April 11, 2006
West End Unfurls

Once mainly a dumping ground for hotels in easy striking distance of both Georgetown and downtown, the District's West End neighborhood has lately experienced a building boom that may bring more residents than ever into the quiet area east of Rock Creek Parkway, north of Foggy Bottom, and west of Dupont Circle.
For years, the West End had been a veritable eye of the storm -- remaining oddly quiet, while the rest of the town swirled busily around it. But in early 2004, developers started work to turn the former site of the venerable Columbia Hospital for Women into the Columbia Residences -- a retail/condo complex that wouldn't be out of place in overgrown Clarendon. Soon after, the Park Hyatt Hotel -- diagonally situated from the building site at the corner of 24th and M streets NW -- closed for major renovations, taking down the highly respected Melrose restaurant (and its delicious crabcakes, too) with it. Two blocks to the west, on an island bordered by by New Hampshire Avenue NW, 22nd Street NW, and M Street NW, an overpriced Exxon station shut down to make way for X on West -- a triangular condominium structure that aims to resemble a glass version of the I.M. Pei-designed east wing of the National Gallery of Art. And not two weeks ago, Lulu's Club Mardi Gras at the corner of 22nd and M Streets tossed its last beads -- only months after the adjacent Blackie's House of Beef served Chateaubriand to its final table of former L.B.J. administration officials.
Although the West End -- a property value-driven moniker -- has traditionally turned off residents unwilling to pay to live in an area whose major asset was proximity to other places, developers and speculators are now taking an "if you build it, they will come" strategy. In 2004, D.C. bar magnate Joe Englert opened up 51st State on the notoriously difficult block of L Street alongside Pennsylvania Avenue NW between 25th and 26th Streets. A Subway sandwich shop appeared across the street not less than six months ago. And next door, the Xcaliber Lounge refashioned itself into the more user-friendly National Grille -- replete with fresh fish specials that aren't half-bad.
What's more, the Columbia Residences developers Trammell Crow and subsidiary High Street Residential have promised to bring "grocery, hardware, pharmacy, dry cleaner and other similar convenience-related tenants" into ground-floor retail space. Indeed, a Starbucks sign recently appeared on the M Street facade.
And it's long been believed that a Trader Joe's will open on the 25th Street side this summer -- though a recent chat with Trader Joe's customer relations suggests that nothing is set in stone. According to TJ's, the company has yet to sign a lease at the site and building permits are still in the works. The company says, even if the legal stuff goes according to plan, that the store likely wouldn't open until July at the earliest.
For their part, two local hotels have made or are making their restaurants more resident-friendly. More than a year ago, the Fairmont gutted the blandly named Bistro and opened Juniper. At the Park Hyatt, the formal Melrose will give way in late May to the Blue Duck Tavern -- a "contemporary neighborhood tavern" fortunately still helmed by the reliable Brian McBride. Hidden up 24th Street is the vastly underrated Agua Ardiente.
It's unclear whether all the new building will draw residents to an area that's been little more than a pass-through zone for so long -- especially if the Trader Joe's doesn't pan out. Regardless, this is an area that's seemingly on the verge of a major transformation. But will it be as packed as the Penn Quarter, or will it see scores of empty condos à la Clarendon?

X on West has actually been renamed 22 West. Anybody know how they're selling so far? According to their website, 1 bedroom apts start at $750,000-800,000!
If this Trader Joe's doesn't pan out, where will all these new resident buy their groceries? I'm currently living in the West End (on 22nd, between N&0) and without a car, have been forced to use Peapod. Besides an overpriced metro market on P, there's no where to buy food around here. Or, am I just not looking in the right place?
Seems like a Wegman's or Balducci' would be better positioned here. Not complaining about TJs if it happens, but for us downtown folks it's easier to hop over to VA than to go crosstown.
empty condos à la Clarendon
Empty condos? I imagine the condos that are ready for habitation are not empty. Many are probably not ready for residents to move in yet. So, if your question is "will people in the West End also wait until their condos are done to move in", then I'd have to guess yes.
Mike, you're not far from the Secret Safeway at 20th and S...although that's small enough that it may not help much...
Vic: A Wegman's would never happen in the West End, nice as that would be for all of us that don't want to drive to Sterling or Fairfax, regardless of our neighborhood. They demand a very large footprint to build their stores, and that kind of space doesn't exist in the West End. Balducci's could probably work, although I'm not too familiar with it.
1. What will be interesting is what happens on the large site across from the metro. The foggy bottom assn is dueling with GWU about how the property should be developed. click below to learn more:
http://dcbubble.blogspot.com/2006/03/foggy-bottom-battle-royale-nearby.html
2. Last we heard Trader Joe's was opening in June. Is this not true?
Jay, to be sure, I'm obviously excepting from my comment condos that *can't* be inhabited. But do I take it that you're saying that there isn't a condo glut in Clarendon -- that all of these condos (some of which indeed aren't yet ready for habitation, and some of which are still being built) will be filled quickly at the relatively high prices currently being offered?
http://overpriceddc.blogspot.com/2006/03/dc-condo-investor-tries-to-cash-out.html
According to Trader Joe's customer relations, TJ's hasn't yet signed a lease -- though, if one is signed, it's more likely that the grocery store would open in July than June.
Michael: Oh, I doubt they'll be filled at the prices they're being offered. But, do you really think they'll be left to sit empty? I'm sure prices will drop as much as they need to (which probably won't be that much), and they'll be filled. So I think, looking at more than a short time window, the condos that are empty are ones that don't have electricity and running water yet.
Honestly, condos in Penn Quarter are a bit overpriced too, so the argument is just as valid there.
I would love a Wegmans in the District, but like Jay said, they only build on massive lots. You can still find some junior-sized Wegmans in western NY (bullseye: Rochester), but that's because those were built before the Wegmansization of the Mid-Atlantic. In fact, just a few years ago, one of the original Wegmans closed near the University of Rochester. It was about the size of the Secret Safeway and was affectionately referred to as the "GhettoWeg." Taking out-of-towners shopping at the GhettoWeg was entertaining when their only experience was at one of the opulent "Pittsford Wegmans." Locals were super bummed about GhettoWeg's closure and protested by printing up shirts bearing the slogan "Save the Ghetto." Good times...
I think Clarendon condos, even the up and running ones, have occupancy issues. There was an article in the NY Times a few months ago about condos glut in general but which discussed Clarendon specifically.
The article mentioned one woman specifically who couldn't afford her mortgage and was trying to rent it out so that she could move to a rental she could afford. Unfortunately, someone like that is going to have a problem convincing a renter to pay an amount to cover her ridiculous mortgage.
All in all I doubt a condo crash will occur in Arlington or the Chinese Gallery Quarter. Nonetheless I doubt anyone is going to be gloating over some crazy "flip" anytime soon. And moreover, I bet a bunch of people are going to lose deposits as the refuse delivery on the condo they never intended to live in in the first place.
Unfortunately, someone like that is going to have a problem convincing a renter to pay an amount to cover her ridiculous mortgage.
Oh, agreed, but they'll still end up renting it out for something... or foreclosing, and then someone else snatches up the condo for much less. My point was that either way, someone will live there. Clarendon is in-demand enough that the market won't let condos stay empty.
All in all I doubt a condo crash will occur in Arlington or the Chinese Gallery Quarter. Nonetheless I doubt anyone is going to be gloating over some crazy "flip" anytime soon. And moreover, I bet a bunch of people are going to lose deposits as the refuse delivery on the condo they never intended to live in in the first place
I agree with all of this, and in the case of the lost deposit, the developer will just turn around and sell the condo to someone else. Perhaps for a little less money, but hey they still have the first guy's deposit, so it's not so bad for them.
mike, your market is the watergate safeway
That would be the Socialite Safeway.
The worst safeway in the city. The prices are higher and the selection is awful.
In my old days back at gw we called it the communist safeway: safeway brand and one other if you are lucky.