Equity One's rendering of its plans for Westbard

BETHESDA, MD—Earlier this week, Montgomery County Council voted 9 to 0 to adopt the proposed and, in some quarters highly controversial, Westbard sector plan. The plan is the brainchild of the North Miami Beach, FL-based REIT Equity One: it calls for the addition of some 1,200 new housing units and the replacement of the aging Westwood Shopping Center, currently anchored by a Giant grocery store, with a walkable, urban commercial area. Commuter buses will take residents and visitors to the Friendship Heights and Bethesda Metro stations, which are located some two miles away. Green space is part of the design and Willetts Creek, now running through a culvert, would be transformed with more natural landscaping.

“This has been a long process, and we appreciate the time and hard work the community, planners and the Council have invested in updating the Westbard Sector Plan,” said CEO David Lukes.

A Lease Renewal

A long process indeed. The Westbard Sector Plan is one of the oldest plans still in use in Montgomery County, having been last updated in 1982. The Maryland National Capital Park and Planning Commission launched the process to update the sector plan in July of 2014. But it was Equity One's acquisition of the Westwood Shopping Center back in 2012 that started the conversation about what to do with this somewhat isolated enclave of Montgomery County in earnest.

Now that the council has given its approval, Equity One will start the next phase of the process. It will need to secure full entitlement for the redevelopment plans, Lukes said. “We will now proceed with our application for the approval of the specific aspects of the project.”

However, during the REIT's earnings call last month, Lukes told investors that Equity One might be able to break ground on the project sooner than expected. In Q1, he said, the REIT renewed Giant's lease at an “enormous mark-to-market rent.”

“Should we be successful in receiving community approval for our master plan, the new Giant lease renewal allows us to break ground on our project much earlier than would have been the case had we elected to wait until 2019, which is the final expiration of the original lease,” he said.

An Acrimonious Process

For some of the area's residents, an earlier-than-expected start might come as a blow. Despite Equity One's campaign to win over the community, there were some that stood fast in their objections. They maintained that the 1,200 new residents would swamp local schools and services in this small neighborhood. They also objected to urban vibe Equity One is trying to introduced in what has been a traditional suburban neighborhood.

The process, both sides might agree, has been marked with acrimony from start to finish and then boiled over when it became apparent in March that the council would approve the plan.

Last month, some 70 protesters greeted council representative Roger Berliner at the steps of the Montgomery County Council building with signs reading “Betrayed by The County Council” and “Dump Berliner”. As District 1 council member, Berliner represents the area and pushed, with success, for less density. As he said after the vote, he successfully got the number of residential units reduced by 50%, the size of the new shopping center by 40% and reduced the proposed height of the buildings next to existing single-family homes by 50%. He also made clear he didn't agree with the protesters' arguments, which he called “unsubstantiated rhetoric.”

To be sure, Equity One's does have several more hurdles ahead as Lukes indicated in his statement after the council's vote.

He also said as much to investors, despite the leverage that Giant's lease renewal gives it. “We found the process of working with the community extremely productive and we're hoping to have more clarity on the project's future for you in the coming months,” he said.

“This has been a long process, and we appreciate the time and hard work the community, planners and the Council have invested in updating the Westbard Sector Plan,” said CEO David Lukes.

A Lease Renewal

An Acrimonious Process

The process, both sides might agree, has been marked with acrimony from start to finish and then boiled over when it became apparent in March that the council would approve the plan.

To be sure, Equity One's does have several more hurdles ahead as Lukes indicated in his statement after the council's vote.

Instant Insights /

Equity One May Break Ground on Westbard Sooner Than Expected

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