the power of partnerships - dcbia · the power of partnerships increase your impact. join today!...

MAY 1, 2015 49

Special Advertising Supplement to Washington Business Journal

THE POWER OF PARTNERSHIPS

INCREASE YOUR IMPACT. JOIN TODAY!DCBIA has three membership types: builder/developer, associate, or non-profi t/small business. Visit dcbia.org for details.

ALREADY A MEMBER? JOIN A COMMITTEE!Joining a DCBIA committee is another way to maximize your membership. Advocacy and Commu-nity. Education and Networking. Staying Informed. Contact [email protected] to join a Committee.

CO-CHAIRS AND VICE CHAIRSCapital Markets: Brian Berry, Oak Point Investors; Kent Marquis, StonebridgeCarras

Commercial Construction: Charles Asmar, Asmar Schor & McKenna PLLC; Howard Chapman, Savills Studley; Alex Curlet, Clark Construction (DLD Vice Chair)

Committee on the Environment: Amy Edwards, Holland & Knight; David Tuchman, Akridge

Community Services: Gary Ball, PN Hoffman; Erin Flynn, Hickok Cole Architects (DLD Vice Chair)

East of the River Neighborhood Development: Alexander Berley, DC Housing Authority; N. Lin-da Goldstein, Reno & Cavanaugh; Cheryl Hamil-ton, Adaoha Properties; Christopher Woods, JAIR LYNCH Development Partners (DLD Vice Chair)

Housing Committee: Brad Fennell, WC Smith; Jeff Gelman, Saul Ewing; Anitra Androh, Bryant Miller Olive (DLD Vice Chair)

Legislative & Regulatory Affairs (by invitation only): Paul Tummonds, Goulston & Storrs; Rod Woodson, Holland & Knight; Jeff Utz, Goulston & Storrs (DLD Vice Chair)

Membership (by invitation only): Jerry Distefano, CohnReznick; Charlotte Troup, Chicago Title Insur-ance Company; Eric Butler, JCR Companies (DLD Vice Chair)

Programs Committee (by invitation only): Lisa María Mallory, DCBIA; Britt Snider, The JBG Compa-nies; Gaby Riegler, PN Hoffman (DLD Vice Chair)

Retail Business Development: Jim Farrell, The Rappaport Companies; Amy Rice, Hines; Jonathan Shartar, ECHO Real Estate (DLD Vice Chair)

Taxes & Impositions: Tanja Castro, CastroHaase; Brian Morrison, StonebridgeCarras (DLD Vice Chair)

SEAN C. CAHILLPresidentDistrict of Columbia Building Industry Association (DCBIA)

Senior Vice President Development Property Group Partners

As I watched a video of the high-lights of DCBIA’s work last year at a recent DCBIA Board Orientation, I was struck by how much has been accom-plished over the past year and a half. From numerous working sessions with the District’s Chief Financial Offi cer (as we hope to adjust the implement-ed tax assessment methodology) to a recent CEO Forum featuring some of our nation’s top thinkers on the global markets to in-depth discussions on and advocacy about the Tenant Oppor-tunity to Purchase Act, Inclusionary Zoning, and more than 20 other leg-islative and regulatory proposals, our industry-focused advocacy remains strong. We also held many exciting development walking tours of new and thriving areas such as Burnham Place and H Street, NE and held network-ing events at new and exciting venues such as Arena Stage, the District Archi-tecture Center at AIA | DC, and Edens DOCK 5 in NOMA. We reached record attendance for our Annual Awards Din-ner & Community Improvement Day. We have nearly 215 DCBIA Leaders in Development (DLD) members who are attracting thought-provoking speak-ers to further educate young real estate development leaders on subjects such as Adaptive Reuse Renovations and Beyond Co-working. And our part-nership with the Washington Business Journal to publish our Pipeline helps us communicate our message to 90,000 readers. Indeed, it has been a busy and productive time for all of us at DCBIA.

Looking forward, we are now focused on charting our direction for the next three to fi ve years, honing in on our strengths – advocacy and edu-cation – to determine ways to continue to support our elected offi cials through innovative ideas and information, and timely, accurate data and analysis. We

have held many meetings with mem-bers of Mayor Bowser’s new adminis-tration and we are fully committed to continue strengthening our partnership so that we can, together, tackle some of the most pressing challenges and maximize existing and future opportu-nities in Washington, DC. We are also reengaging and strengthening our out-reach to others in the real estate devel-opment continuum, such as architects and brokers.

Over the next few months, we will also outreach to some of our smaller businesses and independent operators to share with them the benefi ts of membership but most importantly to allow them to also benefi t from the plethora of resources that our mem-bers can collectively provide. We want to make sure that DCBIA and its resources continue to be accessible to all.

Finally, at this time of year, we pause to celebrate our industry peers through recognition at our Annual Achievement Awards Dinner. This year, we recog-nize one of the City’s largest develop-ers and its leader, DC Water’s George Hawkins, who joined DCBIA’s board last year and has been an energetic partner. We are also recognizing Monty Hoffman for over two decades of con-tributions that have literally reimagined Washington, DC. Lastly, we recognize a unique and historic partnership – the DC 2024 Olympic Bid Team – for their courage, ideation and ability to pro-vide a collective vision for our City. We may not get there through the Olym-pics – but we now have a blueprint for our future.

I want to again thank all of our mem-bers, Board, partners and staff that have made this past year and a half such a blast. We have a lot to be proud of and many more lives to touch. Onward!

PIPELINEDISTRICT OF COLUMBIA BUILDING INDUSTRY ASSOCIATION

50 WASHINGTON BUSINESS JOURNAL

LISA MARÍA MALLORYCEODCBIA

Building Diversity Through EducationWe are excited to announce one of our latest part-

nerships intended to underscore DCBIA’s commit-ment to our City. Over the past few months, we have been working with Georgetown University’s School of Continuing Studies (SCS) Master in Professional Studies in Real Estate Program. As a result of this engagement and with the generous support of Bal-four Beatty Construction and other DCBIA members, DCBIA’s Community Services Corporation, a 501 (c)(3), will offer a full scholarship to a new student enter-ing the program in the fall of 2015!

We recognize the need to increase diversity in the real estate development industry, and to that end, we encourage you to spread the word to any indi-vidual, particularly minorities and/or women, inter-ested in pursuing a Master of Professional Studies in Real Estate at this distinguished university. Our intent is for the scholarship to be need-based and preference will be given to residents of the District of Columbia. We continue to look for opportunities to partner with academic institutions, the public and

private sectors to broaden interest in and diversify our fi eld. Please let me know of any ideas you may have as this is a particular passion of mine.

As you know, DCBIA’s Community Services Cor-poration has been visible in our City for over 22 years through our Community Improvement Day (CID). This year, we are partnering with the University of the District of Columbia, the District of Columbia Housing Authority, the District of Columbia Commis-sion on Arts and Humanities, the U.S. Department of the Interior and others to build an urban farm in Ward 7. We believe this innovative partnership, and the resulting urban farm and Aquaponics facility at the corner of East Capitol Street at Southern Ave-nue, NE, will provide many benefi ts to the commu-nity through increased access to fresh food sources, nutritional information, jobs and other forms of eco-nomic development and even a fun place for children and their families. We will be sharing more informa-tion about ways you can sponsor and/or volunteer for CID to be held on September 26, 2015.

2015 REAL ESTATEWith the generous support of Balfour Beatty Construction, DCBIA’s Community Services Corporation, a 501 (c)(3), will off er a full scholarship to a new student entering into the program in the fall of 2015!

CEO’S CORNER


District of Columbia Building Industry Associationwww.DCBIA.org

MAY 1, 2015 51

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BUWA BINITIEManaging Principal Dantes Partners LLC

DCBIA Member

Affordability, Housing, and The DistrictThe District of Columbia has become THE place to

be thanks to revitalized neighborhoods and new urban hotspots that are attracting the young and mature alike back to the city. This resurgence in the District, however, presents a unique challenge: housing. The arrival of higher-income earners into the District has driven demand – and pricing - for housing through the roof. While demand is being met at higher income levels, those earning low and moderate incomes (less than $65,000 annually) struggle to find housing they can afford. This income shift is echoed by trends in the median income - the AMI for a family of four has increased by more than $20,000 in the past decade.

According to the DC Fiscal Policy Institute, rents have grown across the board since 2002, while incomes have changed only marginally, or, the case of low-income earners, remained stagnant. Further-more, the number of available units priced below $1000/month has declined from 59% in 2002 to 34% in 2013, while the number of units at higher rent lev-els ($1400/mo) increased from 19% in 2002 to 45%

in 2013.To meet the need for lower-rent units, the Bowser

administration has made a steadfast commitment to ensure that public dollars – in the form of an annual contribution of $100 million to the Housing Produc-tion Trust Fund - will be available. This commitment is unprecedented when you look at similar housing markets in urban areas across the country that are experiencing rapid urban renewal and rises in hous-ing prices.

Moderate income earners are of particular interest to Dantes Partners (DP) because they comprise post-secondary educated, working professionals (think nurses, teachers, legal assistants, or even your aver-age recent graduate starting their first professional job) earning an average of $45,000 - $65,000 annu-ally. Until recently, this population was the “market,” and housing supply for this economic bracket was ample. Today, this population struggles to find hous-ing in the District that they can afford. Several of our recent developments that are marketed to individuals earning moderate incomes leased up before open-

ing day and boast waiting lists of several HUNDRED interested persons.

This brings to light a very unique challenge for both the private and public sectors: as market hous-ing prices continue to rise, how do we work togeth-er to create supply to meet the housing demand at lower income levels? As a community of industry experts in development, finance, design, and policy, we should embrace the challenge of how to solve this very unique problem. As recently noted by the George Mason University Center for Regional Analysis, of the 18,900 new jobs that were added to the Washington area economy between 2013 and 2014, nearly 80% of those jobs were attributed to the education, health, leisure, and hospitality sectors, while the traditional and largest sectors of professional/business servic-es and federal employment declined. Many of the workers in these growing sectors are low and mod-erate income wage earners, and this trend reflects the growing need for housing for this segment of the workforce.

As recently noted by the George Mason University

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WHAT IT LOOKS LIKE AND WHY IT MATTERS


MAY 1, 2015 53

Sources: “Going, Going, Gone: DC’s Vanish-ing Affordable Housing”, Wes Rivers, DC Fiscal Policy Institute, March 12, 2015; US Department of Housing and Urban Development, www.huduser.org; “Inner Loop: Mason Metrics”, Washington Business Journal, c/o GMU Center for Regional Analysis, March, 20, 2015

Center for Regional Analysis, the Washing-ton area economy netted 18,900 new jobs between 2013 and 2014. That growth is pri-marily attributed to the education, health, lei-sure, and hospitality sectors, while the tra-ditional and largest sectors of professional/business services and federal employment declined. Many of the workers in these grow-ing sectors are low and moderate income wage earners, and this trend reflects the growing need for housing for this segment of the workforce.

At DP, we are excited by challenging opportunities like this. There is high demand among a ready population looking for qual-ity, affordable supply. It is a growing prob-lem that requires innovative solutions from industry practitioners. There are numerous experts in the industry – particularly within the DCBIA membership body. Let’s be part of the solution.

DC's Own Grand Man.Builder.

Revolutionary.

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1st Crane in DC

28 Metro Stations

The World BankArena Stage

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Library of Congress

An honest man focused on people, quality, integrity,education, diversity, and charity.

A problem solver at heart.

Thank you, Jim Clark.1927-2015

DCBIA honors you and your legacy.





BY PAUL TUMMONDS, RODERIC WOODSON and DAVID GOLDBLATT

Councilmember David Grosso recent-ly introduced legislation seeking to implement solar easements for real property. Bill 21-133 the Solar Access Rights Establishment Act of 2015 would impose significant administrative and monetary hurdles on neighboring prop-erties that obstruct the solar access of an individual property that may intend to install a solar energy system. The solar easement would be recorded and prohibits infringement on a property owner’s solar access rights. The Dis-trict would be required to review solar access obstructions and compensation would be required for interference with the easement. DCBIA does not support this legislation as written.

TOPADCBIA has worked diligently with

Councilmember Bonds and tthe Com-mittee on Housing and Community Development to amend the TOPA Bona Fide Offer of Sale Clarification Amend-ment Act of 2015 (“TOPA Act”). This legislation was introduced in response to ongoing concerns regarding the Ten-ant Opportunity to Purchase Emer-gency Amendment Act of 2014 and Tenant Opportunity to Purchase Tem-porary Amendment Act of 2014 which were both enacted in October of 2014 and made retroactive changes to the Tenant Opportunity to Purchase Act (“TOPA”) which effects the sale of res-idential properties in the District of Columbia.

A hearing on the TOPA Act is sched-uled for May 21 and DCBIA will testify that the TOPA Act, as introduced, is not a workable solution. DCBIA will focus on the importance of eliminating the ret-roactivity of TOPA provisions applicable to for-sale units and clarify how the bill will apply to demolition and discontinu-ance notices. We are encouraged by the Council’s response to our concerns and we are optimistic that an agreement can be reached on the best way to proceed with any TOPA amendments.

BUDGETThe Mayor introduced her proposed

FY 2016 Budget in early April and the

Council will finalize its amendments to the proposal before going on recess in July. The Council is holding its annual budget oversight hearings and DCBIA is following a few provisions within the Budget. On May 8th, DCBIA will testify before the Council on the Budget. Cur-rently, the budget would impose three tax increases—all to sales tax. The gen-eral sales tax would increase from 5.75% to 6%, the tax on parking would increase from 18% to 22% and vapor tobacco would be taxed. DCBIA does not sup-port the increase in taxes as a method for filling in a budget shortfall. Instead, it is DCBIA’s contention that further funding level cuts be instituted across agencies and unfilled full-time equivalents be eliminated from agency budgets.

Some relevant provisions in the May-or’s proposal include shifting H Street grant funds to the Great Streets pro-gram and creating tax incentives for tenant improvements of at least 50,000 square feet by qualified high technology companies. As a way to find an addi-tional $2 million in annual revenue, the Mayor proposes eliminating the statute of limitations on District tax audits. The Mayor also proposes dedicated funding for the Vision Zero fund, which would be focused on bicycle, pedestrian and road-way safety. Finally, the Mayor propos-es to create a Local Transit Committee for planning multi-modal public trans-portation. Overall, the budget is not too controversial, but does not address the core issue that the District’s operating budget keeps growing, with $500 million in additional spending just to maintain the same service levels as FY 2015. We are concerned that several provisions of the BSA address programmatic modifi-cations which have not been subject to public hearings. In general, and absent some compelling reason, inclusion of such provisions in the BSA has been tra-ditionally rejected. We recommend that the City Council continue to adhere to this approach.

Paul Tummonds is with Goulston & Storrs. Roderic Woodson is with Holland & Knight. They serve as DCBIA Legislative & Regulatory Affairs Co-chairs.

David Goldblatt is a partner with Goldblatt Martin Pozen and serves as DCBIA Legislative Counsel.

B21-0133 - SOLAR ACCESS RIGHTS ESTABLISHMENT ACT OF 2015

Update on Legislative Proposals Affecting DC Development

CEO FORUM EVENT HIGHLIGHTS

Varied Investment Strategies among Industry Leaders

BY BRIAN BERRY and KENT MARQUIS

On Thursday, March 19th, DCBIA held a CEO Forum at the Marriott Marquis Hotel on the state of the Capital Markets in Commercial Real Estate. Organized by the DCBIA Capital Market Committee and DCBIA staff, this event expanded the purview of prior-year programs by installing panelists with national and inter-national expertise and focus. Bill Collins, Vice Chairman at DTZ, moderated this esteemed group, which included Frank Cohen, Senior Managing Director at Blackstone, Bill Tre-sham, President of Ivanhoé Cambridge and Mark Wilsmann, Head of Real Estate Strate-gies at MetLife. Nate Edwards, Director of Research at DTZ, provided a brief economic overview of the national and regional econo-my as well as various segments of the current commercial real estate market.

Collins engaged the panelists in an orga-nized but free flowing discussion covering a wide range of topics. Each panelist spoke about the opportunities and challenges they see in today’s national investment market while outlining unique investment strate-gies. While participants agreed that current asset pricing levels are high by historic stan-dards resulting in low yields, all of the pan-elists believe there are attractive risk-adjust-ed investment opportunities available. Each firm is investing significant equity through direct, joint venture and private equity fund methods. Strategies differed based on risk tolerance, property type preference and tar-geted holding periods. Each investor has a history of buying and selling assets in the

Washington, DC region.Blackstone recently raised $14 billion for its

upcoming investment fund, further solidifying its strength when negotiating for large acquisi-tions. Cohen prefers to invest in the strong job growth markets, such as Northern California, Boston and New York. Under the leadership of Tresham over the last four years, Ivanhoé Cambridge, has concentrated on invest-ments in New York, Chicago, Seattle, Calgary and Paris after selling select office partner-ships and the Fairmont Hotel in Washington, DC. Wilsmann highlighted MetLife’s ongo-ing interest in making long-term investments in Washington, DC after acquiring both 555 12th Street and the Fairmont Hotel recently. MetLife tries to focus on “investing in the path of the knowledge worker.”

Prior to the conclusion of the program, Collins led a rapid-fire question and answer segment that resulted in many fascinating, insightful and varying responses, but revealed one unanimous prediction shared by all three panelists: capitalization rates are expected to remain at current levels for the foresee-able future due to a “wall” of foreign invest-ment flowing into the United States in tandem with interest rates remaining at historically low levels.

Guests participated during the questions and answer session and networked at the cocktail reception that immediately followed the event.

Brian Berry is with Oak Point Investors and Kent Marquis is with StonebridgeCarras. Both serve as DCBIA Capital Markets Committee Co-Chairs

Left to right: Brian Berry, Oak Point Investors; Frank Cohen, Blackstone Group; Bill Collins, DTZ (moderator); Bill Tresham, Ivanhoé Cambridge; Nate Edwards, DTZ; Kent Marquis, StonebridgeCarras, and Mark Wilsmann of MetLife.

MAY 1, 2015 55

Tuesday, May 5, 2015 | Marriott Marquis Hotel | 6:30 pm to 10:30 pm

DCBIA’S 31ST ANNUAL ACHIEVEMENT AWARD RECIPIENTS DEFINE DC’S GROUNDBREAKING

TRANSFORMATIONAL CHANGEOn May 5, 2015, the District of Columbia Building Industry Association will present its 2015

Achievement Awards to Monty Hoffman of PN Hoffman, George Hawkins of DC Water, and the DC 2024 Olympic Bid Team led by Ted Leonsis & Russ Ramsey to recognize their outstanding

achievements in creating groundbreaking, transformational change in Washington, DC.

COMMUNITY PARTNERSHIP AWARDDC 2024 Olympics Bid Team, Led by Ted Leonsis and Russ RamseyWashington, DC was one of four U.S. cities to make the short list of cities to compete for the 2024 Summer Olympic Games. Boston won the bid, but DC will capitalize on the efforts as the DC 2024 effort provided leaders with the extraordinary opportunity of 18 months working collaboratively with local and regional leaders to think about DC’s many assets and projects in the context of what the City could look like 10, 20, 30 years or more out, resulting in an historical effort of local and regional unity, and fresh, dynamic, and ex-citing ideas to reintroduce Washington, DC to the world. To help build on this extraordinary regional and federal collaboration, DCBIA presents its Community Partnership Award to the DC 2024 Olympic Bid Team.

DEVELOPER AWARDMonty Hoffman, Founder & CEO, PN HoffmanFor over 22 years, Monty Hoffman has been transforming Washington, DC beginning with a single townhouse conversion as his fi rst project as Founder & CEO of PN Hoffman. Since then, PN Hoffman has been the fi rst to revitalize the 14th Street Corridor, Logan Circle, and Adams Morgan and the fi rst to develop a LEED certifi ed residential high-rise in Washington, DC. Now a market leader of real estate development, PN Hoffman’s current project, The Wharf, is a $2 billion mixed-use redevelopment transforming DC’s southwest waterfront into one of the most exciting urban waterfront communities in the world. For his amazing vision and tenacity, DCBIA presents the Developer of the Year award to Monty Hoffman.

PUBLIC SECTOR AWARDGeorge Hawkins, CEO & General Manager, DC WaterWhat is happening beneath Washington, DC is as exciting as the development occurring with the cranes that pepper our skyline. CEO and General Manager of DC Water, George Hawkins, is presented with the DCBIA’s 2015’s Public Sector Award for leading the massive innovation that is transforming our City’s water and sewer systems. Mr. Hawkins operates the world’s largest advanced wastewater treatment plant at Blue Plains, with a capacity of treating 370 million gallons of wastewater per day. Simultaneously, DC Water’s Clean Rivers Project is mining its way through underground Washington, DC using three massive tunnel boring machines – Lady Bird mining north from Blue Plains, Nannie south from RFK Stadium, and Lucy along First Street, NW. These boring machines will signifi cantly reduce combined sewer overfl ows to the Potomac and Anacostia rivers and help eliminate fl ooding in areas of the city that have experienced fl ooding for more than 100 years. The improved water quality will also help spur economic development along the District’s riverbanks.

REGISTER TODAY AT www.dcbia.org

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