2. What would you say is the best area within to DC for something like that? (For example Georgetown is great, but expensive; Columbia Heights is booming, but lacks significant number of young families, etc) Please throw some thoughts from your experience...
The store already exists in Georgetown--three of them, in fact. Dawn Price Baby, which also has a location on the Hill, and Yiro/Tugooh, which also has a location in Bethesda. And are you kidding about there not being a significant number of young families in Columbia Heights?
I know you're just starting the process, but you really don't have a clue about this city.