,000 SF of retail space on two levels. a 44,000 SF Whole Foods grocery store, and 344 parking spaces on three levels of below-grade parking.

RESIDENTIAL DEVELOPMENT IN WASHINGTON, DC

Image courtesy of Bonstra | Haresign Architects By: Nick DuBose, Real Estate Analyst, Delta Associates

The Washington metro area is the seventh largest apartment market in the U.S., with the Census Bureau approximating its multifamily supply at 561,000 units.

RENTAL UNIT STABILIZED APARTMENT RESIDENTIAL UNITS TOTAL DC HOUSEHOLDS 1 INVENTORY 2 VACANCY 2 UNDER CONSTRUCTION 3 313,459 52,387 9.6% 13,777 17.5% INCREASE FROM 2010 Q4 2020 Q4 2020 ~83% MARKET-RATE UNITS (CLASS A+B MARKET-RATE) (CLASS A+B MARKET-RATE) (DECEMBER 2020)

In 2020, 10,842 Class A market-rate apartment units were Most recent apartment deliveries have been concentrated in the delivered in the Washington metro area, with 5,559 of Capitol Riverfront and Southwest, with a total of 12 projects with those units located in the District. Over the same period, over 4,000 units completed in the two neighborhoods during the 3,692 Class A and B market-rate apartments were absorbed year, and another nine projects with over 2,500 units currently in the Washington metro area on a net basis. The District under construction. Additional concentrations of construction contributed just 469 units (net) to that total, which was activity are in the NoMa/Union Market, Columbia Heights, a massive drop from the 4,314 units absorbed in 2019. and Shaw submarkets. The 17 projects that began leasing in

THE DISTRICT’S CLASS A + B APARTMENT MARKET

20% 4,000

15.5% 15%

10% 3,000 NUMBER OF UNITS 5%

0% 2,000

10% 1,000

469 15%

20% 0 -18.5% Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 2015 2016 2017 2018 2019 2020

ANNUAL ABSORPTION ANNUAL RENT GROWTH OVERALL VACANCY

Source: Delta Associates; December 2020

1. Esri forecasts for 2020 2. Delta Associates, December 2020. “Stabilized Vacancy” is the rate of “available units” in properties that have achieved 95% occupancy. The building stays in the pool of stabilized properties even if it falls below 95% occupancy at a subsequent date. 3. Washington DC Economic Partnership, December 2020. Includes rental & ownership units (market-rate & non-market rate) in new construction & major renovation projects

the District in 2020 have seen an average lease-up pace of than double the 4.9% rate a year prior. The greater metro area approximately 12 units per month. Over the next two years, about had a stabilized vacancy rate of 6.1% for all classes of apartments 10,700 new market-rate units are expected to enter the District’s at the end of 2020, compared to 4.6% at year-end 2019. apartment market. During the same timeframe, a total of 26,200 Nevertheless, multifamily vacancy in the Washington region new apartment unit deliveries are projected metro-wide. remains lower than other major metropolitan areas like Boston, Atlanta, Dallas/Fort Worth, South Florida, Houston, and Chicago. A substantial number of deliveries over the past five years, Multifamily demand in Washington is relatively strong, although combined with the current crisis surrounding COVID-19, have it has been tempered due to the pandemic. Hyper-supply in the caused vacancy rates in the District and Washington metro area region is the most significant threat to healthy vacancy rates in to rise significantly in 2020. The District had a stabilized vacancy the coming years, and the apartment market in the District is rate of 10.3% for Class A apartments as of the end 2020, more under even greater pressure due to outmigration to the suburbs.

WASHINGTON METRO AREA CLASS A + B APARTMENT MARKET

6.6% 6.0% 15,000 4.0%

2.0% NUMBER OF UNITS 0.0% 10,000

2.0%

4.0% 5,000 6.0% 3,692

8.0%

10.0% 0 -10.1% Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 2015 2016 2017 2018 2019 2020

ANNUAL ABSORPTION ANNUAL RENT GROWTH OVERALL VACANCY

Source: Delta Associates; December 2020

Since the COVID-19 pandemic hit the U.S. at the end of The multitude of deliveries and lack of absorption over Q1 2020, concessions have skyrocketed in the District. the past year have worsened the crisis. With a rapidly Over the past two quarters, as a percentage of face rent, increasing supply of units and renters seeking more affordable average concessions have increased from 2.2% in Q1 2020 options during economic volatility, the District multifamily to a whopping 10.7% in Q4 2020—the highest rate of lease market will continue to be highly vulnerable to fluctuating concessions in recent history. So far, these efforts have done demand and heightened competition in the short-term, but little to temper the rise in vacancy caused by the pandemic. prospects remain positive over the long-term for the city.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 51 RESIDENTIAL DEVELOPMENT

SINGLE-FAMILY, CONDO, AND MULTIFAMILY UNITS AND VACANCY SELECTED U.S. METROPOLITAN AREAS (Q4 2020) TOWNHOME MARKET Q4 2020 LOCATION VACANCY

In stark contrast to the rental apartment market, the District’s Atlanta 5.5% for-sale market performed relatively well in 2020. There were Boston 6.0% a total of 9,549 condo, townhome, and single-family existing Chicago 5.9% home sales recorded in the District during 2020, a 6.0% increase in volume over 2019. Existing condo sales grew 9.8% during Dallas/Fort Worth 6.1% 2020, while existing rowhome sales increased 6.8%. However, Houston 6.0% sales volume for detached single-family homes in the District Los Angeles Basin 4.3% decreased 6.5%. The median price for all existing home types New York 4.7% as of Q4 2020 was $664,200, a nearly 10% increase from a year San Francisco Bay 4.8% prior. The median sales prices for these types of units in 2020 South Florida 6.8% through October were $505,500 and $780,000, respectively. Washington 4.7%

New condo sales in the District were down in 2020 at 408 total Note: Vacancy includes Class A and Class B. Source: REIS, Delta Associates; December 2020 units compared to 543 units in 2019. However, “same-store” prices increased 2.5% District-wide, with positive gains in every submarket except Central DC (-1.6% price change). Low interest rates coupled with mortgage payments comparable to CLASS A APARTMENT EFFECTIVE RENT AND many Class A apartment rents helped increase condo demand ANNUAL RENT GROWTH (Q4 2020) in 2020. Upper Northwest (where all sales are in high-end SUBMARKET EFFECTIVE RENT RENT CHANGE VACANCY luxury buildings) remained the new condo price leader in 2020 Brookland/Fort Totten $1,859 -10.1% 8.4% at an average of $1,319 in effective price per SF. In contrast to apartments, concessions remained low for new condos averaging Capitol Hill $2,898 -6.5% 11.5% 0.5% as a percentage of asking price as of Q4 2020. Capitol Riverfront $2,138 -21.4% 11.4% Columbia Heights $1,950 -17.2% 10.2% COVID-19’S IMPACT ON THE DC Dupont/Logan Circle $2,451 -21.0% 6.9% RESIDENTIAL MARKET East End $2,184 -23.4% 10.6% H Street $2,153 -15.4% 8.6%

Mount Vernon Triangle $1,986 -23.9% 8.2% COVID-19 has devastated the District’s multifamily market, while the city’s for-sale market remains relatively unaffected. NoMa/Union Market $2,052 -15.7% 9.2% The -18.5% annual rent growth for all apartments in the District Shaw $2,069 -24.0% 10.5% in 2020 is unprecedented, and ongoing construction continues Southwest $2,091 -21.0% 14.4% to threaten market stability going forward. Declining rents U Street $2,455 -17.6% 10.3% may help curb the rise in vacancy, but not enough to return the West End $3,021 -19.2% 8.5% market to pre-pandemic performance. Tenant rent payment rates District Average $2,185 -17.9% 10.3% have declined as households struggle financially and eviction moratoriums were put in place. Nationally, the rate of rent Source: Delta Associates; December 2020 collection fell to a new all-time low of 75.4% in December 2020, compared to 83.2% a year prior.4

4. National Multifamily Housing Council, December 2020.

DISTRICT CONCESSIONS AS A PERCENTAGE OF FACE RENT (Q1 2018–Q4 2020)

10.7%

10%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2018 2019 2020

Source: Transwestern, Delta Associates; December 2020.

Although the for-sale market has so far prospered • Cohesive and effective public policy from the new despite economic concerns arising from the pandemic, presidential administration and unified Congress to soften it may too be in for a correction as mortgage forgiveness the blow to the U.S. economy, especially the provision policies expire in summer 2021. The District’s multifamily of financial assistance to individual households. market already has excess supply and owner-occupied housing may experience a similar trajectory as elevated • Adaptation to the current market reality by unemployment and expiring federal aid may cause an property managers, owners, and developers to increase in mortgage defaults in the latter half of next year. remain competitive in the marketplace by:

Most indicators, particularly the arrival of proven – Designing/renovating units and common COVID-19 vaccines, point to a potentially robust rebound areas with work-from-home in mind. in the local residential market in 2021. Specifically, the recovery from the current downturn in the apartment – Promoting healthy and sanitary environments. market and an aversion of a similar dip in the for-sale market is highly dependent on the following factors: – Continuing to offer generous concessions and rent relief.

• Postponement of some of the multifamily construction – Including as much outdoor space as possible in new pipeline in supply-burdened submarkets to development, including courtyards, balconies, and avoid further weighing down the market. rooftop decks.

• The rapid and broad distribution of an effective – Leverage technology to carry-out management COVID-19 vaccine to all communities in the District. responsibilities including socially-distanced self-guided and virtual tours.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 53 RESIDENTIAL DEVELOPMENT

NEW CONDO SALES VOLUME AND PRICE PER SQUARE FOOT

200 $800 $799

$700

150 $600

$500

100 $400

$300 NO. OF CONDO SALES NO. 55 50 $200

$100

0 $0

Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 2015 2016 2017 2018 2019 2020

SALES VOLUME FOR QUARTER EFFECTIVE PRICE PSF

Source: Delta Associates; December 2020.

RESIDENTIAL UNITS (DECEMBER 2020) GROUNDBREAKINGS COMPLETED PROJECTED RENTAL HO RENTAL HO RENTAL HO

2004 1,004 2,531 3,535 2004 2,666 1,837 4,503 2005 2,817 3,020 5,837 2005 1,828 2,128 3,956 2006 3,155 1,256 4,411 2006 1,399 2,584 3,983 2007 2,817 758 3,575 2007 2,547 2,586 5,133 2008 1,460 246 1,706 2008 3,121 1,161 4,282 2009 753 173 926 2009 2,721 912 3,633 2010 3,539 446 3,985 2010 1,385 524 1,909 2011 5,023 499 5,522 2011 1,574 369 1,943

2012 5,542 556 6,098 2012 3,443 482 3,925 2013 4,194 679 4,873 2013 3,932 613 4,545 2014 4,981 1,014 5,995 2014 5,991 318 6,309 2015 5,210 614 5,824 2015 2,595 760 3,355 2016 6,654 1,011 7,665 2016 4,991 691 5,682 2017 6,230 584 6,814 2017 6,165 870 7,035 2018 6,458 291 6,749 2018 5,367 768 6,135 2019 6,666 1,040 7,706 2019 5,776 268 6,044 2020 5,037 246 5,283 2020 8,264 886 9,150 2021* 5,657 1,067 6,724 2022* 6,410 186 6,596

Note: HO = Home ownership *projections based on targeted delivery dates of projects under construction as of December 2020.

RESIDENTIAL DEVELOPMENT (DECEMBER 2020) PROJECTS SF UNITS RENTAL HO CONDOS COMPLETED (SINCE 2001) 785 90,046,217 91,524 71,621 19,903 15,591 2010 21 2,186,187 1,909 1,385 524 146 2011 22 1,899,277 1,943 1,574 369 269 2012 31 4,010,523 3,925 3,443 482 173 2013 37 4,040,803 4,545 3,932 613 463 2014 35 5,836,063 6,309 5,991 318 139 2015 39 3,006,007 3,355 2,595 760 607 2016 48 5,432,938 5,682 4,991 691 314 2017 50 6,924,549 7,035 6,165 870 827 2018 48 5,359,891 6,135 5,367 768 622 2019 42 5,821,828 6,044 5,776 268 150 2020 48 8,586,406 9,150 8,264 886 824

UNDER CONSTRUCTION 70 12,898,040 13,777 12,524 1,253 1,121 2021 DELIVERY 50 6,317,202 6,724 5,657 1,067 1,025 2022 DELIVERY 19 6,253,425 6,596 6,410 186 96 2023 DELIVERY 1 327,413 457 457 0 0

PIPELINE 294 59,485,705 66,498 37,957 4,149 3,296 NEAR TERM 134 17,418,466 19,417 16,295 1,692 1,288 LONG TERM 160 42,067,239 47,081 21,662 2,457 2,008

TOTAL 1,149 162,429,962 171,799 122,102 25,305 20,008

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 55 ■ COMPLETED ■ UNDER CONSTRUCTION ■ PIPELINE

24 SOUTH DAKOTA AVE MASSACHUSETTS AVE12

CONNECTICUT AVE

GEORGIA AVE

ROCK CREEK PARK 14TH ST. 26 18 5 U ST.

RHODE ISLAND AVE

G E O R G E W A S NEW YORK AVE H 13 IN G T O N M E M O R IA L P K W Y 20 19 29 15 14

16 H ST. VIRGINIA 6 66 UNION STATION

NATIONAL MALL E. CAPITOL ST. VIRGINIA U.S. CAPITOL 8 30 11 17 10 27 7 FORT DUPONT 1 PARK 3 M ST. 9 28 NATIONALS PARK PENNSYLVANIA AVE 4 M 25 395 2 22

M . E 1 V 23 A

. R J

M G

R E

M NATIONAL H

AIRPORT T

N I

A Alexandria M

ALABAMA AVE

All project locations are approximate. RESIDENTIAL DEVELOPMENT PIPELINE

1 EST. VALUE 3 PROJECT WARD LOCATION DEVELOPER(S) UNITS TYPE ($M)2 DELIVERY TOP RESIDENTIAL PROJECTS COMPLETED (Q1 2020–Q4 2020)

1 Crossing DC (Phase I) 6 949 1st St., SE Tishman Speyer 512 R Q4 20 2 Riverpoint 6 2100 2nd St., SW Akridge / Western Development / Orr Partners / 481 R $220 Q4 20 Jefferson Apartment Group 3 West Half 6 1201 Half St., SE JBG Smith 465 R $228 Q3 20 4 Watermark 6 1900 Half St., SW Douglas Development Corporation 453 R $190 Q3 20 5 The Wren 1 965 Florida Ave., NW MRP Realty / JBG Smith / Ellis Development 433 R $153 Q3 20 Group 6 AVEC 6 901 H St., NE Rappaport / Lustine Family / WC Smith 419 R $200 Q2 20 7 The Garrett 6 150 Eye St., SE WC Smith 373 R $170 Q4 20 8 Beckert’s Park 6 415 14th St., SE Foulger-Pratt / Safeway 325 R $138 Q3 20 9 The Kelvin 6 1250 Half St., SE Jair Lynch Real Estate Partners 312 R $155 Q3 20 10 Parc Riverside (Phase II) 6 1010 Half St., SE Toll Brothers 308 R $103 Q2 20

TOP RESIDENTIAL PROJECTS UNDER CONSTRUCTION

11 Illume (Phase I & II) 6 809 & 853 Greystar Development / J.P. Morgan Asset 756 R Q2 22 New Jersey Ave., SE Management / Oxford Properties Group 12 City Ridge 3 3900 Wisconsin Ave., NW Roadside / North America Sekisui House 690 R $715 Q2 22 13 Eckington Yards 5 1625 Eckington Pl. & The JBG Companies / LCOR 681 R/O $265 Q2 21 1500 Harry Thomas Way, NE 14 Armature Works 6 1200 3rd St., NE Trammell Crow Company / High Street Residential / 635 R $400 Q2 22 MetLife 15 Sursum Corda 6 North Capitol St., M St., Toll Brothers 562 R $226 Q2 22 Redevelopment (Phase I) 1st St., L St., NW 16 NoMa CNTR 6 1005 1st St., NE Perseus TDC / Four Points / Buccini Pollin Group / 500 R $330 Q4 22 Sunwater Management 17 Museum Place 6 65 I St., SW Lowe 492 R $200 Q4 22 18 Bryant Street (Phase I) 5 680 Rhode Island Ave., NE MRP Realty / FRP Development Corp 487 R Q3 21 19 300 M 6 300 M St., NE LCOR 457 R $212 Q4 22 20 The Gantry (Building A-1) 5 300 Morse St., NE Kettler / Carmel Partners 450 R Q3 21

TOP RESIDENTIAL PROJECTS IN THE PIPELINE

21 Northeast Heights 7 3924–3968 Minnesota Ave., Cedar Realty Trust / Trammell Crow Company 1355 R 2022-28 NE 22 100 V Street (Phase I) 6 1st, 2nd, T & V Sts., SW Akridge 1100 R 2023 23 Columbian Quarter 8 Suitland Parkway & Redbrick LMD 725 R $260 2023 (Phase I) Howard Rd., SE 24 Upton Place 3 4000 Wisconsin Ave. NW Donohoe Companies 689 R 2024 25 113 Potomac Avenue 6 113 Potomac Ave., SW Toll Brothers 520 R $250 2023 26 Bond Bread 1 2114 Georgia Ave., NW EDENS / Menkiti Group / 450 R $275 2025 Fivesquares Development / Howard University 27 Waterfront Station II 6 1000 4th St., SW Hoffman & Associates / CityPartners / 449 R $165 2023 Affordable Housing Developers / Paramount Development Corp. / DMPED 28 The Yards (Parcel I) 6 Canal & N Sts., SE Brookfield Properties 379 R 2023 29 1313 L Street 2 1313 L St., NW Lincoln Property Company 222 R 2023 30 400 I Street 6 400 Eye St., SW Bozzuto / Dantes Partners / 222 R 2024 Westminster Presbyterian Church

1) R = rental; O = ownership 2) may include non-residential components 3) delivery date may reflect phase I delivery or final phase delivery.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 57 DEVELOPMENT HIGHLIGHTS Image courtesy of Jefferson Apartment Group

WARD 6 WARD 5

1319 SOUTH CAPITOL STREET 1400 MONTANA AVENUE

LOCATION: 1319 South Capitol Street, SW LOCATION: 1400 Montana Avenue, NE DEVELOPER(S): Jefferson Apartment Group / Fortis DEVELOPER(S): MidCity ARCHITECT(S): Beyer Blinder Belle Architects & Planners ARCHITECT(S): Maurice Walters LEED: Gold EST. VALUE: $130 million CONTRACTOR(S): L.F. Jennings STATUS: Pipeline (Near Term) EST. VALUE: $33 million TARGETED DELIVERY: Q3 2023 STATUS: Under Construction TARGETED DELIVERY: 2Q2 202 SPECS: Plans call for an 11-story, 320-unit residential apartment building on a site across South Capitol Street from Nationals Park. The eight rowhouses SPECS: The site of a former drive-through bank building will be redeveloped into on the site will be incorporated into the development as live/work space or 108 residential apartments and 33 surface parking spaces. The project is targeted commercial uses. LEED for Homes v4: Multifamily and started construction in December 2020. Image courtesy of WDG Architecture Image courtesy of Neighborhood Development Company

WARD 6 WARD 4

ALTA 801 THE ARBOR AT TAKOMA

LOCATION: 801 New Jersey Avenue, NW LOCATION: 218 Cedar Street, NW DEVELOPER(S): Wood Partners DEVELOPER(S): Neighborhood Development Company ARCHITECT(S): WDG Architecture CONTRACTOR(S): Square 134 Architects LEED: Silver EST. VALUE: $20 million STATUS: Pipeline STATUS: Pipeline (Near Term) TARGETED DELIVERY: 2023 SPECS: The existing site is bounded by New Jersey Avenue, 1st Street and H Streets, NW. The redevelopment plan for the current gravel parking lot calls SPECS: The Arbor at Takoma is a four-story (plus penthouse), ground-up for 327 residential rental units and 2,000 SF of retail space. development comprised of 8,400 SF of office/retail space and 36 residential condominiums (four will be dedicated as affordable units). Neighborhood Development Company plans to relocate its headquarters to the development once completed.

WARD 2 WARD 3

BOATHOUSE THE BROOKS

LOCATION: 2601 Virginia Avenue, NW LOCATION: 3320 Idaho Avenue, NW DEVELOPER(S): Urban Investment Partners DEVELOPER(S): Department of General Services ARCHITECT(S): WDG Architecture ARCHITECT(S): Ayers Saint Gross CONTRACTOR(S): UIP General Contracting CONTRACTOR(S): Smoot Construction DC LEED: Silver EST. VALUE: $84 million LEED: Gold EST. VALUE: $30 million STATUS: Completed STATUS: Completed TARGETED DELIVERY: Q1 2020 TARGETED DELIVERY: Q2 2020

SPECS: Boathouse is the conversion and expansion of a former 110,000 SF SPECS: The Ward 3 Short Term Family Housing project is a new six-story, 42,000 dormitory (and former hotel) into a 145,000 SF residential building with 250 SF housing facility for the Department of Human Services that provides 50 short apartments and 5,000 SF of ground-floor retail. The building features a rooftop term family housing units for families coming out of homelessness. The structure pool, amenity space, and covered parking. consists of a one-story conventional concrete podium, with five stories of composite structural slab supported with prefabricated metal stud bearing walls. Image courtesy of Banneker Ventures, LLC

WARD 8 WARD 5

THE CLARA ON MARTIN LUTHER KING, JR. AVE ECKINGTON YARDS

LOCATION: 2313 Martin Luther King Jr. Ave, SE LOCATION: 1611–1625 Eckington Place, NE & 1500 Harry Thomas Way, NE DEVELOPER(S): Banneker Ventures, LLC / Masjid Muhammad DEVELOPER(S): JBG Smith / LCOR ARCHITECT(S): dp+partners ARCHITECT(S): Eric Colbert & Associates CONTRACTOR(S): Hamel Builders / Banneker Ventures, LLC CONTRACTOR(S): CBG Building Company EST. VALUE: $43 million LEED: Silver EST. VALUE: $265 million STATUS: Pipeline (Near Term) STATUS: Under Construction TARGETED DELIVERY: 2Q3 202 TARGETED DELIVERY: Q2 2021

SPECS: The Clara on Martin Luther King Jr. Avenue will be a six-story building SPECS: The 3.1-acre site was redeveloped into four connected buildings totaling spanning half of a city block and comprised of 81 affordable rental housing units 681 residential units (457 apartments, 179 condos, 45 stacked duplexes), 67,300 SF with 14,000 SF of neighborhood-serving retail space, along with community of retail/commercial/maker space, and 331 underground parking spaces (on two space, and underground and surface parking. levels). The commercial space will be located along a woonerf (shared street) and include Union Kitchen Grocery and Brooklyn Boulders.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 59 DEVELOPMENT HIGHLIGHTS

WARD 6 WARD 5

THE GARRETT LEDGER UNION MARKET

LOCATION: 150 Eye Street, SE LOCATION: 1300 4th Street, NE DEVELOPER(S): WC Smith DEVELOPER(S): EDENS / Great Gulf ARCHITECT(S): SK+I Architectural Design Group ARCHITECT(S): Shalom Baranes Associates CONTRACTOR(S): WCS Construction CONTRACTOR(S): James G. Davis Construction Corporation LEED: Silver EST. VALUE: $170 million LEED: Gold STATUS: Completed STATUS: Completed TARGETED DELIVERY: Q4 2020 TARGETED DELIVERY: Q4 2020

SPECS: The Garrett is a 13-story, 373-unit residential rental property with 13,200 SPECS: As part of EDEN’s Union Market District, the second phase of the 4th SF of retail space. The building features an indoor basketball court, racquetball Street development includes a 134-unit residential building with 12,000 SF of court, and tennis court, as well as an enclosed garden and a 5,000 SF member- retail space and 118 parking spaces (in three underground levels) with 61 bike only co-working space. spaces. This is Great Gulf’s first project in the Washington, DC market. Image courtesy of H Street CDC

WARD 8 WARD 5

LIVING PLACE AT SOUTHERN EVERTON

LOCATION: 306 Southern Avenue, SE LOCATION: 7th & Monroe Streets, NE DEVELOPER(S): Dantes Partners / Gilbane Building Company / DEVELOPER(S): Bozzuto / Pritzker Realty Group H Street CDC / Carding Group ARCHITECT(S): Maurice Walters CONTRACTOR(S): Gilbane Building Company CONTRACTOR(S): Bozzuto Construction EST. VALUE: $67 million LEED: Silver EST. VALUE: $58 million STATUS: Under Construction STATUS: Under Construction TARGETED DELIVERY: Q3 2021 TARGETED DELIVERY: Q4 2020

SPECS: Living Place at Southern will be a five-story, 152-unit affordable senior SPECS: The Everton (Block E) was the final phase of the 8.9-acre Monroe Street assisted living facility. All tenants will have access to support services including Market project and consists of 156 multifamily residential units above 20,200 SF medical, dental, rehabilitative, and counseling services. Eleven percent of the of ground-floor retail space. apartments are designed to be fully accessible.

WARD 6 WARD 6

MUSEUM PLACE NORTHWEST ONE (PHASE I)

LOCATION: 65 I Street, SW LOCATION: North Capitol & L Streets, NW DEVELOPER(S): Lowe DEVELOPER(S): MRP Realty / CSG Urban Partners / Taylor Adams Associates ARCHITECT(S): Beyer Blinder Belle Architects & Planners LLP ARCHITECT(S): SK+I Architectural Design Group CONTRACTOR(S): Balfour Beatty / Christman CONTRACTOR(S): McCullough Construction LEED: Gold EST. VALUE: $200 million LEED: Silver EST. VALUE: $81 million STATUS: Under Construction STATUS: Under Construction TARGETED DELIVERY: 2Q4 202 TARGETED DELIVERY: 2Q3 202

SPECS: The historic Randall School will be renovated and become the new home SPECS: The first phase of the 740-unit, three-building, three-phased Northwest for a 31,800 SF contemporary art museum and 18,600 SF of commercial space One redevelopment will be a seven-story, 220-unit residential building. The with retail, service, office (including co-working), and education uses. A 12-story, building will feature 150 affordable units and 56 three- or four-bedroom units. 489-unit (20% affordable) multifamily building will be constructed adjacent to the school. Approximately 19 of the units will be two-level “townhouse-style” units located on the ground floor. (courtesy of Bonstra | Haresign Architects) Hoachlander Davis Photography

WARD 2 WARD 6

ORA PARC RIVERSIDE (PHASE II)

LOCATION: 2144 California Street, NW LOCATION: 1010 Half Street, SE DEVELOPER(S): Bedrock Real Estate Partners DEVELOPER(S): Toll Brothers ARCHITECT(S): Bonstra | Haresign Architects ARCHITECT(S): WDG Architecture CONTRACTOR(S): Grunley Construction CONTRACTOR(S): Toll Brothers EST. VALUE: $66 million LEED: Certified EST. VALUE: $103 million STATUS: Completed STATUS: Completed TARGETED DELIVERY: Q3 2019 TARGETED DELIVERY: Q2 2020

SPECS: The existing nine-story, 113-unit multifamily building was built in 1959 SPECS: Parc Riverside (Phase II) is a 308-unit apartment building on 28,200 and underwent a gut rehabilitation that included renovating the building’s SF of land located at Half, K, and L Streets, SE. The first phase (a 287-unit exterior facades, grounds, entry area, ground floor lobby with leasing and apartment building) delivered in Q1 2015. amenity areas, and public corridors. The existing rooftop terrace was expanded, and existing exterior windows and doors were replaced.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 61 DEVELOPMENT HIGHLIGHTS Image courtesy of Torti Gallas Urban Image courtesy of DMPED and Flaherty & Collins

WARD 7 WARD 8

PROVIDENCE PLACE RESIDENCES AT ST. ELIZABETHS EAST

LOCATION: 50th & Fitch Street, NE LOCATION: 1201 Oak Drive, SE DEVELOPER(S): Urban Matters Development Partners / DEVELOPER(S): Anacostia Economic Development Corporation / Atlantic Pacific Communities / Flaherty & Collins Progressive National Baptist Convention CDC ARCHITECT(S): Cunningham + Quill Architects, PLLC ARCHITECT(S): Torti Gallas Urban CONTRACTOR(S): Flaherty & Collins CONTRACTOR(S): Hamel Builders EST. VALUE: $100 million EST. VALUE: $39 million STATUS: Completed STATUS: Under Construction TARGETED DELIVERY: Q4 2020 TARGETED DELIVERY: Q3 2021 SPECS: Residences at St. Elizabeths East (RSEE), located on Parcel 11, were SPECS: Providence Place will be a four-story, 93-unit affordable housing the result of adaptive reuse of seven historic, former hospital buildings into development with 35 units as replacement homes for Lincoln Heights & apartments (80% affordable / 20% market-rate) and started to deliver units in Richardson Dwellings communities. Solar panels will cover 6,000 SF of the roof. November 2019 (Phase I) through November 2020 (Phase II). Image courtesy of Rock Creek Property Group Image courtesy of WDG Architecture

WARD 6 WARD 6

SEVEN | H SURSUM CORDA REDEVELOPMENT (PHASE I)

LOCATION: 646–654 H Street, NE LOCATION: North Capitol Street, M Street, 1st Street, L Street, NW DEVELOPER(S): Rock Creek Property Group / DEVELOPER(S): Toll Brothers Cornerstone Development Group ARCHITECT(S): WDG Architecture ARCHITECT(S): PGN Architects CONTRACTOR(S): Harvey Cleary Builders / CONTRACTOR(S): Eichberg Construction Ellisdale Construction & Development LEED: Certified LEED: Silver EST. VALUE: $226 million STATUS: Completed STATUS: Under Construction TARGETED DELIVERY: Q1 2020 TARGETED DELIVERY: 2Q2 202

SPECS: 7|H is a new six-story, 23-unit mixed-use condominium building with up SPECS: Phase I is located on 2.44 acres on the southern parcel between to 14,000 SF of retail space. Residences feature nine-foot ceilings and the retail Pierce & L Streets, NW and will consist of a nine-story, 216-unit residential space offers 12-14-foot ceiling heights. Portions of the existing one- and two- building and an eight- to ten- story, 346-unit residential building. The overall story buildings previously on the site were incorporated into the project. development calls for 122 of the 199 affordable units to be reserved for Sursum Corda residents.

HOSPITALITY DEVELOPMENT IN WASHINGTON, DC

Image courtesy of The Smithsonian By Nick DuBose, Real Estate Analyst, Delta Associates

After years of consistent occupancy and RevPAR rates, despite thousands of new hotel rooms being added to the market, the COVID-19 pandemic has made a major impact on the hospitality sector.

2020 PROJECTED 2022 PROJECTED NEW HOTEL ROOMS HOTEL ROOMS DOMESTIC VISITORS1 DOMESTIC VISITORS1 DELIVERED IN 20202 UNDER CONSTRUCTION2 11 M 20 M 1,275 1,414 ~50% DECREASE FROM 2019 SIMILAR TO 2016 AS OF DECEMBER 2020 VISITATION LEVELS

Hotel occupancy in the District plunged to a record low of 10.9% Between 2018 and 2019, the average daily rate (ADR) and in April 2020 (75.8% below April 2019 levels), but has since revenue per available room (RevPAR) in the city increased slowly improved, albeit still trending below 50% of last year's by 2.1% and 0.7%, respectively, with minimal gains resulting occupancy rates. For the 12-months ending October 2020, the from a growing short-term lodging supply. These gains were District's occupancy rate stood at 40%, compared to 76.5% for wiped away in 2020, with a -24.6% decline in ADR and -68.3% 2019. HOTEL OCCUPANCY, ADR, REVPAR, ROOM SUPPLY AND DEMAND

$250 80

$200 70 $181.90 OCCUPANCY % $150 60

$100 50 $72.58

$50 39.9% 40

$0 30 2016 2017 2018 2019 2020*

District ADR District RevPAR District Occupancy

Source: Office of the Chief Financial Officer, Office of Revenue Analysis, DC Economic & Revenue Trends. *12 months ending October 2020.

1. DestinationDC/MMGY Travel Intelligence/Tourism Economics, August 2020 2. Washington DC Economic Partnership (includes major renovations)

HOTEL OCCUPANCY & RATES YEAR-OVER-YEAR CHANGE

10%

-10%

-20%

-30% -33.8% -40%

-50% -54.2% -60%

-70%

-80% Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20

District Occupancy District ADR

Source: Office of the Chief Financial Officer, Office of Revenue Analysis, DC Economic & Revenue Trends.

drop in RevPAR through October compared to the same Hotel DC Convention Center, and Thompson Washington period in 2019. District hotel demand continues to be DC. The NoMa area will see a substantial amount of hotel influenced by home-sharing services (Airbnb, VRBO, growth in the coming years, with the Meininger, Mob Hotel, FlipKey, etc.), despite active home-sharing rentals in the and CitizenM expected to deliver in the next couple of city decreasing by an average of -2.2% each quarter over years. Capitol Riverfront and the Southwest Waterfront the past three years. Most of these lodging options (76%) are also projected to see an increase in hotel supply, with offer entire home rentals. As of mid-October, at least 115 the Cambria and Pendry Hotels delivering over the same hotels welcomed guests in the city. Mayor Muriel Browser time frame. Continued hotel construction suggests that deemed hotels to be essential businesses, though some developers are confident in the District’s tourism market, have closed temporarily in light of drastic reductions in despite recent fluctuations during COVID-19. The prevalence visitation this year. of hotel deliveries this year and those projected in the years ahead show faith in the V-shaped recovery forecasted by At the same time, at least four new hotels opened in the DestinationDC earlier this year. District in 2020: CitizenM, Riggs Washington DC, AC

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 65 HOSPITALITY DEVELOPMENT

DOMESTIC VISITATION TO WASHINGTON, DC

25 60% 22.8 21.9 20.8 20.0 20.0 40% 20 19.3 18.3 17.4 16.8 17.0 16.1 ANNUAL GROWTH 15.5 20% 15

11.0 0% 10 -20% MILLIONS OF VISITORS

5 -40%

0 -60% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* 2021* 2022*

Domestic Visitors Y-o-Y Growth

Source: DestinationDC (*projections)

The District received 24.6 million domestic and international to the city in the wake of the COVID-19 pandemic. After visitors in 2019—a 3.4% increase from 2018. Domestic years of growth in tourism, visitation to the city halted as and international tourists accounted for $8.2 billion in international and domestic travel was restricted or completely spending throughout the year, contributing $896 million barred for most of 2020. A baseline forecast for domestic to local tax revenue, a 5.3% year-over-year gain.3 These visitor volume shows at least a 50% drop this year, before a numbers do not reflect the drastic downturn of visitation V-shaped recovery commencing between 2021 and 2022—

SMITHSONIAN VISITATION (DC MUSEUMS ONLY)

22.1 M 20,000,000

4.2 M 4,000,000

3.3 M 3.2 M

3,000,000 2.8 M

2.0 M 2.0 M 2,000,000 1.7 M MILLIONS OF VISITORS

1,000,000 572k 387k 321k 368k 267k 310k

0 Total Visits American Art* Portrait Gallery African American Air & Space American History Natural History History & Culture

2019 2020

Source: Smithsonian. *Includes Renwick Gallery.

3. DestinationDC 4. DestinationDC

assuming no additional lockdowns occur and widespread The metro area’s primary driver for room-night demand is vaccination in 2021.4 An increase in federal jobs in 2020 is the Federal Government. Steady tourism and travel related to a relative bright spot for the future recovery of visitation government activity have historically sustained hotel demand, to the District, as employment in the sector is critical to even in the worst economic downturns. This fact is reflected the long-term viability of the city’s hospitality industry. in the tight connection of the area’s ADR growth and the federal annual per-diem rate. However, the pandemic has Regional airport traffic to Reagan National, Dulles, and upended the conventional market assumptions. The Federal Baltimore/Washington International (BWI) Marshall Government’s travel per-diem rates increased from $94 to airports was severely depressed in the second and third $96 in 2020, suggesting an additional 2.1 percent ADR growth quarters of 2020. Prior to the crisis hitting in March, in the metro area between 2019 and this year. However, this the region had a five-year average of 18,125,000 airline is extremely unlikely, and ADR growth for the full calendar passengers each quarter. Passenger traffic decreased to year will likely be deeply negative as it has been since spring. 13,405,000 in the first quarter of 2020, before plummeting to 2,248,000 in Q2 and 5,453,000 in Q3. Dulles and Looking ahead to 2021 and beyond, we expect the 2020 fall- Reagan National airports, which primarily serve the winter spike in COVID-19 cases to prolong the recovery of international and domestic business travel markets, the local hospitality industry. Widespread inoculation is the respectively, have been especially affected, while BWI single most important factor to the recovery of the hospitality Marshall airport (which has a much larger share of industry going forward. Additionally, with the presidential domestic leisure travel) has performed slightly better. election decided, the future has become slightly clearer.

REGIONAL AIRPORT PASSENGER TRAFFIC

19.5M 20.0M 19.9M 20.2M 20.2M 20 19.4M 18.7M 19.3M 18.4M

16.1M 16.1M 15.6M 15 13.4M

MILLIONS OF VISITORS 5.5M 5

2.2M

0 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 2017 2018 2019 2020

Reagan National Dulles International Baltimore/Washington International

Source: Metro Washington Metropolitan Airports Authority, Delta Associates December 2020. Total passenger enplanements and deplanements.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 67 HOSPITALITY DEVELOPMENT

Entertainment and Sports Arena was built in 2018 on the St. Elizabeths East Campus.

HOME SHARING RENTAL GROWTH (ACTIVE RENTALS, QUARTER-OVER-QUARTER CHANGE)

4% 3.6%

-2%

-4%

-6%

-8%

-10% Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020

Source: AirDNA (data retrieved on March 7, 2021). Includes AirBNB and VRBO rentals.

HOTEL ROOM DEVELOPMENT (DECEMBER 2020)

3000

2500

2000

1500 1,275 1,055

1000 844 570 500

0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021* 2022*

GROUNDBREAKING COMPLETED PROJECTED DELIVERIES*

*Projections based on targeted delivery dates of projects under construction as of December 2020.

HOSPITALITY DEVELOPMENT (DECEMBER 2020)

NET NEW PROJECTS HOSPITALITY SF ROOMS ROOMS* COMPLETED 141 21,628,536 21,193 9,711 (SINCE 2001) 2010 3 865,000 1,614 0 2011 3 134,100 204 204 2012 5 64,000 356 0 2013 4 282,070 426 305 2014 8 1,540,863 1,795 1,795 2015 8 425,465 1,203 546 2016 9 1,763,835 1,352 1,023 2017 9 1,533,241 2,527 1,339 2018 7 1,214,488 913 648 2019 6 882,650 1,270 585 2020 7 610,125 1,275 739

UNDER 18 1,910,949 1,414 1,178 CONSTRUCTION 2021 DELIVERY 9 497,610 844 608 2022 DELIVERY 7 656,339 570 570 2023+ DELIVERY 2 757,000 0 0

PIPELINE 47 3,515,819 5,867 5,368 NEAR TERM 17 427,783 986 986 LONG TERM 30 3,100,036 4,881 4,382

TOTAL 206 27,055,304 28,474 16,257 Conceptual rendering of the National Museum of the U.S. Navy courtesy of Naval History and Heritage Command

* Net new rooms only reflect rooms in hotel projects or rooms added/removed in redevelopment projects (rooms are removed from inventory based on project's status).

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 69 ■ COMPLETED ■ UNDER CONSTRUCTION ■ PIPELINE

SOUTH DAKOTA AVE

MASSACHUSETTS AVE

CONNECTICUT AVE

GEORGIA AVE

ROCK CREEK PARK 14TH ST.

21 U ST.

RHODE ISLAND AVE

G E O R G E W A S NEW YORK AVE H IN G T O N M E M O R IA L P K W Y

4 27 20 2 13 9 6 14 12 H ST. VIRGINIA 17 66 26 UNION STATION 7 19 5 8

NATIONAL MALL E. CAPITOL ST. VIRGINIA 10 U.S. CAPITOL 28 1

25 FORT DUPONT PARK 15 18 M ST.

NATIONALS 16 PARK 22 3 29 24 PENNSYLVANIA AVE

395 23

M . E 1 V A

. R J

M G

R E

M NATIONAL H

AIRPORT T

N I

A Alexandria M

ALABAMA AVE

All project locations are approximate. HOSPITALITY DEVELOPMENT PIPELINE

HOSPITALITY HOTEL EST. VALUE 2 PROJECT WARD LOCATION DEVELOPER(S) SF ROOMS ($M)1 DELIVERY TOP HOSPITALITY PROJECTS COMPLETED (Q3 2019–Q4 2020)

1 555 E Street (CitizenM) 6 555 E St., SW CityPartners / Paramount Development Corp. 130,000 252 $120 Q3 20 / Potomac Investment Properties / Adams Investment Group / DC Strategy Group 2 AC Hotel 2 1112 19 th St., NW OTO Development 125,700 219 $41 Q4 19 3 Thompson D.C. Hotel 6 227 Tingey St., SE Brookfield Properties / 114,800 225 Q1 20 JW Capital Partners / Geolo Capital 4 Hotel Zena 2 1155 14 th St., NW Pebblebrook Hotel Trust 106,300 191 $25 Q4 20 5 Yotel 6 415 New Jersey Ave., NW BLDG Management / Metrovest Equities 103,000 373 $45 Q4 20 6 AC Hotel Washington D.C. 6 601 K St., NW Douglas Development Corporation 96,800 234 $47 Q3 20 Convention Center 7 The Reach 2 2700 F St., NW The John F. Kennedy Center for the 72,000 $175 Q3 19 Performing Arts 8 National Children's Museum 2 1300 Pennsylvania Ave., NW National Children's Museum 33,000 $15 Q1 20 9 Franklin School (Planet Word) 2 13 th & K Sts., NW Franklin School Development LLC / DMPED 26,300 $35 Q4 20

TOP HOSPITALITY PROJECTS UNDER CONSTRUCTION

10 National Air and Space Museum 2 The National Mall Smithsonian 687,000 $900 2024 11 ART Place at Fort Totten 5 5300 South Dakota Ave., NE Morris & Gwendolyn Cafritz Foundation 201,000 Q4 22 (Phase II) 12 NoMa CNTR 6 1005 1st St., NE Perseus TDC / Four Points / Buccini Pollin 184,400 235 $330 Q4 22 Group / Sunwater Management 13 Armature Works 6 1200 3 rd St., NE Trammell Crow Company / 147,000 204 $400 Q1 22 High Street Residential / MetLife 14 Holiday Inn Express 6 303–317 K St., NW Habte Sequar 118,000 247 $93 Q3 21 15 The Wharf (Phase II) - Pendry 6 Southwest Waterfront Hoffman & Associates / Madison Marquette 80,000 131 $1,150 Q3 22 Hotel 16 Cambria Hotel 6 69 Q St., SW Donohoe Companies 77,500 154 $58 Q1 21 17 The Milken Center for 2 1501–1505 Pennsylvania Akridge / Milken Family Foundation 70,000 2024 Advancing the American Dream Ave., NW & 730 15th St., NW 18 AC Marriott 6 867 New Jersey Ave., SE Greystar Development / J.P. Morgan Asset 200 Q3 21 Management / Oxford Properties Group 19 World War I Memorial 2 Pershing Park Doughboy Foundation / $42 Q4 21 U.S. WWI Centennial Commission

TOP HOSPITALITY PROJECTS IN THE PIPELINE

20 Latham Hotel 2 3000 M St., NW Thor Equities 140,000 256 2024 21 Bond Bread 1 2114 Georgia Ave., NW EDENS / Menkiti Group / Fivesquares 135,000 180 $275 2025 Development / Howard University 22 Parcel F1 6 N Place & 1 1/2 St., SE Brookfield Properties 66,400 2024 23 100 V Street (Phase I) 6 1st, 2nd, T & V Sts., SW Akridge 66,100 180 2023 24 45 Q Street 6 45 Q St., SW D.B. Lee Development & Construction 62,000 190 25 Waterfront Station II 6 1000 4th St., SW Hoffman & Associates / CityPartners / 9,300 $165 2023 Affordable Housing Developers / Paramount Development Corp. / DMPED 26 Arlo DC 2 333 G St. & 704 3rd St., NW Quadrum Global 421 27 citizenM Hotel 6 1222 1st St., NE Altus Realty Partners 290 2022 28 280 12th Street 6 280 12 th St., SW Pacific Star Capital 163 29 National Museum of the 6 Washington Navy Yard Navy History and Heritage Command $450 2025 U.S. Navy

1) May include non-hospitality components & pipeline values may include additional phases ($ in millions) 2) Delivery date may reflect phase I delivery or final phase delivery for pipeline projects.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 71 DEVELOPMENT HIGHLIGHTS Image courtesy of CityPartners

WARD 6 WARD 6

280 12TH STREET 555 E STREET

LOCATION: 280 12th Street, SW LOCATION: 555 E Street, SW DEVELOPER(S): Pacific Star Capital DEVELOPER(S): CityPartners / Paramount Development Corp. / ARCHITECT(S): BBGM DC Strategy Group / Potomac Investment STATUS: Pipeline (Long Term) ARCHITECT(S): FXCollaborative CONTRACTOR(S): Donohoe Construction SPECS: Plans call for an 11-story, 163-room hotel on the site. Ingram Texas Partners LEED: Gold EST. VALUE: $120 million LLC purchased a 0.59-acre lot from the GSA in May 2019 for $4.1 million. STATUS: Completed TARGETED DELIVERY: Q3/Q4 2020

SPECS: 555 E Street features two towers sitting atop a retail base and three levels of underground parking. One tower is home to the District’s first 252-room CitizenM hotel (October 2020 opening), and the other tower offers 194 rental apartments (58 units for seniors) and 10,500 SF of retail space. Image courtesy of WDG Architecture

WARD 2 WARD 6

AC HOTEL AC HOTEL WASHINGTON D.C. CONVENTION CENTER

LOCATION: 1112 19th Street, NW LOCATION: 601 K Street, NW DEVELOPER(S): OTO Development DEVELOPER(S): Douglas Development Corporation ARCHITECT(S): WDG Architecture ARCHITECT(S): FILLAT + Architecture CONTRACTOR(S): Lendlease CONTRACTOR(S): CBG Building Company LEED: Silver EST. VALUE: $41 million EST. VALUE: $47 million STATUS: Completed STATUS: Completed TARGETED DELIVERY: Q4 2019 TARGETED DELIVERY: Q3 2020

SPECS: The former site of a Smith & Wollensky restaurant was redeveloped into SPECS: The site of a small parking lot and two-story building, adjacent to the a 219-room AC Hotel by Marriott. Amenities include lounge and bar, club room, Association of American Medical Colleges building, was redeveloped into meeting room, fitness center, and a rooftop terrace. a 13-story, 234-room AC Hotel by Marriott. The hotel features 15,000 SF of restaurant, bar, and lounge space.

WARD 2 WARD 6

ARLO DC ARMATURE WORKS

LOCATION: 333 G Street & 704 3rd Street, NW LOCATION: 1200 3rd Street, NE DEVELOPER(S): Quadrum Global DEVELOPER(S): Trammell Crow Company / High Street Residential / ARCHITECT(S): Architecture Inc. MetLife STATUS: Pipeline (Long Term) ARCHITECT(S): Shalom Baranes Associates / Leo A Daly CONTRACTOR(S): Clark Construction Group SPECS: Plans for 333 G Street and 704 3rd Street call for a 421-room Arlo Hotel. A LEED: Silver EST. VALUE: $400 million new 12-story tower will be built behind the historic Harrison apartment building. STATUS: Under Construction The Harrison structure (c. 1888–1890) will be rehabilitated and incorporated into TARGETED DELIVERY: 2Q2 202 the development.

SPECS: Armature Works is a 2.43-acre redevelopment site adjacent to the NoMa-Galludet U. Metrorail Station. The development will contain 635 residential rental units, up to 60,000 SF of retail space, and a 204-room hotel. These components will be woven together by a series of urban open spaces and pocket parks totaling approximately one acre. Image courtesy of Donohoe Companies Image courtesy of Four Points

WARD 6 WARD 2

CAMBRIA HOTEL FRANKLIN SCHOOL (PLANET WORD)

LOCATION: 69 Q Street, SW LOCATION: 925 13th Street, NW DEVELOPER(S): Donohoe Companies DEVELOPER(S): Franklin School Development LLC / DMPED ARCHITECT(S): GM BB ARCHITECT(S): Beyer Blinder Belle Architects & Planners CONTRACTOR(S): Donohoe Construction CONTRACTOR(S): Whiting-Turner Contracting Co. LEED: Silver EST. VALUE: $58 million LEST. VALUE: $35 million STATUS: Under Construction STATUS: Completed TARGETED DELIVERY: Q1 2021 TARGETED DELIVERY: Q4 2020

SPECS: Nine parcels, located on the northwest corner of Q & Half Streets, SW, SPECS: The historic Franklin School was renovated and restored and is now were assembled to build a nine-story, 154-room Cambria Hotel. The hotel home to Planet Word—the world’s first voice-activated museum. The museum includes a ground-floor restaurant and rooftop bar with a 3,500-SF terrace. includes several galleries (including a 3,100-SF gallery in the Great Hall), a The hotel opened in February 2021. 22-foot-high wall of words, classrooms, a 150-seat auditorium, a restaurant, and a 1,100-SF terrace.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 73 DEVELOPMENT HIGHLIGHTS Image courtesy of The Smithsonian

WARD 6 WARD 2

HOLIDAY INN EXPRESS NATIONAL AIR AND SPACE MUSEUM

LOCATION: 303–317 K Street, NW LOCATION: The National Mall DEVELOPER(S): Habte Sequar DEVELOPER(S): Smithsonian ARCHITECT(S): BBGM ARCHITECT(S): Quinn Evans Architects CONTRACTOR(S): Kinsley Construction CONTRACTOR(S): Smoot Construction / Clark Construction / EST. VALUE: $93 million Consigli Construction STATUS: Under Construction LEED: Gold EST. VALUE: $900 million TARGETED DELIVERY: Q3 2021 STATUS: Under Construction TARGETED DELIVERY: 2022–2024 SPECS: A new 14-story, 247-room Holiday Inn Express will be built at the SPECS: The 687,000-SF museum will undergo a seven-year renovation, starting corner of 4th & K Streets, NW. The hotel will feature 1,500 SF of meeting space with the first phases expected to be completed in 2021/22. Renovations will in the penthouse. include replacing the glass curtain wall glazing, removal and replacement of the Tennessee marble façade, and upgrades to all 22 galleries. Additionally, a new vestibule and canopy will be constructed at the north/main public entrance. The museum will remain open during construction. Image courtesy of Redbrick LMD Image courtesy of U.S. World War I Centennial Commission

WARD 8 WARD 2

SAINT ELIZABETHS EAST (PARCEL 15) WORLD WAR I MEMORIAL

LOCATION: Saint Elizabeths East Campus LOCATION: Pershing Park DEVELOPER(S): Redbrick LMD / Gragg Cardona Partners DEVELOPER(S): Doughboy Foundation / U.S. WWI Centennial Commission ARCHITECT(S): Adjaye Associates / Winstanley Architects & Planners ARCHITECT(S): GWWO Architects / Joe Weishaar Architects EST. VALUE: $218 million CONTRACTOR(S): Grunley Construction STATUS: Pipeline (Near Term) EST. VALUE: $42 million TARGETED DELIVERY: Q3 2024 STATUS: Under Construction TARGETED DELIVERY: Q4 2021 SPECS: The 4.2-acre Parcel 15 will be redeveloped into a town square surrounded by two residential buildings (288 units), a 125-150-room hotel, a 200,000 SF SPECS: The National World War I Memorial will be built on the existing 1.8-acre office building, and up to 56,000 SF of retail space. The site is located adjacent to Pershing Park, located along Pennsylvania Avenue at 14th & 15th Streets. The the Entertainment & Sports Arena and the Congress Heights Metrorail Station. design will feature a bronze sculpture (designed by Sabin Howard) entitled “A Soldier's Journey” that will span nearly 60 feet and feature 38 soldiers and human figures; a renovated General John J. Pershing Memorial; and a belvedere area providing additional information about the memorial and WWI.

QUALITY OF LIFE DEVELOPMENT IN WASHINGTON, DC

Image courtesy of 11th Street Bridge Park By Jill Schoenfeld, Research Analyst, Washington DC Economic Partnership

Given the challenges presented by the Covid-19 pandemic, “quality of life” spaces, defined as serving education, medical, and community purposes, have never proved more essential.

RESIDENTS LIVING WITHIN A ANNUAL VISITS TO 10-MINUTE WALK OF A PARK 1 MILES OF SLOW STREETS 2 MILES OF BICYCLE LANES3 DC PUBLIC LIBRARIES 4 98% 26+ 90.7 4 M NATIONAL AVERAGE DEFINED AS 15 MPH & INCLUDING 17 MILES IS 55% LOCAL TRAFFIC ONLY OF PROTECTED LANES

While healthcare facilities continue to serve an indisputably and Innovation Campus, a 12-acre site on the former Walter Reed critical role in society today, civic and recreational assets Army Medical Center Campus, with Phase I scheduled to open have also provided vital services and helped to maintain some in Q1 2021. Children’s National will relocate its Rare Disease normalcy during this trying time. “Social infrastructure” Institute to the new campus, which will also allocate 32,000 remains crucial to facilitating interpersonal connections, albeit SF for Johnson & Johnson’s JLABS to incubate and accelerate socially distant, and enhancing quality of life, while proximity bio- and health-tech firms as part of the Blue Knight initiative. to open space is strongly tied to life expectancy and other This effort, a collaboration between JLABS and the federal health outcomes.5 Since 2010, the District has seen the delivery Biomedical Advanced Research and Development Authority of more than 15.8 million SF of new and renovated “quality (BARDA), will support companies working to address infectious of life” space, including more than one million SF in 2020.6 diseases and other global health security threats.7 The innovation Much of the square footage produced during the past decade campus will also become home to a new 12,000 SF biomedical has served educational uses, but with significant investments research facility for Virginia Tech.8 by the District government, current and planned projects are increasingly focused on developing and expanding healthcare Two major medical facilities are also planned at the St. and community facilities. Elizabeths East Campus. Beginning in 2023, Whitman-Walker Health’s new facility will offer primary, behavioral, dental, HEALTH CARE substance misuse treatment, and youth services, along with a pharmacy and administrative space.9 George Washington Medical space capacity will grow significantly in the District University (GWU) and Universal Health Services plan to deliver with several major developments underway and in the pipeline. a new ambulatory center the same year, before opening a 24- Currently under construction is the Children’s National Research hour urgent care center and 136-bed community hospital with a

1. Center for City Park Excellence, Trust for Public Land 2. ddot.dc.gov/release/district%E2%80%99s-thriving-slow-street-program-expands-26-miles 3. opendata.dc.gov/pages/roadway-centerlines 4. dclibrary.org/sites/default/files/ DCPL_NextLibris_111020-Web.pdf 5. Klinenberg, E. Palaces for the People: How Social Infrastructure Can Help Fight Inequality, Polarization, and the Decline of Civic Life. Crown 2018; Yañez, E. More Parks, Longer Lives. Parks & Recreation Magazine. Nov. 19, 2020. National Recreation and Park Association. nrpa.org/parks-recreation-magazine/2020/december/more-parks-longer-lives. 6. Washington DC Economic Partnership. 7. See jlabs.jnjinnovation.com/blue-knight. 8. Children’s National Hospital, Virginia Tech Announce Partnership for New Children’s National Research & Innovation Campus. Nov. 14, 2019. childrensnational.org/news-and-events/childrens-newsroom/2019/childrens-national- announces-partnership-with-virginia-tech. 9. Office of the Mayor. Mayor Bowser Announces Whitman-Walker Health to Locate on St. Elizabeths East Campus, Delivering New Facility to Ward 8. Nov. 14, 2019.mayor.dc.gov/release/mayor- bowser-announces-whitman-walker-health-locate-st-elizabeths-east-campus-delivering-new.

QUALITY OF LIFE DEVELOPMENT (DECEMBER 2020) Level 3-plus trauma center in Fall 2024.10 GWU’s hospital, which will replace an existing District-owned facility, will also provide PROJECTS SF maternal health, obstetric, and newborn services, including a COMPLETED (SINCE 2001) 323 24,492,561 2010 15 1,186,818 Level 2 neonatal intensive care unit.11 2011 17 1,193,187 2012 19 1,237,579 Construction of another university-sponsored project, the 2013 18 1,322,988 Medstar Georgetown University Hospital Pavilion, is taking place 2014 13 1,528,010 alongside renovation of the existing hospital onsite and estimated 2015 19 1,727,039 12 for completion in 2023. Meanwhile, Howard University 2016 24 2,379,575 anticipates delivering a new hospital in 2026. Managed in 2017 17 1,556,544 partnership with Adventist Healthcare, the facility will contain 2018 17 962,210 225 beds, a Level 1 trauma center, and five Centers of Excellence 2019 14 1,557,702 (sickle cell, women’s health, oral health, trauma and violence 2020 12 1,147,174 prevention, and substance abuse). The District government will support construction with more than $276 million from various UNDER CONSTRUCTION 19 1,535,662 2021 DELIVERY 16 1,030,347 public financing programs.13 2022+ DELIVERY 3 505,315

While the District is seeing significant public and private PIPELINE 59 5,283,661 investment to establish and build out hospitals, outpatient facilities NEAR TERM 23 2,923,249 are undergoing renovation as well. One notable modernization LONG TERM 36 2,360,412 project completed in Fall 2020 brought $26 million in upgrades to 1145 19th Street, a medical office building in the Golden Triangle/ TOTAL 401 31,331,884 CBD offering radiology, surgery, and laboratory testing services.

QUALITY OF LIFE DEVELOPMENT (DECEMBER 2020, SF IN THOUSANDS)

3500

3000

2500

2000

1500 1,147 1,030 1000

500 122 8 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021* 2022*

GROUNDBREAKING COMPLETED PROJECTED DELIVERIES*

* projections based on targeted delivery dates of projects under construction as of December 2020

10. Office of the Mayor. Mayor Bowser Announces Agreements for Two New Hospitals to Bring Equity to DC’s Health Care System. April 29, 2020.mayor.dc.gov/release/mayor-bowser-announces-agreements-two-new-hospitals-bring-equity- dc’s-health-care-system. 11. See newhospitals.dc.gov/page/new-hospital-at-st-elizabeths-east-0. 12. See buildingmedicalexcellence.com. 13. See newhospitals.dc.gov/page/howard-university-hospital-project.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 77 QUALITY OF LIFE DEVELOPMENT

LIBRARIES PARKS/OPEN SPACE

Libraries have received renewed focus following the DC Public Among the 100 most populated cities in the U.S., the District is Library’s November 2020 release of Next Libris. The ten-year already notably accessible with respect to open space, as 98% master facilities plan will guide efforts to relocate and rebuild of residents can walk to a park in ten minutes.15 Nonetheless, in certain branches and construct additional facilities with the November 2020 the District launched “Ready2Play,” a master goal of ensuring equitable access throughout the District.14 The planning process guided by public engagement to create a initiative coincides with an ongoing modernization effort that vision and identify corresponding strategies for the District’s reached a major milestone in September 2020 with the highly parks and open space over the next two decades.16 anticipated reopening of the modernized Martin Luther King Jr. Memorial Library. Having delivered a new or renovated Individual parks also continue to undergo renovations, with facility every year since 2016, the library system continues Phase I upgrades completed at Eastern Market Metro Park in to keep pace with plans to complete the Southeast Library’s July 2020 and the launch of Phase II in October, along with redesign and upgrades to the Southwest Library in early 2021, improvements to Franklin Square by the National Park Service before opening the new Lamond Riggs Library in 2022. beginning in the summer. In early 2021, the District will deliver a new Lafayette Recreation Center to expand activity and administrative space, as well as improve stormwater management. Community groups and civic organizations are further complementing these efforts by sponsoring additional projects, as with the opening of Alethia Tanner Park by the NoMa Parks Foundation in June 2020.17

Across the District, the Covid-19 pandemic has encouraged a reimagination and reallocation of the public realm to incorporate a greater number of shared uses in response to changing safety protocols and needs. For example, updated road configurations have introduced slower streets and converted parking lanes into “streateries” to increase common access to space and permit outdoor activities while promoting social distancing.18 If but a small silver lining, the current crisis has presented opportunities to pursue these and other new ways forward for our communities that we may never have realized. Image of West Elementary School courtesy of Perkins Eastman DC

13. See newhospitals.dc.gov/page/howard-university-hospital-project. 14. Next Libris: Facilities Master Plan 2021-2030 is available at dclibrary.org/sites/default/files/DCPL_NextLibris_111020-Web.pdf. For an overview of the initiative, see dclibrary.org/dclibraryfuture. 15. The Trust for Public Land’s ParkScore index is a composite measure of resident access, park acreage, financial investment, and open space amenities tpl.org/parkscore/about( ). For DC’s 2020 ParkScore, see tpl.org/city/washington-district-columbia. 16. Available at ready2playdc.com/what-is-ready2play. 17. See nomaparks.org/nomagreen. 18. Mayor's Office of Community Relations and Services. Mayor Bowser Announces Plans to Open “Streateries” and Lower Citywide Speed Limit as DC Reimagines Roads and Public Space. May 29, 2020. mocrs.dc.gov/release/mayor-bowser-announces-plans-open-streateries-and-lower-citywide-speed-limit-dc-reimagines.

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All project locations are approximate. QUALITY OF LIFE QUALITY DEVELOPMENT PIPELINE

QUALITY EST. VALUE 2 PROJECT WARD LOCATION DEVELOPER(S) OF LIFE SF ($M)1 DELIVERY

TOP QUALITY OF LIFE PROJECTS COMPLETED (Q1 2020–Q4 2020)

1 Martin Luther King Jr. Library 2 9th & G Sts., NW Jair Lynch Real Estate Partners / DC Public Library 400,000 $212 Q3 20 2 Eliot-Hine Middle School 6 1830 Constitution Ave., NE Department of General Services / DC Public Schools 143,500 $84 Q4 20 Modernization 3 1145 19 th Street 2 1145 19 th St., NW The RMR Group Inc. 130,000 $26 Q3 20 4 Jefferson Academy 6 801 7th St., SW Department of General Services / DC Public Schools 109,000 $78 Q2 20 5 Georgetown Day School 3 4203 Davenport St., NW Georgetown Day School 88,600 Q4 20 Tenleytown Campus 6 CW Harris Elementary School 7 301 53rd St., SE Department of General Services / DC Public Schools 84,000 $52 Q3 20 7 Houston Elementary School 7 1100 50 th Place, NE Department of General Services / DC Public Schools 82,500 $55 Q3 20 Modernization 8 Thaddeus Stevens School 2 1050 21st St., NW Akridge / Argos Group / Department of General 40,000 $20 Q3 20 Services / DC Public Schools 9 Bread for the City 8 17th & Good Hope Rd., SE Bread for the City 27,700 $26 Q3 20 10 Shepherd Park 4 7800 14th St., NW Department of General Services / Department of 20,000 $13 Q3 20 Community Center Parks and Recreation

TOP QUALITY OF LIFE PROJECTS UNDER CONSTRUCTION

11 Medstar Georgetown 2 3800 Reservoir Rd., NW MedStar Georgetown University Hospital / 497,000 $560 Q1 23 University Hospital Pavilion Trammell Crow Company 12 Children's National Research 4 7144 13 th Place, NW Children's National Medical Center 380,000 $250 Q1 21 & Innovation Campus 13 Banneker Academic 6 10 th & R Sts., NW Department of General Services / DC Public Schools 175,000 $152 Q3 21 High School 14 Capitol Hill Montessori at Logan 6 215 G St., NE Department of General Services / DC Public Schools 100,000 $70 Q3 21 15 West Elementary School 4 1335 Farragut St., NW Department of General Services / DC Public Schools 88,600 $71 Q3 21 16 KIPP School (Phase III) 7 4801 Benning Rd., SE KIPP DC 84,000 $21 Q2 21 17 Eaton Elementary School 3 3301 Lowell St., NW Department of General Services / DC Public Schools 52,600 $67 Q3 21 Modernization 18 Southwest Library 6 900 Wesley Place, SW DC Public Library 22,000 $18 Q1 21 19 Lafayette Recreation Center 4 5900 33rd St., NW Department of General Services / Department of 3,300 $6 Q1 21 Parks & Recreation 20 Franklin Park 2 13 th, 14th, I, & K Sts., NW Department of General Services / National Park Service $18 Q3 21

TOP QUALITY OF LIFE PROJECTS IN THE PIPELINE

21 Howard University Hospital 1 501 Bryant St., NW Howard University 478,000 $450 2026 (Phase I) 22 555 Pennsylvania Avenue 2 555 Pennsylvania Ave., NW John Hopkins University 400,000 $200 2023 23 Saint Elizabeths East 8 2730 Martin Luther King, Jr. Government of the District of Columbia 322,000 $326 2024 (New Hospital) Ave., SE 24 3999 8th Street 8 3999 8th St., SE & 700 KIPP DC 158,000 $105 2022 Yuma St., SE 25 Skyland Town Center (Block 1) 7 Alabama Ave. & Naylor Rd., SE Rappaport / WC Smith 131,300 $72 2023 26 New Residence Hall 5 Catholic University Catholic University 104,000 $35 2023 27 New Fort Dupont Ice Arena 7 3779 Ely Place, SE Department of General Services 78,000 $25 2023 28 Smothers Elementary School 7 4400 Brooks St., NE Department of General Services 66,100 $55 2022 Modernization 29 400 I Street 6 400 Eye St., SW Bozzuto / Dantes Partners / Westminster 18,513 2024 Presbyterian Church 30 11th Street Bridge Park 8 11th Street Bridge Building Bridges Across the River / $74 2024 DC Department of Transportation

1) may include non-quality of life components & pipeline values may include additional phases ($ in millions) 2) delivery date may reflect phase I delivery or final phase delivery for pipeline projects. DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 81 DEVELOPMENT HIGHLIGHTS Image by Stacie West/NoMa Parks Foundation Image courtesy of 11

WARDS 6/8 WARD 5 th Street Bridge Park

11TH STREET BRIDGE PARK ALETHIA TANNER PARK

LOCATION: 11th Street Bridge LOCATION: 227 Harry Thomas Way, NE DEVELOPER(S): Building Bridges Across the River / DEVELOPER(S): NoMa Parks Foundation DC Department of Transportation ARCHITECT(S): Nelson Byrd Woltz / Studio 27 ARCHITECT(S): Olin / OMA CONTRACTOR(S): Forrester Construction Company CONTRACTOR(S): WRA EST. VALUE: $27 million STATUS: Pipeline (Near Term) EST. VALUE: $74 million STATUS: Completed TARGETED DELIVERY: Q2 2024 TARGETED DELIVERY: Q2 2020

SPECS: The 11th Street Bridge Park, a public/private partnership, will be the District's first elevated public park and will be erected on the existing piers that SPECS: The 2.5-acre Alethia Tanner Park is located north of New York Avenue, held up the old 11th Street Bridge. The park will will be the length of three football bounded by Harry Thomas Way, NE, on the west and the Metropolitan fields and include programming such as an amphitheater, urban agriculture, Branch Trail to the east. The design includes an open green lawn, stage area, a café, hammock grove, and classrooms to teach students about river systems. The playground, a dog park, a small café kiosk, and connections to the MBT. Environmental Education Center will feature green infrastructure and solar, as part of a $5 million capital campaign gift from Exelon, Pepco, and Constellation. Image courtesy of Perkins Eastman

WARD 6 WARD 4

BANNEKER ACADEMIC HIGH SCHOOL CHILDREN'S NATIONAL RESEARCH & INNOVATION CAMPUS

LOCATION: 10th & R Streets, NW LOCATION: 7144 13th Place, NW DEVELOPER(S): Department of General Services / DC Public Schools DEVELOPER(S): Children's National Medical Center ARCHITECT(S): Perkins Eastman DC ARCHITECT(S): Elkus Manfredi Architects / Array Architects CONTRACTOR(S): MCN Build CONTRACTOR(S): Smoot Construction DC / Suffolk Construction LEED: Platinum EST. VALUE: $152 million LEED: Silver EST. VALUE: $250 million STATUS: Under Construction STATUS: Under Construction TARGETED DELIVERY: Q3 2021 TARGETED DELIVERY: Q1 2021

SPECS: A new 175,000 SF, 800-student capacity Banneker Academic High SPECS: The 380,000 SF medical research facility will be located on 11.68 acres School will be built on the site of the former Shaw Junior High School. The of the former Walter Reed Medical Center. It is the first in the nation dedicated project is seeking LEED Platinum (minimum of Gold) and NetZero and will to pediatric research focusing on research devoted to complex and rare genetic feature a green roof, solar panels, geothermal wells, and numerous other diseases and a primary care clinic. The 160,000 SF Phase I will open in early 2021 sustainable elements. in a portion of the Research and Innovation Building. Select Partners include Johnson & Johnson Innovation (JLABS), Virginia Tech, the National Institutes of Health (NIH), Food & Drug Administration (FDA), and the U.S. Biomedical Advanced Research and Development Authority (BARDA). 82 © 2021 WASHINGTON DC ECONOMIC PARTNERSHIP DEVELOPMENT HIGHLIGHTS Image courtesy of Bonstra | Haresign Architects

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EATON ELEMENTARY SCHOOL MODERNIZATION FATHERS RESIDENCE & MISSION HOUSE

LOCATION: 3301 Lowell Street, NW LOCATION: 3001 4th Street, NE DEVELOPER(S): Department of General Services / DC Public Schools DEVELOPER(S): Missionary Society of St. Paul the Apostle ARCHITECT(S): cox graae + spack architects ARCHITECT(S): Bonstra | Haresign Architects CONTRACTOR(S): Grunley Construction / GCS-Sigal LLC CONTRACTOR(S): Coakley & Williams Construction LEED: Platinum EST. VALUE: $67 million STATUS: Under Construction STATUS: Under Construction TARGETED DELIVERY: Q4 2021 TARGETED DELIVERY: Q3 2021 SPECS: Situated on an undeveloped parcel immediately to the southwest of the landmarked St. Paul's College campus, the new 29,900 SF Paulist Fathers SPECS: The project consists of modernizing three historic buildings with an Residence & Mission House will serve as the Paulists' downsized home. The adjoining connection in the middle, totaling approximately 52,600 SF. The configuration of the building distinguishes the two-story residential wing (15 updated facility will be able to host 490 students. The project, which is seeking units) from the public functions (chapel, refectory, ministry, etc.) of the program. LEED Platinum (minimum of Gold) and NetZero status, will feature Geothermal HVAC system and use WELL Building standards as design guidelines. Image courtesy of DC Department Parks & Recreation Conceptual image of Howard University Hospital

WARD 2 WARD 1

FRANKLIN PARK HOWARD UNIVERSITY HOSPITAL (PHASE I)

LOCATION: 13th, 14th, I, & K Streets, NW LOCATION: 501 Bryant Street, NW DEVELOPER(S): National Park Service / Department of General Services DEVELOPER(S): Howard University ARCHITECT(S): Land Collective / Studios Architecture / Olin / STATUS: Pipeline (Near Term) ZGF Architects EST. VALUE: $450–$600 million CONTRACTOR(S): Smoot Construction DC TARGETED DELIVERY: 2026 LEED: Gold EST. VALUE: $18 million SPECS: The new 225-bed, Level I trauma and academic teaching hospital to be Under Construction STATUS: managed by AdventistHealthCare will replace the existing hospital. The project TARGETED DELIVERY: Q3 2021 will receive District government support in the form of a $225 million tax abatement, $25 million in public infrastructure, and $26.6 million to support five SPECS: The 4.79-acre park will receive numerous upgrades, including an interactive fountain, 43 new trees, a 2,100 SF café, children's play area, and Centers of Excellence at the new hospital (Sickle Cell, Women’s Health, Oral pedestrian mall on the southern end of the site. The park is the National Park Health, Trauma and Violence Prevention, and Substance Abuse). Services’ second largest square in the downtown.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 83 DEVELOPMENT HIGHLIGHTS

WARD 2 WARD 2

MARTIN LUTHER KING JR. LIBRARY MEDSTAR GEORGETOWN UNIVERSITY HOSPITAL PAVILION

LOCATION: 901 G Street, NW LOCATION: 3800 Reservoir Road, NW DEVELOPER(S): DC Public Library / Jair Lynch Real Estate Partners DEVELOPER(S): MedStar Georgetown University Hospital / ARCHITECT(S): Mecanoo / Martinez & Johnson / OTJ Architects Trammell Crow CONTRACTOR(S): Smoot Construction DC / Gilbane Building Company ARCHITECT(S): Shalom Baranes Associates / HKS PC LEED: Gold EST. VALUE: $212 million CONTRACTOR(S): Clark Construction Group STATUS: Completed LEED: Silver EST. VALUE: $560 million TARGETED DELIVERY: Q3 2020 STATUS: Under Construction TARGETED DELIVERY: Q1 2023 SPECS: The existing four-story, 400,000 SF library underwent a major modernization, which added a one-story penthouse/multipurpose event space SPECS: The six-story, 497,000 SF medical facility hospital pavilion is being built with a partially covered terrace. The 1st floor includes a “great hall” that serves on an existing parking lot. Programmatic highlights of the new pavilion include as an informal performance space; Level A offers a 19,000 SF maker space 32 operating rooms, a 32-treatment bay emergency department, 156 private (“Fab Lab”); the 3rd floor contains a two-story grand reading room; and the th4 patient rooms, and a new rooftop helipad. floor features a two-story, 300-seat auditorium. Conceptual rendering

WARD 5 WARD 8

NEW RESIDENCE HALL SAINT ELIZABETHS EAST (NEW HOSPITAL)

LOCATION: Catholic University LOCATION: 2730 Martin Luther King, Jr. Avenue, SE DEVELOPER(S): Catholic University DEVELOPER(S): Government of the District of Columbia ARCHITECT(S): Perkins Eastman DC EST. VALUE: $326 million CONTRACTOR(S): Manhattan Construction Company STATUS: Pipeline (Near Term) EST. VALUE: $35 million TARGETED DELIVERY: Q3 2024 STATUS: Pipeline (Near Term) TARGETED DELIVERY: Q3 2023 SPECS: The northern portion of the St. Elizabeths East Campus (Parcel 2) will be redeveloped into a six-story community hospital, 24-hour urgent care center, and ambulatory care clinic. The 136-bed hospital, to be managed by George SPECS: The proposed four-story, 104,000 SF residence hall will be built infront of Opus Hall and include 360 beds and accommodate traditional-style double Washington University and Universal Health Services, will be a Level 3-plus rooms for first year students, Resident Advisor units, lounges and study spaces, trauma center and offer a Level 2 neonatal intensive care unit. This hospital will and a small chapel. replace United Medical Center (UMC) located on Southern Avenue.

WARD WARD WARD WARD

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Thaddeus Stevens School (c.1868), a historic four-story, 40,000 SF 40,000 four-story, School (c.1868), a historic Thaddeus Stevens The modernization project includes site improvements, renovations renovations includes site improvements, The modernization project

THADDEUS STEVENS SCHOOL THADDEUS STEVENS SMOTHERS ELEMENTARY SCHOOL MODERNIZATION ELEMENTARY SMOTHERS ARCHITECT(S): CONTRACTOR(S): LEED: STATUS: DELIVERY: TARGETED SPECS: CONTRACTOR(S): LEED: STATUS: DELIVERY: TARGETED SPECS: LOCATION: DEVELOPER(S): LOCATION: DEVELOPER(S): ARCHITECT(S): will increase the building area from 43,400 SF to 66,100 SF and include a new SF and include SF to 66,100 43,400 from the building area will increase multipurpose area. gymnasium, kitchen, and rooftop masonry structure, underwent a $20 million renovation and re-opened as an million renovation a $20 underwent masonry structure, site for the center and an expansion infant and toddler child development Walls. School Without to the existing building, and two new additions in anticipation of an increased new additions in anticipation of an increased and two building, to the existing 5 through population serving pre-kindergarten student Image courtesy of Coakley Williams 4 6 WARD WARD WARD WARD

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SOUTHWEST LIBRARY SOUTHWEST SHEPHERD PARK COMMUNITY CENTER SHEPHERD PARK SPECS: LEED: STATUS: DELIVERY: TARGETED DEVELOPER(S): ARCHITECT(S): CONTRACTOR(S): LOCATION: SPECS: LEED: STATUS: DELIVERY: TARGETED DEVELOPER(S): ARCHITECT(S): CONTRACTOR(S): LOCATION: branch library and feature community meeting rooms, three conference rooms, rooms, conference three community meeting rooms, and feature library branch lab” with 3-D and an “innovation porch, an outdoor reading rooms, four study panels and battery storage. funded solar DOEE grant A $960,000 printers. Elementary School and offers a gymnasium, multipurpose room, fitness center, room, fitness center, Elementary School and offers a gymnasium, multipurpose and adults. for both elementary students and bathrooms space, storage Image courtesy of DC Department of Parks & Recreation Image courtesy of Perkins + Will NEIGHBORHOOD DEVELOPMENT NEIGHBORHOOD NEIGHBORHOOD DEVELOPMENT

BUZZARD POINT SAINT ELIZABETHS EAST BUZZARD POINT

NEIGHBORHOOD DEVELOPMENT BUZZARD POINT Interactive Map: wdcep.co/BuzzardPt

PROJECT STATUS ■ Completed since 2016 ■ Under Construction ■ Pipeline ■ Area of Interest

DATA AS OF DECEMBER 2020

A. 1550 1ST STREET B. CAMBRIA HOTEL C. 100 V STREET

RESIDENTIAL DEVELOPMENT

NEW UNITS BUILT 1,613 SINCE 2016

NEW UNITS UNDER 420 CONSTRUCTION

UNITS IN 3,244 THE PIPELINE

D. WATERMARK E. RIVERPOINT

Note: development data only includes projects shown on map above. B. Image courtesy of Donohoe Companies C. Image courtesy of Akridge

NEIGHBORHOOD DEVELOPMENT SAINT ELIZABETHS EAST Interactive Map: wdcep.co/saintE

PROJECT STATUS ■ Completed since 2018 ■ Under Construction ■ Pipeline ■ Area of Interest

DATA AS OF DECEMBER 2020

A. PARCEL 2 (NEW HOSPITAL) B. PARCEL 13 (RESIDENTIAL + RETAIL) C. RESIDENCES AT ST. ELIZABETHS EAST

DEVELOPMENT SUMMARY • 800 RESIDENTIAL UNITS EXPECTED TO START CONSTRUCTION WITHIN TWO YEARS • NEW WHITMAN-WALKER HEALTHCARE CENTER (PARCEL 17) TO OPEN IN 2023 • ENTERTAINMENT & SPORTS ARENA (PARCEL 12) OPENED IN 2018 D. PARCEL 15 (MIXED-USE) E. PARCEL 17 (OFFICE + RETAIL)

Note: development data only includes projects shown on map above. A. Conceptual Rendering. B. Image courtesy of Bonstra | Haresign ARCHITECTS. D. Image courtesy of Redbrick LMD.

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 89 APPENDIX APPENDIX APPENDIXMETHODOLOGY ACKNOWLEDGMENTS

Image courtesy of WDG Architecture METHODOLOGY

APPENDIX

THE GOAL OF THE WASHINGTON DC ECONOMIC PARTNERSHIP was to Primary Sources create a comprehensive database of development activity that • Architects • DC Office of the Deputy would help us find answers to the following questions: Mayor for Planning & • Building Permits Economic Development • What is the make-up of • What are the trends? development activity? • Certificates of Occupancy • DC Office of the Chief • How much is being Financial Officer • Where is the development invested in our • Developers activity occurring? community? • DC Office of Zoning • DC Office of Planning However, before we could begin to collect development • General Contractors information, we had to create a methodology to give us guidance on what data to assemble on each project and which projects • Project Managers to include in our database. For a detailed explanation of our methodology please visit wdcep.co/dcdr-method. Secondary Sources • Brokers • Media & Newspapers While our database of projects is constantly being updated, for the purposes of this publication, all data reflect project status, • Business Improvement • Neighborhood design and information as of December 2020. Districts Newsletters & Blogs

information sources Adding or Updating Information

To capture the most comprehensive inventory, we use a variety If you are looking for information about a specific project and of sources to gather information about development activity, you do not see it on our list, it may have been omitted for one of and whenever possible, we contact the developers directly to the following reasons. get the most up-to-date and accurate information available and conduct site location visits to verify the project’s status. 1. IT DID NOT MEET THE $5 MILLION THRESHOLD OR Often our research uncovers discrepancies in available data 10 RESIDENTIAL UNIT MINIMUM on project information such as square footage, cost, number of 2. WE ARE MISSING A KEY PIECE OF INFORMATION units, etc. When this occurs, we try to reconcile the differences 3. WE HAVE QUESTIONS ABOUT THE VALIDITY OF THE DATA by speaking directly with parties involved in the development. 4. WE MAY NOT KNOW ABOUT IT Some of our sources include:

To add or update a record in our database, please contact:

Chad Shuskey Jill Schoenfeld Senior Vice President, Programs Research Analyst (202) 661-8674 / [email protected] (202) 661-8683 / [email protected]

APPENDIX

The Washington DC Economic Partnership would like to thank the following organizations for their contributions to this year’s DC Development Report.

11th Street Bridge Park Fort Lincoln New Town Corporation Office of the Deputy Mayor for Planning & Economic Development AEDC Foulger-Pratt Companies Paradigm Companies Akridge Four Points Perkins Eastman DC Armed Forces Retirement Home Gensler Perkins&Will Banneker Ventures George Washington University Perseus TDC Bisnow GlobeSt.com PGN Architects BKV Group Gould Property Company Potomac Investment Properties Bonstra | Haresign Architects H Street CDC Prince of Petworth Boston Properties Hartman-Cox Architects Rappaport Bozzuto Hickok Cole Architects Redbrick LMD Brookfield Hoffman & Associates Roadside Development Bush Construction Horning Brothers Rock Creek Property Group Cedar Realty Trust Howard University Shalom Baranes Associates CityInterests Development Partners Insight Property Group SmithGroup Coakley Williams Construction Company James G. Davis Construction Corporation Smithsonian, National Air & Space Museum Coba Properties JBG Smith Smoot Construction Company of Community Three Development JD Land Washington DC CORE Jefferson Apartment Group Stonebridge Associates Davis, Carter, Scott LCOR Toll Brothers DC Curbed Lock 7 Development UIP DC Department of General Services Lowe Enterprises Urban Matters Development Partners DC Department of Parks & Recreation MCN Build Urban Turf DC Department of Transportation Menkiti Group Washington Business Journal Donatelli Development Mid-City Washington Post Donohoe Companies Neighborhood Development Company WC Smith Eastbanc The NHP Foundation WCS Construction EDENS NoMa Parks Foundation WDG Architecture Forrester Construction Company Wilkes Companies

DC DEVELOPMENT REPORT • 2020 / 2021 EDITION 93 It is the mission of the Washington DC Economic Partnership, a 501(c)3 organization, to promote business opportunities throughout the District of Columbia and to contribute to business retention and attraction activities.

The Washington DC Economic Partnership supports businesses and entrepreneurs looking to open, expand, or invest in DC through our programs and services focusing on business development, education of the real estate market, and business opportunities. To learn more about the Washington DC Economic Partnership please visit wdcep.com.

WASHINGTON DC ECONOMIC PARTNERSHIP · 1495 F STREET, NW · WASHINGTON, DC 20004 · (202) 661-8670 · WDCEP.COM

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003602C7 01/21