Everyone called it the Little Pink House. It was bordered by two streams, and just across the dirt lane of Willard Avenue sat a dairy farm. Not far to the south, the trolley from downtown Washington made its last stop at Friendship Heights, which in the 1940s was nothing more than a filling station and a Howard Johnson's at the intersection of Western and Wisconsin avenues on the District line.

Today, the Little Pink House still stands, bordered by two soaring apartment buildings. Across Willard -- now a traffic-clogged four-lane road -- squats Geico's massive office complex. The Metro long ago replaced the trolley.

Along Wisconsin, the nearly completed Chevy Chase Center boasts the region's most opulent shopping palazzo, home to the glittering facades of boutiques such as Christian Dior, Ralph Lauren, Barneys Co-op, Louis Vuitton and Jimmy Choo.

People sometimes take notice of the Little Pink House, but few know why it still stands, or who its owner is, and how she ranks among the most important developers in the history of Washington.

Cropp, Fenty Battle for Funding Edge

By David Nakamura and Nikita Stewart, Washington Post Staff Writers
Friday, August 11, 2006; Page B04

DC Council Chairman Linda W. Cropp raised $781,000 in two months to regain a total fundraising advantage over council member Adrian M. Fenty in the most expensive mayoral race in city history.

But Fenty has spent less money and has $1.61 million remaining in the bank, more than the $1.27 million that Cropp has left with just a month remaining before the Sept. 12 Democratic primary.

"The amount of money we have in the bank will allow us to really get my message out," Fenty (Ward 4) said last night. "If you have the resources we have been able to raise, it allows us to go on the offensive, talk to voters and engage them and win their support with our message."

Sierra Club Is Latest to Snub Patterson

By Nikita Stewart and Elissa Silverman, Washington Post Staff Writers
Thursday, August 10, 2006; Page DZ02

First, the Washington Teachers Union Committee on Political Education gave its nod to council member Vincent C. Gray (D-Ward 7) to be the next council chairman -- a tremendous blow to the council's education committee head, Kathy Patterson (D-Ward 3).

Patterson fought for teachers' raises and recently helped find the $1 billion in the city's budget to improve school buildings over the next 10 years.

Now, the DC chapter of the Sierra Club has also endorsed Gray, despite Patterson's longtime activism as an environmentalist.

Cropp Attacks Fenty's Stance on Crime Bill

By David Nakamura Washington Post Staff Writer
Wednesday, August 9, 2006; Page A01

DC Council Chairman Linda W. Cropp changed the tenor of the mayor's race yesterday in a campaign brochure warning thousands of voters that front-runner Adrian M. Fenty's position on crime "puts our safety at risk."

The personal nature of the glossy four-page brochure marks a change in tactics for Cropp, who had not mentioned Fenty in previous mailings. With a little less than five weeks until the Sept. 12 Democratic primary, Cropp is seeking to reinvigorate her campaign.

In words and pictures, the document paints Cropp as moving quickly to curb the city's crime emergency by marshaling emergency legislation through the council last month. Fenty voted against the bill and has failed to "offer any concrete solutions or alternatives," the brochure states.

DC Official To Quit Job in Bid to Lead School Board

By Yolanda Woodlee Washington Post Staff Writer
Thursday, August 10, 2006; Page B01

Robert C. Bobb said yesterday that he will resign from his job as city administrator to run for president of the DC Board of Education, a move that had been anticipated for months.

Bobb, who oversees DC government operations and four deputy mayors, said in an interview that he had met with Mayor Anthony A. Williams on Tuesday and would work out his transition over the next few weeks.

Bobb said that his organizers will meet this evening at the Fraternal Order of Police Lodge near One Judiciary Square to begin circulating nominating petitions. He needs to collect the signatures of 1,000 registered voters by Aug. 30 to qualify for a spot on the November ballot.

Audit Faults Barry Campaign's Finance Reporting

By Yolanda Woodlee Washington Post Staff Writer
Saturday, August 5, 2006; Page B01

An audit by the DC Office of Campaign Finance issued yesterday said that the 2004 campaign of DC Council member Marion Barry (D-Ward 8) did not report more than $24,000 in contributions and $11,000 in expenditures and committed several other errors that violate city code.

The auditor's findings have been referred to the campaign finance office's general counsel, Kathy S. Williams, to determine "whatever action is deemed appropriate," according to the report. If Barry is found to be in violation, the campaign could be fined.

Barry's 2004 campaign committee withdrew more than $8,000 in cash and wrote 19 checks "paid to cash" totaling nearly $3,000 without filing the necessary paperwork to explain what the disbursements were used for.

Foggy Bottom Set for New Limited-Service Hotel

WASHINGTON, DC-Locally based developers Albert H. Small and Bernard Gewirz are planning to replace their parking garage in DC's Foggy Bottom neighborhood--an area of town dominated by George Washington University--with a 147-room Courtyard by Marriott Hotel. They have received approval for their plans from the Board of Zoning Adjustment.

Demolition and construction at the site, located 515 20th St. NW, will begin shortly. The hotel is scheduled for a first-quarter 2008 delivery.

Gewirz's son Steven, also involved in the project, tells GlobeSt.com that the project's final costs have not yet been completely calculated. "We estimate it will be between $30 million to $40 million."

Canyon-Johnson Urban Fund Makes DC Investment

WASHINGTON, DC-The Canyon-Johnson Urban Fund, a Los Angeles-based joint venture between Canyon Capital Realty Advisors and Magic Johnson, is making its first-ever investment in the Washington, DC market. The company is partnering with Charlotte, NC-based Faison to develop a condominium project next to the Navy Yard Metro station in Southeast.

Plans call for the development of 266-units over a four-level underground parking garage with approximately 210 parking spaces and 65 storage spaces.

The condominium community is part of a master planned development that will include a 13-story office building next to the project, which will be separately developed by Opus.

Philip W. Norwood, president and CEO of Faison tells GlobeSt.com this project, located at First & L Street SE, is valued at about $100 million.

Bobby Turner, managing partner of Canyon, would not provide the dollar amount the firm would be investing but he did tell GlobeSt.com that Canyon is the "majority capital provider." Citibank Community Development is providing a senior construction loan of $74 million for the project.

First Watch To Develop up to 18 Locations

WASHINGTON, DC-A Florida-based restaurant chain will be opening 15 to 18 restaurants in the metro area over the next four years. First Watch Restaurants, Inc., plans to open its first location in Fairfax, VA at the end of the month at 9600 Main St. at Fair City Mall.

A second restaurant in Baltimore, in the Pikesville Shopping Center at 1431 Reistertown Rd., will open later this year. Locations in Herndon, VA and Rockville, MD will be developed in 2007. Separate plans also call for openings in the Philadelphia and Pittsburgh markets in 2007.

A spokesperson from First Watch tells GlobeSt.com that each opening represents an investment of $500,000. The firm typically leases space between 3,500 sf to 4,000 sf in high-end, open-air shopping centers.

Marsh Inks 139,000-SF Lease in West End

WASHINGTON, DC-Two operating companies of Marsh & McLennan Cos., Inc., have extended their leases at 1255 23rd Street NW, the West End part of the District, for an additional 10 years. At 139,516 sf, it is one of the largest lease renewals this year, according to statistics by CB Richard Ellis.

Executive managing director Julie Schuelke of Studley's Washington, DC office represented Marsh and Mercer in the transactions. The landlord, CarrAmerica, was represented in-house.

The new 10-year leases start in December 2006 and include expansion options to support business and employee growth as well as allowance packages to fund interior renovation work and upgraded security for the Marsh and Mercer operations. Marsh Inc., Mercer Human Resource Consulting LLC and other MMC operating companies, including Kroll, NERA, and Mercer Oliver Wyman, will continue to house their business operations on five floors of the class A building.

By Benny L. Kass
Saturday, August 5, 2006; Page F08

Whether the real estate market is hot or cool, home buyers and sellers can get upset when the appraiser who is examining a home on behalf of the mortgage lender sets a value below the agreed-upon sales price.

Even though the borrower pays the appraisal fee, the appraiser is really working on behalf of the lender -- to determine how much a home is worth so that the bank doesn't lend more than it should.

How does a low appraisal affect a real estate sale? How should you handle the situation?

FHA Bill: A Smart Move

By Kenneth R. Harney
Saturday, August 5, 2006; Page F01

Moderate-income home buyers got a big boost from Congress at the end of July when the House voted 415 to 7 to approve a bill revitalizing the federal government's biggest mortgage program, the Federal Housing Administration.

The bill, which awaits Senate action, would allow the FHA to offer zero-down-payment loans for the first time, increase mortgage amounts substantially in high-cost markets, and provide low interest rates and consumer protections that are rarely available from "subprime" mortgage lenders that specialize in loans to those with imperfect credit.

The legislation would also effectively open the FHA marketplace to mortgage brokers, who are by far the largest source of home mortgages originated nationwide. With brokers able to offer both private-market subprime and FHA-insured mortgages, buyers with less-than-perfect credit will be able to directly compare the FHA's rates, fees and consumer protections with competing subprime loan offerings.

Refinancing Requests Grow in DC Area

WASHINGTON, DC-Metropolitan area developers are receiving very favorable terms from lenders as they rush to refinance projects, according to Kevin H. Smith, president of ARK Realty Capital. He reports that the number of real estate projects seeking refinancing with ARK Realty Capital has doubled over the past year to comprise 30% of its business. The reason, clearly, has been the steady uptick of interest rate increases. "A lot of clients are interested in locking in rates long term," he tells GlobeSt.com. "We are very involved now in recapitalization as well as raising equity."

He says there are very favorable terms available in the marketplace for DC-area projects. These include very aggressive spreads for well-located, stabilized assets---110 to 120 basis points over 10-year Treasury. Lenders are also providing IO (Interest Only) periods for two to 10 years. "Lenders have conveyed to us that they want assets from the DC market in securitized pools," Smith says.

By Rosalind S. Helderman, Washington Post Staff Writer
Friday, August 11, 2006; Page B02

Residential development, which has been slowed in Prince George's County by growth restrictions, could quickly resume in the wake of a County Council vote yesterday to suspend a requirement that the county hire more police officers and firefighters before approving building projects.

In 2004, the council adopted an "adequate public safety facilities test" for development in response to residents' fears that new subdivisions were overwhelming police and fire departments as county crime was surging.

All development had to meet standards for emergency response times, and the police and fire departments had to increase staffing before new homes would be approved.

Friday, Aug. 11, 2006

ANNAPOLIS - With the primary a month away, the Democratic powerhouses in Prince George's County are deeply divided from the top to the bottom of the ticket to the bottom.

The Democratic machine - once hailed as the vehicle to preserve incumbents and launch the career of others - is sputtering. The days of Prince George's Democrats unifying as one team are apparently gone.

This year top party leaders are splintered in the race for U.S. Senate and attorney general - even the county's register of wills primary contest has caused a rift.

Md. Democrats Look to Seize Senate Race's New Spotlight

By Robert Barnes and Matthew Mosk, Washington Post Staff Writers
Monday, August 7, 2006; Page A01

The Maryland Democrats running for the U.S. Senate this week begin a five-week sprint to primary day, with Rep. Benjamin L. Cardin launching his first television advertising campaign and Kweisi Mfume concentrating his limited resources on building a network to get his supporters to the polls.

With Baltimore Mayor Martin O'Malley set as the Democratic challenger to Gov. Robert L. Ehrlich Jr. (R), the overlooked Democratic Senate primary takes center stage. Media polls taken in June and July showed that more than a third of the state's Democrats -- and even more in the vote-rich Washington suburbs -- had not settled on a Senate favorite.

The Sept. 12 primary will be a crucial moment for a party that knows that retaining the seat being vacated by Sen. Paul S. Sarbanes is essential to any strategy for regaining control of the Senate.

By Annie Gowen, Washington Post Staff Writer
Wednesday, August 9, 2006; Page B07

At one point in the 1990s, the former railroad yard called Potomac Yard -- which straddles Arlington County and Alexandria -- was one of the biggest undeveloped pieces of urban land on the East Coast.

After Alexandria fought a bruising battle with Washington Redskins owner Jack Kent Cooke to keep a football stadium out of its part of the railroad yard, the city in 1999 approved a plan for a 235-acre "city within a city" with 4.5 million square feet of retail, office and residential development, including 1,900 homes.

Seven years later, however, the city and developer discovered that they have a major design flaw on their hands: The streets are too narrow. Alexandria's firetrucks would scrape the sides of the planned luxury townhouses on their way to an emergency, an analysis showed.

Developer Cancels Offer Of $22 Million to Town

By Sandhya Somashekhar, Washington Post Staff Writer
Saturday, August 5, 2006; Page B03

A giant development company is withdrawing its offer to give a Virginia town an unprecedented amount of money in exchange for approval to build a subdivision, citing the cooling housing market for the change of heart.

Centex Homes of Dallas, one of the nation's largest developers, said it can no longer afford to offer Warrenton $22 million -- almost half the town's annual budget -- to approve 300 luxury homes for seniors within its borders in Fauquier County. The developer notified Warrenton officials in a letter received Thursday.

"It was possible to consider such [an offer] as remotely feasible only in a rising market, where Centex could hope to make a reasonable return on its very substantial investment," wrote Robert K. Davis, the company's division president. "[We] would not have made that agreement had it been possible to predict the timing of the current residential downturn."

Trust Buying Dulles Park Neighbor for $48M

HERNDON, VA-Republic Property Trust has entered into a binding agreement to acquire the fee interest in Dulles Park Technology Center from Cornerstone Real Estate Advisors, a private equity investment management company in Hartford, CT, for $48.3 million or $267 per rentable sf.

With a 30% vacancy--which was reflected in the initial capitalization rate of 5.23% on the purchase price--the acquisition is a value-add play for the Washington, DC-based company. The firm's stabilization plan for the 2180 Foxhill Rd. asset calls for a projected rent increase for the tenants, which include US government agencies, IBM and government contractors. The stabilization plan includes the possibility of leveraging zoning densities to secure additional office and mixed-use clearance for the property.

Dulles Park is a five-story, class A office building totaling 181,000 rentable sf on 7.6 acres. It is next to Campus at Dulles Technology Center, a seven-building office park also owned by Republic Property Trust. "Our acquisition of Dulles Park is in keeping with our strategy to pursue office building assets in close proximity to our existing properties to obtain potential operating efficiencies, and therefore, an improved return on investment," Republic's CEO Mark Keller says in a statement. "We see Dulles Park as an exceptional opportunity to increase FFO through our leasing and management efforts."

Mantech Inks 68,387 SF in Chantilly Submarket

CHANTILLY, VA-ManTech International has renegotiated its lease of 68,387 sf at 14119 Sullyfield Circle here, one of the largest renewals in this submarket this year. Other notable transactions include Northrop Grumman?s lease for 145,959 sf in the Westfields Corporate Center in Washington Technology Park II, and Carfax?s prelease for 51,451 sf at 5860 Trinity Parkway, according to Tonya Ginter, director of research at Advantis Real Estate Services Co.

Catherine C. Jones, executive director in the Washington, DC office of GVA Advantis, represented ManTech. The landlord, Velsor Properties, LLC, represented itself.

Currently rates in this market average $24.38 per sf, Ginter tells GlobeSt.com. "That is due to all the construction, particularly of class A buildings, that are in the pipeline." However, she adds, this market might be poised for a bit of a shakeup once these projects are delivered. "Vacancy rates are 13.1%, so there is some concern in the brokerage community, given the amount of construction."

Two Herndon Properties Refinance

WASHINGTON, DC-Anecdotal evidence that Washington, DC area developers and investors are seeking to lock in rates continues to pile up. Two projects that recently completed refinancing include the Crowne Plaza Hotel & Conference Center near Washington Dulles National Airport in Herndon, VA for $30 million. Also in Herndon, Kohl's Department Store and a BB&T Bank secured $17.4 million in refinancing.

The Washington, DC office of Holliday Fenoglio Fowler, LP arranged both transactions, which closed in July and June, respectively, HFF managing director Mark Remington tells GlobeSt.com. "Washington, DC remains extremely competitive," he says. "It is a market where a lot of capital wants to go."