PROGRAM SUMMARY

June Program:
Roundtable: Great Streets Initiative

	In the first joint program by CREW and ULI, the District of Columbia's "Great Streets Initiative" was discussed by a panel of public officials and private sector experts working in economic development, transportation, commercial real estate development and retail leasing. Elizabeth Conahan, Chair, ULI Washington (the first woman), described the ULI study that is being finalized with specific recommendations to the city. For study results, you may visit www.washington.uli.org.
The Great Streets are: 7th Street and Georgia Avenue, NW ; H Street, NE ; Martin L King, Jr. Avenue, SE and South Capitol Street;
Pennsylvania Avenue, SE; Benning Road and Minnesota Avenue NE/SE; and Nannie Helen Burroughs Avenue, NE. The revitalization of these streets adds to the DC Renaissance. www.greatstreetsdc.com
The panelists described the city's strategic investment in these targeted corridors and private investments made before, during and after these public investments were in place. These investments include partnerships between the local and federal governments and public and private entities which range in size – S, M, L and XL.

What is the Great Streets Initiative?

Derrick Woody, Coordinator of the Great Streets Initiative in the Office of the Deputy Mayor for Planning & Economic Development (DMPED), and Karina Ricks, Great Streets Project Coordinator of the District's Department of Transportation (DDOT), began by outlining the city's program for revitalizing these targeted corridors. The goal of the city is to de-concentrate poverty, add affordable housing units and create jobs and employment training programs. New Urbanism principles such as putting high density development at employment centers and transit nodes and introducing retail, cultural and entertainment facilities to enliven neighborhoods are key to the city's actions. Locally, significant redevelopment opportunities include the Anacostia Waterfront, WMATA Metro Stations and major transit corridors part of the L'Enfant Plan.

Specific examples of public and private investments are cited below:

Small – Enhanced Business Information Centers which provide assistance to small businesses and give out façade and signage grants to business owners;

Medium – City initiatives, "reStore DC" and "Home Again", have attracted large national retailers and small local businesses as well as affordable housing units to neighborhoods that could not attract private investment because of poverty and unsafe conditions;

Large – Mixed Use Developments such as Gallery Place at 7th and H streets, NW and NCRC RLA sites at the Columbia Heights Metro Station; and

Extra Large – Baseball Stadium at $600 million and the Anacostia Waterfront.

The city and federal governments are underway in making strategic infrastructure improvements that will attract and support private investment in these neighborhoods and are disposing and jointly developing key parcels. Investments by the federal government will total $200 million and investments by the local government will total $100 million by DDOT and another $16 million by DMPED. Financing tools include Tax Increment Financing (“TIF”), which ear mark property and sales taxes; zoning tools that create incentives for developers; and use of eminent domain by the city.

What Are the Challenges to the Commercial Real Estate Development Community?

John Sunter, Development Executive at Clark Realty Capital, (www.clarkrealty.com) is developing Arboretum Place in the east end of H Street. By studying an aerial map of the city, Clark identified this large site that is just 1.5 miles from the Capitol. Other attractive features include transportation access via the Benning Road Metro, Union Station and the starburst intersection of Bladensburg Road and Maryland Avenue. Neighborhood amenities include the Hechinger Mall, a new CVSpharmacy, a post office and the historic Atlas Theater.

The estimated $100 million development includes 500 apartments overlooking court yards which are green roofs to 200 parking spaces in a below grade garage. While Clark 's initial investment in the site preceded the Great Streets Initiative, the subsequent public approval process and Initiative objectives have guided the design of the project. Originally, the design had its front door internal to the site because of public safety concerns and dismal streetscape on the perimeter streets. Working with the Office of Planning, the final design is one that turns outward to provide expansive vistas of the improving neighborhood. Sunter noted that the project's current rental rates and leasing pace were not aided by the Great Streets Initiative but he thought that higher escalation rates would be achieved.

In describing the development process, Sunter urged city officials to give public assistance to such large projects critical to neighborhood revitalization. He noted two tools – to offer priority in permitting to reduce the risk of delayed project schedules and tax abatement to increase the developments' financially feasibility.

Bill Orlove, Leasing Director at JBG Rosenfeld Retail, spoke more broadly about the risks taken by developers and tenants and specifically about how successful retail programming creates pedestrian traffic. JBG is planning Capitol Square in NOMA (North of Massachusetts Avenue) at Third and H streets, NW. This two million SF mixed-use development includes residential, office, hotel and a grocery store.

Orlove emphasized the importance of a desirable tenant mix to ease the public approval process which prolongs the project timeline. With large projects taking longer, drastic changes in market demand for planned uses can occur as well as increases in construction costs. These risks and associated costs add to the already high cost of land. As an example, he cited the difference in cost between surface and below grade parking spaces; below grade cost as much as double the cost of above grade spaces.

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EVENT SUMMARIES

Jubilee Housing Gala

If baseball is America 's pastime, the Jubilee Gala was certainly a Washingtonian pastime for many of the 500+ attendees at this year's event, including many CREW members. With baseball's return to America 's capital city, it was apt that baseball was the theme of this year's annual Jubilee Housing fundraiser gala. Attendees donned a mix of cummerbunds and cleats, ball gowns and ball caps.

Event organizers stretched the theme to its fullest, with volunteers wearing specialty jerseys, a banner touting “Jubilee Field”, a speed-pitch game, a live Jeopardy-style baseball trivia game, floral vases hand-decorated to mimic baseballs and the silent auction broken into four “bases”. Signed jerseys from major league baseball players were highlighted items.

As guests sat down to dinner (kicked off by the National Anthem, of course), Jubilee Support Alliance President (and long-time CREW member) Susan Longstreet delivered a message that maintained the crowd's energy, but brought to focus the matter at hand: DC's affordable housing crisis. Two Jubilee Housing residents shared their touching stories via a short film, and highlights of major renovations to certain Jubilee properties were highlighted. Myra Peabody Gossens was awarded the Jim and Patty Rouse Award, and Carr America was awarded the Jubilee Corporate Community service Award.

Just to be sure they hit this one out of the park, Jubilee Support Alliance called on the services of an animated Scotsman to preside over the live auction.

After selling such items as a signed baseball helmet and a pearl necklace to the highest bidder, the auctioneer auctioned off “support bids”. Numerous attendees raised their number to purchase housing support for a resident for one year, one month and one week. Overall, the event was a huge success for team JSA and for the cause of affordable housing in Washington . Next year's theme? Monopoly!

All photos courtesy of Rodney Choice www.choicephotography.com

Academy of Hope Breakfast for Literacy

Attended by a core group of about 200 supporters, with Davis Construction as lead sponsor, the Academy of Hope breakfast for literacy was in inspirational event. Teachers and students alike exuded a deep appreciation for the custom-tailored and goal-oriented learning provided by the Academy. Clearly, this institution is living up to its vision:

“Academy of Hope will be a school in which the main subject for everyone, teachers and students alike, is not reading, writing, or math – but hope. Hope comes only when we care and care cared for. In this academy, all of us are teachers because all of us can care for one another. And in this academy, all of us are students, since all of us need to be cared for.”

Many AOH students are striving for their high school diploma. Francisco de la Rosa, a recent graduate and a speaker at the morning program, said that he was particularly inspired to return to school when his daughter was born. Other graduates echoed this sentiment, reporting that their desire to be good role models, combined with the compassion and encouragement from AOH, helped pave the road to success. In addition to the GED program, Academy of Hope offers programs in Adult Basic Education, External Diploma Program, Career Counseling, Computer Training and Workplace Literacy. Students pay just $10 per month to attend classes, or they may opt to contribute through volunteer work at the Academy. It currently costs about $25 for a student to attend one week of classes at the Academy.

Data from the Academy's annual report gave a good snapshot of the organization's success. Last year, 384 at-risk adults living in the District were served by the Academy; 63% female and 37% male. Last year twenty-five students earned high school credentials; 111 increased their math or reading test scores by at least one grade level; 59 received a new job or promotion; and 24 entered vocational training or postsecondary education. After earning high school credentials, 77% of students enroll in college, certificate programs or vocational training. 33% of graduates read to their children more often, and 15% buy their own home.

Anecdotes from students themselves brought life to the hope encapsulated by these report numbers. Across the board, students replied that their self-confidence and sense of worth increased, warming the hearts of those in the audience.

After Academy of Hope Board President unveiled the new AOH DVD, attendees were invited to take home any one of dozens of free books stacked on the dining tables. These takeaways symbolized well that new beginnings are within reach for motivated District citizens, and that their success is a success for the city of Washington .

Academy of Hope is one of the charities actively supported by CREW DC and its members. http://www.aohdc.org

CREW DC Golf Outing

CREW Careers Day 2006 -- Real Estate 101

hough dismal weather kept attendance from being perfect, twenty dedicated girl scouts and their troop leaders attended the 2006 CREW DC Careers – Real Estate 101 workshop. Several influential women of the DC real estate scene also attended to speak with the girls about the realities of real estate, and to impart knowledge through hands-on activities.

The day opened with a testimonial from developer Pam Bundy, followed by a break-out session in which participants filled out worksheets to learn more about each aspect of the business: development, legal work, brokerage, marketing, etc. To gain appreciation for the complexity of building, the scouts (many were seniors in high school) attempted to build structures from spaghetti and gumdrops. After lunch, it was off to H&M, not for shopping, but to complete a scavenger hunt of building elements. On the walk back to Ventana, the meeting's headquarters, many girls remarked they had never before considered the intricacies of a retail space.

After regrouping, the young ladies played a tailored version of “Wheel of Fortune”. Descriptions of various positions in real estate and their respective pay rates replaced the normal location of cash prizes and exotic trips. This underscored the unique tone of the day, which allowed girls to have practical conversations about real estate careers with the frank women who were working in them, rather than merely reading a summary on a web page. The interaction also allowed the young ladies to envision themselves as real estate professionals, a path that remains underrepresented by women.

In the sizeable binders handed to every participant were specific sections about career-wear, dress code and business etiquette. The day closed with a reading about attitude, and how controlling one's outlook can sometimes be 90% of success. As each workshop “graduate” received her diploma and goodies bag, it was clear that these were not the only takeaways. Thanks to the dedication of CREW members, the day was one of encouragement, honesty, challenge and opportunity.

Networking Roundtable: REITs

The CREW Washington DC Networking Committee organized a program on Real Estate Investment Trusts (REITs) in DC. The event took place on Thursday, October 27 th at the Function Room at the Chevy Chase Bank in Bethesda. The panelists included Roger Waesche, CFO of Corporate Office Properties Trust (OFC), Douglas Donatelli; CEO of First Potomac Realty Trust (FPO) and John Schissel, CFO of Columbia Equity Trust (COE). All three REITs are publicly traded on the NYSE. The moderator for the panel was Eric Lawrence, SVP Real Estate Banking at the Chevy Chase Bank.

The panel discussion focused on the growing participation of REITs in the dynamic Washington, DC. market and the company strategies for succeeding in this competitive environment. There was emphasis on the private versus public format of REITs and discussion about the number of public REIT's that are currently going private as a result of the excess capital in the market.

The program was very well attended and the audience included a mix of CREW members, developers, attorneys and others interested in the topic. It is interesting to note that about 50% of the audience was comprised of men. Approximately 70 people attended the event. The program started promptly at 8:30AM and concluded at 9:30AM, networking breakfast was served from 8:15 to 8:30AM.

This event had the most attendance of any Networking Event held to date. It was a very informative program. Thank you to Chevy Chase Bank for hosting this event.

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Networking Event: Wine Tasting

Networking Event: Concert at the Hirshorn Museum and Sculpture Gallery

VIEW PAST PROGRAM SUMMARIES

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