Any Clues -- New Capitol Hill Grocery Store on H St NE?!

[Anonymous]

I was wondering if anyone has heard any news surrounding the proposed 35,000-45,000 square feet grocery store to be located at 3rd & H Street, N.E. I know that Steuart Investment Company received a $5 million tax incentive/break this month for their planned unit development, including the grocery store. I wish the store would be a Trader Joe's or a Whole Foods and not a Giant or Safeway. I suppose regardless I will be happy since Capitol Hill needs a fulls ervice grocery store and for H Street, N.E. to develop!

http://planning.dc.gov/planning/frames.asp?doc=/planning/lib/planning/developmentreview/ward_6_zc_cases/06-01b_-_3rd_and_h_ne_-_op_public_hearing_report.pdf

[Anonymous]

No, it hasn't been announced yet, and given the economy, I wouldn't expect any announcement too soon since I doubt they're going to be serious about starting construction until the economy stabilized and they can finance it. I think most retailers would wait to see how the Harris Teeter at Constitution Square peforms before committing to the H St. neighborhood at this time anyway. Harris Teeter, with 50,000 SF, will open in the 6-12 months I believe. They probably want Trader Joe's or Whole Foods, but I'm not sure those high-end retailers are willing to commit to NE at this time.

[Anonymous]

But whole foods committed to 15th and P NW back when logan circle was still pretty sketchy.

[Anonymous]

Anonymous wrote:But whole foods committed to 15th and P NW back when logan circle was still pretty sketchy.

True, but that was NW and the economy was better. There's no room to make mistakes now - bankruptcy is a real threat versus the bubble period of 1995-2008. You can't get good financing on H Street. The office market is over-supplied and there isn't a metro there. Maybe once the trolley project is completed?? If they can't build residential, I don't see retail going in anytime soon.

[Anonymous]

wasn't this supposed to be a Harris Teeter?

[Anonymous]

I think this site may have been competing with Constitution Square for Harris Teeter. But HT signed at Constitution Square prior to the construction start, and in better economic days. Plus NoMa is a better growth market than H Street - the government has shown its committment to the area by signing several large leases there. It has a metro station right there, a hotel and 500+ unit residential building are going up in the same building. Lots more people potential than H Street right now.

[Anonymous]

Just as a side note, Aldi's is moving into the old Nat'l Wholesalers building up by Hechinger Mall. The Frozen Tropics blog has hinted that Trader Joe's might move in to H.

[Anonymous]

H St NE is not Capitol Hill. That's realtor speak but its far from the Hill. I do think that a Whole Foods would thrive on the Hill, maybe in the Safeway spot.

[Anonymous]

Anonymous wrote:H St NE is not Capitol Hill. That's realtor speak but its far from the Hill. I do think that a Whole Foods would thrive on the Hill, maybe in the Safeway spot.

I totally agree! It's not.

[Anonymous]

A Whole Foods would be nice as an additional grocery store, but if that area needs a primary option, Harris Teeter or something like it is a better choice. Whole Foods is just too expensive to use for everyday groceries unless you have a lot of disposable income and are committed to a certain type of eating.

[Anonymous]

I live on Capitol Hill and live near 6th & Maryland Avenue NE. Are you saying I do not live on Capitol Hill even though there are signs near me stating I am in "Capitol Hill Historic District"? I guess Union Station is not on Capitol Hill either. Or perhaps anywhere in NE blocks from H Street, NE is not considered "Capitol Hill"!!! Point being the original poster was asking about a grocery store on the Hill whether you call the locating "Capitol Hill," "Old City #1," or "Capitol Hill North."

I vote for Trader Joe's!

[Anonymous]

If you live within the Historic District, of course you live on the Hill. H St. NE isn't in the historic district, though, and it isn't on the Hill, although it is close.

[Anonymous]

Anonymous wrote:H St NE is not Capitol Hill. That's realtor speak but its far from the Hill. I do think that a Whole Foods would thrive on the Hill, maybe in the Safeway spot.

I don't think most of the businesses or people on H would welcome thinking of themselves as "the hill". that's sort of the point.

[Anonymous]

There is no perfect answer to the "What's Considered Capitol Hill" debate. For hundreds of years it has been defined using terrestrial, historical, commercial, and social boundaries. I recommend avoiding the discussion altogether, as it inevitably leads to arguments riddled with insults.

[Anonymous]

Here is the scoop on the mixed use (residential/commercial) building being developed in the 300-block of H Street NE. The building will be 6-stories, 200000 feet² of which will be residential and 46500 feet² of which will be commercial. Steuart Development Company has signed a long-term lease with an undisclosed large grocer for all 46500 feet² of the commercial space. Theories abound about which one.

With regard to unlikely tenants: Harris Teeter was originally supposed to occupy the property but was enticed to Constitution Square (1st Street NE & M Street NE) after the North of Massachusetts Business Improvement District (NoMA BID) helped negotiate a more favorable lease. Trader Joe's was considered (and petitioned) as a potential candidate, but only when Steuart Development was considering subdividing the space. Smaller grocers (for example, Mom's Organic Market (MOM) were probably eliminated at this point too.

With regard to possible tenants: Safeway has three stores that service various sections of the neighborhood: 1601 Maryland Avenue NE, 415 14th Street SE, and 490 L Street NW. It seems a store at 3rd Street NE/H Street NE would complement their portfolio nicely. But can they really compete with a Harris Teeter only six blocks away? Especially one that will have a two-year head start on business/customers? Bloom (aka Food Lion) has some potential, but doesn't there seem to be a mistmatch between their target market and the surrounding properties? Giant has an immensely successful store in Columbia Heights in a market that at present very closely matches the demography of Near Northeast. But once again can they really compete with a Harris Teeter only six blocks away?

With regard to the most likely tenant: Whole Foods made the decision to build their store in the yet-to-be-gentrified neighborhood of Logan Circle after developer Jim Abdo brought the CEO into a nearby penthouse unit and showed him the wave of development. Jim Abdo developed the Landmark Lofts, which are on the northwest corner of 3rd Street NE/H Street NE! Whole Foods' target market that would be well-met by the surrounding community. Their profitability would not likely be significantly impacted by the nearby Harris Teeter. A $2000+/month apartment building is acrossed the street along with $1M+ condominiums. The opening of a recently-developed nearby high-rise condominum is imminent. The opening of a nearby student dorm is also imminent. There is an independent coffee shop, trendy bar, and yoga studio one block away. And a palette of empty/quasi-empty storefronts waiting to be filled by independent store owners...