Condo Living: Rising in the East

| Print Post This | Like (0) | Comments (1)

DRIVE THROUGH the Southeast D.C. neighborhoods of Randle Highlands, Hillcrest, Congress Heights and Anacostia, and snazzy names for new condo developments jump out from billboards, banners and construction sites. Ads tout the Flats at Hunter Crossing, seen at top, Penn Circle, Highland View and Savoy Court — developments that sound like properties in Virginia Hunt Country, not the latest residences in an area once better known for crime and urban decay than new construction.

But in the last few years, developers have gotten bullish on the condo scene east of the Anacostia River, seen at right, pouring millions into erecting new properties and converting old ones. But unlike the pricey lofts in Logan Circle and Arlington, the concentration here is often on refurbished buildings — typically priced below $220,000 a unit. Investors see a market of would-be homeowners averse to long commutes, coupled with these close-in D.C. neighborhoods' easy access to D.C. offices and power corridors.

"It's 20 blocks from Penn Circle to the U.S. Capitol," says Steve Schwat, a principal at Drummond Development, which developed the Penn Circle condo complex at 1501 27th St. SE. The last unit sold in February, he says. All across Southeast Washington, Schwat believes, "the housing evolution will eventually take hold. It can't not."

"The demographics attracted me," says David Tolson, whose DBT Development Group is behind Brandywine Crossing, at 717-725 Brandywine St. NE. "There are a lot of hardworking people with modest salaries, by Washington standards, who don't want to spend an hour in the car [commuting]."

At Brandywine Crossing, eight buildings hold cable-ready two-bedroom condos with luxe amenities like maple cabinets, stackable washer/dryers and side-by-side fridges. They're going for $119,000-$269,000. About 85 units have been sold, Tolson says, with another few dozen available at press time.

Tolson, who focused on Logan Circle and Columbia Heights "until those neighborhoods started to get overbuilt," says that probably half of his buyers have come from Maryland and Virginia.

Gloria Pringle paid about $147,000 for a one-bedroom in Brandywine Crossing in 2006. A corrections officer employed by the District, she likes her new condo's floor plan, shiny kitchen appliances and the quiet building she now calls home. "There's a lot of professional people coming into the area," she says. "It makes a difference — you don't get riffraff, people who cause problems" and commit crimes.

Pringle says she also feels safe in her neighborhood because the building is well-lit, secure and has an intercom system. In places she lived in the past, "people would stick a rug in the door" to prop it open; that's not likely to happen at Brandywine, with its community of security-minded neighbors.

Thorell Penny Jordan, a Realtor with Tenacity Group, says the first phase of sales at the Flats at Hunter Crossing at 2317 16th St. SE, "sold out quickly. Folks can pay their mortgage for the same amount as rent and get a tax write-off."

Again, a slew of upscale features, from a choice in paint colors to walk-in closets, surprise would-be residents who tour the site. "We see [prospective buyers] who aren't expecting the properties to be so nice or well developed," says Jordan. "A lot of folks are happy when new development comes to an area, and buildings that may have been [boarded up] are no longer eyesores."

D.C.-based RE/MAX Realtor Terry Brown says that condo sales continue to be "relatively brisk," with sales often being completed in 45 to 60 days. "Anything under $215,000 is selling fairly rapidly."

Brown and his staff assist eligible clients with purchasing packages that include Home Purchase Assistance Program loans administered through the D.C. Department of Housing and Community Development, D.C. bonds and other initiatives.

"Some condos in these neighborhoods are under $200,000, which some people can afford if the condo fees are not exorbitant," he says. "But if a condo is $175,000 and you have a $300-per-month condo fee, that kicks out some [prospective buyers]."

Butch Hopkins, CEO of the Anacostia Economic Development Corp., called the area east of the Anacostia "the hot spot for residential and retail development initiatives" such as the proposed multi-use project at Poplar Point, where D.C. United owners hope to build a stadium for the soccer team. "The vast majority of Southeast residents are anticipating the advent of new and diverse retail opportunities coming to Anacostia/Far Southeast," he says.

For one thing, the chance to buy a condo or single-family home, "brings in a more stable population, which is always good for new retail and restaurants," says Yavocka Young, executive director at Main Street Anacostia, which is working to bring in businesses like coffeehouses and shops.

"The growth of retail dovetails with the growth of condos," says Ayris T. Scales, project manager in the Office of the Deputy Mayor for Planning and Economic Development. She pointed to the H Street NE corridor as another D.C. zone where condo development has nudged once-reluctant retailers to rethink the neighborhood.

Still, "the rise in the number of condos can cut two ways," says David Bowers, director of the Washington office of Enterprise Community Partners, a national non-profit whose mission is to see that low-income Americans have the opportunity to live in fit, affordable homes. "It will potentially afford more people an opportunity for ownership, but it [applies market] pressures in terms of pricing." Developers must work to ensure that people of modest means are neither priced out nor displaced, he says.

Referring to the neighborhood where he leads monthly walking tours, historian/activist Kalem Umrani says, "people in Anacostia are ready for a change." He cited the city's "build first" policy — in which D.C. builds new housing units before old ones are torn down — as a step toward appeasing some residents' displacement fears.

Developments like Trinity Plaza, slated for completion in 2008, seek a middle ground. This multi-use complex, spearheaded by the Far SW-SE Community Development Corp., is slated for development in the 3900 block of South Capitol Street SE, in the Bellevue area. It will include 28 condos priced for low-income buyers and another 14 sold at market rate.

Part of Far SW-SE CDC's covenant with the city is that those who purchase the affordable units must live in them for 15 years before selling, says S. Patrice Sheppard, executive director of the organization. "We're excited about our condos, because the bedrooms will be on two levels, so it won't feel like living in an apartment," she says.

Jimmy Floyd, at right, a Realtor with RE/MAX in D.C., says his clients looking east of the Anacostia are eager to stay in the city, or sometimes, return to it. "A lot of buyers are right out of college, still making $40,000 to $50,000. Some of them want to move back before they get priced out."

Written by Express contributor Amy Rogers Nazarov
Photos by Marge Ely/Express