Evening Star Newspaper, December 29, 1928, Page 15

REAL ESTATE WASHINGTON, D. C, g %iaf' SATURDAY, DECEMBER 29, 1928 ( HOME & GARDENI 15 PRIVATE BUILDING WORK IN D. C. GAINS 27 PER CENT OVER 1927 COST OF NEW PROJECTS PLACED AT $49,994,355 Dwelling Construction Declined Sharply, Apartments Increased Heavily. Total Below 1926. BY DON S. WARREN. ANY remarkable and lasting changes were wrought in the physical development of -the National Capital during the past year, through increased activity in private building operations, which had a total cost estimated rough- 1y 27 per cent greater in volume than was recorded in 1927. New office struc- tures and hotels altered the skyline of downtown Washington, which is des- tined to be further changed with com- pletion of other imposing structures now under way, while residential sec- tions also saw notable new develop- ments in erection of apartments and dwellings. The year witnessed considerable de- cline in the construction of dwellings and a great increase in apartment house projects. There was unusual activity also in the purchase and con- struction of new embassy and legation buildings, planning of new churches and private school buildings, construc- tion of business structures of moderate size, and there was recordte‘d a great lume of remodeling operations. voAun unofficial study of records in the office of the building inspector, Col. John W. Oehmann, shows that private building projects in the District for which permits were issued during 1928 had an estimated total cost of $49,994,- 355, the amount for the last week of December - being- conservatively _esti- mated. This was an increase of ap- proximately $13,672,905 over the total of $36.321,450 X’:et)rd!"de in 1927, or t 27 per cent greater. -b"i"il‘lese fl‘:ures do not include reports of construction operations in Washing- ton suburban areas in Maryland and Virginia, where more and more of the residential sections, really a part of the District development, are spread- ing due to congestion of thé limited area of the District. Neither does the total include any of the tremendous Federal building projects, which, if added, would rup the District construc- tion volume into an amazing figure. ‘Well Below Record. Taken slone, however, the District eonstruction volume is not regarded by observers as abnormal for the most part, and is, indeed, well below the record-breaking years of 1925 and 1926 when “boom” conditions were experi- enced here as building activity, retarded by wartime and early post-war depres- sion, was tremendously expanded and threatened a seriously over-built con- dition. In response to warnings by bankers and bond houses, as well as warning signals noted in_the market itself, operations in the District were drastically curtailed during 1927, when the total was cut about 42 per cent from the 1::& w;r.ol& t.ac.'zluw demand to catch uj ‘production. As -pruu.lv, of caution exercised in 1927 and continued in part through the past year, conditions in the real estate market here in 1928 were regarded as better and more stable than in the | preceding years, although the market | still was termed “selective.” Despite the “buyers’ market” still generally pre- vailing, Washington fared better than | many cities where market conditions were more depressed due to the amount | of houses and apartments and office space on the market in excess of de- mand. Washington weathered the ef- fects of the 1925-26 building expansion, it is held by many observers, with less worry than did many comparable cities. The relative position of private build- ing operations here during the past vear is illustrated in the following tabu- jation of the valuation of the building totals for recent years: Year Estimated value of work 1919... 0,300,000 1920..... 1921. 1922. 1923. ©.849,994,355 Big Projects in Offing. ‘What conditions will be in the forth- coming year cannot be accurately fore- seen, but a number of big projects, are in the offing and will tend to maintain a steady-volume of construction. The large, new department store of Julius Garfinckel is to be erected at the corner of Fourteenth and F streets. Plans have been filed with the building office, but a permit has not yet bcen issued | and this large operation will be credited to the new year. The Washington Rail- way & Electric Co., and its subsidiary, the Potomac Electric Power Co., is to erect an imposing new home at the corner of Tenth and E streets and this project may be included in the 1929 total. Washington continues to grow steadily tn population, and this alone calls for a normal expansion of construction of housing units. Also, with gradual prog- ress in the development. of the monu- mental Federal buildings in the great triengle south of Pennsylvania avenue and other major Federal operations here, additional construction workers likely will be drawn to the city, aiding somewhat the need for housing. Definite steps were taken recently by the District government seeking autbor- zation from Congress for a part of the site for the projected mew municipal center of governmental buildings on the site porth of Pennsylvania avenue between Third and Sixth streets, but | actual construction of this development is not expected to start for a year or two, or more. | Market conditions in dwellings in the | District, it is belzved by observers, | have been better in the past year than was the case in the market for office | space and apartments. Many New Apartments. Construction of many large apart- ! ment structures was completed or started during the past year, the total | cost, being estimated at $17,834,500, this being far above the total for last year— $9.512,300—despite the heavy volume of | apartment construction attained in the | peak years of 1925 and 1926. In 1926 the cost of apartment projects was about $19,000,000. Washington, apparently, seems de- termined to become a city of “cliff- dwellers,” as one official of a Federal department has characterized apart- ment house tenants. As contrasted to the $17.834,500 total for apartment house construction, the total cost of new dwellings during the past year was estimated at $10,037,700. These figures, however, it is pointed out, do not give an accurate picture, since most of the apartments are erected within the boundaries of the city, whereas the trend of new dwelling sections is in the outlying suburban areas beyond the city limits. ‘While reports on the total volume ©of sales in the District are not avail- | Ing 2n estimated sum of $800,000, was | members of the medical profession at | | Nineteenth and I strects at a cost of able, many major deals were con- summated and the total valuations in- volved mounted into millions of dol- lars. Among major deals were the purchase by the Southern Railway of the site for its new Washington head- quarters building, now being erected on the southwest corner of Fifteenth and K streets; purchase of the site for the home of the Washington Rail- way & Electric Co, Tenth and E streets; purchase by Joseph McReyn- olds of five of Washington's newest and largest apartment properties: acquisition by S. Kann Sons Co. of downtown business property at 1216-18 | G street and 1215 F street from Dulin | & Martin; sale by Harry Wardman of the Roosevelt Hotel to a syndicate headed by Frank B. Banks; purchase by James L. Karrick of the Portland Hotel from Harry M. Bralove; sale of 150 acres of the old Benning race- track property to a residential devel- opment concern: purchase by Joseph H. Himes of business property at the corner of Connecticut avenue 2nd K street. Building Funds Plentiful. While the market generally was termed “selective,” numbers of the older real estate and operative build- ing concerns indicated a goodly amount of business in residential sales, both of the expensive and modest price types. ney for investment here by out- of wn investors continued plentiful and funds were available for non- speculative new building operations, in- surance companies and brokerage houses continuing to provide a con- siderable portion of funds for new | ventures. | The outstanding refinancing opera- | tion of the year was the underwriting of bond issues totaling $13,500,000 | placed on the larger properties here | of -the Wardman Construction Co., in- cluding 11 of its hotel, apartment and | business ' properties. R Several months earlier a new bond issue totaling $9,900,000 was under- written on the Mayflower Hotel. This was believed to be the largest issue ever placed here on a single property. The year was not, however, without its troubles and a number of valuable structures were placed on the auction block in default of trusts. Fewer Houses Built. Analysis of records of the building inspector shows that in contrast to 1927, when the volume of dwelling construction exceeded in cost the figure for apartment house operations, during the past year the cost of dwellings was $10,037,700, while the cost of apartment projects was estimated at $17,834,500. The number of houses provided under permits issued in the past year was 1273, a considerable decline from the number in preceding years, this being one explanation given for improvement -in ‘the market for houses here this year. The number of houses erected in the District in 1927 was 1,834, while there were about 3,205 erected in 1926, and approximately 4,720 in 1925, There were 50 dwellings started in January, having a cost of $495,400; 109 in Pebruary costing $614,000, 153 in March costing $1,211,510, 114 in April costing $986,700, 163 in May costing $1,106,690, 97 in July costing $1,002,350, | 107 in August costing $822,850, 71 in September costing $606,925, 142 in Oc- tober costing $1,175,825, 81 in November costing . $596,050 and 3¢ in December costing $275,650. Ve Permits were issued in January of this past year for six apartment houses cost- ing $2,280,000; in February, five costing $3,110,000; March, six costing $446,500; April, four costing $625,000; May, 12 apartments costing $934,000; Jine, one apartment costing $300,000; July, 10 apartments costing $2,339,500; "August, two apartments costing $460,000; Sep- tember, 14 apartments costing $495,- 000; October, two apartments, costing $950,000; November, three apartments costing $2,350,000, and December, 10 apartments costing $3,544,500. A tabulation of the estimated cost of building operations in the District dur- ing months of 1928 follows: January .... $4,629,895 February *. $4,206,185 $4,034.075 $4:443,965 November . $7.199.890 December '(Estimated) . $6,525.905 Grand_total $49,994,355 During the past year the palatial new home of the British Embassy, cost- started on its commanding site on Massachusetts avenue near Observatory Circle, while later in the year work was started on the mammoth new Washington headquarters building of the Southern Railway costing $1,600,- 000, at the southwest corner of Fif- teenth and K streets; the new pyramid style 12-story and tower office building on the northwest corner of Fourteenth and K streets, costing $1,200,000; the 12-story hotel being erected by Morris Cafritz on the southwest corner of Fourteenth and K streets, at a cost of about $2,000,000; the 12-story Shore- ham office building being erected by the Wardman Construction Co. on the northwest corner of Fifteenth and H streets at a cost of about $2,500,000; the monumental Constitution Hall of the Daughters of the American Revo- lution, a two-story auditorium and li- brary at 311 Eighteenth street at a cost estimated at $1.200,000, and the Co- iumbia Medical Building of eight stories being erected for a syndicate of local about $600,000. Other projects of outstanding size or | importance started during the year in- clude the following: Eight-story apartment house being | erected by the Cafritz Construction Co. | at 1900 F street at a cost of $2,000,000, five-story apartment house costing $1,100,000, being erected by William S. Phillips at 1660 Harvard street; three- story bakery being erected for the Gen- eral Baking Co. at 2146 Georgia avenue, at a cost of $300,000; new Universalists’ Memorial Church being erected at 1810 Sixteenth street, at a cost of $207,000. Eight-story apartment being erected by Harry M. Bralove at 3601 Connecti- | cut avenue, at a cost of $1,500,000; | | five-story apartment at 2440 Sixteenth | street by Goldsmith & Keller, costing | $700,000; eight-story apartment for | A. J. Howar at 1722 Nineteenth street, costing $500,000; five-story apartment | for Harry M. Bralove at 4707 Connecti- (cut avenue, costing $450,000; new | Church of the Pilgrims at 1516 Twenty- second street, costing $250,000; eight- story apartment at 3017 Fourteenth street for the Trinity Investment Co., costing $310,000. Twelvc-story apartment and business building at the southwest corner of Connecticut avenue apd L street for Wardman Construeti Co., costing $1,200,000; eight-story it for | New York avenue, costing $325,000. BAROMETERS SHOWING VOLUME OF D. C. CONSTRUCTION IN PAST DECADE 10 5 20 25 30 35 40 45 so 55 60 65 1|Hfll[llllll’l)]lil(lllllllllll LTI REP LR N IR L RS B e (1 (vacvarion 1N MLLIONS oF DoLiars) 10 1 The above diagram illusirates the relative position of the volume of private building operations in the District, exclusive of Federal projects, in comparison Valuation of work by years is indicated at the top in millions of dollars with the ciphers omitted. Post-war depression with totals for the preceding nine years. is indicated in the 1919-20-21 columns, renewed activity is seen in the 1922-23-24 columns, while the 1925-26 columns show the two-year “boom” here. column, approximately at the $50,000,000 level, is about 27 per cent above the 1927 volume. The 1928 GAIN 1S REPORTED IN'PRINCE GEORGES Building Increase for Year Made Possible by Work in Last Three Months. Special Dispatch to The Star. UPPER MARLBORO, Md., December 29.—While there was not a great vol- | ume of building in Prince Georges | County during the first nine months | of 1928, there was a decided increase in activity during the last thre months and, as a result, the number of build- ing permits and the cost of new build- ings has, it is estimated by county officials, been approximately 10 per cent | more than in 1927. A total of 437 building permits was | issued during the year by James C. Blackwell, clerk to the county com- missioners. In addition, a list of 109 buildings for which no permits werz2 obtained is in the hands of Mr. Black- well. It is estimated that all these rep- resent projects aggregating at least $1,000,000. This compares with a total for 1927 of approximately $900.000. Most of the building this year has been confined to residences, and the majority of these have been of the bungalow type. A large part of the building was in the new subdivisions near College Park, although there also was activity . various other develop- ments. In the opinion of Mr. Blackwell, the zoning ordinances put into effect by | the Maryland National Capital Park | and Planning Cimmission during the year have been an encouragement to home building. A total of 154 building permits has been issued since May 25, when the commission’s ordinances became effec- tive in the park and planning zone, which roughly includes the populated sections lying adjacent to the District of Columbia. was issued for the whole county during the year. The guarante that the value of their property will not be hurt in the future by encroachment of commercial enterprises has been a decided factor in the development of sections where the zoning ordinances are ‘in effect, it is| believed by counfy officials. | Under a new county law passed by the last Legislature all building permits for work costing more than $200 must be secured from the office of Mr. Black- well here. DESIGN IS .APPROVED. ‘The design of the apartment house to be erected at 1418 New Jersey ave- nue from plang by George T. Sant- myers has been approved by a jury of the Architecht Advisory Council, com- posed of Ben Flournoy and Arved Kundzin. The jury also approved plans for a dwelling for 2761 Brandywine street, de- signed by C. N. Norton, and a dwelling for 4925 Butterworth place, designed by W. A. Carr. Tomilson” Realty Co. at 1230 New Hampshire avenue, costing $450,000; additions to Emergency Hospital, 709 Eleven-story office building for Chandler Building Corporation at 1421 I street, costing $200,000; eight-story addition to Wardman Park Hotel, Connecticut avenue and Woodley road, | costing $1,500,000; church for the parish of St. Stephen’s at 1525 Newton street, costing $187,000; eight-story office building for Donald H. McKnew at 1501 M street, costing $150,000. Five-story apartment at 4615 Con- necticut avenue for D. L. Stern, cost- ing $600,000; mammoth apartment for Baer & Scholz at 3700 Massachusetts avenue, costing $800,000; five-story apartment for M. & R. B. Warren development at Connecticut avenue and Tilden street, costing $400,000. New home for the Marjorie Webster School at 7753 Seventeenth street, cost- ing $180,000; 12-story apartment for Army & Navy Apartments, Inc., at 818 Connecticut avenue, costing $225,- 000; new church for the Fourth Church of Christ Scientist, 3505 Sixteenth street, costing $230,000; eight-story apartment for Harry M. Bralove at 2101 Connecticut avenue, costing $1,- 000,000; new building for St. Paul's English Lutheran Church at 4910 ‘Thirty-sixth street, costing $500,000; 11-story apartment for Cafritz Con- struction Co. at 2025 I street, costing $1,000,000, and 12-story store and apartment building for Wardman Con- struction Co. at 1028 Connecticut ave- nue, costing $1,700,000. MONTGOMERY COUNTY. MD. CONTINUES STEADY GROWTH Anticipates Even Greater Development in Coming Decade, Commission'’s Clerk Special Dispatch to The Star. ROCKVILLE, Md., December 29.— Montgomery County continued to grow steadily and substantially in its phy- sical development during 1928, though the year was not a record one in con- struction activities. Building operations started during the year had a total estimated cost of $3,213.000, according to figures compiled by Berry E. Clark, clerk of the county commissioners. A total of 565 construction permits were issued. Mr. Clark estimates that about 90 per cent of the authorized construction was | for Bethesda and Wheaton districts, which include the communities of Chevy Chase, Bethesda, Takoma Park, Silver Spring, Forest Glen and Kensington. He also estimates that about the same per cent of the permits was for resi- dences, the remaining being for barns, stores, garages, filling stations and vari- ous other kinds of business establish- ments. The number of permits issued each month and the estimated cost of con- | 67, Says. struction under them were as follows: January, 37, cost $254,450; February, 78, cost $527,175; March, 47, cost $357,700; April, 32, cost $136,765; May, cost $414,005; June, 35, cost $139,750; July, 11, cost $68,95 gust, 11, cost $20,500; September, 115, cost $805,833: October, 12, cost $30,160; November, 58, cost $278,050; December, 62, cost $180,000. The statement, therefore, shows that September led in both the number of permits issued and the cost of construc- tion, the totals being 115 and $805,833, respectively. During the year 1927, which was one of the county's best years in point of construction, 574 building permits, rep- resenting expenditures of $3,851,895, were aMthorized in the county. These figures were somewhat in excess of those for 1928, but there has been no pro- nounced let-up, and those in charge of the county’s affairs predict that its growth in the next 10 years will be even greater than during the last decade. $43,000,000 TOTAL IN BUILDING IS SEEN Baltimore Official Estimates 1929 Construction, Including Municipal Projects. Special Dispatch to The Star. BALTIMORE, December 29.—Build- A total of 283 permits JANE operations in Baltimore in 1929 will amount approximately to $43,000,- 000, according to estimates of the build- ing engineer's®office. The figures in- clude the city's program for the con- struction of schools and other munici- pal. projects, private and corporate building and Federal work. The coming year will show little or no advance in local building, unless a number of large enterprises not sched- uled at this time to go ahead this year come out for bids, it was explained. New industrial projects already plan- ned or under way call for the expendi- ture of more than $100,000,000 in Bal- timore within the next five years, ac- cording to tabulations made at the city hall. They include the proposed plant in East Baltimore of the Western Electric Co., now estimated to cost between $25,000,000 and $30,000,000, and the lo- cal improvement, program of the Penn- sylvania Railroad, conservatively put at $22,000,000. The tabulators did not take into ac- tqunt. the normal public improvement and building and repair programs of the city government nor private building projects running into millions every year. INVESTIGATE 4502 Stanford St. Chevy Chase, Maryland New, all-brick, detached home with floor plan pleas- ing and most livable. Six real rooms and bath, open fireplace, screens. Lot, 50x 125. Garage. Location, 2 blocks north of Chevy Chase Club grounds. Convenient to schools, street cars and bus. $12,950 Drive out Connecticut Avenue to Bradley Lane, west on Brad- ley Lane to East Avenue, north 2 blocks to Stanford Street, or Phone Wisconsin 4034. Massachusetts Park The Triangle of Increasing Values —between Massachusetts an Woodley Road. tion. Actual improvements $10,500,000. Wooded villa sit d Connecticut Avenues and Over 250 homes built and under construc- and home values exceed es, lots, ¢entral and side hall homes, with lots from 75 to 300 feet front. Call for Literature and List of Over 300 Purchasers Middaugh & Shannon, Inc. ESTABLISHED 1899 1435 K St. N.W. !,Main 8685 D. C. Drug Combine Branches Out. Special Dispatch to The Star. BALTIMORE, December 29.—The People’s Service Drug Stores, Inc., of ‘Washington, will open a branch store in the retall shopping district herc, having leased the 5-story and base- ment building at Charles and Fayette streets. ARLINGTON COUNTY BUILDING AGTIVE Construction Permits in 1928 Exceed Issues in Previ- ous Year’s Record. Home building in Arlington County, Va., was active, especially in the last three months of 1928, a survey of in- formation compiled by the Northern Virginia Bureau and the Arlington County Chamber of Commerce dis- closes. While several months of 1928 show less activity in building than in the corresponding months of the pre- vious year, there was a very marked in- crease in the number of permits issued and the unit value of structures cov- ered thereby in October, November and the greater part of December, accord- ing to information received from county officials. Records Compared. ‘The survey shows 329 building per- mits issued during the current year, of which 316 covered permits for new residence structures. Records fur- nished by county officials show mod- erate activity in the Spring of 1928, with increasing activity during June and July. October, November and De- cember, when the issuing of permits is usually less active, were exceptionally heavy for the season, apparently indi- cating increased activity in Arlington County residential construction for 1929. The total expenditures for residential DISTRICT SHOW $7,000, UILDING LOANS 000 INCREASE League of Assocations Report Resources of $63,000,000, With Total of $61,000,- 000 Outstanding on Property. continued increase in the ser- vice of local building and loan associations to individual pur- chasers and builders of homes in Washington is indicated in a review of the past year by officials of the District of Columbia League of Building and Loan Associations, show- ing that resources of the organizations totaled about $63,000,000 and outsiand- ing loans on real estate at the end of 1928 amounting to about $61,000,000. ‘The loans cutstanding at the end of this year amount to an incrcase of nearly $7,000,000 over the total for the end of 1927, when the figure was re- ported to be approximately $54,200,000. This means, it is explained, a turn- over of about $20,000,000, when the loadls that have been paid at maturity and paid off for refinancing purposes are considered. The percentage of real estate loans to total assets in 1928 in the District, it is reported for the local league by C. Clinton James, amounted to about 94 per cent. “Nearly all the associations in the District have absorbed their surplus funds during the year and a number of them have had to borrow from the banks in order to accommodate their borrowing members,” he reported. Year One of Best. “While there is always a slowing down during December and January, all associations in the District report that the year has been one of the best years in their history and predict that 1929 will be even better.” The remarkable growth of building and loan associations in Washington during the past 10 years is shown in the following table, in which both the resources and the amount of outstand- construction for the year is given as $1,653,675. It is stated that more than 95 per cent of Arlington County homes completed in 1928 are now occupied. Analysis of the information reveals an increasing use of brick, stucco and stone for Arlington County homes. The unit value of new homes constructed in the county is maic.ially higher, it is said, than ever before, indicating a trend toward larger and more elaborate homes. Sections of the county in which ex- tensive building operations have taken place in 1928 are Lyon Village, Overlee Knolls, Jefferson Park, Braddock Heights, Aurora Hills, Lee Heights, the vicinity of the Washington Golf and Country Club, Oakcrest, Rosecrest, the Arlington Ridge section and the out- xk:’rLls of Clarendon, Ballston and Cher- rydale. ing loans by years are listed in round figures: Loans Outstanding. $21,568,000 $23,650,000 $27,400,000 $29,500,000 $33,250,000 $36,200,000 $39,000,000 $42,500,000 $46,800.000 53,800,000 $50,940,000 .$63,000,000 $61,000,000 ‘There are 22 building and loan asso- ciations in the District. The increased activities of Washing- ton building and loan associations was in keeping with reports just made public by H. F. Cellarius, secretary of the United States League of Local Building and Loan Associations, showing that 1928 witnessed another record-breaking increase in resources of the associations generally over the country. The total investments of the associa- tions now aggregate $8,155.000,000, an increase for the year of $976,500,000, he Resources. .$23,215,000 825,699,000 .$29,322,000 -$31,683,000 .$34,900,000 .$37,600,000 -$40,500,000 -$44,000,000 -$48,573,000 | reports. 12,000,000 Members. “The total of 13,000 associations have an estimated membership of over 12,- 000,600, an increase of over 800,000 for the year,” he said. Easy money condi- tions early in the year occasioned a surplus of funds which could not readily be invested in safe mortgage loans, but before the semi-annual period arrived an increased demand for loans used up the accumulated funds. “During the last quarter in many sections building and loan associations had more applications for loans than they could conveniently satisfy, and this condition persists in most States at the present time. “Building and loan associations are being well patronized by the public, one out of every ten of our population | now being a member of these institu- tions. They are filling a needed place in the financial structure of our coun- try and are annually making hundreds of thousands of home owners by fur- nishing them with necessary funds for this purpose.” Lumber Production De;reuea. The Department of Commerce an- nounces that, according to data collected at the biennial census of manufactures taken in 1928 the production of lumber, lath and shingles in the United States in 1927 was as follows: Lumber, 34,- 529,450 thousand feet board measure, a decrease of 6.5 per cent, as compared with 36,935,930 thousand feet in 1926: lath, 2,372,333 thousands, a decrease of 23.1 per cent, as compared with 3,083,130 thousands in 1926; shingles, 6,443,868 thousands, an increase of 7.2 per cent, as compared with 6,008,346 thousands in 1926. The Best New Year’s Resolution Ever Made! M Tilden Gardens is docated at Conneci newest co-operative apartment home de ut Avenue and Tilden Street, just so a R il et pment of M. and R. B. Warren of the Burcau of Standards.