Fire Department Waits for the Right Buyer

By Chris Kirkham
Washington Post Staff Writer
Monday, September 18, 2006

Ever since construction began on a sleek, state-of-the-art fire station on Georgia Avenue in Silver Spring, offers for the historic Fire Station No. 1 across the street have streamed in.

Restaurateurs, local unions and auto-shop owners wanted the red brick, two-story firehouse. But the volunteer fire department held tight, eventually hiring Marcus & Millichap Real Estate Investment Brokerage Co. to handle the sale of the property at 8131 Georgia Ave.

The Silver Spring Volunteer Fire Department will decide who gets the property. Its president, Kenneth L. Heltzel, said the department is waiting for a buyer who will offer the right price and the right concept.

"We're in no hurry," Heltzel said. "We're not having a fire sale here."

Nathan Pealer and David Weber of Marcus & Millichap have been showing the property for a few weeks, drawing interest from more than 30 groups that have viewed the site and fielding calls from more than 100 other potential buyers.

Ideas for the firehouse, which was built in 1914 and doubled as a National Guard armory until 1927, include a restaurant and brewery, art galleries and office space.

"There's just not that many properties like this that go available," Pealer said. "It hasn't been on sale for 90 years, and who knows when it'll go on sale again."

Project proposals are being accepted through Sept. 27, and the fire department hopes to decide by the end of October if there's a qualified buyer. The suggested minimum bid is $2.5 million

Heltzel said the firefighters want a buyer who will keep the original building, which is listed in Montgomery County's Locational Atlas and Index of Historic Sites. He said he preferred a restaurant or brew pub. He said none of the offers so far have met his expectations for price and use of the building.

Anyone buying the property for retail use would be faced with a significant renovation project. The four electric doors fronting on Georgia Avenue open to the garage, which has high ceilings, concrete floors and a fire pole from the second floor. Behind that is a lounge and a kitchen.

The second floor has a 1960s look to it, with brown carpeting and bare drywall where the firefighters' bunk beds used to be.

The 6,000-square-foot property is zoned for central business district use, permitting commercial or residential use, or both. Because of the historic designation, any major changes or demolition would be subject to scrutiny by the county Historic Preservation Commission.

Jerry A. McCoy, president of the Silver Spring Historical Society, said the stretch of Georgia Avenue south of downtown near the fire station is one of the last examples of pre-boom Silver Spring. He said he worries that developers will snap up the one- and two-story buildings and replace them with high-rise condominiums.

"It's like this virtual time capsule of what a small town looked like," he said. "You have these communities all over America building these faux main streets, and we've got it right here in Silver Spring. We're preparing ourselves for preservation battles."

Suitland Manor Deadline

The Prince George's County Redevelopment Authority is taking proposals for the Suitland Manor project through Oct. 16. The 33-acre site in the 4700 blocks of Homer, Hudson and Huron avenues has been ridden with crime in the past. The authority wants a mixed-use commercial and residential development to take the place of the 700 residential units there now, said Thomas M. Thompson, director of the county's Department of Housing and Community Development.

Most of the residential properties date at least to the 1960s and are in poor condition. The Redevelopment Authority is close to buying all of the old buildings, Thompson said. It has started relocating the residents.

Thompson said his agency will settle on a developer by year-end. The project is expected to cost more than $80 million.

Closings

· Clark Construction Group LLC of Bethesda will put up the first building at Overlook Towers at Dulles Corner, a nine-story, 217,000-square-foot office property near the Dulles Toll Road. Vardell Realty Investments LLC awarded the contract and Millennium Realty Advisors LLC is doing leasing for the project, which is due to be finished in fall 2007.

· Boston-based Colony Realty Partners bought 1800 Alexander Drive, a six-story, 138,000-square-foot office building in Reston, for about $33 million. The building is fully leased. Cassidy & Pinkard Colliers was the broker.

· Columbia Equity Trust bought a three-story, 102,000-square-foot office building in Gaithersburg for $26.7 million. The building, at 101 Orchard Ridge Drive, is fully leased to six tenants.

· CB Richard Ellis said it has been named exclusive agent to lease the 12-building Avenel Business Park in Gaithersburg, which has lab, flex and office space. The complex is owned by Saul Centers Inc. of Bethesda.

Staff writer Dana Hedgpeth, who covers commercial real estate and economic development, contributed to this report. Her e-mail address ishedgpethd@washpost.com.