U Street, Washington DC – Gentrification is a Bad Word – NOT! (Part I)

As a native Washingtonian, I have seen DC change from a commuter city where federal government employees would scurry back to their suburban homes at 5 pm daily, only to leave a shell of a bustling city, to a metropolis where “neighborhood rebirth” is common and the streets are full of life, day and night. Today, Washington, DC holds the highest percentage of residents with post graduate degrees in the country. The City also leads the country in job growth and even in economic recovery, is expected to add 25,000 new jobs in 2010. Unlike in previous years, Federal employment in the City is now embraced by its residents.

Much of the needed rebirth in DC was due to the riots in the late 1960’s. Many DC neighborhoods remained impoverished for decades. As a child, I remember being embarrassed to admit that I was from Washington, DC. Violent crime was at a national high, crack cocaine was abundant on nearly every street corner and much of the City leadership was a joke. Times have changed, the U Street corridor being one of the most noteworthy examples.

Let’s go back…the intersection of 14th Street and U Street was the center of mass destruction during the 1968 Washington, D.C. riots. Following this unfortunate event, affluent residents and businesses sought the refuge of the surrounding suburbs. The Corridor became blighted. Drug trafficking rose dramatically, and for many years the intersection of 14th and U Streets was known as “ground zero”. To make things worse, the Office of the Mayor (named after Marion Barry) anchored this famous intersection. Over time, the growth and revitalization of Dupont Circle and Adams Morgan eventually traveled east to the U Street Corridor. A few underground clubs (Republic Gardens most notable) and the renovation of the historic Lincoln Theater began the resurgence of night life to the area. U Street once again started to become a household name and a destination location.

Today, through gentrification, all is well on U Street. More historic buildings are being refurbished. Proximity to Metro (U Street Station) is a catalyst for new residential development. An abundance of luxury high-rises can be found in the neighborhood. One of my favorite examples is The Ellington (190 apartments, developed by Donatelli Development). Donatelli took a chance on the revitalizing corridor. The building offers a mix of luxury amenities (roof top deck, controlled access, granite countertops, stainless steel appliances, 10’ foot ceilings) and 17,000 s.f. of retail. Located directly across the street from Metro made it easy for young professionals and empty nesters to fall in love with the area – while providing easy access to the entire City. The development of many other communities has followed The Ellington’s lead.

View 14 (185 apartments, currently in lease-up, Level 2 Development), The Solea (52 condos with 7 Live-Work spaces, 95% sold-out, Jair Lynch Development) and The Flats and Warehouse at Union Row (257 condos with retail, 94% sold out, PN Hoffman), are all successful examples. UDR (United Dominion Realty) and Perseus Realty have cleared land to develop 340 residential units in the near future.

So what makes a location like U Street so popular? – I say Diversity of Cultures, Urban Grit, and Change. I will discuss this in Part II!

Tagged as: apartments, brokerage, Commercial Real Estate, commercial real estate broker, first capital realty, Gentrification, jeff coles, Lincoln Theater, multifamily, real estate, U Street, washington dc