Financial
A striking new ‘View’ on 14th Street
David Franco, a longtime local entrepreneur who co-owns Level 2 Development, opened View 14, a 185-unit apartment building in the bustling 14th and U corridor. (DC Agenda photo by Michael Key)
David Franco laughs as he recalls his foray into the entrepreneurial arena. It was 1989 and his good friend, John Guggenmos, was pulling together a group of investors to buy the nightclub Tracks. Franco, a fresh-faced 24-year-old, could not have known that Tracks would shortly experience its heyday and become the focal point of D.C.’s gay nightlife scene, making it a hugely profitable venture, but he smelled opportunity. Or at the very least a really good time. He was ready to jump at the chance.
There was just one snag: “I was not out at the time.”
Franco wasn’t among the legions of gay men and lesbians who came to D.C. to explore and embrace life outside the closet. The recent University of Maryland graduate was a native Washingtonian who had never lived anywhere else. He and his four brothers worked for the family business, a chain of discount department stores run by their father, and they all lived within a mile of each other in the Maryland suburbs. How would his family, especially his Orthodox Jewish father, react to having a family member who was not only gay but owned a gay nightclub?
“I went to my father and said, ‘Dad, I have this opportunity and the opportunity requires me to leave the family business.’” When his father asked what the opportunity was, Franco forced the words out. “I said, ‘I have the opportunity to go in with a group of guys to buy a [gay] nightclub.’ I thought my father was going to hit the roof. But instead he said, ‘If this is going to make you happy, you have my blessing.’”
The Tracks venture was the first step along a career path that would see Franco launch with his Tracks associates a new gay establishment in D.C., Trumpets restaurant, and with business partner Keith Clark start Universal Gear, a chain of clothing stores popular with gay men. Those accomplishments, however, were dwarfed with the opening last month of View 14, a $90 million 185-unit apartment building that he and business partner Jeff Blum developed and built through their real estate firm, Level 2 Development.
The building’s interior was designed in collaboration with local furniture store owners Jason Claire and Eric Kole of Vastu and has the feel of a boutique hotel: funky but modern, stylish with some flashes of whimsy. It boasts the usual upscale finishes like granite countertops and stainless steel appliances and an enviable array of amenities, some the kind you would expect in a new luxury building – roof decks with Weber grills, a party room, 24-hour concierge service, fitness center, underground parking – but some you might not have seen elsewhere, including a sculpture garden, yoga studio, fully loaded theater, and a screen in the cavernous lobby that tells you when the next green and yellow line trains will be arriving at the U Street Metro Station.
Franco likens View 14 itself to a “giant ship coming down 14th Street.” It’s a very fitting image, with the sleek and majestic glass, steel and stone structure seeming to glide down the hill from Columbia Heights to the U Street area. How View 14 came to be is a harrowing voyage in itself, fraught with the squalls and swells of a tanking real estate market and the ensuing lending crisis.
It was 2005, and Franco and Blum were finishing their first venture together, the development of a 12-unit apartment building on the 1400 block of Chapin Street, N.W., called the Mercury at Meridian Hill Park. The real estate market was moving from high gear into overdrive, Franco said, and the building sold out very quickly. Flush with excitement, the two decided that for their second project together they would go big in order to capitalize on the red hot market.
After losing a bid on a property in the NoMa neighborhood, they set their sights on the Petrovich Auto Repair garage at the corner of 14th Street and Florida Avenue, around the corner from the Mercury. The property was perfectly situated on a hill that would afford stunning views of the city, and was within a stone’s throw of the popular U Street corridor.
Unfortunately, owners Paolo and Pedro Petrovich weren’t exactly jumping at the opportunity.
“They weren’t prepared [to sell] at that time,” said Franco. “They wanted to reinvest [whatever profit they would make from the sale] but didn’t know what to do.”
Undeterred, Franco and Blum made themselves a fixture at the Petroviches’ garage. “One of us would be in there at least once a week, seeing how things were,” often over lunch. “We really cultivated a relationship.” Franco, meanwhile, diligently researched opportunities for the Petroviches to reinvest their money. When the brothers took him up on a suggestion to tour some CVS stores in the Baltimore area, Franco began to feel guardedly optimistic.
Several months later, after a delicate dance with the Petroviches that could only be described as a wooing, complete with the appearance of a rival suitor, Franco and Blum won the sale.
Once that first major hurdle was cleared other challenges followed – finding a suitable architect and investment partner, navigating city bureaucracy to get the requisite permits to build a large scale condo building where an auto repair shop used to be, making expensive arrangements for the grounds to be cleansed of several decades worth of oil and gasoline seepage – but those were overcome with hard work and perseverance.
Franco and Blum quickly found strong support for their project among D.C. politicians, with Mayor Adrian Fenty attending the groundbreaking and Ward 1 Council member Jim Graham stepping in to facilitate communication with Comcast, which had been unresponsive to Franco and Blum’s appeals to discuss with them the relocation of Comcast-owned satellite dish equipment and a signal receiver tower from the View 14 site. Graham would later champion legislation that gave the View 14 project $5.7 million in tax abatement.
The View 14 developers also won kudos from local community leaders and the city government by donating $1 million to the residents of Cresthill Apartments toward the purchase of their building and the formation of a cooperative. This was done as part of their deal with the city, which requires developers to provide affordable housing if they are building a high-density project. Rather than set aside units in the new building for that purpose, as is normally done, the View 14 developers, seeing need in their community, chose instead to donate needed funds to the Cresthill residents, whose building was less than a block away and was soon to be sold on the open market.
“I never will forget the first day I met David,” said Sankofa Cooperative president Sheila Royster, who has lived in the Cresthill Apartments building for 40 years. “He came to my unit and he brought me a plant. I thought that was wonderful. It was a genuine gesture and to me it just demonstrated his respect for us and what we were doing.”
Dark clouds began to loom though as speculation that the housing market was cresting gave way to fears of a housing bubble that could burst at any moment and send property values tumbling. Still, Franco and Blum were confident. More than 1,000 people attended the lavish launch party in September of 2006. Rival developers nervously dubbed View 14 “The Death Star” because it was expected to “suck up all the other condo purchasers in the market,” Franco said. “We were excited.”
Contracts trickled in, a dozen and a half in the first two months, and the cold reality set in: they weren’t selling enough units to finance the start of construction on time. It might be months, or even a year, before they reached that point. If they were able to reach that point.
The two men sat down with their project partners and made the difficult decision to re-engineer View 14 as a rental project. “It was literally the million dollar decision for us,” said Franco. “We had spent a million dollars in marketing and building a sales center.”
Franco said that he and Blum have accepted a letter of intent from a “well-known retail and services establishment in the area” that will use 8,000 square feet of space to expand their facilities.
“The neighborhood is going to be ecstatic when they learn who’s going to be there,” he promises. A signed lease and announcement is expected soon.
Franco is just as ebullient when he talks about the 14th and U Street neighborhood and its future. He points out that the Solea, a condo building directly across 14th Street from View 14, has nearly sold out. And there is just one unit left for sale at Union Row, the massive, 216-unit condo building that also houses Yes! Market, a CVS, and the restaurant Eatonville.
“That speaks volumes to the desirability of this neighborhood,” said Franco.
About 25 leases have been signed so far and the first View 14 residents moved in over Thanksgiving weekend, among them Galan Panger, a 24-year-old gay man who is leasing a studio. Panger, who works in Google’s downtown D.C. office, said he was impressed by the quality of the building’s construction and with the finishes. The amenities solidified the decision to trade in his digs at nearby Union Row for View 14.
“It was nice of them to create these community spaces,” Panger said. “My boyfriend and I have been grilling even though it’s been cold.” They have been sticking to the east roof deck after Franco joked during a tour of the building that it was the gayer of the two rooftop spaces since it has “the more fabulous view.”
Franco himself is one of View 14’s newest tenants, along with his dog; last week he sold his home near Meridian Hill Park and they moved into one of the penthouse units.
Franco sees a wide mix of people coming to View 14, from single young professionals to retired couples. There is also a fair bit of traffic from gay and lesbian renters like Panger, which Franco attributes to a variety of factors, including the fact that the building bears the strong imprint of two openly gay men, he and Blum, as well as the influence of other gay men they know like Claire and Kole of Vastu and Chris Cahill, a good friend of Franco’s who works for Botanical Decorators and came up with the idea for using the courtyard space as a sculpture garden and helped select the sculptures and interior plants.
People, gay and straight alike, Franco observed, appreciate quality and, “not to rely too heavily on stereotypes, but gay men have a natural attention to detail. We as gay men are [attuned] to high style, high design and convenience. This building delivers that.”
Real Estate
What property should I purchase if I’m not sure how long I’ll be in D.C.?
Row homes, English basements and more options abound
Great question! If you are looking at real estate as an investment – two great property types to look at would be a smaller row home and also a row home that has an English basement. Some property types that you might want to stay away from would be a condo or a co-op unit. Let’s take a look at why these properties would be good and bad:
Smaller Row Home
Row homes are a great investment for many reasons. You can often find smaller two-bedroom row homes in the same price point as those of a two-bedroom condo, which might be seen as a “condo alternative” and afford you much more freedom. There are no condo associations or home owner associations that you must belong to so this keeps your monthly carrying costs on the lower end and you are allowed to make more independent decisions. For example, if you wanted to paint the house purple – in most cases you would be allowed to. If you wanted to change the color of the front door or put shutters on the windows – you would be allowed to. This is usually not the case with condo or co-ops.
When it comes to the rental market – similarly renters like the independence of privacy in a home and not being among many other people. The luxury of perhaps direct off-street parking, outdoor space or even just more space at the same rental amount that a two bedroom condo rent would be – this is more appealing for a renter and would likely rent faster than that of a condo or co-op. For this model – you would obviously need to move out before you could take advantage of the investment of this type of real estate.
A row home with an English basement
With this type of real estate you can immediately begin receiving income after your purchase. You can occupy the upstairs of the row home, which is usually the larger portion of the home, or you could even occupy the basement, which is usually the 1-2 bedroom smaller portion of the home and receive rental income for the other half of the home. This can be in the way of a yearly traditional tenant or in the manner of short-term rentals (check with the most recent STR policies within the District). With this model, you stand to make even more of a return on your investment upon your move out of the home as you can rent the entire home or you can rent the top unit and basement unit independently to gross a larger amount of income. It is important to note that it is never advised to purchase a row home unless you can fully afford it WITHOUT the idea of accepting additional rental income to offset the mortgage cost.
These two options listed above are the most typical found within the District because they are fee simple, standalone pieces of real estate and are not within a condo association, HOA, or a co-op with governing documents that tell you what you can and cannot do which makes row homes an attractive type of real estate for a long-term hold.
When looking at types of properties that you might want to stay away from – condos and co-ops come to mind and I say this with a caveat. You can surely purchase these types of real estate but must first understand the in’s and out’s of their governing documents. Condos are bound by the governing condominium documents which will tell you for how long your lease must be, a minimum of lease days, you can only rent after you have lived in the residence for a number of years, likely will stipulate no transient housing – which means no short term rentals. It could also quite possibly say that you can only rent for a specific amount of time and lastly it will also stipulate that only a specific amount of people can rent at one time in order to stay below the regulated lending requirements set forth by Fannie and Freddie Mac. Similarly, Co-ops are even more strict – they can tell you that you are just not able to rent at all or if you can you can only do so for a specific number of years and then you are required to sell or return back to the unit as your primary residence.
As you can see, when it comes to condos and co-ops there are more specific and stringent bylaws that owners must agree to and follow that limit or even outlaw your ability to rent your piece of real estate. When you purchase a row home – there are no regulations on what you can and cannot do regarding rentals (outside of the short-term regulations within the District).
When looking for a piece of real estate in the District it is important to think through how long you could possibly wish to hold onto this property and what the future holds. If you think this is a long-term hold then you might consider a row home option – again, you can find a smaller two-bedroom row home that amounts to that price similar to a two-bedroom condo and would afford you a more flexible lifestyle. It’s important to work with a real estate agent to ensure that they guide you in this process and help answer any questions you might have. It’s also always advised to speak directly to a short-term rental specialist should you wish to go down that route as they will truly understand the in’s and out’s of that marketplace.
All in all, there are specific property types that work for everyone and within the District we have a plethora of options for everyone.
Justin Noble is a Realtor with Sotheby’s International Realty licensed in D.C., Maryland, and Delaware for your DMV and Delaware beach needs. Specializing in first-time homebuyers, development and new construction as well as estate sales, Justin provides white glove service at every price point. Reach him at 202-503-4243, [email protected] or BurnsandNoble.com.
Real Estate
The rise of virtual home tours
Adapting to changing consumer preferences in spring real estate
In today’s dynamic real estate market, the spring season brings not only blooming flowers but also a surge of activity as buyers and sellers alike prepare to make their moves. However, in recent years, there’s been a notable shift in how consumers prefer to explore potential homes: the rise of virtual tours.
For the LGBTQ community, these virtual experiences offer more than just convenience; they provide accessibility, safety, and inclusivity in the home buying process.
Gone are the days of spending weekends driving from one open house to another – unless that’s your thing of course, only to find that the property doesn’t quite match expectations. With virtual tours, you can explore every corner of a home from the comfort of your own space – find something interesting? Schedule a showing with any LGBTQ Realtor at GayRealEstate.com.
This is particularly significant for LGBTQ individuals, who may face unique challenges or concerns when attending in-person showings. Whether it’s the ability to discreetly view properties without fear of discrimination or the convenience of touring homes located in LGBTQ-friendly neighborhoods across the country, virtual tours offer a sense of empowerment and control in the home buying process.
Moreover, virtual tours cater to the diverse needs of the LGBTQ community. For couples or families with busy schedules or those living in different cities or states, these digital walkthroughs provide a convenient way to view properties together without the need for extensive travel. Additionally, for individuals who may be exploring their gender identity or transitioning, virtual tours offer a low-pressure environment to explore potential living spaces without the added stress of in-person interactions.
At GayRealEstate.com, we understand the importance of adapting to changing consumer preferences and leveraging technology to better serve our community. That’s why our agents offer an extensive selection of virtual tours for LGBTQ individuals and allies alike – visit our website, choose an agent and within minutes you’ll have access to the Multiple Listing Service (MLS) via their website.
From cozy condominiums in bustling urban centers to sprawling estates in picturesque suburbs, virtual tours showcase a wide range of properties tailored to diverse tastes and lifestyles.
In addition to virtual tours, GayRealEstate.com provides comprehensive resources and support to guide LGBTQ buyers and sellers through every step of the real estate journey. Our network of LGBTQ-friendly agents is committed to providing personalized service, advocacy, and representation to ensure that all individuals feel respected, valued, and empowered throughout the process. Plus, we are happy to provide a free relocation kit to any city in the USA or Canada if you are a home buyer.
As we embrace the spring season and all the opportunities it brings in the real estate market, let’s also celebrate the power of virtual tours to revolutionize the way we find and experience our future homes. Whether you’re searching for your first apartment, forever home, or investment property, GayRealEstate.com is here to help you navigate the exciting world of real estate with confidence, pride, and inclusivity.
Jeff Hammerberg is founding CEO of Hammerberg & Associates, Inc. Reach him at [email protected].
Real Estate
Boosting your rental property’s curb appeal
Affordable upgrades to attract and keep tenants happy
In the District of Columbia, the rental market tends to open up significantly during the springtime for several reasons. First, spring brings about a sense of renewal and change, prompting many individuals and families to seek new living arrangements or embark on relocations. Additionally, the warmer weather and longer daylight hours make it more conducive for people to explore housing options, attend viewings, and make decisions about moving. Furthermore, spring often coincides with the end of academic terms, leading to an influx of students and young professionals entering the rental market.
Landlords and property managers also tend to schedule lease renewals or list new vacancies during this time, capitalizing on the increased demand and ensuring a steady turnover of tenants. In the competitive world of rental properties, attracting and retaining quality tenants can be challenging. However, with some strategic upgrades, property owners can significantly enhance their units’ appeal without breaking the bank. From enhancing curb appeal to interior upgrades, here are some practical and cost-effective ideas to make your rental property stand out in the market.
Curb appeal
First impressions matter, and curb appeal plays a crucial role in attracting potential tenants. Simple enhancements like freshening up the exterior paint, adding potted plants or flowers, and ensuring a well-maintained lawn can instantly elevate the property’s appearance. Installing outdoor lighting not only adds charm but also enhances safety and security.
Interior upgrades
Upgrade the kitchen and bathroom fixtures to modern, energy-efficient options. Consider replacing outdated appliances with newer models, which not only appeal to tenants but also contribute to energy savings. Fresh paint and updated flooring can transform the look of a space without a hefty investment. Additionally, replacing worn-out carpets with hardwood or laminate flooring can make the unit more attractive and easier to maintain.
Enhance storage
Maximize storage options by installing built-in shelves, cabinets, or closet organizers. Tenants appreciate ample storage space to keep their belongings organized, contributing to a clutter-free living environment.
Improve lighting
Brighten up the interiors by adding more lighting fixtures or replacing old bulbs with energy-efficient LED lights. Well-lit spaces appear more inviting and spacious, enhancing the overall ambiance of the rental unit.
Upgrade window treatments
Replace outdated curtains or blinds with modern window treatments that allow natural light to filter in while offering privacy. Opt for neutral colors and versatile styles that appeal to a wide range of tastes.
Focus on security
Invest in security features such as deadbolts, window locks, and a reliable alarm system to ensure the safety of your tenants. Feeling secure in their home is a top priority for renters, and these upgrades can provide meaningful, genuine peace of mind.
Enhance outdoor spaces
If your rental property includes outdoor areas like a patio or balcony, consider sprucing them up with comfortable seating, outdoor rugs, and potted plants. Creating inviting outdoor spaces expands the living area and adds value to the rental property.
As landlords, investing in the enhancement of your rental properties is not merely about improving aesthetics; it’s about investing in the satisfaction and well-being of your tenants, and ultimately, in the success of your investment. By implementing these practical and affordable upgrades, you’re not only increasing the desirability of your units but also demonstrating your commitment to providing a high-quality living experience.
These efforts translate into higher tenant retention rates, reduced vacancy periods, and ultimately, a healthier bottom line. Moreover, by prioritizing the comfort, safety, and happiness of your tenants, you’re fostering a sense of community and trust that can lead to long-term relationships and positive referrals. So, let’s embark on this journey of transformation together, turning rental properties into cherished homes and landlords into valued partners in creating exceptional living spaces.
Scott Bloom is owner and Senior Property Manager of Columbia Property Management. For more information and resources, visit ColumbiaPM.com.
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