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The firm that operates the underground shops at 2100 Crystal Drive wants to take 5,661 square feet of open retail space and convert it to office and storage use. But that would come at the expense of a vacant 17,919 square foot space that, until 2005, housed a Safeway store. The landlord has been trying to find another grocery tenant, but has been fighting a strong headwind caused by the weak national economy and the imminent departure of 13,000 jobs from the Crystal City area.

Essentially, the request to convert vacant space to an office use is a white flag — an admission that after five years of trying to market the space to grocery stores, leasing agents have come to the conclusion that no one wants to run a 17,919 square foot grocery store in the Crystal City underground at this time. While keeping open the possibility of a smaller, Trader Joe’s-sized market, the landlord is trying to find a way — any way — to productively fill some of the excess space.


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Last week Skanska USA applied for a demolition permit at the site. Barring any major obstacles, the buildings are expected to be gone by the end of the year.

In its place, Skanska, the American division of the Swedish construction conglomerate, is building a five-story office building that will include ground-level retail and 230 underground parking spaces. The project will also include the construction of a new road — an extension of Quinn Street that will break up the long block and connect Wilson Blvd with Clarendon Blvd.


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Construction crews seem to be making fast progress at the Clarendon Center properties. What were just hollow stacks of floors earlier this year now have bricks, windows and architectural accents.

The two structures — the regal-looking south building and the art deco-y north building — are expected to take on retail tenants as soon as December, and that seems very much possible given the pace of construction.


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Brooks Visits Pacers — Shoemaker Brooks visited the Pacers Running Store in Clarendon yesterday. The company brought along prizes and a double-decker bus.

Arlington PD Officially Announces Project Lifesaver Program — As we first reported in June, Arlington will be joining the Project Lifesaver program, which provides electronic tracking devices to help locate individuals who tend to wander due to cognitive problems. The department made the official announcement in a press release last night. Families interested in enrolling their loved ones into the service should call 877-434-6384.


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The block’s main attractions at this point are the Costco on the north side of the street and the Gramercy and Millennium at Metropolitan Park luxury apartment buildings on the south side. The relatively recent addition of a Dunkin’ Donuts has helped the block attract some more lunch and breakfast foot traffic — adding to the brave souls who patronize an old greasy spoon called Nell’s Carry Out, which resides in a trailer across from the old DHL warehouse.

Slowly but surely, though, more retail is arriving. A dry cleaner and a bank moved into retail bays at the Gramercy around the same time as Dunkin’ Donuts. A UPS Store is under construction down the block. And the U.S. Post Office that’s currently on Eads Street will eventually be moving to the ground floor of the Millennium.


News

Unemployment Steady in Va., Down in Arlington — Arlington has kept its crown as the locality with the lowest unemployment in Virginia. The unemployment rate in Arlington fell slightly in July, from 4.3 percent to 4.2 percent. Unemployment remained steady statewide, while rising in 8 out of 14 of the state’s metro areas.

Few Foreclosures For Sale in Arlington — Local Realtor Laura Rubinchuk reports that there are only 17 foreclosed homes for sale, out of the hundreds of homes on the market in Arlington. She compiled a list of the foreclosures here.


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Crystal City has been without a grocery store for more than five years. But now, as developer Vornado works to attract more residents to the area, it’s also working hard to attract a new grocery store.

The Safeway that had served as Crystal City’s lone grocery store closed its doors in March 2005. The store had been an anchor tenant of the Crystal City Underground for 38 years, but decided to close when surface parking was eliminated as part of the revitalization of Crystal City.


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More on Bayou Bakery — On Tuesday we broke the news that David Guas finally picked out the perfect spot for his Bayou Bakery concept: the old Camille’s space in Courthouse. Now the venerable Tom Sietsema has scooped us and a half dozen other local reporters who had been waiting patiently for an interview about the Louisiana-inspired cafe. Guas tells Sietsema that the Bakery will serve breakfast, lunch and dinner and will feature, among other things “muffalettas, layer cakes, root beer floats, blue plate specials,” and a beer selection.

The End of Free Parking in Clarendon? — Starting August 31, the Department of Human Services parking garage in Clarendon will no longer be free to the public between 6:00 p.m. and 2:00 a.m. With DHS moved out of the building, a private parking lot operator will be taking over. Even though garage parking rates in Clarendon are reasonable, the loss of free parking could result in even more cars coming into the Lyon Village neighborhood looking for street parking at night. More from TBD.


News

The rise in residential rent comes at a time when a number of Pentagon City apartment complexes have sold at sky-high valuations. The Hampton Apartments at 1425 South Eads Street recently sold for $33.5 million, and the Metropolitan at Pentagon City luxury high-rise at 901 South 15th Street just sold for $125 million, according to the GlobeSt.com article.

RED’s report states that between the first quarter of 2009 and the first quarter of 2010, Pentagon City posted the fastest rate of multifamily rent growth of any Northern Virginia submarket. The 4.9 percent year-over-year growth in Pentagon City compares to 2.4 percent growth along Columbia Pike and -1.4 percent rent growth along the Rosslyn-Ballston corridor.


News

Heat It Up — Mother nature will attempt another run at triple digit temperatures today. The predicted high is 98 degrees. A Code Orange air quality alert has been issued for the region.

Mail Carrier Charged With Stealing Mail — An U.S. Postal Service employee at the Arlington Main Post Office has been charged with stealing mail. Alva Jackson is accused of swiping envelopes she thought might contain gift cards. Jackson, who worked as an Arlington mail carrier, was caught with 134 stolen pieces of mail in her house, according to charging documents. More from the Washington Examiner.


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Crystal City is in the early stages of a transformation that is turning it from a gloomy strip of monolithic office and apartment buildings into a vibrant, modern urban village. Among the changes in the works are a new entrance to the Metro station, a dedicated transit way along Crystal Drive, the removal of older buildings and the realignment of several streets.


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Considering that it’s one of the area’s biggest commercial centers, Rosslyn is a bit lacking when it comes to places to eat breakfast, lunch and dinner. And that’s not to mention the dearth of fun places to hang out at night (with the possible exceptions of Continental and the handful of restaurants with outdoor seating up Wilson Blvd).

But here’s the good news. We have the ear of a real estate firm that’s looking to attract a new eatery to the area. Something moderately-sized — bigger than a lunch counter but smaller than a Cheesecake Factory.


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