Douglas Development is moving forward with plans for a mixed-use project at 501 H Street NE (map) and hopes to break ground in the first quarter of 2015.

“If I broke ground in 12 months, I’d be very happy,” said Douglas’ Paul Millstein on Wednesday prior to presenting the project to the ANC 6C planning and zoning committee meeting. Millstein added that the project would take roughly 12 months to build, putting its delivery in the first quarter of 2016.

Douglas is proceeding with a Planned Unit Development (PUD) request for the Zoning Commission, which generally gives developers more zoning flexibility in designing mixed-use projects.

The original plan for the development called for 32 units, but that number could be reduced to make room for a few bigger apartments in the building. In talking with some of the project’s neighbors at community meetings, Millstein said, “quite a few families up in the Capitol Hill area want to stay in the city, aren’t ready to buy a home, need two-bedrooms or three-bedrooms, and there’s not that much product.”

The finished product will also include three floors of retail: one below-grade, another at ground level and a third above-grade. Together, the space will comprise 28,000 square feet, which Millstein said will be structured in as flexible a way as possible — meaning several tenants may ultimately end up in the building. Douglas had previously floated something “like” a Crate & Barrel or a Forever 21 for the space, but Millstein clarified on Wednesday that the developers are really just seeking tenants comfortable with multi-level layouts.