A downtown Bethesda lot that has been vacant, at best - and an eyesore at worst - for nearly a decade has now changed hands. 8011 Norfolk Avenue had been touted as the future site of The Claiborne, a boutique condominium property, since 2016. The project repeatedly stalled out, with the last attempt to revive it taking place a full three years ago. At that time, the project's approval from Montgomery County had expired.
Rock Creek Property Group has acquired the site, and is now going to explore its options, citing potential uses to include residential, commercial, or office. The new-construction condo market has all but collapsed in downtown Bethesda since The Claiborne was first announced. Nobody is building them. The last successful condo project was The Cheval, which was delivered by Duball, LLC in 2018.
15 comments:
I knew that the Tia Queta site was separate, but I didn't realize that the southernmost property on that block wasn't part of the site. I wonder if the new developer will try to acquire both.
Thank goodness. Lots like this should never be allowed to stay vacant or undeveloped for a decade.
Steamers before Montgomery County moribund failed nightlife initiative. Eyesore for sure. Very valuable dirt just sitting there.
Trey ran Steamers into the ground years ago.
Steamers was poppin in the years before closure. Not one of my places, but it was popular.
5 apt buildings finished within the last year in Downtown Bethesda and the Woodmont Triangle are struggling to find tenants. That’s a bad sign………..
Banks won’t loan to build new apt buildings or new condo buildings under those conditions.
The last condominium built in downtown Bethesda was The Stonehall. Additionally, during the past eight years the Lauren, Hampden Square and the Darcy condominiums were built.
Absolutely moribund.
Get ready for some more retail bank branches!
5:55: The Stonehall was delivered the year before the Cheval, so Cheval was the last. The Lauren was 2016. The Darcy was 2015. So the condo market has been dead for seven years.
Yeah... look at the Lerner family's White Flint land!
@ 10:04 AM - The Lerners also own Landover Mall. That's been lying fallow for nearly two decades. Everything but Sears demolished in 2006, and then Sears in 2014.
Back of the napkin Pro Forma for the Never built "Claiborne":
Land Acquistion Costs - $6.4Mil (approximate)
Entitlement Costs - $250K (approximate)
Property Taxes & Insurance over 10 years - $500K (approximate)
Finance Carry Costs over 10 years @ 5% (average) w/80% of above costs financed - $2Mil (conservative)
Total Costs - $9.15Mil (approximate)
Resale Price to Rock Spring 8011 Norfolk LLC on October 2025 - $3.25Mil
Loss to original developer (s)/financiers - $5.9MIl
Moral: The 3 most important words in real estate are (and it's not location, location, location) timing is everything.
But still our Council overlords insist: WE MUST HAVE MORE HOUSING!
Do any of you experts here on this blog know if it's possible to own an apartment building but not the property it sits on? I'm trying to figure out the deal between Brown (Aldon) Development & the HOC takeover of all the Glen's on Battery Lane. Were the buildings actually sold off or was there some type of sweetheart deal allowed by the counsel for them to revert back so the razing of the buildings to build new one's can begin?!
Regarding your query about owning a building without owning the land, the only way I know that could be accomplished is with a land lease arrangment which is rare in this area. The buildings on Battery Lane are/were all privately owned and the ones HOC now owns were sold to them. HOC is a state charterd entity, and as such, they have a relationship with the state/county whereby they are offerred a first right of refusal (ROFR) to purchase any residential property with (4) or or more units offered for sale in Montgomery County.
Post a Comment