J Street Ramps Up Plans for NoMa Submarket

WASHINGTON, DC-J Street Development Co., among the first developers to invest in the NoMa neighborhood, is transitioning its site portfolio in the submarket. Its flex office building along North Capitol Street appears to have attracted a buyer–or at least a few serious offers–after having been put on the market in October.

Meanwhile, the company will break ground next week on another NoMa site. The firm also just selected an architect for its third site, moving forward with plans to break ground in fall 2008.J Street’s senior vice president Jay Bothwell tells GlobeSt.com that NoMa remains a key interest even as its existing holdings move through the normal build-lease-sell cycle. “We are very positive about this area,” he says.

Bothwell declined to discuss specifics for the 1111 N. Capitol St., a 167,000-sf historic flex office building other than to say the company “is no longer accepting offers from the public.” Built in 1925 as a warehouse for the C&P Telephone Co., the Smithsonian uses it today to build exhibits for the “Mall,” paying about $10.50 per sf, according to the marketing materials. Market rents should average $18 per sf, according to New York City-based Eastdil Secured, which was tapped to broker the sale.

Besides the immediate upside of a new leasing strategy, the historic building also holds long-term potential. It is entitled for 525,000 sf of mixed-use development, which would include an incorporation of the original historic structure.

J Street also is moving forward with development on its two remaining sites in the NoMa submarket. Dirt is set to move at next week’s official groundbreaking of 111 K St., an 11-story, 90,000-sf office condo with ground-level retail space. At least six of the building’s floors have been committed to private-sector buyers, according to an earlier interview with J Street president Bruce Baschuk. Bothwell tells GlobeSt.com that the company “is close to signing deals with multiple parties.”

Finally, J Street, along with joint venture partner Archon Group of Irving, TX, has selected an architect for its third NoMa site at 100 K St, which is across the street from 111 K St. CORE Architecture/Design will design a sister office condo building, also to be 11 stories. The structure, however, at 200,000 sf will be more than twice the size of its counterpart. The JV acquired the project site in July.

Design specs decided upon thus far include a commitment to meet LEED Silver standards, metal-frame glass expanses, green marble floors and lacquered panel walls. Roof terraces will function as part of the storm water management plan. The building will also have a 4,000-sf conference room and about 7,000 sf of ground-floor retail space. The 100 K Street project is expected to begin construction in fall 2008 and deliver in mid 2010. J Street is not releasing development costs for either building.