A Tale of Two Cities
Pentagon City and Crystal City Morph Into Condo Hot Spots

By Aliya Sternstein
Express
Monday, August 14, 2006 6:02 AM

For years, the neighboring communities of Crystal City and Pentagon City were justifiably derided as a zone of concrete office compounds. Condo buyers usually overlooked them in favor of areas with more pizzazz. Think: Logan Circle, Clarendon, Bethesda.

But, quietly, over the past few years, these neighborhoods near Ronald Reagan Washington National Airport have experienced a rebirth, the sort of urban renaissance that's drawing buyers to other areas of Arlington. In fact, Northern Virginia's twin cities may just be the best-kept secret in today's condo market.

But what's finally encouraging people to buy here? First, the neighborhoods arguably boast the best transportation and transit in the D.C. region. This means stops on Metro's Blue and Yellow lines in both Crystal City and Pentagon City plus a Virginia Railway Express station. Reagan National Airport itself is within walking distance of most of Crystal City. There's also fast access to interstates -- and a direct connection to the Mount Vernon Trail.

Second, the area has recently gotten what amount to two new town squares. A pair of retail, restaurant and office complexes, Pentagon Row and Crystal Drive now allow residents to work, dine and shop without getting into their cars.

To be sure, you'll find fewer condos in Crystal City and Pentagon City than in the Rosslyn-Ballston corridor, especially fewer new construction projects. But the apartments on the market can be good values, according to realtors, residents, developers and Arlington County officials.

Pentagon City and Crystal City also seem to be on the verge of a major transformation. Over the past few years, the high-rise hotels and office parks that have made Crystal City a business destination have gained new neighbors like open-air cafes, award-winning restaurants and many, many shops. Such buzzy spots within walking distance of each other add up to a live-work-play neighborhood.

"Not many neighborhoods can check all the boxes that Crystal City/Pentagon City [can]," said Mara Olguin, the marketing vice president for Charles E. Smith Commercial Realty, which owns 7.4 million of the 11 million square feet of office space in Crystal City. Her company is responsible for much of the area's new vibe, having brought in ventures like the haute Mexican restaurant Oyamel and PBS.

Retail-mad Pentagon Row has also invigorated Pentagon City. A sort of modern village green (sans grass), the complex includes an outdoor ice skating rink (in colder months), spas, restaurants and lots of shops.

The Row's retail detail ranges from indie faves like designer-jeans peddler Denim Bar and crafts boutique As Kindred Spirits to chains like Sur La Table and World Market. All are located on or near a courtyard with benches and surrounding sidewalk cafes, which serves as a gathering spot for residents of the thousands of apartments and condos within strolling distance.

Tony Iallonardo nabbed a condo at Pentagon City's Cavendish development about a year and a half ago, during the real estate go-go period. "I was part of that hysteria. It was a game of musical chairs, and I didn't want to be left without a chair," said the 37-year-old Iallonardo, a public relations executive at a D.C. environmental organization.

Iallonardo home-hunted in many of Arlington's hottest 'hoods, including Rosslyn, where he had been renting an apartment. Dissatisfied with the "war zone" of construction and noise in Rosslyn, Iallonardo chose a $250,000 one-bedroom in more tranquil Arlington Ridge -- a few minutes' walk from Pentagon Row.

Ultimately, Pentagon City's layout impressed him the most. "The growth that has happened in the Pentagon City/Crystal area has been smarter than the growth that has happened just outside," Iallonardo said. He was particularly pleased with the area's pedestrian-friendly walkways and lack of gridlock.

The Arlington Ridge subset of Pentagon City holds a number of older condominiums, including Horizon House, The Representative and The Ridge House. Iallonardo's building is nearly 50 years old. Because his particular unit had not been refurbished in 20 or 30 years, he did have to spend about $15,000 for new floors and kitchen and bathroom renovations.

But he considers the extra effort a bargain for the location. "In my mind, Pentagon Row is sort of my patio -- the one that I wish I could afford," Iallonardo said. "The prime factor for me, living in Arlington in general, is the ease with which I can get into the city for work and get out of the city. In addition, [I like having] the ability to own a car and know that I won't have to pay an exorbitant amount to park it."

Iallonardo's walk to the Pentagon City Metro station takes less than 10 minutes. Most of his trek goes through the Fashion Centre at Pentagon City, a shopping mall attached to the Metro. Anchored by Nordstrom and Macy's, the mall is another draw for many residents and visitors.

Some Realtors say the demand for lower-priced condos like Iallonardo's will grow, especially as suburban baby boomers retire and downsize their homes.

Aaron Seekford, a native of Pentagon City and Realtor, said, "When I deal with a typical buyer, yes, everybody likes new, but when you start looking at the [larger] square footage [in Pentagon City], sometimes you start looking at that and say, well ... I can update the kitchen."

Seekford said his clients also seem concerned about investing in new construction at the peak of the condo-buying wave and wonder if the new units they see in Ballston and Rosslyn are priced fairly. In Pentagon City or Crystal City, "you're definitely going to get more for your money, but you're going to have to put up with remodeling to come out a little bit ahead," said Seekford, who goes by the moniker "Mr. Arlington" at his father's Arlington Realty brokerage.

There are a few new condos in the Crystal City/Pentagon City market. The Grove at Arlington Square, off I-395 at Glebe Road, was converted into a condo building earlier this year after initially opening as a rental property in 2003. There is free bus service from the property to the Pentagon City Metro stop. More than 150 units are still for sale, with one bedrooms starting at $324,900 and two bedrooms from $396,900. Marianna Klaiman, spokesperson for The Grove's developer, Athena Group, said the company invested in the 190-unit property because it was the most public-transit accessible out of all the communities along the I-395 corridor inside the Beltway.

The 465-unit Eclipse on Center Park, which offers wraparound views of downtown Washington monuments and the Potomac River, delivers this fall. Fifty-five units remain at the property, situated between the new Crystal City Streetscape development and Reagan National Airport.

Adjacent to the busy Potomac Yard retail center, Eclipse sits on top of a Harris Teeter supermarket. Proximity to flights -- and fresh vegetables -- might explain how briskly units here are being snapped up: Sales have averaged more than 25 units a month since May 2005. Remaining units are priced from the low $400s to more than $1 million.

Jerry Norris, a longtime occupant of Crystal City's Buchanan apartment building, just purchased one of the units at The Eclipse. His condo is minutes up the road from the new development.

After retiring from the Navy in 1992, Norris moved to the area to start a Crystal City-based defense contracting firm. By the time he felt established enough to buy a home, he was not thrilled with the selections in the neighborhood's older condos. The big ones -- Bella Vista, Waterford House and Crystal Park -- had all gone up in the 1980s. The Eclipse's delivery schedule was ideal for him. He signed a contract for a two bedroom in the mid $700s last Christmas.

"I was not going to move away to a location that would mean commuting. I didn't desire to change the lifestyle that I had grown to thoroughly enjoy," said Norris.

Another reason he bought was that he sensed a revolution coming.

Since the early 1990s, there has been an exodus of federal agencies from the area. The community's trademark high-rise office buildings have many vacancies. Future vacancies of 2.4 million square feet are expected as a result of the military's Base Realignment and Closure (BRAC) process.

Norris and many in the community see the losses as a great opportunity. As a member of the BRAC Transition Task Force and the new Crystal City Planning Task Force, he is helping Arlington County determine how to fill the voids and continue to revitalize Crystal City. There has been talk of using the empty spaces for new condo units, entertainment venues and even a conference center.

Charles E. Smith Commercial Realty has filed a site plan with the county to convert Crystal Plaza 2, along the Crystal City Streetscape, into a 256-unit residential tower. Under this proposal, Crystal Plaza 2 would be gutted and converted from a 13-story office building into a 19-story residence with mod architectural flourishes. The company has not decided whether the building will hold rental apartments or condominiums; completion is expected in spring 2008.

One more driver of change may be the reconstruction of some of Crystal City's aging office buildings, some of which are more than 20 years old. A few buildings may be demolished and replaced with new complexes. Others may be renovated. No decisions have been made yet.

The transformation will be gradual and take many years. Crystal City will not be leveled -- nor will it ever resemble a ghost town during the process, said planners. Over the next nine months, a Crystal City redevelopment blueprint will take shape, offering answers to the questions left by BRAC and the worn buildings.

While this reshuffling may alter the area's framework, Norris does not expect any significant changes will come to Crystal City's 23rd Street dining mecca, which locals know as Restaurant Row. "The county is very concerned about how the BRAC will affect the small businesses in Crystal City," he said.

Arlington County has just approved the Crystal City Business Improvement District to permit property owners, business owners and residents to spruce up and market the area, including the 23rd Street restaurants, which include down-home spots like Freddie's Beach Bar and Cafe Italia.

For now, Norris is enjoying Crystal City's renaissance. Last month, he attended Crystal City Rocks, a block party headlined by pop artists Vertical Horizon. Families feasted on fare from local restaurants, which included steak on a bun grilled by Ruth's Chris Steakhouse and a traditional Spanish paella stirred up by the chefs of popular tapas restaurant Jaleo.

Despite the expanding dining, shopping and living options, there are still naysayers who insist that Crystal City and Pentagon City lack soul. For culture and entertainment, many residents and visitors zip away to D.C.'s museums and theaters or to Clarendon's hip restaurants and clubs.

"This area is dramatically missing nightlife," said Seekford. "It's missing a place where they might have live jazz, where you can go out and have a good time." He sees a chance for entrepreneurs to bring in after-hours spots and music venues.

Officials at Arlington Economic Development, a division of the County, said Crystal City's history proves that innovation is possible. Karen Vasquez, public relations manager for AED, explained that when the community was first developed in the late 1960s, at the same time as Rosslyn, the trend in urban design was to build retail and restaurants below ground.

The idea was "to put things underground, to get them off of the streets, out of the environment," she said, adding that the concept coincided with fears about the neighborhood's safety and pollution.

But when the Army and U.S. Patent and Trademark Office left their Crystal City buildings a few years ago, developers saw the chance to mimic the success of the Rosslyn-Ballston corridor's mixed-use developments. Real estate companies began putting office space and shops on the ground level of buildings and dwellings above -- à la Pentagon Row and its upstairs neighbors, the Post Pentagon Row apartments.

Now, the fad is green design, aimed at creating places that minimize environmental impact and reconnect people with the outdoor neighborhood.

Vasquez said, "It is part of that whole 'new urbanism' trend to have walkable communities, instead of driving from shopping mall to shopping mall to strip mall. The idea is to park your car and take Metro."

Going forward, the Crystal City Planning Task Force will look at how to fit in more residential units -- and fun -- through physical redevelopment. "You want to get people not only working there, but [also] living there," Vasquez said.

Seekford's colleagues at Arlington Realty say there is already a market out there for more Crystal City/Pentagon City condos.

"Rents are so high at local apartments that we have people every weekend coming out to look for condos," said Realtor Will Wheeler, who was born and bred in Pentagon City.

The community's graying condos are not attractive to these buyers, he said. "If you go, you can just smell it's an older building," Wheeler said.

He thinks the community needs a new boom of young residents within walking distance of the budding metropolis, if companies like Charles E. Smith Commercial Realty want to replicate the triumphs of other successful "urban villages" like Clarendon or Silver Spring.

The only land left for development in Pentagon City is a stretch of ground near Pentagon Row, across the street from the Costco on 15th Street. Residential developer KSI intends to build up to 3,200 apartments on the parcel.

"That's the last available area [in Pentagon City]. There is no more land in Crystal City. The future, in Crystal City, is buildings that are outdated are going to be dropped, literally, to the ground," Wheeler said.

While no one knows what will happen, locals expect good things. "Crystal City was an early prominent commercial development in Arlington. By the time everything else had exploded, it had become outdated and is now in the process of updating," Wheeler said.

"The success is inevitable, given its one-of-a-kind access to air, rail, the Bush twins and other great Washington attractions."

This article first ran in Express on July 26, 2006.