The Trump administration's proposed tariffs on steel are having an effect on the DC development market.
A T-shaped planned-unit development was approved in 2016 to build atop and around the one- and two-story buildings at 1126 9th Street NW (map) in Shaw, delivering 33 condos atop 3,723 square feet of office or retail space. Now the developers are seeking a modification of consequence, and offer a very specific explanation for why the proposed project will now be smaller.
"Since the Commission’s approval of the Original Project, external factors have made the Original Project impractical, requiring the requested modifications," the application states. "Most significantly, construction costs have increased dramatically in the past twelve (12) to fifteen (15) months. Proposed tariffs have already had a dramatic impact, causing a previously unforeseen ten percent (10%) spike in the price of steel. Therefore, the proposed concrete and steel building was no longer financially viable to construct. The Revised Project is shorter and smaller because of the recent and significant run up in construction costs."
The newly-proposed building along M Street will be 61.58 feet tall rather than the previously-approved 61.33 feet tall, and 74.4 feet tall rather than the previously-approved 100 feet tall fronting 9th Street. A more simplified and efficient interior layout will reduce the number of residential units from 33 to 15 and increase the commercial space by 50 square feet. There will still be two inclusionary zoning units: a 697 square-foot unit for a household earning up to 50 percent of area median income (AMI) and a 709 square-foot unit for a household earning 80-120 percent AMI.
The development team will present the new plans at tomorrow's ANC 2F Community Development Committee meeting; a Zoning Commission hearing has not yet been scheduled. Oaktree Building Group is the lead developer and Fillat + Architecture is the designer of the development.
This article originally published at http://dc.urbanturf.com/articles/blog/how-trumps-tariffs-are-affecting-dc-development/14254
Most Popular... This Week • Last 30 Days • Ever
Following a bankruptcy auction, sale closed on the property last November.... read »
The new home also has an owner's suite that spreads out over 3,300 square feet.... read »
UrbanTurf is taking a look at what we think will be the three metrics that will deter... read »
Built in 1840, the home has been home to members of Congress and presidential cabinet... read »
Over 8,000 apartments were absorbed in DC in 2021 for the first time.... read »
UrbanTurf is re-running its primer on property taxes which outlines a few things that... read »
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
The H Street Corridor once epitomized DC's development boom, but construction activit... read »
The upzoning would mandate additional Inclusionary Zoning units for developments alon... read »
The Shaw pipeline is starting the year off hot.... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro