The owner of 8200 Wisconsin Avenue, a high-rise apartment building in downtown Bethesda, has informed tenants that it is in the process of selling the property. Brown Development, LLC says it has entered into a sale contract with an unidentified buyer. It expects the sale to close in March or April of 2023. Tenants had to be informed under Montgomery County code 53A, as any recognized tenant organization has the right of first refusal to buy their building if it is put up for sale.
8200's future will be dependant upon who the unknown buyer turns out to be, unless tenants organize to buy it themselves. It could continue as a rental property with no interruption to tenants. The building could be renovated, or gutted, and turned into condos. Or, it could be entirely demolished, as today's zoning would allow a taller building there.
Bethesda real estate firm Donohoe owns the adjacent medical building and Exxon gas station. This would certainly make for a nice third lot to assemble for a major mixed-use development between Battery Lane and The Bethesdan hotel. It could include a renovated 8200, or a larger building that incorporates its property. I've heard no indication that Donohoe is the buyer, however, but such an acquisition would certainly increase their options for redevelopment there.
16 comments:
Enter the wrecking ball.
Are closing costs the same for high rises as they are for residential single family? It's a pretty sweet deal for MoCo if the county is pulling in a 1% transfer tax every time a $60M property changes hands.
Sounds like Brown is selling this asset to fund the new residential tower on Battery Lane Parcel C currently being reviewed for site plan approval.
It’s interesting that when Brown got sketch plan approval for sites A, B, C, D and E, and preliminary site plan approval for sites B, C, D and E of their Battery Lane redevelopment, they indicated that this tower (and another tower on the west end of Battery Lane) would remain in their portfolio as “naturally occurring affordable housing”. This was their argument that the proposed amount of new market rate and MPDU units was appropriate. I believe they are currently approved for sites B, C, D and E at a blended average of 25% MPDU units, so they still propose a reasonably large amount of regulated MPDU units instead of the existing unregulated naturally occurring affordable housing.
Of course we all know the naturally occurring affordable housing is developer speak for older, not improved apartment buildings with minimal if any amenities.
The site is currently zoned for up to 145’ in height, but could be a bit higher if more that 15% MPDU’s were built. The existing 8200 Wisconsin building is already 16 stories tall, so it is not likely a candidate for demolition and redevelopment based on the current allowable zoning.
I would guess a renovation would make more sense if any changes are proposed at all by a new owner.
End of an era. Much of the naturally occurring moderately affordable housing will slowly disappear in Bethesda.
When I say "moderate" I mean in comparison to new buildings like The Edge where a 1 bedroom is $2500.
8200 is starting at $1800 for a 1 bedroom.
I believe the gas station is a Sunoco, not Exxon.
Brown"development" strikes again! Remember the simpler Battery Lane livin' days of Al & Don = Aldon MGMT? Now they're selling off all their shit and using inept 3rd party management companies simply to collect rent checks from long existing and current tenants.
10:50: It switched from Sunoco to Exxon a couple of years ago.
This development is exactly why Robert has been preaching. $100M+ development in the hands of who to approve?
Interestingly enough, I got a 1 Bedroom at the Newer and more Modern Rosedale Park for $1750 a year ago, but it was a Covid Rate. Now they are already back up to $2100 !
I'd say more than a 50/50 chance the building gets knocked down within 5 years, the way development is speeding along in the Woodmont Triangle Area.
It would be nice to see this building renovated and improved with better windows, and maybe adding some balconies. It would be nice if it could be incorporated with some adjacent new development, perhaps adding some nice shared amenities.
10:47 AM Very good points, and 1 and 2 BRs in new buildings are even more expensive than what you reference.
A good number of naturally occurring moderately affordable housing (units not under the income-restricted affordable housing program) have already disappeared from the downtown Bethesda area, and it's not over. One upcoming project is Phase 1 of the Battery Lane re-development, which will tear down the existing 147 naturally occurring moderately affordable housing units. The re-redevelopment plan will include 47 units under the income-restricted affordable housing program -- that's it. So, that eliminates 100 units that "regular" people like teachers, nurses, firefighters, police officers, etc., would be able to afford. And that's just Phase 1 of re-development of Battery Lane.
It's happening across the county, region, and country. MoCo has lost half of its approximately 44,000 naturally occurring moderately affordable housing units since 2000 and is slated to lose another 7K-10K in the next decade if nothing is done. A lot of people have pushed back against this onslaught, but the developers seem to win every time, and the County Council and Planning Board don't care what the residents want. It's shameful ...
I know there is a lot of criticism of Elrich on this blog, but his administration has at least implemented and continues to work with the county council for more programs that preserve existing affordable housing in addition to expanding such housing.
My 2 cents :-)
Agreed! As a resident I would welcome renovations.
"Naturally occurring moderately affordable housing units" is a real cute way of saying "housing that so few people want to live in that we can't charge very much." Why redevelop buildings that are past their useful life when you can keep the poors in substandard housing forever?
Increasing supply is how you "naturally" reduce rents across the board. "Preserving" 60+ year old, low density, energy inefficient garden style units just because they're janky enough to command low rents is a comical way of going about manipulating the housing market to achieve the lowest possible quality of life for county renters.
10:24 PM, based on your offensive language, I can fully understand why building management is not very helpful in resolving your complaints.
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