Green Door Advisors 231 Van Buren Street NW Suite 3

Washington, DC 20012

Ivy City and Trinidad Commercial Market Analysis Washington, D.C.

June 2011

Final Report

Executive Summary Green Door Advisors (GDA) was retained by the National Community Reinvestment Coalition (NCRC) to conduct a retail and commercial office market analysis for the Ivy City and Trinidad neighborhoods of Washington, D.C. This analysis was conducted as part of a larger planning effort through the second round of the U.S. Department of Housing and Urban Development’s (HUD) National Stabilization Program (NSP2). NCRC has partnered with the District Department of Housing and Community Development (DHCD) to employ a citizen engagement and planning process for the Ivy City & Trinidad neighborhoods, in order to provide DHCD with strategic recommendations on where and how to invest in housing and community revitalization within the neighborhoods. This planning process will also advise DHCD on how to leverage the NSP2 funds to catalyze commercial and civic revitalization. GDA has conducted a retail and commercial office market analysis for the Ivy City & Trinidad neighborhoods, which includes a detailed demographic and economic analysis and identifies retail and office market trends within the neighborhoods and surrounding areas. In addition, this study includes results of community and stakeholder input obtained through a retail survey and focus group, an analysis of future demand potential for retail and office uses, the identification of catalytic redevelopment sites, and strategic parcel-level recommendations for implementation. This analysis determined that by 2015 there will be total demand for an additional 23,700 square feet of retail space in the Ivy City and Trinidad neighborhoods, over and above the retail supply that currently exists today. The supportable retail store types include a home furnishings store, a book store, florists, office supply and stationary stores, gift and novelty stores, pet supply stores, and other miscellaneous store retailers. The office demand analysis determined that by 2015 there will be demand for approximately 113,500 – 117,500 square feet of new neighborhood-serving office space. The tenant types generating this demand are associations and non-profit organizations and professional services including management consulting, architecture and engineering, real estate and leasing agencies, banking, and interior or graphic design services; they may also include serviced oriented business like dry cleaners, banks and the like. The additional retail and office demand indicate an opportunity to transform underutilized parcels, meet existing neighborhood demand for goods and services, and provide crucial opportunities for expanding the employment base in the neighborhood. GDA recommends capturing this future retail and office demand by concentrating new development in the catalytic redevelopment sites identified in this analysis. These sites are located primarily along Bladensburg Road NE and are currently underutilized by low-density and auto-oriented uses. Redeveloping these sites into higher-density will help transform Bladensburg Road into a community-serving commercial corridor while meeting crucial needs for goods, services, and employment and making a transition from the small retail and restaurants that populate H Street NE and the regional-serving retail planned for the New York Avenue corridor at both the Wal-Mart and Shops at Dakota Crossing retail centers. Some of the potential long-term redevelopment opportunities outlined in our recommendations include redeveloping existing retail or businesses into higher-density development and integrating those uses back into the new development. This long-term strategy allows for the transformation and densification of the neighborhood commercial uses in the context of limited demand for new retail over and above what currently exists. GDA also identifies opportunities to support existing businesses in expanding or updating their merchandising, marketing, and customer service to boost competitiveness and better meet the needs of the community. The specific recommendations for the redevelopment sites and strategies are detailed in this report and in the exhibit appendix.

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Neighborhood Analysis The Ivy City and Trinidad neighborhoods are located in northeast Washington, D.C. adjacent to Gallaudet University and the National Arboretum. The study area boundaries1 are shown in the adjacent map and were designated through the NSP2 process. The study area boundaries encompass several distinct neighborhoods and areas, including the Trinidad and Ivy City residential neighborhoods, the Carver/Langston neighborhood, the Florida Avenue market, and a portion of the H Street Corridor. The study area is proximate to several transportation options, including the red line metro stop at New York Avenue and Florida Avenue, Union Station, several bus routes, and the H Street streetcar line that is currently under construction. The focus of the planned investment is within the Ivy City and Trinidad neighborhoods. The study area residential neighborhoods are primarily made up of older housing stock, with a significant number of vacant and abandoned properties interspersed through the neighborhood. The Ivy City Special Demonstration Project is a DHCD initiative focused on raising the homeownership rate within the neighborhood, particularly among low and moderate-income households. The project includes the redevelopment of 58 housing units into affordable housing, which will serve to improve the neighborhood character and eliminate some of the existing blight. The main corridors within the study area, particularly along Bladensburg Road NE, West Virginia Avenue NE, and Montana Avenue NE, are comprised of warehouse, industrial, or auto-oriented uses. These low-density uses are generally not compatible with residential neighborhoods and serve to both isolate some of the neighborhoods from surrounding areas and limit private commercial investment in higher-density and higher-value uses. Bladensburg Road NE, in particular, is comprised of auto-oriented businesses, parking, vacant lots, and older stand-alone retailers from Mount Olivet Road NE to Neal Street NE, where there is a CVS and other existing retailers. The Flats at Atlas District project is under construction along the east side of Bladensburg Road NE adjacent to the CVS, creating the potential opportunity to spur additional investments and redevelopment of the vacant and underutilized parcels further north along Bladensburg Road up to Mount Olivet Road. Despite the presence of blight among the industrial, warehouse, and auto-oriented uses and vacant residential properties, the Ivy City and Trinidad neighborhoods sit in a strategic position, surrounded by major redevelopment and revitalization efforts. The neighborhood is proximate and accessible to NOMA, which has emerged as a significant and growing employment district, in addition to Downtown, D.C., and Capitol Hill. The neighborhoods are also bordered by the revitalization occurring along the H Street corridor,

1 The Ivy City and Trinidad neighborhood boundaries were designated through the NSP2 process and include the census tracts: 79.01, 79.03, 85, 88.02, 88.03, 88.04, 89.03, and 89.04

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the proposed redevelopment of the Florida Avenue Market, and the planned Wal-Mart development at New York Avenue NE and Bladensburg Road NE. Ivy City and Trinidad are served by a wide array of civic and institutional uses. The largest institutional presence is Gallaudet University, which may present the opportunity for driving growth and investment within the neighborhood. The area is also home to a number of arts and entertainment uses, particularly as the H Street corridor revitalizes. These arts and entertainment uses include the Atlas Performing Arts Center, the H Street Playhouse, and the Rock & Roll Hotel. Just outside the study area boundary is RFK Stadium and the DC Armory. The neighborhood is also home to a number of school, churches, and active civic and community associations; however the neighborhoods do not have a specific community development corporation or similar community-based organization focused solely on revitalization within these neighborhoods.

Demographic Analysis A key component of the retail and office market analysis is the demographic analysis. This analysis serves as a backdrop to inform our understanding of the current market trends, future demand opportunities, as well as providing insight into any challenges and opportunities facing efforts for redevelopment. GDA conducted a demographic analysis for the combined Ivy City and Trinidad neighborhoods, defined as census tracts 79.01, 79.03, 85, 88.02, 88.03, 88.03, 89.03, and 89.04 (identified as the smaller area in orange on the adjacent map), as well as for the retail primary market area (PMA), which is outlined on the adjacent map. GDA defined the retail PMA as extending beyond the census tracts identified for the neighborhoods to take into account the likely trade area from which retail located within the Ivy City and Trinidad neighborhoods would be primarily drawn. The Ivy City and Trinidad retail PMA was defined based on current retail supply and existing submarkets, consumer spending and commuting patterns, transportation and accessibility, neighborhood perception, and other physical barriers. Ivy City and Trinidad Neighborhoods The demographic analysis was conducted using the population growth rate in the District’s Ward 52 between the 2000 U.S. Census and the recently released 2010 U.S. Census to determine the estimated 2010 population and household totals for the study area and the PMA. In 2010, there were an estimated 9,746 households and 23,586 people living in the Ivy City and Trinidad neighborhood census tracts. Since 2000, the neighborhoods have experienced an average growth of 86 people and 79 households annually. The

2 Additional detailed demographic trends from the 2010 Census were not available at the time of this report.

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baseline projections of household and population trends reveal that this growth is expected to continue through 2015. The baseline projections, however, are based on historical trends and don’t take into account any current or planned government intervention or revitalization efforts, such as the Ivy City Special Demonstration Project that may further increase the level of population and household growth. Ivy City & Trinidad Neighborhood Demographic Trends, 1990-2015

1990 2000 2010 2015

Ivy City/Trinidad Neighborhood Census Census Estimate Projection

Population 26,830 22,728 23,586 24,028

Households 9,825 8,961 9,746 9,929

Housing Units 11,766 11,311 11,072 10,969

% Owner Occupied 28% 28% 32% 31%% Renter Occupied 62% 51% 48% 48%% Vacant Housing Units 11% 21% 20% 20%

Median Household Income $21,005 $26,447 $37,190 $41,619 The current tenure in the study area is 48% renter-occupied and 32% owner-occupied, with 20% of the housing units being vacant or abandoned. This is not a new trend, 21% of the housing units were vacant or abandoned in 2000 and 11% were vacant or abandoned in 1990. Between 1990 and 2000 the study area declined by 86 households each year, of which most were renter households. The percentage of owner occupied housing units remained at 28% between 1990 and 2000, where the percentage of renter households declined from 62% to 51% as the percentage of vacant housing units rose. This decline and disinvestment in the housing stock has contributed to the limitations of the potential for new commercial investment or neighborhood revitalization over the past few decades. The neighborhood had a median household income of $37,190 in 2010, which is an increase of over $1,000 annually since 2000. The distribution of households by income is heavily weighted towards lower income brackets, as shown in the following chart. In Ivy City and Trinidad combined, 47% of households earn less than $35,000 annually, compared to 32% of households in the District overall. Additionally, only 10% of the neighborhood households earn over $100,000 annually, compared to 28% of households in the District. Distribution of Households by Income Range, 2010

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The majority of households in Ivy City and Trinidad are headed by females. In 2010, 55% of households were headed by only a female and 85% of the 2,300 single-parent households were headed by a female. The median age was 51 years old, and 63% of the population is of working age, between 18 and 64 years old. Also significant within the age structure of the neighborhood is that 31% of the population is under 20 years old, of which half are less than 10 years old.

The population in the Ivy City and Trinidad neighborhoods has a relatively low education rate as compared with the District as a whole. The percentage of people over 25 years old that have a high school diploma or less has decreased from 71% in 2000 to 62% in 2010 as the portion of the population with a Bachelor’s degree or greater increased from 9% to 14% in 2010.

Distribution of Ivy City & Trinidad Neighborhood Population by Education, 2000-2010 2000 Census 2010 Estimate

# % # %

Education: Population Over 25 YearsLess than 9th Grade 1,400 10% 1,747 7%Some High School, No Diploma 3,842 27% 4,338 18%High School Graduate 4,843 34% 8,729 37%Some College, No Degree 2,470 17% 4,367 19%Associate Degree 498 3% 1,077 5%Bachelor's Degree 925 6% 2,329 10%Master's Degree 241 2% 666 3%Professional School Degree 84 1% 252 1%Doctorate Degree 22 0% 80 0%

Total 14,325 100% 23,586 100% Retail Primary Market Area There were 87,771 people and 39,536 households living in the retail PMA in 2010. The retail PMA has seen growth of an average of 319 people and 308 households annually since 2000. The tenure in the PMA is 46% renters, which is consistent with the current rate in the Ivy City and Trinidad neighborhoods. The main difference between the neighborhood and the retail PMA is that the PMA was 42% owner occupied in 2010 and only 12% of the housing stock is estimated to be vacant, compared to the vacancy rate of 20% in the neighborhoods. Ivy City & Trinidad Retail Primary Market Area Demographic Trends, 2000-2015

2000 2010 2015

Ivy City/Trinidad Retail Primary Market Area

Census Estimate Projection

Population 84,577 87,771 89,413

Households 36,457 39,536 40,276

Housing Units 41,702 43,055 43,607

% Owner Occupied 38% 42% 42%% Renter Occupied 50% 46% 46%% Vacant Housing Units 13% 12% 12%

Median Household Income $34,538 $50,157 $58,601

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As shown in the Distribution of Households by Income Range table on page 5, the households in the retail PMA have fewer households in the lower income ranges and more households earning higher incomes. The 2010 median household income in the retail PMA was $50,157, and 35% of households earn less than $35,000 annually compared to 32% in the District and 47% in the neighborhood. There are 23% of the households in the PMA earning over $100,000 annually, compared to 28% in the District and just 10% in the neighborhood. An analysis of the distribution of households by type reveals that the retail PMA is similar to the neighborhood in that the majority of households (51%) are headed by only a female, and 87% of the single-parent households are headed by single mothers. The retail PMA fares significantly better than the neighborhood when looking at education rates of the population over aver 25. Approximately 36% of the population has at least a bachelors degree in the PMA compared to only 14% in the neighborhood, and 45% of the PMA population has a high school degree or less compared to 62% in the neighborhood. The retail PMA has seen similar increases in education rates education trends as the neighborhood since 2000, with a decline in the number of people with only a high school diploma and an increase in the number of people with college and advanced degrees. Distribution of Ivy City & Trinidad Retail PMA Population by Education, 2000-2010

2000 Census 2010 Estimate

Ivy City/Trinidad Retail PMA # % # %

Education: Population Over 25 YearsLess than 9th Grade 4,510 8% 4,827 6%Some High School, No Diploma 11,112 19% 10,599 12%High School Graduate 15,246 26% 23,507 27%Some College, No Degree 9,677 17% 14,194 16%Associate Degree 1,568 3% 2,816 3%Bachelor's Degree 8,793 15% 16,681 19%Master's Degree 4,595 8% 9,136 10%Professional School Degree 2,001 3% 3,776 4%Doctorate Degree 1,029 2% 2,234 3%

Total 58,531 100% 87,771 100%

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Retail Market Analysis Competitive Supply Analysis GDA conducted an analysis of the current retail market trends as a backdrop to understanding the area’s existing strengths and weaknesses and identifying future opportunities for retail investment and development. The neighborhood is comprised of a variety of different retail and shopping center typologies. These include low-density retail centers within the residential neighborhoods, independent retailers scattered among industrial and warehouse uses, the revitalizing H Street corridor, and Hechinger Mall. There has been a growth and investment in the retail, restaurant, and entertainment/music establishments along H Street as the corridor is revitalized. Despite the current and anticipated growth and investment in the H Street corridor, the majority of supply in the study area’s retail market lacks the recent investment to be competitive with other retail destinations in the PMA. Hechinger Mall is over 180,000 square feet and is anchored by a Safeway grocery store, offering the largest concentration of retail within the study area. One of Hechinger’s largest tenants, National Wholesale Liquidators, closed and left a large vacancy in the shopping center. However, recent leasing activity will add a Ross Dress for Less to the mall helping to fill a large portion of the space left vacant from National Wholesale Liquidators. Other current tenants at Hechinger Mall include Modell’s, Pizza Hut, Ashley Stewart, Game Stop, Blockbuster, Scott’s Beauty & Barber Supply, Rainbow, and a U.S. Post Office. Limited data on lease rates was available, but retail sites along Bladensburg Avenue NE and along Montello Avenue and Queen Street within the interior of the neighborhood can range from $20-$30 per square foot, NNN. Many of the anchors tenants at Hechinger Mall are likely paying discounted rents less than $20 per square foot, NNN. Just north of the study area along Bladensburg Road NE at South Dakota Avenue NE, a former 2,000 square foot gas station on a 15,000 square foot lot is actively leasing for $42 per square foot. The wide range of lease rates reflects both the variety of space available, from small scale neighborhood serving, to professionally managed community –serving anchor tenants and other commercial space. The other larger shopping center present within the study area is the H Street Connection, a 40,000 square foot strip center built along H Street NE in the later 1980’s. The center is anchored by a Rite Aid, and other tenants include Subway, Sports Zone, Game Stop, McDonalds, 7-11, a cleaners, florist, and Bank of America. The majority of other retailers present in the smaller neighborhood-oriented shopping centers and along the H Street corridor are convenience and small neighborhood grocery stores, health and personal care stores, neighborhood-based services like dry cleaners and financial institutions, and fast food restaurants. Lease rates for retail space along the H Street NE corridor range from $20 to $35 per square foot NNN, depending on the condition of the space and location along the corridor. The retail space on H Street at the intersection with Bladensburg Road NE and Benning Road NE is achieving lease rates ranging from $20-$24 per square foot, compared to the higher rates of $30-$35 per square foot on the western portion of the H Street corridor. A number of the smaller retail centers and independent retailers scattered among industrial uses are older structures, some vacant or in dilapidated condition. The retail center on West Virginia Avenue at Mount Olivet Road NE is one of the stronger performing retail centers within the interior of the neighborhood, and is home to Dominos, the café Sugar, a gas station and convenience mart, and other neighborhood serving retail establishments. The lease rates for retail space along Florida Avenue in the study area range from $8-$12 per square foot (NNN) for space in the Capitol City Market along 6th street to $30 per square foot to the mid $30s per square foot (NNN) for the planned Washington Gateway project at Florida and New York

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Avenues NE. The retail space in the ground floor of office space in the NOMA neighborhood is achieving up to $50 per square foot (NNN). The existing retail supply in the retail PMA varies widely among the different neighborhoods and submarkets. The East River Park Shopping center along Benning Road NE east of the Anacostia River is a 150,000 square foot grocery anchored center. The East River Park center, which City Interests plans to redevelop, was built in the 1940’s and renovated in the 1980’s, and is almost fully occupied. Rhode Island Place is located at the Rhode Island metro stop, only one stop away from the Florida Avenue/New York Avenue metro stop in the study area. Rhode Island Place is anchored by a Giant grocery store and a Home Depot, and fully occupied with other inline retailers including TJ Maxx, Shoe City, Radio Shack, and Anna’s Linens. The addition of new inline retail at the Rhode Island Row mixed use development is also currently under construction. The retail shops at Union Station, however, are centrally located in downtown and uniquely positioned around the city’s major transportation hub. The retail at Union Station includes upscale clothing and accessory stores, fast food retailers, and book and entertainment stores. The Florida Avenue market offers wholesale and other retail items and has undergone several iterations for planned redevelopment, but is currently not serving many of the local resident retail needs. Other local retail submarkets include Barrack’s Row and Eastern Market, although we do not believe these submarkets to be directly competitive with the primary market area. Demand Analysis GDA conducted a statistical demand analysis to determine the current and future demand for retail space in the Ivy City and Trinidad neighborhoods by store type category. The demand analysis is based on the number of households living in the retail PMA and their household spending patterns. The annual average household spending by store type is used to determine the total potential retail demand within the PMA by store type. A capture rate is then applied to the total potential spending to derive the potential retail spending in the study area. The capture rates are derived for each retail store type based on existing and planned competitive supply, household spending and commuting patterns, and the typical orientation of a store type as either a destination or neighborhood-serving establishment. The analysis indicates that in 2010 there was a total potential of $83.6 million of household spending that can be captured by the Ivy City and Trinidad neighborhoods, including the household spending at existing retail establishments. This spending potential is converted into square footage of retail space by applying the achievable sales per square foot to the potential spending for each store type. For example, according to our analysis there was potential spending of $1.31 million for a home furnishings store in Ivy City and Trinidad in 2010. Home furnishings stores in this area typically achieve or require an average of $250 in sales per square foot of retail space. This $1.31 million in spending can therefore support a 5,258 square foot home furnishings store in the study area. The existing supply of retail establishments, just over 475,300 square feet, by store type was subtracted from the potential demand by store type to determine the net new retail demand that can be supported in the neighborhood. The average sales per square foot for each store type was derived based on the actual performance of shopping centers in the local area and around the region, as well as GDA’s extensive experience working with retail brokers as they convey the standard requirements and sales targets when retailers make location decisions.

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Retail Demand Analysis, 2010 Ivy City & Average Pot. NewTrinidad Sales/ Existing Space

Sales Potential SF Supply SF

Furniture & Home Furnishing Stores $3,318,667 $250 0 13,275Electronics & Appliance Stores $1,447,198 $350 18,977 1,158Bldg Materials, Garden Eqpmt & Supply $1,359,234 $450 8,371 0Grocery Stores $34,242,986 $500 66,093 2,393Convenience Stores $2,568,963 $450 14,521 0Health and Personal Care Stores $11,775,134 $450 53,583 0Clothing and Clothing Accessories $10,204,997 $350 56,712 976Sporting Goods, Hobby, Book, & Music $4,392,006 $350 18,286 2,349Miscellaneous Store Retailers $4,863,244 $238 5,891 15,722Food Services & Drinking Places $9,460,890 $417 174,337 0General Merchandise $0 $450 58,563 0

Total in 2010: $83,633,319 $378 475,335 35,872 The demand analysis indicates that the study area could support a total of 35,872 additional square feet of retail in 2010. However, many of the store type categories can support only a minimal amount of square footage and not the full amount needed to successfully operate that type of store. For example, the demand analysis indicates spending that can support 2,100 square feet of household appliance stores, but these stores typically require larger formats and likely wouldn’t occupy smaller retail spaces. The average store size for each store type was determined using assumptions from local retail brokers, the competitive supply analysis, the national standards from the Urban Land Institute’s “Dollars and Cents of Shopping Centers” and GDA’s experience within Ivy City, Trinidad, and other similar neighborhoods in the District. These average store sizes rely on multiple inputs and data sources in order to reflect the reasonable average size that each store type would occupy within these locations. Based on this analysis, the actual supportable net new retail space supportable in 2010, when taking account of reasonable store sizes, was 19,700 square feet. The supportable store types include a home furnishings store, a book store, florists, office supply and stationary stores, gift and novelty stores, pet supply stores, and other miscellaneous store retailers. While the demand analysis does not indicate sufficient additional demand for a grocery store, there are currently plans for the development of an Aldi’s grocery store on a vacant lot bound by Maryland Avenue NE, 17th Street NE, and I Street NE, as well as a Giant grocer along H Street NE and a grocery section at the planned Wal-Mart at New York Avenue and Bladensburg. We anticipate that the additional grocers will draw from a larger/different primary market area than the one identified for the Ivy City and Trinidad neighborhoods. Similarly, the retail demand analysis does not indicate sufficient demand to support additional limited-service or full-service restaurants in the study area, but the site at the southwest corner of Bladensburg Road NE and Mt. Olivet Road NE is currently under construction with plans for the development of a Denny’s restaurant. However, again, given the lack of sit down restaurants in this section of northeast DC, proximity to New York Avenue (and several limited service hotels) we anticipate sufficient demand to support the restaurant at this location. This retailer is indicative of the type of community based retail that can draw from a larger trade area than simply the surrounding neighborhood.

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Retail Demand Analysis Total Supportable Stores, 2010-2015 2010 2015

Avg. Estimated Total Net New Estimated Total Net NewStore Demand Stores Supportable Demand Stores Supportable Size (SF) Supported SF (SF) Supported SF

Furniture & Home Furnishing Stores N/A 13,275 1 5,000 15,620 1 5,000Furniture Stores 30,000 8,017 0 0 9,491 0 0Home Furnishing Stores 5,000 5,258 1 5,000 6,128 1 5,000

Electronics & Appliance Stores N/A 1,158 0 0 1,735 0 0Household Appliance Stores 15,000 0 0 0 0 0 0Radio/TV/Other Electronics Stores 2,500 0 0 0 0 0 0Computer and Software Stores 5,000 971 0 0 1,470 0 0Camera/Photographic Supply Stores 2,500 187 0 0 265 0 0

Bldg Materials, Garden Eqpmt & Supply 2,500 0 0 0 0 0 0Food & Beverage Stores N/A 2,393 0 0 7,674 0 0

Grocery Stores 20,000 2,393 0 0 7,674 0 0Convenience Stores 1,500 0 0 0 0 0 0

Health and Personal Care Stores 10,000 0 0 0 0 0 0Clothing and Clothing Accessories N/A 976 0 0 1,856 1 1,500

Clothing Stores 3,000 0 0 0 0 0 0Shoe Stores 2,000 0 0 0 0 0 0Jewelry, Luggage, and Leather Goods Stores 1,500 976 0 0 1,856 1 1,500

Sporting Goods, Hobby, Book, & Music N/A 2,349 1 2,200 2,769 1 2,200Sporting Goods/Hobby/Musical Instruments 2,500 0 0 0 0 0 0Book Stores 2,200 2,349 1 2,200 2,769 1 2,200

Miscellaneous Store Retailers 1,500 15,722 5 12,500 17,957 6 15,000Florists 2,500 7,310 2 5,000 8,744 3 7,500Office Supplies, Stationery, and Gift Stores 2,500 2,896 1 2,500 2,950 1 2,500Gift, Novelty, & Souvenir Stores 2,500 2,661 1 2,500 2,711 1 2,500Other Misc. Retailers (Including Pet Supply) 2,500 2,855 1 2,500 3,553 1 2,500

Food Services & Drinking Places N/A 0 0 0 0 0 0Full-Service Restaurants 2,000 0 0 0 0 0 0Limited-Service Eating Places 2,000 0 0 0 0 0 0Drinking Places (Alcoholic Beverages) 1,500 0 0 0 0 0 0

General Merchandise 60,000 0 0 0 0 0 0

TOTAL: 35,872 7 19,700 47,611 9 23,700

GDA conducted an analysis of the projected retail demand in 2015 based on the straight-line household growth projections between the 2000 and 2010 U.S. Census in Ward 53, assuming no government intervention. This analysis takes also into account the projected growth in household incomes and the impact on household spending patterns. The Ivy City and Trinidad retail PMA can support an estimated $93.4 million in household retail spending (including what is currently spent at existing retail establishments). After subtracting out the existing retail establishments, this equates to demand for 47,611 net new square feet of retail space. After taking into account typical retail store sizes, the projected supportable retail is 23,700 square feet. GDA also analyzed the projected retail demand in 2015 based on the growth projected in Ivy City and Trinidad through the implementation of the NSP2 program. This growth was based on the residential market analysis conducted by Zimmerman/Volk Associates, Inc. for the NSP2 project. Zimmerman/Volk projected five-year growth of 1,360 households by 2015, of which 793 are multi-family rental, 438 are for-sale condominiums and townhomes, and 129 are single-family detached units. GDA used the Zimmerman/Volk growth projections for the Ivy City and Trinidad neighborhoods and the baseline projected growth for the remainder of the PMA to determine the total projected households in 2015 with government intervention. This projected household growth generates an additional $2.7 million of potential retail spending within the study area over the baseline 2015 analysis. Despite this increase in number of

3 As of the date of this study detailed demographic information at the census tract level was not yet available from the 2010 Census

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households and available spending power, the growth is not sufficient to change the number or types of stores supportable by the PMA in 2015.

Office Market Analysis

Employment Analysis GDA conducted an analysis of the breakdown of employment by industry type for the Ivy City and Trinidad neighborhood and for the office PMA (identified in blue), which is shown in the adjacent map. The office PMA was determined based on local and regional commuting patterns, transportation and accessibility, natural and other physical barriers, and existing office market dynamics. Understanding employment trends is an important backdrop in assessing the current economic and land use conditions in the office PMA, and in determining future opportunities. The employment analysis also informs determining the land use implications of any projected employment growth as determined in the demand analysis. In 2010 there were 7,635 employees in the Ivy City and Trinidad neighborhood and 56,799 employees in the office PMA. Ivy City and Trinidad represents 13% of the office PMA’s employment, which extends to include NOMA, Capitol Hill, Brookland, and some of downtown, D.C. The NOMA submarket has experienced significant employment growth as it becomes a competitive office market for both Federal and private tenants. This recent growth may not be fully represented in the 2010 employment estimates; therefore an employment analysis using the soon-to-be-released detailed 2010 census data will provide a more accurate depiction of the employment trends within the office PMA. In 2010 the top employment categories in the Ivy City and Trinidad neighborhood were public administration (16% of employment); health care and social assistance (14% of employment); administration, support, and waste management (8% of employment); retail trade and other services (7% of employment each). There has been little change in amount of employment and the overall breakdown of employment since 2000. While the breakdown of employment by type is projected to remain fairly constant through 2015, Claritas data projects a decline in total employment by 239 jobs.

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Breakdown of Employment by Industry in 2010 Employment by Industry in 2010 Neighborhood PMA D.C.

# % # % # %

Public Adminstration 1,243 16% 10,488 18% 44,258 16%Health Care/Social Assistance 1,073 14% 6,122 11% 28,147 10%Admin/Support/Waste Mgt 589 8% 3,145 6% 13,833 5%Retail Trade 565 7% 3,259 6% 14,509 5%Other Services, Not Public Admin 522 7% 4,683 8% 23,352 8%Professional, Scientific, Technical Services 441 6% 7,517 13% 45,466 16%Accomodation/Food Services 648 8% 3,713 7% 18,926 7%Construction 384 5% 1,912 3% 9,191 3%Educational Services 631 8% 4,838 9% 26,932 10%Finance/Insurance/Real Estate 463 6% 2,987 5% 18,045 7%Transportation/ Warehouse/Utilities 444 6% 2,578 5% 9,020 3%Entertainment/ Recreation Services 215 3% 1,891 3% 7,498 3%Manufacturing 178 2% 855 2% 3,829 1%Information 144 2% 2,186 4% 11,707 4%Mangement of Companies 4 0% 36 0% 252 0%Agriculture/Fishing/Forestry 9 0% 190 0% 658 0%Wholesale Trade 82 1% 399 1% 1,704 1%

Total 7,635 100% 56,799 100% 277,327 100% As shown in the table above, the employment trends in the office PMA are similar to those in the neighborhood, with the same industries representing the greatest share of employment. The one exception is professional, scientific, and technical services, which represented 13% of employment in the office PMA and only 6% of employment in the neighborhood. It is interesting to note that in the Ivy City and Trinidad neighborhoods there is a strong presence of industrial, warehouse, storage, and auto-oriented uses yet these categories are not driving the neighborhood’s employment. Some of these land uses and facilities may be outdated and not used in the way originally designed, and they typically provide minimal employment compared to the land area occupied. Competitive Supply Analysis There is little traditional office space within the Ivy City and Trinidad study area, and most office space is interspersed among retail and industrial uses. The study area office space includes medical-oriented, institutional, flex industrial space, and storefront office space along the H Street corridor. The existing office space within the study area is not positioned to compete with the Class A office space present in other locations in the PMA, which are driven primarily by the NOMA and Capitol Hill submarkets. The newer Class A office space built in NOMA and the southwestern portion of the office PMA have lease rates between $30 and $50 per square foot. Renovated rowhouses and smaller office spaces are leasing for approximately $20-$35 per square foot, and some of the older office spaces along H Street and throughout the neighborhoods lease for a little as $10 per square foot. The industrial and flex properties along West Virginia Avenue NE have asking rents ranging from $7.50 to $15 per square foot. In addition to rowhouses, office space throughout the study area and particularly along the H Street corridor is located on above retail space. The H Street corridor is also becoming a strong location for innovative office space, including the H Street Greenhouse shared workspace.

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Demand Analysis GDA conducted a statistical demand analysis to determine the existing and future potential new office demand in the Ivy City and Trinidad neighborhoods over and above what currently exists in the market. The office demand is based on the ratio of employees to population for select industries in Washington, D.C. These ratios are then applied to the population in the office PMA to determine the potential employment in the office PMA by industry. This employment is then converted to square footage of office space based on assumptions of the average square feet occupied per employee. In 2010 there was a total of 7.48 million square feet of office space demand in the PMA, which equates to almost 30,000 employees. A capture rate is applied for each industry and type of office user to derive the demand for office space in the Ivy City and Trinidad neighborhoods. The capture rate is based on existing and planned competitive supply and competitive landscape of proximate employment centers, transportation and accessibility needs of various tenant types, and desired proximity to anchor institutions, resident populations, or other employers. While the capture rates vary for each industry, the overall capture rate for Ivy City and Trinidad office demand is 5% of the total PMA office demand. The capture rates are shown in detail for each industry on Exhibits 29-31 in the appendix. The breakdown of existing office supply by industry or tenant type is then subtracted from this potential Ivy City and Trinidad office demand to determine the total new demand for office space in the study area. The existing supply of office space was determined using the breakdown of employment in the neighborhood for industries that typically occupy the traditional office space considered in this analysis. In 2010 there was demand for approximately 116,950 new square feet of office space in the study area. When considering the size of office space that these tenants typically occupy, the resulting demand for new office space is approximately 111,500 square feet in 2010. This majority of this demand is for office space for nonprofits/associations, management consulting, architecture and engineering firms, and real estate and property management agencies. The office demand for non-profit associations and organizations include both locally serving organizations, as well as regional and national organizations that are priced out of downtown and NOMA submarkets but want the proximity to both locations, as well as Union Station and Capitol Hill. There is also an opportunity to create strategic partnership with Gallaudet University to attract non-profit organizations that have a relationship with the University through research, education, or services to the deaf community.

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Office Demand Analysis, 2010-2015

Selected Industries

Avg. Tenant

Size2010 Current

Supportable SF

2015 Supportable

SF with Straightline Projection

2015 Supportable SF

with NSP2 Invervention

Commercial Banking & Credit Union 5,000 0 0 0Mortgage Brokers 2,500 0 0 0Securities, I-banking, etc 5,000 5,000 5,000 5,000Insurance Agencies 2,500 0 0 0Real Estate Agencies/Prop Mngmt 2,500 20,000 20,000 20,000Law Services 5,000 0 0 0Accounting Services 2,500 0 0 0Arch./Eng/ Services 5,000 20,000 20,000 20,000Interior & Graphic Design Services 2,500 2,500 2,500 2,500Mgtmt Consulting 5,000 20,000 20,000 20,000Advertising & Media Agencies 5,000 0 0 0Photographic Services 1,500 0 0 0Veterinary Services 2,500 0 0 0Business Support Services 5,000 0 0 0Travel Agencies 1,500 0 0 0Landscaping 2,500 0 0 0Physicians 2,500 0 0 0Dentists 1,500 0 0 0Chiropractors 1,500 0 0 0Optometrists 2,500 0 0 0Outpatient Care Centers 5,000 0 0 0Child Day Care Services 5,000 0 0 0Personal Care Services 2,000 0 0 0Dry Cleaner 1,500 0 0 0Associations and Non-Profit Orgs 2,000 44,000 46,000 50,000

111,500 113,500 117,500 The projected new office demand for 2015 shows a small amount of growth in the supportable new office space as the office PMA is projected to experience a slight increase in population. These population estimates are based on the straight-line projections of population growth, based on the growth in Ward 5 between the 2000 and 2010 U.S. Censuses. This 2015 demand analysis utilizes a straight-line projection and assumes no government intervention in the market to determine the future new office demand in Ivy City and Trinidad as dictated by current market trends. This demand analysis of the scenario with no government interventions indicates a total demand of 113,500 square feet of new office space in 2015. GDA also conducted an alternative analysis of the new office demand in 2015 assuming there is some government intervention in the market as a result of the NSP2 grant. This portion of the analysis takes into account the household growth from the implementation of the NSP2 program funds and is based on the household growth projections from Zimmerman/Volk Associates Inc.’s residential demand analysis. Zimmerman/Volk projected growth of 1,360 households within the study area by 2015. Using the average household size within Ivy City and Trinidad, GDA derived the population growth within the Ivy City and Trinidad neighborhood as a result of the NSP2 program. Similar to the retail demand analysis, this projected growth was added to the straight-line projection for the remainder of the office PMA to determine the total 2015 household growth. This household growth creates demand for an additional 4,000 square feet of office space oriented towards associations and community-serving non-profits compared to the 2015 straight-line demand, but does not have an effect on the office demand for any other tenant types. The association and community-serving non-profit tenant types are the only ones affected by this population growth because they are directly influenced by population influences. Therefore, the alternative office

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demand in 2015 indicates that the study area can support 117,500 new square feet of office demand after implementing the NSP2 program grant.

Planned and Proposed Development

There are a number of planned in proposed projects in the pipeline within the retail and office PMAs. These projects include large-scale retail developments, particularly a proposed Wal-Mart development at New York Avenue and Bladensburg Road NE and the proposed Shops at Dakota Crossing at New York Avenue and South Dakota NE which will include a Costco and Target. Within the study area, there is also an Aldi’s grocery store planned for the vacant lot between Maryland Avenue NE, I Street NE, and 17th Street NE, as well as Denny’s restaurant under construction at the intersection of Bladensburg Road NE and Mt. Olivet Road NE. Other planned large-scale mixed-use projects include Washington Gateway at New York and Florida Avenues, New Town at Capital City Market, The Flats at Atlas District (under construction), and the proposed redevelopment of H Street Connection. Overall, there are approximately 1,000-1,300 hotel units planned for the PMA, 7,000 residential units, 5.5 million square feet of office space, and 1.3 million square feet of retail space. While not all of these projects may come to fruition, and the timing on some is quite long-term, these projects will still have a significant impact on the local retail and office market and the type of new retail and office development that is feasible within the neighborhood. The scale, location, timing, and likelihood of the pipeline of planned and proposed development was taken into account when determining the capture rates for new retail and office demand. Many of the large-scale planned and proposed projects will have limited impact on the five-year demand potential for Ivy City and Trinidad, but will influence long-term planning and redevelopment efforts. However, as these projects deliver, increasing upward pressure on retail and commercial rents should be expected.

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Length of Residence

Less than 2 years 17%2-5 years 33%6-10 years 22%11-20 years 8%More than 20 years 19%

Focus Group and Resident Surveys In coordination with NCRC and DHCD, GDA conducted a focus group and resident surveys to obtain detailed information on the strengths, weaknesses, and opportunities of the local retail market as perceived by the Ivy City and Trinidad neighborhood residents. Focus Group The focus group was conducted on Wednesday, March 30th at the Trinidad Recreation Center with over 30 attendees. During the focus group, residents were asked questions about where they shop for different types of goods, how they feel about the local retail offerings in their neighborhood, and desired changes or additions to the local retail supply. A common theme of the comments made during the focus group centered on the lack of adequate variety and quality of retail to suit resident needs and preferences. In particular, the recent closure of the Wholesale Liquidators within Hechinger Mall has forced many residents to now travel outside of the neighborhood to find a similar variety of goods at affordable prices including electronics, furniture, and clothing. Many residents anticipate that the planned Wal-Mart development at New York Avenue and Bladensburg Road will meet many of these needs. A second overriding theme from the focus group session was the lack of quality shopping experiences within their neighborhoods. Specifically the poor customer service particularly among national chains, as well the perception that goods were priced higher within the neighborhood than at the same stores located in other neighborhoods, both in the District and in surrounding jurisdictions. Based on these conditions, many residents expressed that they travel outside of their neighborhood for a majority of their shopping needs, to other retail destinations in the District like Columbia Heights or Downtown/Chinatown. However a substantial number of participants indicated that they shop in Maryland, particularly retail centers in Prince Georges County, to meet both basic shopping needs as well as other consumer needs. This trend indicates the substantial leakage of consumer spending from the District to suburban locations. Most residents appreciated the restaurant and entertainment options offered by the growth of the H Street corridor, although some believed the newer establishments did not meet the needs for affordable and friendly family restaurant options. Interestingly, most long-time residents viewed the H Street corridor as a destination outside of their neighborhood while newer residents perceived H Street as within their neighborhood. Survey Results NCRC disseminated the resident survey online as well as in hard copy format distributed directly to residents, and was also made available to residents at a number of community meetings held by the NCRC/DHCD team. To date, only 38 surveys were completed, representing a very small portion of the neighborhood. Despite the low participation, those who did participate represent a cross section of the Trinidad neighborhood, but did not include any responses from Ivy City residents. As demonstrated in the chart above, 50% of the respondents have lived in their neighborhood for 5 years or less, and 19% of the respondents have lived in their neighborhood for over 20 years. The residents

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completing the survey also represent a wide range of household incomes, with 35% of the respondents having a household income less than $25,000 annually and 41% have household incomes over $75,000.

Distribution of Respondent Households by Income

The resident surveys confirmed the trend of residents going outside of the neighborhood to meet shopping needs. The surveys revealed that a large portion of respondents were traveling to suburban Maryland and Virginia for their basic needs, as summarized in the following table. The store and service type categories where 50%-60% of residents are shopping within their neighborhood are carry-out restaurants, alcoholic beverages or liquor stores, convenience stores, and groceries. A number of other convenience-oriented retailers and services, such as health, personal care, banking, automotive, and dry cleaning are also drawing in between 40% and 50% of the residents. The resident survey and focus group conversation revealed however, that residents typically frequent multiple stores to meet the needs of one spending category. For example, 6 of the 19 residents that shop at grocery stores within their neighborhood also shop at grocery stores elsewhere in D.C., Maryland, and Virginia. For this reason the total percent of residents shopping in various neighborhoods for several store type categories exceeds 100%, as demonstrated in the chart below.

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Survey Results for Where Residents Shop for Specific Goods and Services

Store/Service Type

H Street/ Bladensburg

Rd/ Hechinger Mall Elsewhere in D.C.

Maryland or Virginia Online

Food for carryout/delivery 61% 37% 11% 0%Alcohol beverages 61% 29% 8% 0%Convenience 58% 34% 11% 0%Groceries 50% 50% 34% 0%Health (vitamins, prescriptions, etc.) 47% 45% 16% 0%Eat-in or sit-down restaurants 47% 45% 39% 0%Personal care (barber, salon, nails) 47% 37% 16% 0%Financial (banking, accounting, etc.) 42% 58% 3% 3%Automotive (parts, detailing, repair) 42% 45% 21% 0%Dry Cleaning/Laundromat 39% 39% 11% 0%Entertainment (movies, dancing) 29% 55% 21% 3%Shoes 26% 34% 55% 18%Home furnishings/décor 26% 37% 55% 5%Hardware items 26% 71% 18% 5%Books, magazines & newspapers 26% 34% 21% 18%Clothing 24% 45% 55% 16%Business and Office Supplies 24% 39% 42% 8%Music 21% 32% 24% 37%Specialty foods (farmer's market, ethnic grocer, etc. 21% 61% 11% 0%Electronics (TVs, DVD players, etc.) 18% 34% 39% 11%Specialty retail (jewelry, antiques, etc.) 16% 47% 42% 11%Professional (medical, dental, etc.) 16% 76% 8% 0% This trend of leaving the neighborhood and even the District for basic retail needs reflects a general dissatisfaction among residents with the local retail offerings. This dissatisfaction is due to the lack of certain store types (such as office supply stores), the lack of variety or quality in merchandise in local stores (including a need for larger sizes in clothing stores, and poor quality produce at local grocery stores), and poor customer service. The following charts demonstrate how residents rated the neighborhood shopping locations on a variety of factors, echoing the comments gathered during the focus groups. The full results of the resident surveys are included in Exhibits 35-41 of the Appendix.

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Survey Results for Resident Ratings of the Neighborhood Retail Locations

H Street/Benning Road/Hechinger Mall: Resident Ratings

Excellent Good Fair PoorVariety of Goods and Services 11% 25% 53% 11%Quality of Goods and Services 8% 24% 57% 11%Physical Appearance 6% 24% 48% 21%Sense of Comfort & Safety 6% 36% 42% 17%Cleanliness 3% 28% 38% 31%Transit Services & Access 12% 38% 41% 9%Parking 12% 41% 35% 12%Traffic Flow 6% 53% 35% 6%Neighborhood Character 14% 28% 50% 8%

Bladensburg Road Corridor: Resident Ratings

Excellent Good Fair PoorVariety of Goods and Services 6% 17% 39% 39%Quality of Goods and Services 6% 22% 33% 39%Physical Appearance 6% 14% 31% 49%Sense of Comfort & Safety 6% 19% 44% 31%Cleanliness 6% 14% 40% 40%Transit Services & Access 6% 26% 49% 20%Parking 11% 22% 42% 25%Traffic Flow 14% 31% 44% 11%Neighborhood Character 5% 11% 62% 22%

Within both the focus group and the resident surveys there was an expressed desire for more local retailers and small businesses along the H Street corridor and within the neighborhood, such as Sugar and Capital City Diner. Residents view these smaller and locally-owned businesses as offering the right customer service and product variety to meet the resident needs. This is in contrast to the feedback that the larger chain stores, like Home Depot and Safeway, are providing poor customer service and inferior products compared to the same stores in other locations. This crucial feedback received through the focus groups and resident surveys has led GDA to provide recommendations for upgrading the existing retail offerings within the study area as part of a broader commercial revitalization strategy.

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Strategic Redevelopment Sites One component of continuing the commercial revitalization and promoting economic growth in the Ivy City and Trinidad neighborhoods includes targeting commercial investment and redevelopment along the Bladensburg Road corridor. GDA identified several key sites along the corridor and within the neighborhood on Mt. Olivet Road that present opportunities for activating underutilized space, creating new jobs, and enhancing the quality and variety of neighborhood retail and services. The key sites identified have a need for, and would benefit from, strategic and targeted public investment to catalyze future redevelopment in locations that may otherwise not be influenced by market forces. Other sites along Bladensburg closer to H Street may also present a significant opportunity for redevelopment but are more likely to be the focus of private market development and are less likely require significant private intervention as a catalyst. These site recommendations include vacant or lower-density uses that can be redeveloped into active, higher-density uses. We have tied our site recommendations to the projected demand for retail and office space to demonstrate the market-supportable opportunities for physical redevelopment in the neighborhood. We would anticipate that some retail redevelopment would replace existing establishments and therefore have proposed square footage above the net new demand anticipated.

Map of Potential Ivy City and Trinidad Redevelopment Sites

One of the main challenges for pursuing redevelopment will be accommodating parking. The small parcel sizes don’t allow for enough surface parking spaces to accommodate these higher-density uses, and structured or underground parking may limit the financial feasibility of development. The parcel-level development recommendations are detailed in the table below and can also be found in Exhibits 33-34. It should be noted that a strategic redevelopment sites (at the intersection of Bladensburg Road NE and Mt Olivet Rd NE), is currently under construction and will bring a Denny’s restaurant to the neighborhood. While this use will provide affordable and family-friendly dining options to the neighborhood, as well as the opportunity to create employment opportunities for residents, it continues to underutilize the site from a development envelope standpoint. This highlights the needs to maximize larger development sites that will intensify density, which allows for additional residents and increased diversity of incomes to drive support for new retail and commercial establishments that will serve these neighborhoods.

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Recommendations for Strategic Redevelopment Sites

SiteRetail

SF Target Retail TenantsOffice

SFTarget Office

Tenants

Approx. Residential

Units

1 Redevelopment Site 1 5,000 Misc. Retailer (pet supply) 10,000 Associations & 1200-1212 Bladensburg Road NE Gift/Novelty Non-Profits

2 Redevelopment Site 2 17,500 Home Furnishing, Office Supply N/A 25-351122-1164 Bladensburg Road NE Florist, Restaurant

3 Redevelopment Site 3 5,000 Misc. Retailers (local pet store 10,000 Professional1151-1161 Bladensburg Road NE office supply, clothing, books) Services

4 Redevelopment Site 4 5,000 Misc. Retailers (local pet store 10,000 Professional1141 Bladensburg Road NE office supply, clothing, books) Services

5 Redevelopment Site 5 15,000 Convenience, Limited-Service N/A 40 - 551201-1239 Mount Olivet Road NE Restuaurants, Fresh Grocer

6 Redevelopment Site 6 N/A N/A 25,000 Prof. Services 906-910 Bladensburg Rd NE or Non-Profits

Total 47,500 55,000 65-90 Redevelopment Site 1: 1200 – 1212 Bladensburg Road NE This redevelopment site is currently a parking lot, located at the northwest corner of the intersection of Bladensburg Road NE and Meigs Place NE. This site is located on the same block as the under-construction Denny’s restaurant, serving as the gateway to the Bladensburg Road corridor within the Trinidad neighborhood. The Bladensburg Road corridor is anchored on the south end by the intersections with Maryland Avenue NE, Benning Road NE, the beginning of the H Street corridor, and the planned Flats at Atlas District development. Redeveloping this underutilized parcel on the same block as the planned Denny’s restaurant will generate market activity and act as a catalyst for future development along the Bladensburg Road corridor. The site’s current status as a parking lot creates a short-term opportunity for a mixed-use development with neighborhood-serving office above ground-floor retail. The potential tenants for the neighborhood-serving office include associations and non-profits, particularly those that are currently serving the local population. The ground-floor retail presents an opportunity to fill an existing need in the neighborhood retail market, with a potential pet supply, gift or novelty store, or another miscellaneous retailer. Redevelopment Site 2: 1122 – 1164 Bladensburg Road NE The next block along Bladensburg Road presents a long-term opportunity for redevelopment, with a series of underutilized and low-density uses along the west side of Bladensburg Road between Meigs Place NE and Lang Place NE. This site is currently home to a one-story building and parking lot for a landscaping business, a lot for Budget Truck rentals, and a stand-alone pizza parlor and convenience store with an adjacent parking lot. Combined, these parcels offer a 35,000 square feet in land area for a total potential development of 52,500 square feet of commercial space. GDA recommends this site for a mixed-use development with 25-35 rental apartments above approximately 17,500 square feet of ground-floor retail. The development of rental apartments would provide additional spending power for the retailers along Bladensburg Road and act as a catalyst for future higher-density development. This redevelopment scenario creates an opportunity to incorporate the existing limited-service restaurant and convenience store back into the development plan, along with other ground-floor retailers. This site is well suited to accommodate a home furnishings store, which was indicated in the demand analysis to be a supportable new store type, as well as an office supply store and florist or other miscellaneous retailer.

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Redevelopment Site 3: 1151 – 1161 Bladensburg Road NE This potential redevelopment site is located on the east side of Bladensburg Road across from redevelopment sites 1 and 2. This site is currently home to a car detailing and car wash business and a mid-rise building with a liquor store on the ground-floor and what appears to be vacant above. These adjacent properties occupy the entire block between M Street NE and Lyman Place NE, and are owned by the same individual. This presence of active but low-density uses on underutilized sites creates a potential long-term opportunity for redevelopment, after other near-term projects are completed and begin to generate the necessary market and investment activity required to catalyze the redevelopment of these existing uses. Based on the site area and the results of the statistical demand analysis, GDA identified this site as a potential opportunity for 5,000 square feet of retail space for miscellaneous retailers, such as an office supply, clothing, or book store) below 10,000 square feet of office space. This office space would likely be attractive to smaller professional services firms looking for cost-efficient space in proximity to downtown. Redevelopment Site 4: 1141 Bladensburg Road NE This potential redevelopment site is located on the east side of Bladensburg Road between Lyman Place NE and Lang Place NE. This site is utilized by the Merchant’s Tire & Auto Center, which is set back from the road with parking in front. Similar to Redevelopment Site 3, this active but low-density use is a potential long-term opportunity for redevelopment after other higher-density projects are completed. GDA recommends a similar programming as for Redevelopment Site 3, with neighborhood-based office space above ground-floor retail. Redevelopment Site 5: 1201 – 1239 Mt. Olivet Road NE This site is another long-term opportunity for the redevelopment of existing low-density uses into a higher-density and mixed-use project. This site was identified because it is located within the neighborhood and a close walking distance for residents, is proximate to other commercial uses in the neighborhood’s interior, and offers a combined lot area of over 50,000 square feet for development. Redevelopment Site 6: 906 – 910 Bladensburg Road NE This is the site of a former methadone clinic that has recently closed and is currently vacant and available for-lease. There is an opportunity for the adaptive reuse of the existing structure for office space, capturing some of the demand for professional services firms or associations and non-profit organizations. The size of the existing structure and presence of internal parking would make adaptive reuse the most financially feasible option, compared to demolition and redevelopment into an alternative use. Reusing the existing building for office uses supports the growth of local businesses and employment, and may also present an opportunity to house a resident-owned cooperative business such as a grocery, hydroponic garden, among others. Including any retail uses in this location would require a trade-off of retail space in any of the other key redevelopment sites, considering the limited demand for new retail space. Reusing and renovating the existing building would remove blight and bring additional economic activity to the southern portion of Bladensburg Road. Due to the proximity of this site to H Street and other planned redevelopment projects, the private market activity may lead to the adaptive reuse or redevelopment of this building without requiring public investment and intervention. Other sites located further north along Bladensburg Road may instead be ideal candidates for public intervention, particularly given that there may be limited funds available.

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Additional Recommendations The recommendations for revitalizing the retail and office land uses within the Ivy City and Trinidad neighborhoods include several different short-term and long-term strategies. These recommendations were developed as result of GDA’s market analysis, the focus group and resident surveys conducted, and a review of existing District strategies for retail revitalization as outlined in the Office of Planning’s Retail Action Roadmap. To implement many of the strategies recommended, either a partnership with existing proximate organizations (like H Street Main Street, H Street CDC), the expanded capacity of civic organizations, or the creation of a new community-based organization will be necessary. Bladensburg Road One opportunity for revitalizing the retail and office uses in the Ivy City and Trinidad neighborhoods is focusing physical redevelopment along the Bladensburg Road corridor, primarily between the intersections with Maryland Avenue and Mt. Olivet Road. The Bladensburg Road corridor presents a unique opportunity for catalyzing revitalization and redevelopment of underutilized parcels, amidst a number of other defined retail destinations. The planned Wal-Mart at New York Avenue and the planned Shops at Dakota Crossing in the Fort Lincoln neighborhood, which will include a Costco, Target, and Lowe’s, will meet the majority of demand for general merchandise and “big box” retail within the local submarket. The H Street Corridor has emerged as an up-and-coming neighborhood with arts, entertainment, retail, and restaurants that serve both the local population and act as a destination within the District. The redevelopment and market activity along H Street has demonstrated that the corridor will likely continue to revitalize through market forces (spurred by years of public and non-profit investment), but now requires little additional outside intervention to generate interest among the general population or development community. These surrounding existing and emerging retail cores will meet the majority of retail demand within the PMA. Within this context, the opportunity for Bladensburg Road is primarily to meet the remaining community-based retail needs while revitalizing underutilized parcels and transforming the physical environment and providing opportunities for employment. A common theme in both the focus group and resident surveys surrounded the lack of satisfaction with the physical environment on their retail corridor and the abundance of auto-oriented business. Redeveloping key parcels along Bladensburg Road NE with modest amounts of new retail and neighborhood office development will fill in existing gaps in the neighborhood retail supply and transform underutilized parcels. We believe that a number of specific strategies identified by the DC Office of Planning Retail Action Roadmap are applicable to the Bladensburg corridor. These include streetscape and façade improvements targeted to Bladensburg Road, which could perhaps be implemented through a partnership with the H Street Main Street, H Street CDC, or a newly created community-based organization which could provide technical assistance to businesses and property owners. In addition, the application of tools available through the CD-TAP (Commercial District Technical Assistant Program) could be applied to the corridor. Finally, the mobile retail concept could provide a temporary use for vacant and/or underutilized parcels along the corridor to begin transforming the image of Bladensburg Road NE. Diversify Demand Base The demand analysis of the consumer spending power to support existing and planned supply of retail within the Ivy City, Trinidad, and surrounding neighborhoods indicates that there is little un-met retail demand. This is driven by both the number of households living in the PMA, and the annual household

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incomes that translate into spending power. While the analysis demonstrates little un-met demand, there is a perception among residents that even the most basic retail needs are not being met by the quality, diversity, and type of retail offerings within the Ivy City and Trinidad neighborhoods. In order to attract and support higher quality and more diverse retailers, additional spending power within the neighborhood is required. This additional spending power can be achieved in three ways: through growth in the number of households living in the PMA, through growth in incomes, and through a widening of PMA into a larger area based upon the ability of retailers to attract consumers as destination retail. The number of existing and emerging retail cores within the District and surrounding neighborhoods limits the ability to extend the PMA beyond its current definition without offering unique retail or goods and services not easily obtained in other neighborhood shopping districts. The best opportunity for expanding the PMA’s spending power lies in the potential for household growth through the implementation of the NSP2 program funds, and through the investment in mixed-income housing development. Mixed-income housing will diversify the household incomes within the neighborhood and support a broader range of retail tenants. Enhance Existing Retail As discussed in the summary of the focus group and resident survey results, the dissatisfaction with existing retail in the Ivy City and Trinidad neighborhoods has been a common theme throughout the community engagement process. There is a general sentiment among residents that the majority of existing retail tenants and the quality of their products, variety, and customer service are not meeting the needs of the community. Enhancing the existing retail, particularly for the most common resident concerns about quality, variety, and customer service at local retailers would have a significant impact on the local market. The focus group and resident survey revealed that local residents are leaving their neighborhood, and even the District as a whole, to travel to Maryland or Virginia for certain goods and services. Enhancing the existing retail and addressing these resident concerns would allow existing and future retailers to capture a portion of the neighborhood spending dollars that is currently leaking to other areas. This strategy is an important tool for increasing demand for and improving performance of local retail, as well as for strengthening community identity and the pedestrian experience. GDA agrees with and recommends that several of the strategies and recommendations outlined in the DC Office of Planning Retail Action Roadmap be pursued within the Ivy City and Trinidad neighborhood retail market to address this concern and make necessary changes within the local retail market. One key recommendation from the Retail Action Roadmap recommends small business technical assistance for improving merchandising, operations management, and marketing to help small businesses in underserved markets. This strategy can include upgrading product lines and variety, extensive training in customer service, and updating store layouts to better meet resident needs, which will allow small businesses to remain competitive and in turn support the broader retail revitalization and the continued success of local retailers. The growth of the H Street corridor and the recommendation for new commercial development along Bladensburg Road will also provide increased competition in the local retail market. This increase in local competition typically provides motivation for retailers to upgrade their products and services to remain competitive in an expanding market. Another recommendation outlined in the Retail Action Roadmap that is suitable for the Ivy City and Trinidad neighborhoods is enlivening storefront windows to create a stimulating pedestrian experience and draw consumers to the retail corridor and within the store. Each of these strategies create an opportunity for existing businesses to better meet the needs of the local community, enhance the shopping “experience”,

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and boost existing sales to capture a greater portion of the local community spending, which is currently leaking to other areas. One example of a similar strategy used in Cambridge, MA allocated Community Development Block Grant (CDBG) funds to provide technical assistance to store owners with incomes less than 80% of AMI. The technical assistance was provided directly to store owners to improve customer service, upgrade products and merchandising, enhance store appearance and layout, and improve accounting and bookkeeping techniques. The issue of customer service must be addressed so residents can feel positive about their neighborhood shopping experience, resulting in more dollars remaining in the neighborhood and less leakage to outside areas. Partnerships with national and regional retailers that have large and/or expanding footprints in the District to train employees should be pursued and would have an impact on Ivy City and Trinidad, as well as other neighborhoods throughout the City. Working with major grocery chains, home improvement stores, and pharmacies, among others, to address customer service should be pursued. This may include coordination with the Washington Economic Partnership, support and expansion of the “retail internship” program, and work with Hospitality High and others to address long-standing real and perceived service issues in the District’s neighborhood stores. In addition, GDA recommends opportunities to support and celebrate those retailers that do exist in the neighborhood and provide high quality services and goods. These may include establishments like Capital City Diner, Sugar, Mr. Pocketbook, and others. Connecting these businesses to revitalization efforts through direct business opportunities (like catering) to highlighting businesses through general community branding campaigns both rewards these small businesses for their hard work and generates additional business opportunities for them to grow and have a greater impact on the neighborhoods. Finally, through this planning process the community, DHCD and its partners have worked towards creating a branding and marketing strategy to help raise awareness of the community and its assets. This preliminary branding activity can be used to support both local businesses and attract local and national retailers/businesses to the Trinidad and Ivy City neighborhoods. Opportunities to incorporate current businesses and retailers into branding activities should be explored to highlight and support the business community that already exists and to illustrate to potential new entrants the opportunities that exist.

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Exhibit 1

IVY CITY/TRINIDAD NEIGHBORHOOD BOUNDARIES 1

WASHINGTON, DCJUNE 2011

1 Ivy City/Trinidad neighborhood boundaries include the following census tracts: 79.01, 79.03, 85, 88.02, 88.03, 88.04, 89.03, 89.04Source: National Community Reinvestment Coalition

Exhibit 164-11492.00

Printed: 6/21/2011 26

Exhibit 2

SWOT ANALYSISIVY CITY/TRINIDAD NEIGHBORHOODS

JUNE 2011

STRENGTHS

♦ Accessible to the New York Avenue and Rhode Island Avenue metro stops on WMATA's red line♦ Presence of Gallaudet University within the Ivy City neighborhood♦ Downtown location and proximity to established employment centers, including NOMA, Downtown D.C., and Capitol Hill, ♦ Revitalization occurring along the H Street Corridor has provided economic growth and additional neighborhood services

WEAKNESSES

♦ Lack of connectivity between the Ivy City and Trinidad neighborhoods♦ Abandoned and vacant properties, both commercial and residential, contribute to neighborhood blight and can limit

the potential for private investment♦ Low median household incomes and lower educational attainment limit spending power and the ability to attract

national retailers to the neighborhood♦ Presence of warehouse, auto-oriented, and industrial uses in the northern portion of the study area limit attractiveness

as a residential neighborhood and contribute to neighborhood blight

OPPORTUNITIES

♦ The ongoing investment in revitalizing the housing stock by several major developers will provide an additional base of demandfor retail and neighborhood office uses

♦ The redevelopment and growth along H Street, and the streetcar line under construction, has begun to change the market and perceptions of the area, creating a potential catalyst for commercial development in Ivy City/Trinidad

♦ The high cost of living seen in other District neighborhoods will leave many households searching for more cost-effective neighborhoods; Ivy City/Trinidad's proximity to employment cores and metro accessibility make it a strong option for future growth

♦ The presence of Gallaudet University creates several opportunities to revitalize the retail and office market through university-related development and the ongoing demand that a university generates

THREATS

♦ Other emerging locations, particularly NOMA, will likely attract private commercial investment before Ivy City/Trinidad♦ The area surrounding Ivy City/Trinidad is perceived as having safety issues, which may limit new development and investment♦ Anticipated development along H Street as a result of the current revitalization and streetcar line construction have raised

speculative property values above what the market currently supports, limiting short-term opportunities to draw in private investment along the corridor

Exhibit 264-11492.00

Printed: 6/21/201127

Exhibit 3

IVY CITY/TRINIDAD RETAIL PRIMARY MARKET AREAWASHINGTON, DC

JUNE 2011

1-Mile Radius

3-Mile Radius

Primary Market

Area

Retail PMA Boundaries

Ivy City/Trinidad Neighborhood Boundaries1 Ivy City/Trinidad neighborhood boundaries include the following census tracts: 79.01, 79.03, 85, 88.02, 88.03, 88.04, 89.03, 89.04

Exhibit 364-11492.00

Printed: 6/21/2011 28

Exhibit 4

POPULATION & HOUSEHOLD TRENDSIVY CITY/TRINIDAD NEIGHBORHOOD AND RETAIL PRIMARY MARKET AREA

2000-2015

1990 2000 2010 2000-2010 2015 2010-2015

Census Census EstimateAvg. Annual

ChangeAnnual Growth

RateProjection

Avg. Annual Change

Annual Growth Rate

Ivy City/Trinidad Neighborhood 1 Population 26,830 22,728 23,586 86 0.4% 24,028 88 0.4%

Households 9,825 8,961 9,746 79 0.8% 9,929 36 0.4%

Housing Units 11,766 11,311 11,072 -24 -0.2% 10,969 -21 -0.2%

% Owner Occupied 28% 28% 32% N/A N/A 31% N/A N/A% Renter Occupied 62% 51% 48% N/A N/A 48% N/A N/A% Vacant Housing Units 11% 21% 20% N/A N/A 20% N/A N/A

Median Household Income $21,005 $26,447 $37,190 $1,074 3.5% $41,619 $886 2.3%

Median Household Age 50 51

Average Household Size 2.43 2.42

Ivy City/Trinidad Retail Primary Market Area

Population 84,577 87,771 319 0.4% 89,413 328 0.4%

Households 36,457 39,536 308 0.8% 40,276 148 0.4%

Housing Units 41,702 43,055 135 0.3% 43,607 110 0.3%

% Owner Occupied 38% 42% N/A N/A 42% N/A N/A% Renter Occupied 50% 46% N/A N/A 46% N/A N/A% Vacant Housing Units 13% 12% N/A N/A 12% N/A N/A

Median Household Income $34,538 $50,157 $1,562 3.8% $58,601 $1,689 3.2%

Median Household Age 48 49

Average Household Size 2.24 2.22

1 Ivy City/Trinidad neighborhood boundaries include the following census tracts: 79.01, 79.03, 85, 88.02, 88.03, 88.04, 89.03, 89.04 Note: The 2010 population and household estimates are based on the population growth in DC's Ward 5 between the 2000 and 2010 U.S. Census. The projected 2015 population

is based on a straight-line projection of the growth rate from 2000-2010 continued through 2015. SOURCE: U.S. Census Bureau; Claritas, Inc.

Exhibit 464-11492.00

Printed: 6/21/201129

Exhibit 5A

DISTRIBUTION OF HOUSEHOLDS BY INCOME RANGEIVY CITY/TRINIDAD AND WASHINGTON, D.C.

2010

0%

5%

10%

15%

20%

25%

30%

35%

40%

Less than $24,000 $25,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 -$124,999

$125,000 -$149,999

Over $150,000

Nei

ghbo

rhoo

d

PMA

D.C

.

Ivy City/Trinidad Ivy City/TrinidadNeighborhood Retail PMA Washington, D.C.

Less than $24,000 35% 27% 24% $25,000 - $34,999 12% 9% 8% $35,000 - $49,999 18% 15% 13%$50,000 - $74,999 17% 16% 16%$75,000 - $99,999 7% 11% 11%

$100,000 - $124,999 4% 7% 7%$125,000 - $149,999 3% 5% 6%

Over $150,000 3% 11% 15%

Total 100% 100% 100%

Source: Claritas, Green Door Advisors

Ivy City/Trinidad Neighborhood Ivy City/Trinidad Retail PMA Washington, D.C.

Exhibit 5A64-11492.00

Printed: 6/21/201130

Exhibit 5B

BREAKDOWN OF AVERAGE SOURCES OF HOUSEHOLD INCOMEIVY CITY/TRINIDAD NEIGHBORHOOD AND PMA

2010

30%

40%

50%

60%

70%

80%

Source: Claritas, Green Door Advisors

0%

10%

20%

Supplemental Security

Interest/Dividends Self Employment Public Assistance Retirement Social Security Wage/Salary Other Types

Ivy City/Trinidad Neighborhood Ivy City/Trinidad Retail PMA

Exhibit 5B64-11492.00

Printed: 6/21/201131

Exhibit 6

TRENDS IN EDUCATION

IVY CITY/TRINIDAD NEIGHBORHOODS AND RETAIL PMA 1

2000-2010

Education for the Population 2000 Census 2010 Estimate

Over 25 Years Old # % # %

Ivy City & Trinidad NeighbhorhoodsLess than 9th Grade 1,400 10% 1,747 7%

Some High School, No Diploma 3,842 27% 4,338 18%High School Graduate 4,843 34% 8,729 37%Some College, No Degree 2,470 17% 4,367 19%Associate Degree 498 3% 1,077 5%Bachelor's Degree 925 6% 2,329 10%Master's Degree 241 2% 666 3%Professional School Degree 84 1% 252 1%Doctorate Degree 22 0% 80 0%

Total 14,325 100% 23,586 100%

Retail Primary Market AreaLess than 9th Grade 4,510 8% 4,827 6%

Some High School, No Diploma 11,112 19% 10,599 12%High School Graduate 15,246 26% 23,507 27%Some College, No Degree 9,677 17% 14,194 16%Associate Degree 1,568 3% 2,816 3%Bachelor's Degree 8,793 15% 16,681 19%Master's Degree 4,595 8% 9,136 10%Professional School Degree 2,001 3% 3,776 4%Doctorate Degree 1,029 2% 2,234 3%

Total 58,531 100% 87,771 100%

1 Ivy City/Trinidad neighborhood boundaries include the following census tracts: 79.01, 79.03, 85, 88.02, 88.03, 88.04, 89.03, 89.04Note: The analysis uses 2010 Census population data for Ward 5 and the Claritas projections for breakdown of

population by age and race to determine the estimated breakdown shown here. SOURCE: U.S. Census Bureau 2010 Census; Claritas, Inc.

Exhibit 664-11492.00

Printed: 6/21/201132

Exhibit 7

TRENDS IN RACE

IVY CITY/TRINIDAD NEIGHBORHOODS 1 AND RETAIL PMA2010

2010 Estimate 2

Households by Race # %

Ivy City & Trinidad NeighborhoodsWhite 378 4%Black/African American 8,973 92%American Indian/Alaskan Native 63 1%2+ Races 204 2%Other 128 1%

Total 9,746 100%

Retail Primary Market AreaWhite 10,329 26%Black/African American 27,291 69%Asian 383 1%Some Other Race 246 1%2+ Races 818 2%Hispanic/Latino, White 257 1%

Total 39,536 100%

1 Ivy City/Trinidad neighborhood boundaries include the following census tracts: 79.01, 79.03, 85, 88.02, 88.03, 88.04, 89.03, 89.04Note: The analysis uses 2010 Census population data for Ward 5 and the Claritas projections for breakdown of

population by age and race to determine the estimated breakdown shown here. SOURCE: U.S. Census Bureau; Claritas, Inc.

Exhibit 764-11492.00

Printed: 6/21/201133

Exhibit 8A

HOUSEHOLD AGE AND FAMILY STRUCTURE

IVY CITY/TRINIDAD NEIGHBORHOOD 1

2010

Ivy City/Trinidad Neighborhood 2010Population by Age # %

Male Less than 18 Years 3,001 28%

18-64 Years 6,763 62%65 Years and Over 1,118 10%

Total 10,882 100%

FemaleLess than 18 Years 2,854 22%18-64 Years 8,020 63%65 Years and Over 1,830 14%

Total 12,704 100%

Total PopulationLess than 18 Years 5,855 25%18-64 Years 14,783 63%65 Years and Over 2,948 13%

Total 23,586 100%

Ivy City/Trinidad Neighborhood 2010Breakdown of Family Type # %

Married-Couple Family, with Children 644 7%Married-Couple Family, no Children 933 10%

Male Householder, with Children 338 3%Male Householder, no Children 2,498 26%

Female Householder, with Children 1,972 20%Female Householder, no Children 3,362 34%

Total 9,746 100%

1 Ivy City/Trinidad neighborhood boundaries include the following census tracts: 79.01, 79.03, 85, 88.02, 88.03, 88.04, 89.03, 89.04Note: The analysis uses 2010 Census population data for Ward 5 and the Claritas projections for breakdown of family type and age to determine the

estimated 2010 breakdown of households by type and population by age. SOURCE: U.S. Census Bureau 2010 Census; Claritas, Inc.

Exhibit 8A64-11492.00

Printed: 6/21/201134

Exhibit 8B

HOUSEHOLD AGE AND FAMILY STRUCTUREIVY CITY/TRINIDAD RETAIL PMA

2010

Ivy City/Trinidad Retail PMA 2010Population by Age # %

MaleLess than 18 Years 20,448 23%18-64 Years 57,919 66%65 Years and Over 9,404 11%

Total 87,771 100%

FemaleLess than 18 Years 17,196 20%18-64 Years 56,894 65%65 Years and Over 13,681 16%

Total 87,771 100%

Total PopulationLess than 18 Years 18,722 21%18-64 Years 57,375 65%65 Years and Over 11,674 13%

Total 87,771 100%

Ivy City/Trinidad Retail PMA 2010Breakdown of Family Type # %

Married-Couple Family, with Children 2,705 7%Married-Couple Family, no Children 4,796 12%

Male Householder, with Children 894 2%Male Householder, no Children 10,817 27%

Female Householder, with Children 5,910 15%Female Householder, no Children 14,415 36%

Total 39,536 100%

Note: The analysis uses 2010 Census population data for Ward 5 and the Claritas projections for breakdown of family type and age to determine theestimated 2010 breakdown of households by type and population by age.

SOURCE: U.S. Census Bureau 2010 Census; Claritas, Inc.

Exhibit 8B64-11492.00

Printed: 6/21/201135

Exhibit 9

DISTRIBUTION OF POPULATION BY AGEIVY CITY/TRINIDAD AND WASHINGTON, D.C.

2010

0%

5%

10%

15%

20%

25%

30%

35%

Less than 10 10-14 15-20 21-24 25-34 35-54 55-74 75 and Older

Ivy City/Trinidad Ivy City/TrinidadPopulation by Age Neighborhood Retail PMA Washington, D.C.

Less than 10 14% 12% 11% 10-14 6% 5% 5% 15-20 10% 8% 9%21-24 7% 6% 6%

25-34 15% 17% 18%35-54 24% 28% 27%55-74 17% 18% 18%

75 and Older 6% 6% 6%Total 100% 100% 100%

Source: Claritas, Green Door Advisors

Ivy City/Trinidad Neighborhood Ivy City/Trinidad Retail PMA Washington, D.C.

Exhibit 964-11492.00

Printed: 6/21/201136

Exhibit 10

TRAFFIC COUNTSNORTHEAST WASHINGTON, D.C.

2008

22,200

7,80

19,100

Source: Washington, D.C. District Department of Transportation

Exhibit 1064-11492.00

Printed: 6/21/2011 37

Exhibit 11

MAP OF SELECTED RETAIL PROJECTSNORTHEAST WASHINGTON, D.C.

JUNE 2011

Competitive Supply

1 Hechinger Mall

2 East River Park Shopping Center

3 Greenway Center

4 Rhode Island Place

5 Union Station

6 Jenkins Row

7 Barracks Row

8 H Street Connection

9 H Street NE Corridor

Ivy City/Trinidad Neighborhoods

4

198

5

3

2

67

Exhibit 1164-11492.00

Printed: 6/21/2011 38

Exhibit 12A

SUMMARY OF SELECTED RETAIL PROJECTS

NORTHEAST WASHINGTON, D.C.

JUNE 2011

CAM MAP NAME OF CENTER YEAR VACANT OCC. FEES ORKEY LOCATION BUILT GLA SQ. FT. RATE NNN TENANT TYPES COMMENTS

1 Hechinger Mall 1981 189,617 62,185 67% Safeway, Modell's, 25 Stores, Strip Center

1501-1563 Maryland Ave. (69,000 Inline) Pizza Hut, Ashley Stewart, Game H & R Retail, Inc.

JBG Rosenfeld Stop, Blockbuster 301-656-3030

Scott's Beauty & Barber Supply

Post Office, Rainbow

2 East River Park Shopping Center 1941 151,000 5,000 97% $20 - $28 $5-$6 Safeway, CVS, Social Services, 20 Stores, Strip Center

322 40th St NE Renov. 1986 (53,066 inline) Post Office, Simply Fashions, H & R Retail, Inc.

Blimpy, Shoe City, Lot Stores, 301-656-3030

Citi Bank410 surface parking spaces

3 Greenway Center 1942 36,500 0 100% 6 Stores, anchored by a 3526-3552 East Capitol Street NE Discount MartOwner: E. Capitol Minnesota LLC

202-625-0600

4 Rhode Island Place 55,000 In-line 3,000 99% Giant, Home DepotRhode Island Avenue at Metro Station 118,300 Home Depot Anna's Linens, Radio Shack, Northeast Washington, DC 53, 236 Giant Shoe City, America's Best Asadoorian Retail Optical, Citi Bank, Foot Locker

TJ Maxx (coming soon)

LEASE RATES

Exhibit 12A64-11492.00

Printed: 6/21/201139

Exhibit 12A

SUMMARY OF SELECTED RETAIL PROJECTS

NORTHEAST WASHINGTON, D.C.

JUNE 2011

CAM MAP NAME OF CENTER YEAR VACANT OCC. FEES ORKEY LOCATION BUILT GLA SQ. FT. RATE NNN TENANT TYPES COMMENTS

LEASE RATES

5 Union Station 1988 210,000 0 0% White House Black Market,40 Massachusetts Avenue NW Reopening Ann Taylor, Barnes & Noble, FYE, Jones Lang LaSalle Au Bon Pain, Johnny Rockets,

Papyrus, The Body Shop,

Fire & Ice, Verizon, Avis, Citibank

6 Jenkins Row 2008 52,000 1,512 97% Harris Teeter, Subway, Signal1391 Pennsylvania Avenue SE Financial Credit UnionTranswestern

7 Barracks Row Varied Varied 10,000-15,000 $45 $50 NNN Backstage Costumes, Stitch DC, A number of non-profits and

8th Street SE - Corridor Capitol Hill Bikes, Duron Paints, small law, professional and

Dollar Express, Chat's Liquors, and medical offices are located

Radio Shack, Blockbuster along Barrack's Row.

Sweet Magnolia, Verizon Wireless

8 H Street Connection 1987 40,000 7,500 81% Rite-Aid, Sports Zone, Subway,Rappaport GameStop, McDonalds,

Rainbow, 7-11, Florist, Cleaners,

Dana Jewelry, Bank of America

9 H Street NE Corridor Over 100 $25 $45 NNN Salons, convenience stores,Retailers dry cleaner, drug stores,

jewelry stores, auto parts,

banking institutions, take-out restaurants, appliance store

Exhibit 12A64-11492.00

Printed: 6/21/201140

Exhibit 12B

MAP OF FARMERS MARKETSNORTHEAST WASHINGTON, D.C.

JUNE 2011

Competitive Supply

1 Florida Avenue Market500 Neal Place NEOpen 7am-5pm

2 H Street Market625 H Street NEMay-November: Saturdays 9am-Noon

3 Open Air Farmers MarketOaklahoma Ave & Benning Road NEMay-December: Tue, Thurs, Sat 7am-4pmJanuary-April: Thurs, Sat 7am-4pm

Ivy City/Trinidad Neighborhoods2

1

3

Exhibit 12B64-11492.00

Printed: 6/21/2011 41

Exhibit 13

MAP OF PLANNED AND PROPOSED PROJECTSNORTHEAST WASHINGTON, D.C.

JUNE 2011Competitive Supply

1 Washington Gateway

2 McMillan Reservoir Redevelopment

3 New Town at the Capital City Market

4 Burnham Place at Union Station

5 Constitution Square Phases 1 & 2

6 Capitol Square

7 Arboretum Place/The Flats at Atlas District

8 Capitol Plaza II & III

9 Union Place Phase 2

10 Uline Arena

11 H Street Connection

12 3rd & H Place NE

3

2

1

5

6

7

12 11

10

9

814

15 16

1718

19

20

21

12 3rd & H Place NE

13 Capitol Place

14 1150 First Street

15 Catholic University South Campus

16 Redevelopment of Colonel Brooks

17 Shops at Dakota Crossing

18 Rhode Island Station

19 Proposed Walmart Development

20 Aldi Development

21 Ward 6 Senior Wellness Center

Ivy City/Trinidad Neighborhoods

4

1213

Exhibit 1364-11492.00

Printed: 6/21/2011 42

Exhibit 14

SUMMARY OF SELECTED PLANNED AND PROPOSED PROJECTSNORTHEAST WASHINGTON, D.C.

JUNE 2011

MAP NAME OF CENTERKEY LOCATION STATUS TIMING USES TOTAL SF COMMENTS

1 Washington Gateway Planned 2012 Residential, Retail 180 Hotel Rooms

Florida & New York Avenues NE Office, Hotel 600,000 SF Office

MRP Realty 260 Residential Units

12,000 SF Retail

2 McMillan Reservoir Redevelopment Planned 2014 Residential, Retail 700-800 Residential Units Project will include rehabilitation of historic North Capital Street & Michigan Avenue Office, Hotel 440,000 SF Office structures.

83,000 SF Retail

175 Room Hotel

3 New Town at the Capital City Market Proposed TBD Residential 1,450 Residential Units Union Market building and other historical4th Street & Florida Avenue NE Retail (inc. bowling alley 450,000 SF Retail structures will be restored.New Town Development Partners, Sang Oh & Co. and movie theater) 570,000 SF Dist. Facility 20%-40% of residential units will be set aside

Distribution Facility 260,000 SF Office as workforce housing.Office, Hotel 304,000 SF Hotel Project includes YMCA and a library.

4 Burnham Place at Union Station Proposed 2016 Hotel, Office 300 Hotel Rooms Project will be built atop the rail yards 100 Columbus Circle NE Residential, Retail 1.5 M SF Office adjacent to Union Station.Akridge 600 Residential Units

150,000 SF Retail

5 Constitution Square Phases 1 & 2 Under 2010 Hotel, Office 204 Hotel Rooms Retail is anchored by Harris Teeter.1st & M Streets NE Construction Residential, Retail 1.4 M SF Office U.S. Department of Justice will occupy

940 Residential Units 624,000 SF of office space.95,000 SF Retail Expected to qualify for LEED Certification.

6 Capitol Square Planned 2016 Hotel, Office 250 Hotel Rooms Expected to qualify for LEED Certification.New York Avenue & North Capitol Street NE Residential, Retail 660,000 SF Office

JBG Companies, Morgan Stanley 750 Residential Units

150,000 SF Retail

Exhibit 1464-11492.00

Printed: 6/21/2011 43

Exhibit 14

SUMMARY OF SELECTED PLANNED AND PROPOSED PROJECTSNORTHEAST WASHINGTON, D.C.

JUNE 2011

MAP NAME OF CENTERKEY LOCATION STATUS TIMING USES TOTAL SF COMMENTS

7 Arboretum Place/The Flats at Under 2012 Residential, Retail 257 Apartments in Phase 1

Atlas District Construction 173 Apartments Total

1600 Maryland Avenue NE 1,200 SF Retail

Clark Realty Capital

8 Capitol Plaza II & III Proposed 2010 Office, Retail 570,000 SF Office

1200 1st Street NE 30,000 SF Retail

Apollo Real Estate, Van Ness Property Group

9 Union Place Phase 2 Planned 2012 Residential, Retail 500 Residential Units

200 K Street NE 15,000 SF Retail

Cohen Companies

10 Uline Arena Planned 2012 Office, Retail 240,000 SF Office

M Street NE between 3rd Street & Delaware Ave. 60,000 SF Retail

Doug Jamal

11 H Street Connection Proposed 2014 Residential, Retail 383 Residential Units

901 H Street NE 57,000 SF Retail

Rappaport Companies

12 3rd & H Place NE Planned 2012 Residential, Retail 215 Residential Units Project will be anchored by a Giant and café3rd & H Streets NE 46,500 SF Retail or restaurant. Project will receive a $5M Steuart Investment Co. tax abatement.

13 Capitol Place Planned 2013 Residential, Retail 302 Residential Units

2nd, 3rd, G and H Streets NE 20,000 SF Retail

14 1150 First Street Planned 2012 Office, Retail 15,000 SF Retail Part of the First Place Development1150 First Street NE

Tishman Speyer Properties

Exhibit 1464-11492.00

Printed: 6/21/2011 44

Exhibit 14

SUMMARY OF SELECTED PLANNED AND PROPOSED PROJECTSNORTHEAST WASHINGTON, D.C.

JUNE 2011

MAP NAME OF CENTERKEY LOCATION STATUS TIMING USES TOTAL SF COMMENTS

15 Catholic University South Campus Planned 2013-2018 Residential, Retail 725 Residential Units Project is adjacent to Brookland Metro 600-700 Blocks of Monroe Street NE 83,000 SF Retail Station.Abdo Development

16 Redevelopment of Colonel Brooks Proposed 2013 Residential, Retail 200 Residential Units

Tavern 6 Storefront Retail Spaces

Monroe Street Between 9th & 10th Streets NE

17 Shops at Dakota Crossing Planned 2011-2012 Retail, Office

New York Avenue & South Dakota

18 Rhode Island Station Under 40725 Retail, Residential 70,000 SF Retail $110,000,000 Estimated Project Costs.901 Rhode Island Avenue NE Construction 274 Apartment Units

Mid-City Urban

19 Walmart Development Proposed N/A Retail N/A

New York Avenue NE and Bladensburg Avenue NE

20 Aldi Development Under 2011 Retail N/A Aldi grocery store901 17th Street NE Construction

21 Ward 6 Wellness Center & Tot Lot Under 2011 Community Redevelopment of Hayes School5th & K Streets NE Construction

Exhibit 1464-11492.00

Printed: 6/21/2011 45

Exhibit 15

MAP OF CIVIC AND INSTITUTIONAL USESNORTHEAST WASHINGTON, D.C.

JUNE 2011

Exhibit 1564-11492.00

Printed: 6/21/2011 46

Exhibit 16

SUMMARY OF CIVIC AND INSTITUTIONAL USESNORTHEAST WASHINGTON, D.C.

NAME ADDRESS COMMENTS

ARTS, RECREATION, & ENTERTAINNMENT

Atlas Performing Arts Center 1333 H Street NE Joy of Motion Dance Center

H Street Playhouse 1365 H Street NE

RFK Stadium 2400 East Capitol Street SE

Rock & Roll Hotel 1353 H Street NE

CHURCHES

Mt. Olive Baptist Church 1140 6th Street NE

Upon this Rock Tabernacle 513 M Street NE

Pilgrim Baptist Church 700 I Street NE

Crusaders Baptist Church 800 I Street NE

New Samaritan Baptist Church 1100 Florida Avenue NE

Highway Christian Church 431 15th Street NE

Church of God of Prophecy 1400 E Street NE

St. Pauls Christian Community 414 Tennessee Avenue NE

Pilgrim AME Church 612 17th Street NE

Trinidad Baptist Church 1611 Benning Road NE

Peace Baptist Church 712 8th Street NE

St. Benedict the Moor 320 21st Street NE

Trinity Baptist Church 1814 Central Place NE

Bethesda Baptist Church 1808 Capitol Street NE

JUNE 2011

Exhibit 1664-11492.00

Printed: 6/21/2011 47

Exhibit 16

SUMMARY OF CIVIC AND INSTITUTIONAL USESNORTHEAST WASHINGTON, D.C.

NAME ADDRESS COMMENTS

JUNE 2011

CIVIC ORGANIZATIONS

Congressional Hispanic Caucus Institute 911 2nd Street NE

Lott Carey Baptist Foreign Mission Commission 220 I Street NE

World Vision US 300 I Street NE

Society for American Archaeology 900 2nd Street NE

Catholic Charities 1125 Neal Street

Arboretum Neighborhood Association 24th & Rand Place NE Meeting Place: Arboretum Recreation Center

Ivy City -Trinidad Civic Association N/A

Mount Olivet Heights Civic Association 1200 Morse Street NE Meeting Place: Joseph H. Cole Fitness Center

COMMUNITY SERVICES

Greater Northeast Medical Center 1647 Benning Road NE Metropolitan Women's Health Center

DC Developing Families Center 801 17th Street NE

Youth Rehabilitation Services Department 1000 Mount Olivet Road NE

SCHOOL

Browne Jr High School 850 26th Street NECenter City Public Charter 1217 W. Virginia Ave NE

Crummel School 1601 16th Street SE Vacant; City will plans to release an RFP for redevelopment in 2011

Friendship Public Charter School 725 19th Street NE

Gallaudet University 800 Florida Avenue NEGibbs Elementary School 500 19th Street NE

JO Wilson Elementary School & Recreation Center K & 7th Streets NE

Ludlow-Taylor Elementary School 659 G Street NEMiner Elementary School 601 15th Street NE

Option Charter School 1375 E Street NE

Spingarn High School 2500 Benning Road NE

Stuart-Hobson Middle School 410 E Street NE

Thea Bowman Preparatory Academy 330 21st Street NE

Two Rivers Public Charter School 1227 4th Street NE

Wheatley Elementary School 1299 Neal Street NE

Exhibit 1664-11492.00

Printed: 6/21/2011 48

Exhibit 17

EXISTING RETAIL SUPPLYIVY CITY/TRINIDAD NEIGHBORHOODS

2011

Existing Supply % of Existing

Retail Store Type (SF) Supply

Furniture & Home Furnishing Stores 0 0%Furniture Stores 0 0%Home Furnishing Stores 0 0%

Electronics & Appliance Stores 18,977 4%Household Appliance Stores 2,100 0%Radio/TV/Other Electronics Stores 16,877 4%Computer and Software Stores 0 0%Camera/Photographic Supply Stores 0 0%

Bldg Materials, Garden Eqpmt & Supply 8,371 2%Food & Beverage Stores 80,614 17%

Grocery Stores 66,093 14%Convenience Stores 14,521 3%

Health and Personal Care Stores 53,583 11%Clothing and Clothing Accessories 56,712 12%

Clothing Stores 42,694 9%Shoe Stores 10,024 2%Jewelry, Luggage, and Leather Goods Stores 3,994 1%

Sporting Goods, Hobby, Book, & Music 18,286 4%Sporting Goods/Hobby/Musical Instruments 18,286 4%Book Stores 0 0%

Miscellaneous Store Retailers 5,891 1%Florists 3,491 1%Office Supplies, Stationery, and Gift Stores 0 0%Gift, Novelty, & Souvenir Stores 0 0%Other Misc. Retailers (Including Pet Supply) 2,400 1%

Food Services & Drinking Places 174,337 37%Full-Service Restaurants 20,498 4%Limited-Service Eating Places 83,117 17%Drinking Places (Alcoholic Beverages) 70,722 15%

General Merchandise 58,563 12%

Total 475,335 100%

SOURCE: CoStar, Washington, D.C. Economic Partnership, Green Door AdvisorsExhibit 17

64-11492.00Printed: 6/21/201149

Exhibit 18A

RETAIL OPPORTUNITY GAP REPORTIVY CITY/TRINIDAD PRIMARY MARKET AREA

Retail Market Power Ivy City/Trinidad CombinedOpportunity Gap Report Retail Primary Market Area

By Retail Store Types2010 Demand 2010 Supply Opportunity Gap

Consumer Retail Surplus/Expenditures Sales Shortage

Furniture and Home Furnishings Stores-442 $32,540,016 $8,819,287 $23,720,729 Furniture Stores-4421 $16,270,008 $515,226 $15,754,782 Home Furnishing Stores-4422 $16,270,008 $8,304,061 $7,965,947

Electronics and Appliances Stores-443 $23,764,777 $3,270,025 $20,494,752 Building Material and Garden Equipment Stores-444 $121,634,120 $67,748,907 $53,885,213 Food and Beverage Stores-445 $158,214,963 $145,148,440 $13,066,523

Grocery Stores-4451 $143,390,549 $90,479,676 $52,910,873 Specialty Food Stores-4452 $4,832,017 $10,489,084 ($5,657,067)Beer, Wine and Liquor Stores-4453 $9,992,397 $44,179,680 ($34,187,283)

Health and Personal Care Stores-446 $80,672,465 $83,621,103 ($2,948,638)Clothing & Clothing Accessories Stores-448 $66,685,328 $58,129,625 $8,555,703

Clothing Stores-4481 $46,659,839 $30,598,611 $16,061,228 Shoe Stores-4482 $8,877,377 $17,726,792 ($8,849,415)Jewelry, Luggage, Leather Goods Stores-4483 $11,148,112 $9,804,222 $1,343,890

Sporting Goods, Hobby, Book, Music Stores-451 $25,581,105 $23,402,967 $2,178,138 Sporting Goods, Hobby, Musical Instrument Stores-4511 $17,678,273 $4,624,764 $13,053,509 Book, Periodical and Music Stores-4512 $7,902,832 $18,778,203 ($10,875,371)

General Merchandise Stores $174,059,059 $19,209,554 $154,849,505 Department Stores excluding Leased Departments $88,033,791 $2,178,295 $85,855,496 Other General Merchandise Stores $86,025,268 $17,031,259 $68,994,009

Miscellaneous Store Retailers-453 $30,742,660 $10,880,374 $19,862,286 Florists-4531 $2,368,395 $1,323,957 $1,044,438 Office Supplies, Stationery, Gift Stores-4532 $13,052,595 $5,564,437 $7,488,158 Other Miscellaneous Store Retailers-4539 $15,321,670 $3,991,980 $11,329,690

Foodservice and Drinking Places-722 $122,773,916 $136,483,652 ($13,709,736)Full-Service Restaurants-7221 $60,622,326 $48,389,708 $12,232,618 Limited Service Eating Places-7222 $56,096,301 $83,640,517 ($27,544,216)Drinking Places Alcoholic Beverages-7224 $6,055,289 $4,453,427 $1,601,862

Total Retail Stores $836,668,409 $556,713,934 $279,954,475

SOURCE: Claritas

Exhibit 18A64-11492.00

Printed: 6/21/201150

Exhibit 18B

RETAIL OPPORTUNITY GAP REPORTIVY CITY/TRINIDAD NEIGHBORHOODS

Retail Market Power Ivy City/AnacostiaOpportunity Gap Report Neighborhoods Combined

By Retail Store Types2010 Demand 2010 Supply Opportunity Gap

Consumer Retail Surplus/Expenditures Sales Shortage

Furniture and Home Furnishings Stores-442 $4,782,853 $1,110,471 $3,672,382 Furniture Stores-4421 $2,615,961 $257,613 $2,358,348 Home Furnishing Stores-4422 $2,166,892 $852,858 $1,314,034

Electronics and Appliances Stores-443 $4,383,613 $622,647 $3,760,966 Building Material and Garden Equipment Stores-444 $21,116,808 $13,119,436 $7,997,372 Food and Beverage Stores-445 $35,263,321 $33,173,448 $2,089,873

Grocery Stores-4451 $32,224,184 $17,323,029 $14,901,155 Specialty Food Stores-4452 $1,095,973 $3,832,674 ($2,736,701)Beer, Wine and Liquor Stores-4453 $1,943,164 $12,017,745 ($10,074,581)

Health and Personal Care Stores-446 $17,810,411 $25,143,495 ($7,333,084)Clothing & Clothing Accessories Stores-448 $13,120,222 $6,032,170 $7,088,052

Clothing Stores-4481 $9,407,148 $6,032,170 $3,374,978 Shoe Stores-4482 $1,958,408 $0 $1,958,408 Jewelry, Luggage, Leather Goods Stores-4483 $1,754,666 $0 $1,754,666

Sporting Goods, Hobby, Book, Music Stores-451 $4,627,400 $3,390,803 $1,236,597 Sporting Goods, Hobby, Musical Instrument Stores-4511 $3,142,032 $1,323,355 $1,818,677 Book, Periodical and Music Stores-4512 $1,485,368 $2,067,448 ($582,080)

General Merchandise Stores $36,531,052 $8,875,662 $27,655,390 Department Stores excluding Leased Departments $17,985,573 $0 $17,985,573 Other General Merchandise Stores $18,545,479 $8,875,662 $9,669,817

Miscellaneous Store Retailers-453 $6,010,390 $2,630,830 $3,379,560 Florists-4531 $414,421 $132,661 $281,760 Office Supplies, Stationery, Gift Stores-4532 $2,360,719 $1,651,514 $709,205 Other Miscellaneous Store Retailers-4539 $3,235,250 $846,655 $2,388,595

Foodservice and Drinking Places-722 $24,011,323 $24,975,485 ($964,162)Full-Service Restaurants-7221 $11,762,573 $7,541,055 $4,221,518 Limited Service Eating Places-7222 $11,032,743 $17,434,430 ($6,401,687)Drinking Places Alcoholic Beverages-7224 $1,216,007 $0 $1,216,007

Total Retail Stores $167,657,393 $119,074,447 $48,582,946

SOURCE: Claritas

Exhibit 18B64-11492.00

Printed: 6/21/201151

Exhibit 19

SUMMARY OF ESTIMATED RETAIL DEMAND POTENTIALIVY CITY & TRINIDAD PRIMARY MARKET AREA

2010-2015

2010 2015 2015 NSP2 Residential Study Scenario

Avg. Estimated Total Net New Estimated Total Net New Estimated Total Net NewStore Demand Stores Supportable Demand Stores Supportable Demand Stores Supportable Size (SF) Supported SF (SF) Supported SF (SF) Supported SF

Furniture & Home Furnishing Stores N/A 13,275 1 5,000 15,620 1 5,000 16,076 1 5,000Furniture Stores 30,000 8,017 0 0 9,491 0 0 9,769 0 0Home Furnishing Stores 5,000 5,258 1 5,000 6,128 1 5,000 6,308 1 5,000

Electronics & Appliance Stores N/A 1,158 0 0 1,735 0 0 1,786 0 0Household Appliance Stores 15,000 0 0 0 0 0 0 0 0 0 Radio/TV/Other Electronics Stores 2,500 0 0 0 0 0 0 0 0 0Computer and Software Stores 5,000 971 0 0 1,470 0 0 1,513 0 0Camera/Photographic Supply Stores 2,500 187 0 0 265 0 0 273 0 0

Bldg Materials, Garden Eqpmt & Supply 2,500 0 0 0 0 0 0 0 0 0Food & Beverage Stores N/A 2,393 0 0 7,674 0 0 9,830 0 0

Grocery Stores 20,000 2,393 0 0 7,674 0 0 9,830 0 0Convenience Stores 1,500 0 0 0 0 0 0 0 0 0

Health and Personal Care Stores 10,000 0 0 0 0 0 0 0 0 0Clothing and Clothing Accessories N/A 976 0 0 1,856 1 1,500 2,027 1 1,500

Clothing Stores 3,000 0 0 0 0 0 0 0 0 0Shoe Stores 2,000 0 0 0 0 0 0 0 0 0Jewelry, Luggage, and Leather Goods Stores 1,500 976 0 0 1,856 1 1,500 2,027 1 1,500

Sporting Goods, Hobby, Book, & Music N/A 2,349 1 2,200 2,769 1 2,200 2,849 1 2,200Sporting Goods/Hobby/Musical Instruments 2,500 0 0 0 0 0 0 0 0 0Book Stores 2,200 2,349 1 2,200 2,769 1 2,200 2,849 1 2,200

Miscellaneous Store Retailers 1,500 15,722 5 12,500 17,957 6 15,000 18,654 6 15,000Florists 2,500 7,310 2 5,000 8,744 3 7,500 9,101 3 7,500Office Supplies, Stationery, and Gift Stores 2,500 2,896 1 2,500 2,950 1 2,500 3,036 1 2,500Gift, Novelty, & Souvenir Stores 2,500 2,661 1 2,500 2,711 1 2,500 2,790 1 2,500Other Misc. Retailers (Including Pet Supply) 2,500 2,855 1 2,500 3,553 1 2,500 3,727 1 2,500

Food Services & Drinking Places N/A 0 0 0 0 0 0 0 0 0Full-Service Restaurants 2,000 0 0 0 0 0 0 0 0 0Limited-Service Eating Places 2,000 0 0 0 0 0 0 0 0 0Drinking Places (Alcoholic Beverages) 1,500 0 0 0 0 0 0 0 0 0

General Merchandise 60,000 0 0 0 0 0 0 0 0 0

TOTAL: 35,872 7 19,700 47,611 9 23,700 51,222 9 23,700

SOURCE: Claritas, Green Door Advisors

Exhibit 1964-11492.00

Printed: 6/21/201152

Exhibit 20

ESTIMATED RETAIL DEMAND POTENTIALIVY CITY & TRINIDAD PRIMARY MARKET AREA

2010

2010 Households Total

Estimated Households 39,536

Estimated Spending per Household: $18,799

Potential Ivy City & Ivy City & Average Pot. NewRetail Sales/ Total Demand Trinidad Trinidad Sales/ Existing Space

HH Potential Likely Capture Sales Potential SF 1 Supply 2 SF

Furniture & Home Furnishing Stores $839 $33,186,674 10% $3,318,667 $250 0 13,275

Furniture Stores $507 $20,041,348 10% $2,004,135 $250 0 8,017Home Furnishing Stores $332 $13,145,326 10% $1,314,533 $250 0 5,258

Electronics & Appliance Stores $732 $28,943,955 5% $1,447,198 $350 18,977 1,158

Household Appliance Stores $109 $4,315,968 5% $215,798 $350 2,100 0Radio/TV/Other Electronics Stores $418 $16,521,792 5% $826,090 $350 16,877 0Computer and Software Stores $172 $6,799,800 5% $339,990 $350 0 971Camera/Photographic Supply Stores $33 $1,306,395 5% $65,320 $350 0 187

Bldg Materials, Garden Eqpmt & Supply $688 $27,184,673 5% $1,359,234 $450 8,371 0Food & Beverage Stores $4,547 $179,778,141 25% $36,811,949 $475 80,614 2,393

Grocery Stores $4,331 $171,214,930 20% $34,242,986 $500 66,093 2,393Convenience Stores $217 $8,563,211 30% $2,568,963 $450 14,521 0

Health and Personal Care Stores $1,986 $78,500,892 15% $11,775,134 $450 53,583 0 Clothing and Clothing Accessories $2,581 $102,049,973 10% $10,204,997 $350 56,712 976

Clothing Stores $1,886 $74,578,726 10% $7,457,873 $350 42,694 0Shoe Stores $255 $10,076,416 10% $1,007,642 $350 10,024 0Jewelry, Luggage, and Leather Goods Stores $440 $17,394,831 10% $1,739,483 $350 3,994 976

Sporting Goods, Hobby, Book, & Music $1,111 $43,920,059 10% $4,392,006 $350 18,286 2,349Sporting Goods/Hobby/Musical Instruments $903 $35,699,826 10% $3,569,983 $350 18,286 0Book Stores $208 $8,220,233 10% $822,023 $350 0 2,349

Miscellaneous Store Retailers $615 $24,316,218 20% $4,863,244 $238 5,891 15,722Florists $273 $10,801,309 20% $2,160,262 $200 3,491 7,310 Office Supplies, Stationery, and Gift Stores $92 $3,619,533 20% $723,907 $250 0 2,896Gift, Novelty, & Souvenir Stores $84 $3,326,195 20% $665,239 $250 0 2,661Other Misc. Retailers (Including Pet Supply) $166 $6,569,181 20% $1,313,836 $250 2,400 2,855

Food Services & Drinking Places $1,348 $53,291,830 18% $9,460,890 $417 174,337 0

Full-Service Restaurants $679 $26,850,907 20% $5,370,181 $400 20,498 0 Limited-Service Eating Places $606 $23,949,520 15% $3,592,428 $450 83,117 0Drinking Places (Alcoholic Beverages) $63 $2,491,403 20% $498,281 $400 70,722 0

General Merchandise $4,352 $172,067,569 0% $0 $450 58,563 0

Total in 2010: $18,799 $743,239,984 11% $83,633,319 $378 475,335 35,872

1 Based on the performance of comparable retail centers in the PMA and other retail centers in the surrounding area.2 Based CoStar data and a survey of existing and vacant retailers in the study area. SOURCE: Claritas, Green Door Advisors, CoStar, Washington D.C. Economic Parternship

Exhibit 2064-11492.00

Printed: 6/21/201153

Exhibit 21

ESTIMATED RETAIL DEMAND POTENTIALIVY CITY & TRINIDAD PRIMARY MARKET AREA

2015

2015 Households Total

Estimated Households 40,276

Estimated Spending per Household: $21,153

Potential Ivy City & Ivy City & Average Pot. NewRetail Sales/ Total Demand Trinidad Trinidad Sales/ Existing Space

HH Potential Likely Capture Sales Potential SF 1 Supply 2 SF

Furniture & Home Furnishing Stores $970 $39,048,972 10% $3,904,897 $250 0 15,620

Furniture Stores $589 $23,727,934 10% $2,372,793 $250 0 9,491Home Furnishing Stores $380 $15,321,038 10% $1,532,104 $250 0 6,128

Electronics & Appliance Stores $1,048 $42,210,576 5% $2,110,529 $350 18,977 1,735

Household Appliance Stores $130 $5,240,970 5% $262,049 $350 2,100 0Radio/TV/Other Electronics Stores $616 $24,822,856 5% $1,241,143 $350 16,877 0Computer and Software Stores $256 $10,291,913 5% $514,596 $350 0 1,470Camera/Photographic Supply Stores $46 $1,854,837 5% $92,742 $350 0 265

Bldg Materials, Garden Eqpmt & Supply $763 $30,733,565 5% $1,536,678 $450 8,371 0Food & Beverage Stores $4,812 $193,788,757 25% $39,694,924 $475 80,614 7,674

Grocery Stores $4,579 $184,417,027 20% $36,883,405 $500 66,093 7,674Convenience Stores $233 $9,371,730 30% $2,811,519 $450 14,521 0

Health and Personal Care Stores $2,148 $86,494,832 15% $12,974,225 $450 53,583 0Clothing and Clothing Accessories $2,975 $119,831,936 10% $11,983,194 $350 56,712 1,856

Clothing Stores $2,172 $87,498,345 10% $8,749,835 $350 42,694 0Shoe Stores $294 $11,858,237 10% $1,185,824 $350 10,024 0Jewelry, Luggage, and Leather Goods Stores $508 $20,475,354 10% $2,047,535 $350 3,994 1,856

Sporting Goods, Hobby, Book, & Music $1,369 $55,150,570 10% $5,515,057 $350 18,286 2,769Sporting Goods/Hobby/Musical Instruments $1,129 $45,460,733 10% $4,546,073 $350 18,286 0Book Stores $241 $9,689,837 10% $968,984 $350 0 2,769

Miscellaneous Store Retailers $664 $26,751,988 20% $5,350,398 $238 5,891 17,957Florists $304 $12,234,990 20% $2,446,998 $200 3,491 8,744Office Supplies, Stationery, and Gift Stores $92 $3,687,280 20% $737,456 $250 0 2,950Gift, Novelty, & Souvenir Stores $84 $3,388,452 20% $677,690 $250 0 2,711Other Misc. Retailers (Including Pet Supply) $185 $7,441,266 20% $1,488,253 $250 2,400 3,553

Food Services & Drinking Places $1,440 $57,996,882 18% $10,310,149 $417 174,337 0

Full-Service Restaurants $733 $29,506,459 20% $5,901,292 $400 20,498 0Limited-Service Eating Places $640 $25,784,541 15% $3,867,681 $450 83,117 0Drinking Places (Alcoholic Beverages) $67 $2,705,882 20% $541,176 $400 70,722 0

General Merchandise $4,964 $199,949,434 0% $0 $450 58,563 0

Total in 2015: $21,153 $851,957,512 11% $93,380,051 $370 475,335 47,611

1 Based on the performance of comparable retail centers in the PMA and other retail centers in the surrounding area.2 Based CoStar data and a survey of existing and vacant retailers in the study area. SOURCE: Claritas, Green Door Advisors, CoStar, Washington D.C. Economic Parternship

Exhibit 2164-11492.00

Printed: 6/21/201154

Exhibit 22

ESTIMATED RETAIL DEMAND POTENTIALIVY CITY & TRINIDAD RETAIL PRIMARY MARKET AREA

2015 SCENARIO WITH ADDITIONAL NSP2 NEIGHBORHOOD INVESTMENT

2015 Households Total

Estimated Baseline 2010 Households: Neighborhood 9,746

Estimated Additional Household Growth: Neighborhood 1,360Total 2015 Households: Neighborhood 11,106

Total 2015 Households: PMA Excluding the Neighborhood 30,347

Total 2015 Households in the PMA 41,453

Estimated Spending per Household: $21,153

Potential Ivy City & Ivy City & Average Pot. New

Retail Sales/ Total Demand Trinidad Trinidad Sales/ Existing Space

HH Potential Likely Capture Sales Potential SF 1 Supply 2 SF

Furniture & Home Furnishing Stores $970 $40,190,114 10% $4,019,011 $250 0 16,076

Furniture Stores $589 $24,421,344 10% $2,442,134 $250 0 9,769Home Furnishing Stores $380 $15,768,770 10% $1,576,877 $250 0 6,308

Electronics & Appliance Stores $1,048 $43,444,111 5% $2,172,206 $350 18,977 1,786Household Appliance Stores $130 $5,394,129 5% $269,706 $350 2,100 0Radio/TV/Other Electronics Stores $616 $25,548,263 5% $1,277,413 $350 16,877 0Computer and Software Stores $256 $10,592,677 5% $529,634 $350 0 1,513Camera/Photographic Supply Stores $46 $1,909,042 5% $95,452 $350 0 273

Bldg Materials, Garden Eqpmt & Supply $763 $31,631,703 5% $1,581,585 $450 8,371 0Food & Beverage Stores $4,812 $199,451,915 25% $40,854,943 $475 80,614 9,830

Grocery Stores $4,579 $189,806,312 20% $37,961,262 $500 66,093 9,830Convenience Stores $233 $9,645,603 30% $2,893,681 $450 14,521 0

Health and Personal Care Stores $2,148 $89,022,502 15% $13,353,375 $450 53,583 0Clothing and Clothing Accessories $2,975 $123,333,828 10% $12,333,383 $350 56,712 2,027

Clothing Stores $2,172 $90,055,341 10% $9,005,534 $350 42,694 0Shoe Stores $294 $12,204,775 10% $1,220,477 $350 10,024 0Jewelry, Luggage, and Leather Goods Stores $508 $21,073,713 10% $2,107,371 $350 3,994 2,027

Sporting Goods, Hobby, Book, & Music $1,369 $56,762,255 10% $5,676,225 $350 18,286 2,849Sporting Goods/Hobby/Musical Instruments $1,129 $46,789,248 10% $4,678,925 $350 18,286 0Book Stores $241 $9,973,007 10% $997,301 $350 0 2,849

Miscellaneous Store Retailers $664 $27,533,771 20% $5,506,754 $238 5,891 18,654Florists $304 $12,592,538 20% $2,518,508 $200 3,491 9,101Office Supplies, Stationery, and Gift Stores $92 $3,795,035 20% $759,007 $250 0 3,036Gift, Novelty, & Souvenir Stores $84 $3,487,474 20% $697,495 $250 0 2,790Other Misc. Retailers (Including Pet Supply) $185 $7,658,725 20% $1,531,745 $250 2,400 3,727

Food Services & Drinking Places $1,440 $59,691,746 18% $10,611,447 $417 174,337 0

Full-Service Restaurants $733 $30,368,737 20% $6,073,747 $400 20,498 0Limited-Service Eating Places $640 $26,538,052 15% $3,980,708 $450 83,117 0Drinking Places (Alcoholic Beverages) $67 $2,784,957 20% $556,991 $400 70,722 0

General Merchandise $4,964 $205,792,628 0% $0 $450 58,563 0

Total in 2010: $21,153 $876,854,572 11% $96,108,930 $370 475,335 51,222

1 Based on the performance of comparable retail centers in the PMA and other retail centers in the surrounding area.2 Based CoStar data and a survey of existing and vacant retailers in the study area. SOURCE: Claritas, Green Door Advisors, CoStar, Washington D.C. Economic Parternship, Zimmerman/Volk Associates

Exhibit 2264-11492.00

Printed: 6/21/201155

Exhibit 23

IVY CITY/TRINIDAD OFFICE PRIMARY MARKET AREAWASHINGTON, DC

JUNE 2011

1-Mile Radius

3-Mile Radius

Primary Market

Area

Ivy City/Trinidad Office PMA Boundaries

Ivy City/Trinidad Neighborhood Boundaries

Exhibit 2364-11492.00

Printed: 6/21/2011 56

Exhibit 24

EMPLOYMENT BY INDUSTRYIVY CITY/TRINIDAD NEIGHBORHOOD 1

2000-2015

Employment by Industry 2000 2010 2015 2010 D.C. Total 2

# % # % # % # %

Public Adminstration 1,154 15% 1,243 16% 1,201 16% 200,099 29%Health Care/Social Assistance 897 12% 1,073 14% 1,039 14% 64,995 9%Admin/Support/Waste Mgt 558 7% 589 8% 574 8% 42,216 6%Retail Trade 631 8% 565 7% 553 7% 18,574 3%Other Services, Not Public Admin 577 8% 522 7% 502 7% 62,655 9%Professional, Scientific, Technical Services 382 5% 441 6% 426 6% 105,057 15%Accomodation/Food Services 652 9% 648 8% 626 8% 54,644 8%Construction 466 6% 384 5% 371 5% 10,702 2%Educational Services 604 8% 631 8% 612 8% 37,574 5%Finance/Insurance/Real Estate 493 6% 463 6% 451 6% 27,605 4%Transportation/ Warehouse/Utilities 514 7% 444 6% 429 6% 35,942 5%Entertainment/ Recreation Services 194 3% 215 3% 205 3% 13,754 2%Manufacturing 187 2% 178 2% 175 2% 5,077 1%Information 221 3% 144 2% 139 2% 22,439 3%

Total 7,652 100% 7,635 100% 7,396 100% 701,333 100%

1 Ivy City/Trinidad neighborhood boundaries include the following census tracts: 79.01, 79.03, 85, 88.02, 88.03, 88.04, 89.03, 89.04SOURCE: U.S. Census Bureau; Claritas, Inc.

Exhibit 2464-11492.00

Printed: 6/21/201157

Exhibit 25

EMPLOYMENT BY INDUSTRYIVY CITY/TRINIDAD OFFICE PMA

2000-2015

Employment by Industry 2000 2010 2015 2010 D.C. Total 2

# % # % # % # %

Public Adminstration 9,409 17% 10,488 18% 10,497 19% 200,099 29%Health Care/Social Assistance 4,911 9% 6,122 11% 6,121 11% 64,995 9%Admin/Support/Waste Mgt 2,768 5% 3,145 6% 3,165 6% 42,216 6%Retail Trade 3,554 7% 3,259 6% 3,264 6% 18,574 3%Other Services, Not Public Admin 5,052 9% 4,683 8% 4,639 8% 62,655 9%Professional, Scientific, Technical Services 6,190 11% 7,517 13% 7,492 13% 105,057 15%Accomodation/Food Services 3,497 6% 3,713 7% 3,699 7% 54,644 8%Construction 2,170 4% 1,912 3% 1,912 3% 10,702 2%Educational Services 4,456 8% 4,838 9% 4,841 9% 37,574 5%Finance/Insurance/Real Estate 3,121 6% 2,987 5% 2,976 5% 27,605 4%Transportation/ Warehouse/Utilities 2,682 5% 2,578 5% 2,591 5% 35,942 5%Entertainment/ Recreation Services 1,582 3% 1,891 3% 1,879 3% 13,754 2%Manufacturing 899 2% 855 2% 858 2% 5,077 1%Information 3,207 6% 2,186 4% 2,176 4% 22,439 3%

Total 54,126 100% 56,799 100% 56,735 100% 701,333 100%

SOURCE: U.S. Census Bureau; Claritas, Inc.

Exhibit 2564-11492.00

Printed: 6/21/201158

Exhibit 26

COMMUTING TRENDSIVY CITY/TRINIDAD NEIGHBORHOOD 1

2000-2015

2000 2010 2015 Travel Time to Work # % # % # %

Travel Time < 15 Min 1,196 16% 1,110 15% 1,069 15%Travel Time 15-29 Min 2,265 31% 2,223 31% 2,143 30%Travel Time 30-44 Min 1,899 26% 1,952 27% 1,891 27%Travel Time 45-59 Min 971 13% 1,019 14% 999 14% Travel Time More than 60 Min 954 13% 974 13% 953 14%Total 7,285 100% 7,278 100% 7,055 100%

2000 2010 2015

Mode of Transportation to Work # % # % # %

Work at Home 120 2% 144 2% 136 2%Walk 607 8% 641 9% 618 9%Bicycle 7 0% 18 0% 17 0%Carpool 989 13% 635 9% 621 9% Drive Alone 3,087 42% 3,031 41% 2,930 41%Public Transportation 2,521 34% 2,851 39% 2,770 39%Other 74 1% 70 1% 69 1%Total 7,405 100% 7,390 100% 7,161 100%

1 Ivy City/Trinidad neighborhood boundaries include the following census tracts: 79.01, 79.03, 85, 88.02, 88.03, 88.04, 89.03, 89.04SOURCE: U.S. Census Bureau; Claritas, Inc.

Exhibit 2664-11492.00

Printed: 6/21/201159

Exhibit 27

COMMUTING TRENDSIVY CITY/TRINIDAD OFFICE PMA

2000-2015

2000 2010 2015 Travel Time to Work # % # % # %

Travel Time < 15 Min 8,790 17% 8,656 16% 8,622 16%Travel Time 15-29 Min 18,853 36% 19,497 36% 19,435 36%Travel Time 30-44 Min 14,417 28% 15,632 29% 15,613 29%Travel Time 45-59 Min 5,073 10% 5,585 10% 5,625 10% Travel Time More than 60 Min 4,588 9% 4,963 9% 4,991 9%Total 51,721 100% 54,333 100% 54,286 100%

2000 2010 2015

Mode of Transportation to Work # % # % # %

Work at Home 1,681 3% 2,134 4% 2,122 4%Walk 5,555 10% 6,012 11% 5,975 11%Bicycle 538 1% 1,066 2% 1,061 2%Carpool 6,322 12% 4,018 7% 4,040 7% Drive Alone 21,205 40% 21,596 39% 21,665 39%Public Transportation 17,405 33% 20,581 37% 20,489 37%Other 698 1% 658 1% 664 1%Total 53,404 100% 56,065 100% 56,016 100%

SOURCE: U.S. Census Bureau; Claritas, Inc.

Exhibit 2764-11492.00

Printed: 6/21/201160

Exhibit 28

SUMMARY OF SELECTED OFFICE PROPERTIESNORTHEAST WASHINGTON, D.C.

NAME OF CENTER YEAR VACANT OCC. LEASELOCATION BUILT GLA SQ. FT. RATE TYPE COMMENTS

303 Massachusetts Avenue NE 800-2,400 $33 NNN Townhouse, Class B500 H Street NE 12,700 12,700 0% $12 $28 NNN Newly Renovated.316 F Street NE 7,200 7,200 0% $33 $53 Full Service Newly Renovated. Class A3400 New York Avenue NE 1964 30,000 30,000 0% $19 NNN2850 New York Avenue NE 1965 160,000 96,000 40% $9 NNN Warehouse77 K Street NE 2008 335,000 82,700 75% $50 Full Service Class A1334-1336 North Capitol Street NW 9,000 1,990 78% $28 Modified Net Townhouse/Loft, Class B51 N Street NE 1989 136,700 136,700 0% $25 $35 Full Service Class BThe Portals Phase IV/1301 Maryland Ave SW 490,000 472,000 4% N/A Class A412 H Street NE 6,400 600 91% $20 Full Service Townhouse 750 1st Street NE 1992 351,000 7,000 98% $35 Full Service Class A77 K Street NE 325,200 154,200 53% $19 - $242170 24th Place NE 1953 17,000 17,000 0% $7 NNN Industrial/Warehouse319 D Street NE 1890 3,500 $32 - $40 TownhouseTwo Constitution Square/145 N St. NE 2010 589,000 0 100% $41 - $52 GSA/Dept. of Justice Single Tenant309 Massachusetts Ave NE 1900 1,500 $48 - $60111 K Street NE (10th Floor) 9 400 $36 - $46 Office Condo

JUNE 2011

LEASE RATES

111 K Street NE (10th Floor) 9,400 $36 $46 Office Condo310 13th Street NE 1912 2,050 $15 - $181338 North Capitol Street NW 6,500 $28 - $35 Class B, Renovated 2005301 8th Street NE 1930 3,160 $28 - $35511 C Street NE 3,600 $34 - $43

Exhibit 2864-11492.00

Printed: 6/21/2011 61

Exhibit 29

SERVICE-ORIENTED NEIGHBORHOOD OFFICE DEMAND IVY CITY & TRINIDAD OFFICE MARKET ANALYSIS

2010

District of Columbia

2010 Population 601,6572010 Employees 1 135,416

Industry Code Selected Industries

2010 Number of

Employees 2Distribution of

EmployeesEmp to Pop

Ratio Selected IndustriesEstimated Office PMA Employees

Office PMA Demand Potential

(SF)

Ivy City & Trinidad

Capture Rate

Ivy City & Trinidad Demand Potential

Percent Distribution of Office Space

Types

Existing Ivy City & Trinidad Office

Space 3

New Office Space

Demand Potential

Typical Tenant Size

2010 Ivy City & Trinidad

Supportable SF

District of Columbia 135,416 100% 22.51% Office Primary Market Area 29,908 7,477,000 100% 809,00052211 Commercial Banking & Credit Union 4,003 3% 0.67% Commercial Banking & Credit Union 884 221,000 8.0% 17,680 3.0% 23,915 0 5,000 052231 Mortgage Brokers 35 0% 0.01% Mortgage Brokers 8 2,000 3.0% 60 0.0% 211 0 2,500 0523 Securities, I-banking, etc 6,735 5% 1.12% Securities, I-banking, etc 1487 371,750 2.0% 7,440 0.0% 0 7,440 5,000 5,000 5242 Insurance Agencies 3,096 2% 0.51% Insurance Agencies 684 171,000 5.0% 8,550 2.0% 16,180 0 2,500 05312 Real Estate Agencies/Prop Mngmt 6,196 5% 1.03% Real Estate Agencies/Prop Mngmt 1369 342,250 6.0% 20,540 0.0% 0 20,540 2,500 20,0005411 Law Services 34,898 26% 5.80% Law Services 7708 1,927,000 2.0% 38,540 5.0% 40,450 0 5,000 05412 Accounting Services 5,220 4% 0.87% Accounting Services 1153 288,250 5.0% 14,410 4.0% 32,360 0 2,500 05413 Arch./Eng/ Services 6,389 5% 1.06% Arch./Eng/ Services 1411 352,750 8.0% 28,220 1.0% 8,090 20,130 5,000 20,00054141 Interior & Graphic Design Services 1,074 1% 0.18% Interior & Graphic Design Services 237 59,250 5.0% 2,960 0.0% 0 2,960 2,500 2,5005416 Mgtmt Consulting 12,147 9% 2.02% Mgtmt Consulting 2683 670,750 3.0% 20,120 0.0% 0 20,120 5,000 20,0005418 Advertising & Media Agencies 7,546 6% 1.25% Advertising & Media Agencies 1667 416,750 2.0% 8,340 2.0% 16,180 0 5,000 054192 Photographic Services 70 0% 0.01% Photographic Services 15 3,750 3.0% 110 1.0% 8,090 0 1,500 054194 Veterinary Services 314 0% 0.05% Veterinary Services 69 17,250 8.0% 1,380 1.0% 8,090 0 2,500 05614 Business Support Services 2,989 2% 0.50% Business Support Services 660 165,000 10.0% 16,500 3.0% 24,270 0 5,000 056151 Travel Agencies 1,531 1% 0.25% Travel Agencies 338 84,500 2.0% 1,690 1.0% 8,090 0 1,500 056173 Landscaping 46 0% 0.01% Landscaping 10 2,500 2.0% 50 2.0% 16,180 0 2,500 06211 Physicians 5,178 4% 0.86% Physicians 1144 286,000 8.0% 22,880 5.0% 40,450 0 2,500 06212 Dentists 1,581 1% 0.26% Dentists 349 87,250 8.0% 6,980 5.0% 40,450 0 1,500 062131 Chiropractors 45 0% 0.01% Chiropractors 10 2,500 8.0% 200 1.0% 8,090 0 1,500 062132 Optometrists 155 0% 0.03% Optometrists 34 8,500 8.0% 680 1.0% 8,090 0 2,500 06214 Outpatient Care Centers 1,458 1% 0.24% Outpatient Care Centers 322 80,500 5.0% 4,030 8.0% 64,720 0 5,000 06244 Child Day Care Services 3,214 2% 0.53% Child Day Care Services 710 177,500 5.0% 8,880 3.0% 24,270 0 5,000 08121 Personal Care Services 1,988 1% 0.33% Personal Care Services 439 109,750 8.0% 8,780 40.0% 323,600 0 2,000 08123 Dry Cleaner 834 1% 0.14% Dry Cleaner 184 46,000 3.0% 1,380 2.0% 16,180 0 1,500 0813 Associations and Non-Profit Orgs 4 28,674 21% 4.77% Associations and Non-Profit Orgs 4 6333 1,583,250 8.0% 126,660 10.0% 80,900 45,760 2,000 44,000

Total 7,477,000 4.9% 367,060 808,856 116,950 111,500

Total Office PMA Demand Potentia Office PMA Pop (2010) 132,886

Office Space per Employee (SF) 250

1 Bureau of Labor Statistics for the first quarter 20102 Based on 2007 County Business Patterns for District of Columbia3 Estimates based on competitive supply analysis4 Excludes professional associationsNote: The 2010 population and household estimates are based on the population growth in DC's Ward 5 between the 2000 and 2010 U.S. Census. The projected 2015 population

is based on a straight-line projection of the growth rate from 2000-2010 continued through 2015. SOURCE: GDA,MWCOG and the US Census,

Exhibit 2964-11492.00

Printed: 6/21/201162

Exhibit 30

SERVICE-ORIENTED NEIGHBORHOOD OFFICE DEMAND IVY CITY & TRINIDAD OFFICE MARKET ANALYSIS

2015

District of Columbia

2015 Population 617,0252015 Employees 1 138,255

Industry Code Selected Industries

2015 Number of

Employees 2Distribution of

EmployeesEmp to Pop

Ratio Selected IndustriesEstimated Office PMA Employees

Office PMA Demand Potential

(SF)

Ivy City & Trinidad

Capture Rate

Ivy City & Trinidad Demand Potential

Percent Distribution of Office Space

Types

Existing Ivy City & Trinidad Office

Space 3

New Office Space

Demand Potential

Typical Tenant Size

2015 Ivy City & Trinidad

Supportable SF

District of Columbia 138,255 100% 22.41% Office Primary Market Area 30,331 7,582,750 100% 809,00052211 Commercial Banking & Credit Union 4,087 3% 0.66% Commercial Banking & Credit Union 897 224,250 8.0% 17,940 3.0% 23,915 0 5,000 052231 Mortgage Brokers 36 0% 0.01% Mortgage Brokers 8 2,000 3.0% 60 0.0% 211 0 2,500 0523 Securities, I-banking, etc 6,876 5% 1.11% Securities, I-banking, etc 1508 377,000 2.0% 7,540 0.0% 0 7,540 5,000 5,000 5242 Insurance Agencies 3,160 2% 0.51% Insurance Agencies 693 173,250 5.0% 8,660 2.0% 16,180 0 2,500 05312 Real Estate Agencies/Prop Mngmt 6,326 5% 1.03% Real Estate Agencies/Prop Mngmt 1388 347,000 6.0% 20,820 0.0% 0 20,820 2,500 20,0005411 Law Services 35,630 26% 5.77% Law Services 7817 1,954,250 2.0% 39,090 5.0% 40,450 0 5,000 05412 Accounting Services 5,330 4% 0.86% Accounting Services 1169 292,250 5.0% 14,610 4.0% 32,360 0 2,500 05413 Arch./Eng/ Services 6,523 5% 1.06% Arch./Eng/ Services 1431 357,750 8.0% 28,620 1.0% 8,090 20,530 5,000 20,00054141 Interior & Graphic Design Services 1,096 1% 0.18% Interior & Graphic Design Services 241 60,250 5.0% 3,010 0.0% 0 3,010 2,500 2,5005416 Mgtmt Consulting 12,402 9% 2.01% Mgtmt Consulting 2721 680,250 3.0% 20,410 0.0% 0 20,410 5,000 20,0005418 Advertising & Media Agencies 7,705 6% 1.25% Advertising & Media Agencies 1690 422,500 2.0% 8,450 2.0% 16,180 0 5,000 054192 Photographic Services 71 0% 0.01% Photographic Services 16 4,000 3.0% 120 1.0% 8,090 0 1,500 054194 Veterinary Services 320 0% 0.05% Veterinary Services 70 17,500 8.0% 1,400 1.0% 8,090 0 2,500 05614 Business Support Services 3,051 2% 0.49% Business Support Services 669 167,250 10.0% 16,730 3.0% 24,270 0 5,000 056151 Travel Agencies 1,563 1% 0.25% Travel Agencies 343 85,750 2.0% 1,720 1.0% 8,090 0 1,500 056173 Landscaping 47 0% 0.01% Landscaping 10 2,500 2.0% 50 2.0% 16,180 0 2,500 06211 Physicians 5,286 4% 0.86% Physicians 1160 290,000 8.0% 23,200 5.0% 40,450 0 2,500 06212 Dentists 1,614 1% 0.26% Dentists 354 88,500 8.0% 7,080 5.0% 40,450 0 1,500 062131 Chiropractors 46 0% 0.01% Chiropractors 10 2,500 8.0% 200 1.0% 8,090 0 1,500 062132 Optometrists 159 0% 0.03% Optometrists 35 8,750 8.0% 700 1.0% 8,090 0 2,500 06214 Outpatient Care Centers 1,489 1% 0.24% Outpatient Care Centers 327 81,750 5.0% 4,090 8.0% 64,720 0 5,000 06244 Child Day Care Services 3,281 2% 0.53% Child Day Care Services 720 180,000 5.0% 9,000 3.0% 24,270 0 5,000 08121 Personal Care Services 2,030 1% 0.33% Personal Care Services 445 111,250 8.0% 8,900 40.0% 323,600 0 2,000 08123 Dry Cleaner 851 1% 0.14% Dry Cleaner 187 46,750 3.0% 1,400 2.0% 16,180 0 1,500 0813 Associations and Non-Profit Orgs 4 29,275 21% 4.74% Associations and Non-Profit Orgs 4 6422 1,605,500 8.0% 128,440 10.0% 80,900 47,540 2,000 46,000

Total 7,582,750 4.9% 372,240 808,856 119,850 113,500

Total Office PMA Demand Potentia Office PMA Pop (2015) 135,363

Office Space per Employee (SF) 250

1 Bureau of Labor Statistics for the first quarter 20102 Based on 2007 County Business Patterns for District of Columbia3 Estimates based on competitive supply analysis4 Excludes professional associationsNote: The 2010 population and household estimates are based on the population growth in DC's Ward 5 between the 2000 and 2010 U.S. Census. The projected 2015 population

is based on a straight-line projection of the growth rate from 2000-2010 continued through 2015. SOURCE: GDA,MWCOG and the US Census,

Exhibit 3064-11492.00

Printed: 6/21/201163

Exhibit 31

SERVICE-ORIENTED NEIGHBORHOOD OFFICE DEMAND IVY CITY & TRINIDAD OFFICE MARKET ANALYSIS

2015 SCENARIO BASED ON NSP2 RESIDENTIAL DEMAND ANALYSIS

District of Columbia

2015 Population 617,0252015 Employees 1 138,255

Industry Code Selected Industries

2015 Number of

Employees 2Distribution of

EmployeesEmp to Pop

Ratio Selected IndustriesEstimated Office PMA Employees

Office PMA Demand Potential

(SF)

Ivy City & Trinidad

Capture Rate

Ivy City & Trinidad Demand Potential

Percent Distribution of Office Space

Types

Existing Ivy City & Trinidad Office

Space 3

New Office Space

Demand Potential

Typical Tenant Size

2015 Ivy City & Trinidad

Supportable SF

District of Columbia 138,255 100% 22.41% Office Primary Market Area 30,970 7,742,500 100% 809,00052211 Commercial Banking & Credit Union 4,087 3% 0.66% Commercial Banking & Credit Union 915 228,750 8.0% 18,300 3.0% 23,915 0 5,000 052231 Mortgage Brokers 36 0% 0.01% Mortgage Brokers 8 2,000 3.0% 60 0.0% 211 0 2,500 0523 Securities, I-banking, etc 6,876 5% 1.11% Securities, I-banking, etc 1540 385,000 2.0% 7,700 0.0% 0 7,700 5,000 5,000 5242 Insurance Agencies 3,160 2% 0.51% Insurance Agencies 708 177,000 5.0% 8,850 2.0% 16,180 0 2,500 05312 Real Estate Agencies/Prop Mngmt 6,326 5% 1.03% Real Estate Agencies/Prop Mngmt 1417 354,250 6.0% 21,260 0.0% 0 21,260 2,500 20,0005411 Law Services 35,630 26% 5.77% Law Services 7981 1,995,250 2.0% 39,910 5.0% 40,450 0 5,000 05412 Accounting Services 5,330 4% 0.86% Accounting Services 1194 298,500 5.0% 14,930 4.0% 32,360 0 2,500 05413 Arch./Eng/ Services 6,523 5% 1.06% Arch./Eng/ Services 1461 365,250 8.0% 29,220 1.0% 8,090 21,130 5,000 20,00054141 Interior & Graphic Design Services 1,096 1% 0.18% Interior & Graphic Design Services 246 61,500 5.0% 3,080 0.0% 0 3,080 2,500 2,5005416 Mgtmt Consulting 12,402 9% 2.01% Mgtmt Consulting 2778 694,500 3.0% 20,840 0.0% 0 20,840 5,000 20,0005418 Advertising & Media Agencies 7,705 6% 1.25% Advertising & Media Agencies 1726 431,500 2.0% 8,630 2.0% 16,180 0 5,000 054192 Photographic Services 71 0% 0.01% Photographic Services 16 4,000 3.0% 120 1.0% 8,090 0 1,500 054194 Veterinary Services 320 0% 0.05% Veterinary Services 72 18,000 8.0% 1,440 1.0% 8,090 0 2,500 05614 Business Support Services 3,051 2% 0.49% Business Support Services 683 170,750 10.0% 17,080 3.0% 24,270 0 5,000 056151 Travel Agencies 1,563 1% 0.25% Travel Agencies 350 87,500 2.0% 1,750 1.0% 8,090 0 1,500 056173 Landscaping 47 0% 0.01% Landscaping 11 2,750 2.0% 60 2.0% 16,180 0 2,500 06211 Physicians 5,286 4% 0.86% Physicians 1184 296,000 8.0% 23,680 5.0% 40,450 0 2,500 06212 Dentists 1,614 1% 0.26% Dentists 362 90,500 8.0% 7,240 5.0% 40,450 0 1,500 062131 Chiropractors 46 0% 0.01% Chiropractors 10 2,500 8.0% 200 1.0% 8,090 0 1,500 062132 Optometrists 159 0% 0.03% Optometrists 36 9,000 8.0% 720 1.0% 8,090 0 2,500 06214 Outpatient Care Centers 1,489 1% 0.24% Outpatient Care Centers 333 83,250 5.0% 4,160 8.0% 64,720 0 5,000 06244 Child Day Care Services 3,281 2% 0.53% Child Day Care Services 735 183,750 5.0% 9,190 3.0% 24,270 0 5,000 08121 Personal Care Services 2,030 1% 0.33% Personal Care Services 455 113,750 8.0% 9,100 40.0% 323,600 0 2,000 08123 Dry Cleaner 851 1% 0.14% Dry Cleaner 191 47,750 3.0% 1,430 2.0% 16,180 0 1,500 0813 Associations and Non-Profit Orgs 4 29,275 21% 4.74% Associations and Non-Profit Orgs 4 6558 1,639,500 8.0% 131,160 10.0% 80,900 50,260 2,000 50,000

Total 7,742,500 4.9% 380,110 808,856 124,270 117,500

Total Office PMA Demand Potentia Office PMA Pop (2015 - with NSP2) 138,212

Office Space per Employee (SF) 250

1 Bureau of Labor Statistics for the first quarter 20102 Based on 2007 County Business Patterns for District of Columbia3 Estimates based on competitive supply analysis4 Excludes professional associationsNote: The 2010 population and household estimates are based on the population growth in DC's Ward 5 between the 2000 and 2010 U.S. Census. The projected 2015 population

is based on a straight-line projection of the growth rate from 2000-2010 continued through 2015. SOURCE: GDA,MWCOG and the US Census,

Exhibit 3164-11492.00

Printed: 6/21/201164

Exhibit 32

STRATEGIC COMMERCIAL DEVELOPMENT PARCELSIVY CITY & TRINIDAD, WASHINGTON, D.C.

JUNE 2011

5

1

23

4

6

Exhibit 3264-11492.00

Printed: 6/21/2011 65

Exhibit 33

STRATEGIC COMMERCIAL DEVELOPMENT PARCELSIVY CITY & TRINIDAD, WASHINGTON, D.C.

JUNE 2011

Max Allowable Max Total Lot Commercial Commercial Resid. Max

Address Description Ownership Zone Area FAR Dev. SF SF SF 1

1 1200-1212 Bladensburg Road NE Parking Lot Ejike Unegbu C-2-A 10,540 1.50 15,810 10,540 26,350

2 1122-1164 Bladensburg Road NELandscaping Business, Parking Lot, Budget Truck Rental, Pizza Parlor/Convenience Market

Brian Keefer, Shorb Properties, Barry Hurowitz C-2-A 35,000 1.50 52,500 35,000 87,500

3 1151-1161 Bladensburg Road NE Car wash, wine & liquor Store on ground floor, vacant building above Barry Hurowitz C-2-A 15,965 1.50 23,948 15,965 39,913

4 1141 Bladensburg Road NE Merchant's Tire & Auto Center Commercial Net Lease Realty LP C-2-A 17,977 1.50 26,966 17,977 44,943

5 1201-1239 Mount Olivet Road NENorth East Market, Circle Seven Express, Kovak's, and Kenny's Carry-Out

Northeast Supermarket, Emmanuel Tesfay, Joseph Kogok Trustees C-2-A 54,466 1.50 81,699 54,466 136,165

6 906-910 Bladensburg Rd NE Old Methadone Clinic M. Schaeffer C-2-A 17,624 1.50 26,436 17,624 44,060

1 The maximum development envelope requires underground parking to maintain maximum development envelope, otherwise surface parking or structured parking will be required, reducing the overall commercial and residential FAR. Source: Torti Gallas Urban, NCRC, GDA

Exhibit 3364-11492.00

Printed: 6/21/201166

Exhibit 34

STRATEGIC COMMERCIAL AND MIXED-USE DEVELOPMENT RECOMMENDATIONSIVY CITY & TRINIDAD, WASHINGTON, D.C.

JUNE 2011

Address Development Recommendations Retail SFTarget Retail

Tenants Office SFTarget Office

TenantsApprox. Res.

Units

1 1200-1212 Bladensburg Road NE Near-term development opportunity for ground-floor retail below neighborhood-serving office 5,000 Misc. Retailer (Pet Supply), Gift/Novelty 10,000 Associations and

Non-Profits

2 1122-1164 Bladensburg Road NE Redevelop low-density uses into a higher-density mixed-use development with rental apartments above ground floor retail Opportunity to include existing limited-service restaurant and convenience

17,500Home Furnishings,

Office Supply, N/A 25-35

5

1

23

4

6

above ground floor retail. Opportunity to include existing limited-service restaurant and convenience store into the redevelopment.

Florist, Restaurant

3 1151-1161 Bladensburg Road NE Long-term opportunity for redevelopment of low-density uses into higher-density development. 5,000

Misc. Retailers (local Pet store, office supply, clothing,

books)

10,000 Professional Services

4 1141 Bladensburg Road NE Long-term opportunity for redevelopment of low-density uses into higher-density development. 5,000

Misc. Retailers (local Pet store, office supply, clothing,

books)

10,000 Professional Services

5 1201-1239 Mount Olivet Road NE

Long-term opportunity to redevelop into a higher-density, with neighborhood-serving office or rental apartments above ground-floor retail. Opportunity to integrate existing convenience-store and limited-service restaurant retailers back into the redevelopment and/or introduce specialty fresh grocer/co-op.

15,000

Convenience, Limited-Service

Restaurants, Fresh Grocer

N/A 40 - 55

6 906-910 Bladensburg Rd NE

Potential opportunity for adaptive reuse of existing structure for office space to support business development and employment growth, or to provide space for resident-owned coop business. N/A N/A 25,000

Professional Services or

Associations/Non- Profits

TOTAL: 47,500 N/A 55,000 N/A 65-90

Exhibit 3464-11492.00

Printed: 6/21/2011 67

Exhibit 35

RESIDENT SURVEY RESULTS: DEMOGRAPHIC TRENDSIVY CITY & TRINIDAD RETAIL MARKET ANALYSIS

MARCH-APRIL 2011

Total Number of Responses 38

Average Age 41Household Income Range

Neighborhood of Residence Less than $25,000 35%Number of Residents from Trinidad 37 $25,000-$50,000 18%Number of Residents from Fairlawn 1 $50,001-$75,000 6%

$75,001-$100,000 29%Gender Over $100,000 12%% Male 42%% Female 58%

Household Size

% 1-Person HH 24%% 2-Person HH 38%% 3-Person HH 15%% 4 or More Person HH 24%

Length of Residence in Neighborhood

L th 2 17%

Less than $25,000, 35%

$75,001-$100,000, 29%

Over $100,000, 12% Less than $25,000

$25,000-$50,000

$50,001-$75,000

$75 001 $100 000Less than 2 years 17%2-5 years 33%6-10 years 22%11-20 years 8%More than 20 years 19%

Education

High School 33%Vocational 6%College 36%Graduate/Professional 25%

$25,000-$50,000, 18%$50,001-

$75,000, 6%

$75,001-$100,000

Over $100,000

Exhibit 3564-11492.00

Printed: 6/21/201168

Exhibit 36

RESIDENT SURVEY RESULTSIVY CITY & TRINIDAD RETAIL MARKET ANALYSIS

MARCH-APRIL 2011

63%

45% 45%

29%30%

40%

50%

60%

70%

% of Residents Consider as Neighborhood Shopping Location

5% 5%3% 3%

5%

0%

10%

20%

H Street/Benning Road NE

(Hechinger Mall)

Bladensburg Road NE

West Virginia Avenue/Mt.

Olivet Road NE

Union Station Shops

NOMA Florida Avenue Queen Street/Montello

Ave

Prince George's Plaza

Capitol Hill

Exhibit 3664-11492.00

Printed: 6/21/201169

Exhibit 37

RESIDENT SURVEY RESULTSIVY CITY & TRINIDAD RETAIL MARKET ANALYSIS

MARCH-APRIL 2011

13%

34%

20%

11%

% Bus

% Car

% Walk

% Cycle

Mode of Transportation to Retail

21%

13%

0% 5% 10% 15% 20% 25% 30% 35% 40%

% Metro

% Bus

Exhibit 3764-11492.00

Printed: 6/21/201170

Exhibit 38

RESIDENT SURVEY RESULTSIVY CITY & TRINIDAD RETAIL MARKET ANALYSIS

MARCH-APRIL 2011

Where Residents Shop for Goods & Services

H Street/ Bladensburg Rd/ Hechinger Mall Elsewhere in D.C. Maryland Virginia Online

Food for carryout/delivery 61% 37% 8% 3% 0%Alcohol beverages 61% 29% 3% 5% 0%Convenience 58% 34% 5% 5% 0%Groceries 50% 50% 24% 11% 0%Health (vitamins, prescriptions, etc.) 47% 45% 11% 5% 0%Eat-in or sit-down restaurants 47% 45% 26% 13% 0%Personal care (barber, salon, nails) 47% 37% 13% 3% 0%Financial (banking, accounting, etc.) 42% 58% 3% 0% 3%Automotive (parts, detailing, repair) 42% 45% 16% 5% 0%Dry Cleaning/Laundromat 39% 39% 8% 3% 0%Entertainment (movies, dancing) 29% 55% 18% 3% 3%Shoes 26% 34% 26% 29% 18%Home furnishings/décor 26% 37% 29% 26% 5%Hardware items 26% 71% 11% 8% 5%Books, magazines & newspapers 26% 34% 13% 8% 18%Clothing 24% 45% 29% 26% 16%Business and Office Supplies 24% 39% 26% 16% 8%Music 21% 32% 18% 5% 37%Specialty foods (farmer's market, ethnic grocer, etc.) 21% 61% 11% 0% 0%Electronics (TVs, DVD players, etc.) 18% 34% 24% 16% 11%Specialty retail (jewelry, antiques, etc.) 16% 47% 24% 18% 11%Professional (medical, dental, etc.) 16% 76% 8% 0% 0%

Exhibit 3864-11492.00

Printed: 6/21/201171

Exhibit 39

RESIDENT SURVEY RESULTSIVY CITY & TRINIDAD RETAIL MARKET ANALYSIS

MARCH-APRIL 2011

H Street/Benning Road/Hechinger Mall: Resident Ratings

Excellent Good Fair PoorVariety of Goods and Services 11% 25% 53% 11%Quality of Goods and Services 8% 24% 57% 11%Physical Appearance 6% 24% 48% 21%Sense of Comfort & Safety 6% 36% 42% 17%Cleanliness 3% 28% 38% 31%Transit Services & Access 12% 38% 41% 9%Parking 12% 41% 35% 12%Traffic Flow 6% 53% 35% 6%Neighborhood Character 14% 28% 50% 8%

6%

21%

Physical Appearance

8%11%

Quality of Goods and Services

24%

48%

21%

Excellent Good Fair Poor

24%

57%

Excellent Good Fair Poor

Exhibit 3964-11492.00

Printed: 6/21/201172

Exhibit 40

RESIDENT SURVEY RESULTSIVY CITY & TRINIDAD RETAIL MARKET ANALYSIS

MARCH-APRIL 2011

Bladensburg Road Corridor: Resident Ratings

Excellent Good Fair PoorVariety of Goods and Services 6% 17% 39% 39%Quality of Goods and Services 6% 22% 33% 39%Physical Appearance 6% 14% 31% 49%Sense of Comfort & Safety 6% 19% 44% 31%Cleanliness 6% 14% 40% 40%Transit Services & Access 6% 26% 49% 20%Parking 11% 22% 42% 25%Traffic Flow 14% 31% 44% 11%Neighborhood Character 5% 11% 62% 22%

Physical Appearance Quality of Goods and Services

6%

14%

31%

49%

Excellent Good Fair Poor

6%

22%

33%

39%

Excellent Good Fair Poor

Exhibit 4064-11492.00

Printed: 6/21/201173

Exhibit 41

RESIDENT SURVEY RESULTSIVY CITY & TRINIDAD RETAIL MARKET ANALYSIS

MARCH-APRIL 2011

% of Residents Listed in Top 5 for Desired Retail/Services in Neighborhood

Groceries 45%Eat-in or sit-down restaurants 42%Clothing 39%Entertainment (movies, dancing) 39%Books, magazines & newspapers 32%Specialty foods (farmer's market, ethnic grocer, etc.) 32%Shoes 26%Hardware items 24%Business and Office Supplies 24%Electronics (TVs, DVD players, etc.) 21%Specialty retail (jewelry, antiques, etc.) 18%Home furnishings/décor 16%Music 16%Dry Cleaning/Laundromat 16%Health (vitamins, prescriptions, etc.) 13%Convenience 13%Food for carryout/delivery 13%Alcohol beverages 13%Professional (medical, dental, etc.) 13%Financial (banking, accounting, etc.) 11%Personal care (barber, salon, nails) 8%Automotive (parts, detailing, repair) 5%

Exhibit 4164-11492.00

Printed: 6/21/201174