It's no small feat to revitalize the second-largest apartment community on the East Coast. But Fieldstone Properties is transforming 80 units per month in the old Empirian Village (now Franklin Park at Greenbelt Station) in Prince George's County from Class-D to B-plus and upgrading its tenancy along the way.

Fieldstone Properties’ Sharon Thames in her Greenbelt office, tells us her firm came into possession of the 153-acre property in October. It was built in nine phases between ’61 and ’72 (farther back, she says Franklin and Eleanor Roosevelt founded the community of Greenbelt in 1937). The almost 3,000 units and infrastructure deteriorated under the previous owner, and fixing it up could take two years. Fieldstone hopes to raise rents from $200/SF to $250/SF per unit after adding luxury condo-style finishes, though the community will remain workforce housing, with discounts for military, students, and government employees). They’re already renovating 80 units a month as delinquent tenants move out. She calls it sacrificing occupancy to improve tenancy, and indeed crime has already gone down.

Fieldstone, which specializes in underperforming property turnarounds in NY, NJ, and FL, wants to expand in DC. It’s committed $15M to the project and is working on public-private partnership financing for infrastructure like a pedestrian walkway to the Metro station. They’re also seeking energy efficiency grants from organizations like Maryland’s Multifamily Energy Efficiency and Housing Affordability and Pepco.

CONDO CORNER

MRIS’s John Heithaus in his Rockville office on Friday, tells us In March, sales contracts were signed for 5,432 residences (462 of them condos and townhomes) in the DC metro. That’s the second highest since May ’06 and a 34% month-over-month increase. There are still hurdles making things difficult for condo buyers, though, including stricter underwriting standards by Fannie and Freddie to factor in the condo building’s fiscal health. Nonetheless, developers are starting to build condos again, considering a scarcity of quality rentals available (why pay $2,500/month in rent when you could pay $2,300/month for a mortgage), rising rental rates, and scarcity of land (encouraging building up instead of out).

BUYING IN BULK

JLL’s Scott Melnick, in his Bethesda office this morning, tells us portfolio sales are proliferating in the DC metro. There was Dune and Pantzer’s eight-property acquisition from RREEF last month, and JLL has a seven-property deal closing this month, plus another with six-properties coming up in Baltimore. It’s more bang for your buck, Scott says, especially for investors entering DC. And with capital seeking a home in DC, $100M deals have replaced the $40M to $50M transactions of a year or two ago. Not to mention it’s easier to close one acquisition of seven properties than seven singles. Scott points out it’s not just funds making these portfolio buys, but international investors (Germans, Bahrainians, and Canadians, for example) that have expanded their targets from CBD office.

Walker & Dunlop VP Will Baker, in his Bethesda office, and his multifamily team are busy keeping the cash flowing in a transitioning market. He says the District avoided most of the recession’s wrath, but it didn’t escape without bruises. Limited availability of construction financing and less investing from big banks and life insurance companies slowed loan originations for new developments. Walker & Dunlop increased its focus on HUD, Fannie, and Freddie during the recession, but Will tells us investors are coming back to play. Translation? Cap rates are low, and rents and new developments are expected to rise significantly over the next five years. The company has closed on a $70M HUD mixed-use loan for Residences of Loudoun Station. Ground broke in March and delivery is scheduled for July 2012. For more info on Walker & Dunlop, go here. Will's a die-hard Bama football fan, but don't ask him about it; we hear you'll hear more than you ever wanted to about yesterday's spring game.

HEY THERE, VICTOR

DC Deputy Mayor for Planning and Economic Development Victor Hoskins made an appearance at the ribbon-cutting for Jair Lynch Development Partners’ 3Tree Flats in Petworth last week. It was the only project DC Housing Finance funded in ’09 and had financing from 10 sources in all. 119 of the 130 units are affordable, and it’s 100% leased.

RESTON TOWN CENTER NEAR BUILDOUT

Here’s Boston Properties’ Jon Kurtis and Balfour Beatty Construction’s John Tarpey at the grand opening of Balfour Beatty’s North Region HQ in Fairfax, designed by Fox Architects (John’s the CEO of that unit, serving DC to Canada). Jon tells us Balfour Beatty built four buildings in Reston Town Center for Boston (and 15 for the company since ’98), where a 360-unit apartment building is in design for the last vacant lot. Boston hopes to break ground by year's end.

No, by that headline we don’t mean a drink before the bar closes. We’re referring to the last cement placed on top of landmark 1000 Connecticut, which we were invited to see Friday afternoon. (Walking up 12 flights for the privilege.) Ain’t it nice to see new construction going on? Thank owners Gewirz, Kaplan, and Small; Clark Construction; development manager Mike Tyler; anchor tenant Arent Fox (which is taking 235k SF on the first eight floors on Jan. 1, 2013; and property manager/leasing agent Vornado/Charles E. Smith. The building schedule was accelerated four months to take advantage of construction pricing and to make the remaining 135k SF on the top four floors available for occupany 12 months from now. Vornado’s Brendan Owen tells us tbat a tenant that takes at least two of the remaining four floors can have exterior signage.

Some think of this as “Main and Main” in DC. We suppose East End, City Center, Rosslyn, and others are hoping the center of gravity will shift someday, but not yet. LEED Platinum, outstanding roof deck, 24-hour fitness center, and all those park benches and great food trucks across the street. Pei Cobb is the architect, which suggests the grandeur intended for the project: They also designed the East Wing of the National Gallery and the entrance to the Louvre.

Friday was full of sunshine for Clark super Rick Rocha, senior project manager Terry Simon, owner’s rep Mike Tyler, and leasing chief Brendan.

And this is the view we got from the top. We’ve helpfully pointed out the White House and food trucks.

Equally intriguing is the bottom: 15k SF of retail with 20-foot ceilings. Bill Dickinson at Rappaport is handling and thinking of luxury stores like in Chevy Chase: Gucci, Hermes, etc. Retail rents at 1000 Connecticut are $100/SF, which, if you’re from New York, probably looks like a misprint; 666 Fifth Ave. rents for $3,000.