WASHINGTON, DC NEWS

Severe Penalties Await City if Parking Garages Aren't Provided, Gandhi Warns

By David Nakamura
Washington Post Staff Writer
Wednesday, October 25, 2006; Page B07

The District government's chief financial officer warned yesterday of serious penalties if the city fails to provide parking garages for the new Washington Nationals baseball stadium, encouraging the DC Council to reconsider a proposal it voted down last week.

In an eight-page letter to council members, Natwar M. Gandhi says the city faces significant financial liabilities if members of the council continue to oppose a plan to build aboveground garages at the ballpark near the Anacostia River in Southeast Washington. The city might have to pay tens of millions of dollars to the Nationals for failing to meet contractual obligations, and the District could suffer shortfalls in potential stadium revenue.

Mayor Anthony A. Williams (D) and council member Adrian M. Fenty (D-Ward 4), who is expected to win the Nov. 7 election to replace Williams, touted Gandhi's letter as evidence that the council must reconsider its position.

http://www.washingtonpost.com/wp-dyn/content/article/2006/10/24/AR2006102401401.html

Fenty, LA Leader Discuss School Takeover

By David Nakamura
Washington Post Staff Writer
Thursday, October 26, 2006; Page B04

LOS ANGELES, Oct. 25 -- DC Democratic mayoral nominee Adrian M. Fenty continued his barnstorming tour of major cities Wednesday to gather ideas for a likely administration, meeting with Los Angeles Mayor Antonio R. Villaraigosa to kick off a three-day California visit.

In a discussion that lasted almost an hour, Villaraigosa (D) shared with Fenty his experiences in his own school takeover effort, which culminated recently in his gaining increased authority over Los Angeles public schools, the second-largest system in the country.

Fenty, who has said he is leaning toward bidding for direct control of DC public schools, has sought advice from big-city mayors, including New York's Michael R. Bloomberg (R) two weeks ago.

http://www.washingtonpost.com/wp-dyn/content/article/2006/10/25/AR2006102501864.html

What Does Firing Say About Fenty?

By David Nakamura And Elissa Silverman
Washington Post Staff Writers
Thursday, October 26, 2006; Page DZ02

Rash, impetuous and too demanding? Or decisive, confident and fast-moving?

Those are the competing analyses of Democratic mayoral nominee Adrian M. Fenty in the wake of his abrupt firing this week of his chief spokesman just two weeks before the Nov. 7 general election.

http://www.washingtonpost.com/wp-dyn/content/article/2006/10/25/AR2006102500714.html

Candidates Disagree on How to Fix Ailing Schools

By Theola Labbé
Washington Post Staff Writer
Tuesday, October 24, 2006; Page B02

Four candidates running to represent Wards 5 and 6 on the DC Board of Education agreed last night that schoolchildren have been ill-served by city public schools, but they outlined varying approaches to fixing the problems.

Speaking at a community forum at McKinley Technology High School, one of the school system's most modern facilities, the candidates for the District 3 seat called for greater accountability for school construction projects and charter schools and a steep reduction in special education costs.

About 75 citizens attended the forum, which was co-sponsored by the Ward 5 and Ward 6 Democrats and was the latest public discussion designed to stir interest in the Nov. 7 school board election. The winner of the District 3 seat will replace board member Tommy Wells, who is running for a seat on the DC Council.

http://www.washingtonpost.com/wp-dyn/content/article/2006/10/23/AR2006102301472.html

Dave Kranich Fighting The Fenty Juggernaut
GOP's Man Is an Optimist Unfazed by the Odds

By Nikita Stewart
Washington Post Staff Writer
Friday, October 20, 2006; Page B06

Dave Kranich is a salesman. And he's pretty good at it.

Through the years, Kranich has sold sausages and cheese, Christmas trees and strawberry-orange-banana smoothies. At its peak, his former company, Kranich Consumer Products, boasted nearly $500,000 in annual sales.

But now that Kranich is trying to sell himself, nobody's listening.

http://www.washingtonpost.com/wp-dyn/content/article/2006/10/19/AR2006101901648.html

DC School Board Member May Abandon Campaign
Graham 'Very Upset' Over Disputed Memo

By V. Dion Haynes and Theola Labbé
Washington Post Staff Writers
Saturday, October 21, 2006; Page B01

DC Board of Education Vice President Carolyn N. Graham, a candidate for school board president, said yesterday that she may quit her campaign because a disputed memorandum links her to a scandal involving charter school funds.

Graham and the board president said a board employee forged Graham's signature on the memo, which requested the aid of the city's financial office in providing $44,251 in payments to vendors. However, Graham said she signed essentially the same request but addressed it to a higher-ranking official.

For several months, a federal grand jury has been investigating the board's charter school office, which is responsible for overseeing 18 of the city's 55 charter schools, said a source close to the inquiry who spoke on condition of anonymity because the investigation is ongoing. Federal investigators are trying to determine whether the office's executive director, Brenda L. Belton, whom the board fired this week, steered about $350,000 in city contracts to a company with the same address as a house owned by her daughter.

http://www.washingtonpost.com/wp-dyn/content/article/2006/10/20/AR2006102001789.html

Markets See Job Growth, Absorption Discrepancy

WASHINGTON, DC-A new report by Delta Associates points to a puzzling trend here as well as in other active real estate markets such as Chicago, New York, and Los Angeles: that is, the lighter-than-usual rate of office absorption in a active employment market.

"We are seeing it in markets such as Washington, Chicago, New York and Los Angeles, but not so much in the Sunbelt markets such as Houston," Gregory H. Leisch, CEO of Delta Associates, tells GlobeSt.com. However, he adds, the discrepancy between the two metrics--which usually rise in tandem--is most pronounced in the DC market.

It finds that office demand has been light relative to job growth this year. "Since job growth typically translates into need for office space, the light demand experienced to date in 2006 has questions about the factors contributing to this apparent disconnect," the report says.

http://www.globest.com/news/768_768/washington/150119-1.html

CBRE|Melody Joins Freddie Mac's Network

WASHINGTON, DC-The Washington DC office of CBRE|Melody has become a member of Freddie Mac's Multifamily Program Plus network. The designation means the office can sell loans secured by multifamily properties in Maryland, Virginia and the District of Columbia.

Other corporate offices have been active in the program, particularly the Dallas branch. The DC office joined "because it will provide an invaluable tool for our clients to be able to access Freddie Mac," Maury Zanoff, senior director, who manages the region along with his partner Joe Donato, tells GlobeSt.com.

Freddie Mac purchases multifamily mortgages through locally based lenders that must meet its origination and servicing standards.

http://www.globest.com/news/767_767/washington/150091-1.html

New Owner Looks to Spruce Up Watergate

WASHINGTON, DC-The Watergate, one of Washington's most notorious buildings, is undergoing a facelift under its new owner, Los Angeles-based BentleyForbes. BentleyForbes retained CB Richard Ellis to handle retail and office leasing at the 261,084-sf mixed-use tower. John Filipos, a broker in the company's Retail Brokerage Services here, tells GlobeSt.com he is unsure what the estimated renovations will ultimately cost. "It is very much a work in progress." New amenities will include signage and lightning upgrades, he says.

BentleyForbes purchased the Watergate in October 2005 from Trizec Properties. It says in a statement it plans a major renovation of the retail and office common areas.

http://www.globest.com/news/766_766/washington/150043-1.html

Onyx Condo Ready to Break Ground

WASHINGTON, DC-Construction will begin within two weeks on Onyx on First, a 14-story, 266-unit condo on First Street, located one block from the new Nationals baseball stadium.

The project is a joint venture between Faison, a Charlotte, NC-based developer and Canyon Johnson Urban Funds, a Los Angeles-based venture between Canyon Capital Realty Advisors and Magic Johnson. This is Canyon's first investment in the Washington, DC market. Construction financing is being provided by Citibank Community Development. According to earlier announcements, the senior construction loan for the project is $74 million. According to an earlier comment to GlobeSt.com by Philip W. Norwood, president and CEO of Faison, this project is valued at about $100 million.

Faison senior managing director Donald Deutsch tells GlobeSt.com that Faison has close to 700 units under construction in the DC area, spread across four active projects including Onyx. These include projects at 1010 Massachusetts Ave.; the Whitman; located at Ninth and M, and Ventana, an asset at Ninth and F.

http://www.globest.com/news/765_765/washington/149986-1.html

$45M Available for DC Projects

WASHINGTON, DC-Nov. 17 is the deadline for applicants to submit proposals to receive financial backing from a new $45-million block of cash that has been made available from anticipated FY 2007 budget funds from the Home Investment Partnerships, the Housing Production Trust Fund program and the Low Income Housing Tax Credits program.

According to a statement released by Jalal Greene, director of DC's Department of Housing and Community Development, the city government is interested in financing projects that focus on elderly housing, special needs housing, the preservation of housing affected by expiring federal subsidies, new or substantial rehabilitation of multifamily housing that is more than five units, homeownership and facilities to serve communities in low to moderate income areas. Proposals for the First Right To Purchase Assistance Program will also be accepted under this RFP.

http://www.globest.com/news/765_765/washington/150008-1.html

Investors Continue To Target Class B Multifamily

WASHINGTON, DC-Investors continue to focus on opportunities in class B multifamily units in the area, drawn by low vacancy rates and a growing spread differential in rents with class A facilities, according to the latest research by Delta Associates.

Vice president Grant Montgomery tells GlobeSt.com that a trend among investors is to acquire class B and class C units, renovate and reposition them--even if only slightly--and then raise rents. It is a typical strategy of course, but is particularly well suited to the DC market's current environment. "Even after the new owners raise rents it is still seen as a bargain by renters," he says.

According to Montgomery there are 19,000 class B units under renovation right now. Through August, there have been a total of 34 sales in this category--29 class B garden apartment trades and one high rise--trading at an average price of $123,427 per unit. That is nearly 11% higher than the average unit price realized during the same period last year, when 24 class B garden sales were recorded, according to the report. In the class A category, by contrast, there have been 11 garden apartment sales and one high rise trade.

http://www.globest.com/news/764_764/washington/149947-1.html

Report Points to Opportunities in DC Multifamily Investment

WASHINGTON, DC-Rockville, Fairfax County and Loudoun County are among the areas multifamily investors with a long range outlook might want to consider in the DC area, according to a new report by Marcus & Millichap. There are still numerous opportunities for multifamily investment here, the report says. One avenue, of course has been the condo conversion route. Like it other markets though condo conversions have fallen off in the DC area this year.

Marcus & Millichap suggests that investors concentrate instead on the huge demand for rental housing space that has built up over the last few years as more people have been priced out of the single family and condo market. The median price for condos in the area, it notes, is $350,000 per unit, which does little to fulfill unsatisfied housing demand.

http://www.globest.com/news/769_769/washington/150166-1.html

REGIONAL NEWS

A Record Drop In Home Prices

By Kirstin Downey
Washington Post Staff Writer
Thursday, October 26, 2006; Page D01

The price of existing homes last month fell 2.2 percent, the largest monthly decline in the almost four decades the number has been tracked, according to an industry report released yesterday.

Nationwide, the number of existing single-family homes sold fell 14.2 percent in September compared with September 2005, according to the report from the National Association of Realtors. The number of sales has fallen each month since March.

Prices fell everywhere in the country, with the Northeast and West most affected. Declines were more moderate in the South, which includes the Washington area.

http://www.washingtonpost.com/wp-dyn/content/article/2006/10/25/AR2006102500484.html

Empty Nests Clear Way for Big Changes

By Rebecca R. Kahlenberg
Special to The Washington Post
Saturday, October 21, 2006; Page F01

Phyllis and Ronnie Zweig loved the six-bedroom Bethesda house where they lived for 23 years and raised three children, now ages 25, 24 and 22.

"We thought we'd never move," Phyllis said.

But recently, with the kids out of college, the house became too much. "We were only using three rooms: the kitchen, family room and bedroom," Phyllis said. "Every year that passed I realized that the kids weren't going to come home and that I was just keeping this house up for grandchildren who may or may not come in 10 years."

http://www.washingtonpost.com/wp-dyn/content/article/2006/10/20/AR2006102000622.html

Pamphlet Spells Out Risks of 'Exotic' Loans

By Kirstin Downey
Washington Post Staff Writer
Saturday, October 21, 2006; Page F03

Federal banking regulators last month issued a strongly worded warning to lenders about the dangers of nontraditional, or "exotic," mortgages, telling them they feared that borrowers did not understand the implications of the loans.

Now regulators have issued a similar warning directly to consumers in a pamphlet that explains how these loans work, including a glossary of terms that represent a new vocabulary for borrowers accustomed to traditional lending.

Nontraditional loans include those where borrowers need pay only the interest on the amount borrowed, known as an interest-only loan, as well as loans where people can pay an amount even less than the interest owed, often called an "option" loan.

http://www.washingtonpost.com/wp-dyn/content/article/2006/10/20/AR2006102000609.html

Purists' Reservations

By Dina ElBoghdady
Washington Post Staff Writer
Saturday, October 21, 2006; Page F01

Daoud Hawa felt a bit guilty after he bought his three-story Colonial in Herndon about three years ago.

That's because Hawa, a Muslim, used a conventional mortgage even though Islam forbids followers from paying or earning interest. He had shopped around for non-interest options and found a few financing programs that catered to Muslims. But none could lend him more than $360,000 and he needed $415,000.

So his practical side chose the conventional loan. He hoped that living not far from his mosque would make up somewhat for the way he bought the house.

http://www.washingtonpost.com/wp-dyn/content/article/2006/10/20/AR2006102000788.html

Ehrlich, O'Malley Get Testy on Taxes and Spending Records

By John Wagner
Washington Post Staff Writer
Wednesday, October 25, 2006; Page B06

Maryland's two leading candidates for governor tangled over taxes yesterday, with Gov. Robert L. Ehrlich Jr. and Baltimore Mayor Martin O'Malley stepping up efforts to exploit weaknesses in the other's fiscal record just two weeks before the election.

Holding the first in a series of events to contrast his record with that of his Democratic challenger, Ehrlich ticked off several "burdensome tax hikes" on Baltimore residents since O'Malley was elected in 1999: a 20 percent income-tax increase, higher water and sewer fees, a new tax on cellphones and an energy tax on nonprofit groups.

"This is the record of someone who wants to represent working families? Forget it," Ehrlich said at an event at Arundel Mills Mall. "People aren't buying it."

http://www.washingtonpost.com/wp-dyn/content/article/2006/10/24/AR2006102401222.html

Cardin, Steele Square Off in Televised Debate

By Matthew Mosk and Ann E. Marimow
Washington Post Staff Writers
Thursday, October 26, 2006; Page B04

Republican Senate candidate Michael S. Steele sought to paint his Democratic opponent Benjamin L. Cardin as out of touch on issues important to the Washington suburbs, while Cardin pressed Steele on the Iraq war during a television appearance yesterday that at times seemed more shouting match than debate.

Cardin appeared surprised during the exchange on NewsChannel 8 when Steele quizzed him about the start and end points of Metro's proposed Purple Line -- an east-west rail line that would connect Montgomery and Prince George's counties.

Cardin started to answer, sputtering, incorrectly, "Chevy Chase" before stopping abruptly and snapping, "I'm not going to answer your question."

http://www.washingtonpost.com/wp-dyn/content/article/2006/10/25/AR2006102501809.html

Some see little value in chamber endorsement
GOP candidates outnumber Democrats in state business group's picks

Friday, Oct. 20, 2006

Look at the endorsements from the Maryland Chamber of Commerce and one thing stands out.

For a state where Democrats outnumber Republicans 2 to 1 -- both in the registrations of voters and legislators -- Republicans outnumber Democrats 6 to 1 in the chamber's endorsements.

Of 74 endorsements for candidates in the Maryland Senate and House of Delegates, only 11 have a "D" after their names.

http://www.gazette.net/stories/102006/polia%20s194328_31943.shtml

A Political Natural, Railing Against Politics

By David A. Fahrenthold
Washington Post Staff Writer
Tuesday, October 24, 2006; Page A01

Even for a politician, Michael S. Steele is said to have an extraordinary handshake. Not too weak but not crushing, either, with eye contact that never breaks off to scan the room. It communicates instant intimacy, a little zap of Clintonesque magic.

It is a rare thing, though, when Maryland's lieutenant governor stops with just a handshake.

Instead, supporters get a kiss on the cheek, one-armed embrace or even a full-on bear hug. This is the Steele treatment -- as light as a friendly grasp on the elbow or as intimate as a two-handed grasp of the head, all with the same message:

http://www.washingtonpost.com/wp-dyn/content/article/2006/10/23/AR2006102301285.html

On Loudoun's Horizon, a Taste of Opulence
Ritz-Affiliated Housing About to Rise in Western Portion of County

By Sandhya Somashekhar
Washington Post Staff Writer
Tuesday, October 24, 2006; Page B01

Think cathedral ceilings, marble countertops and a back door that opens to a golf course represent the ultimate in luxury living?

How about a personal concierge who can pick up your kids from school and drop them off at band practice, organize a birthday party for your twins or have roast duck on the table by dinnertime?

That's the indulgent promise of Creighton Farms, a 180-house luxury gated community being developed in western Loudoun County, its upper-crusty reputation sealed by an affiliation with the swanky Ritz-Carlton hotel chain.

http://www.washingtonpost.com/wp-dyn/content/article/2006/10/23/AR2006102301172.html

FBI's Fairfax Agents Packing For Pr. William

By Jerry Markon
Washington Post Staff Writer
Wednesday, October 25, 2006; Page A01

The FBI is joining the exodus to the outer suburbs, moving its Northern Virginia-based agents from a cramped Tysons Corner complex adjacent to the Capital Beltway to 15 acres on a former horse farm in rural Prince William County.

It's the first major government office to relocate to Prince William. Construction began there this month on a $32 million building, nicknamed "the Taj Mahal" by some FBI officials, that will feature highly finished terrazzo floors at the entrance, a soaring atrium and a giant fingerprint etched into the elevator doors.

The departure from Fairfax County has brought the same headaches faced by companies that move in search of open space and cheaper land: more time on the road and employee anxiety. FBI agents still do most of their work inside the Beltway, say some law enforcement officials who fear investigations will be slowed because many of the 150 Northern Virginia-based agents will be stuck in endless traffic on Interstate 66.

http://www.washingtonpost.com/wp-dyn/content/article/2006/10/24/AR2006102401239.html

Beltway Toll Plan May Need Va. Funds
Rising Costs Strain Private Partners

By Eric M. Weiss
Washington Post Staff Writer
Monday, October 23, 2006; Page A01

A privately backed plan to build express toll lanes on the Virginia portion of the Capital Beltway, which was promoted as a way to ease traffic without using taxpayer money, has become so expensive that the firms behind the project could require more than $100 million in public funds to make it work, according to state transportation officials.

The 14-mile Beltway project would be the first section of what is expected to be a network of express toll lanes in the Washington region, and Virginia transportation officials said they are committed to it, although it is unclear where they would find the money.

Virginia's willingness to contribute money to the project is a change of position. The project was designed in 2003 as a public-private partnership, with the state providing some of the funds. But because money for state transportation projects is tight, officials then said they couldn't help. A second private partner signed on to the project, and 18 months ago the firms and state officials announced a plan to widen the highway without public funds.

http://www.washingtonpost.com/wp-dyn/content/article/2006/10/22/AR2006102201081.html

Pr. William Growth Irks Candidate
Commute Sparked Chairman Campaign

By Nick Miroff
Washington Post Staff Writer
Wednesday, October 25, 2006; Page B01

Few candidates can resist walking in a high school homecoming parade, but Friday afternoon in Dale City, Corey A. Stewart was struggling to keep up with one. Wearing a heavy blue peacoat and a "Corey Stewart for Chairman" sticker on his chest, he jogged at a brisk clip along Lindendale Road, weaving among the rifle-twirling marchers of the Hylton High School color guard to shake the hand of every possible eligible voter along the parade route.

"Wow, that's never happened to me before," Stewart said, having edged a little too close to the color guard rifles. "I just got hit."

http://www.washingtonpost.com/wp-dyn/content/article/2006/10/24/AR2006102401432.html

DC Market Trends Towards Five-Year Loans

VIENNA, VA-MetLife Real Estate Investments has been closing a number of transactions in the DC market with five-year terms, according to transaction team members Brian Casey and Susan Busick in the company's office here.

"We have been doing predominately five year loans in this office," Busick tells GlobeSt.com. "It is a reflection of what our borrowers are looking for, we simply haven't gotten as many 10-year requests." Busick attributes the requests to a quirk or phenomena specific to DC that she can't quite explain. "I know other offices are seeing requests for 10-year money."

http://www.globest.com/news/767_767/washington/150066-1.html