(rshsdepot) Union Station-Washington, DC

[Bernie Wagenblast <brwagenblast_@_comcast.net>]

Union Station site a go

Akridge said to have won rights to develop prime D.C. parcel

Suzanne White   Staff Reporter - Washington Business Journal

The John Akridge Cos. has been chosen to develop about 15 acres over
Amtrak's rail tracks at Union Station, according to a government source.

The General Services Administration awarded Washington Bell, an Akridge
affiliate, air rights July 12 after it submitted the highest offer of $10
million. Akridge beat out Louis Dreyfus Property Group, which also submitted
a bid in May.

John Akridge Cos. would not confirm that it was selected by GSA.

"We are in discussions but nothing has been finalized," says Shannon Small,
a spokeswoman for Akridge (http://www.akridge.com).

GSA expects to close on the sale in early to mid-September, meeting a Sept.
30 deadline set by Congress.

The federal government obtained the site from Amtrak after one of its
bailouts of the railroad. In 1997, Congress asked that GSA sell the property
at fair market value, depositing the proceeds in the general fund by the end
of fiscal 2002.

D.C.-based Akridge is no stranger to large-scale development projects
downtown. It is among the most prolific developers in the District, with
projects such as Gallery Place in Chinatown and the 270,000-square-foot
speculative office building at 1201 Eye St. NW, leased this year by the
National Park Service.

Considering the demand for large chunks of office space, the health of the
residential market and the prospect of a Major League Baseball team and the
Olympics, there might not have been a better time for GSA to sell the space.

The site stretches from the north side of Union Station to K Street NE, not
including the H Street bridge. This is the last infill development
opportunity abutting Union Station.

Nearby, two federal agency headquarters are under construction on either
side of H Street: the Bureau of Alcohol, Tobacco and Firearms to the north,
and the Securities and Exchange Commission to the south.

It is estimated that a 1.1 million- to 3 million-square-foot building could
fit on the site. Although it's a prime location, development is quite
complex and the expense will be great.

Development must start at least 40 feet above the tracks, and there must not
be any interruption in Amtrak's business. Price estimates for site
preparation alone have been staggering, ranging from $70 million to $100
million.

In the mid-1990s, the Amtrak air-rights site was considered for the new
Washington Convention Center, now under construction seven blocks to the
west.

Earlier this year, Bobby Goldwater, president of the D.C. Sports &
Entertainment Commission, said the site was too small for a baseball stadium
but would be great for a field house, theaters or parking for the Olympics.

D.C. officials saw potential in the site as well - and even considered
bidding for it - but they couldn't put a proposal together in time for the
May deadline.

E-MAIL: slwhite_@_bizjournals.com PHONE: 703/816-0331


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The Railroad Station Historical Society maintains a database of existing
railroad structures at: http://www.rrshs.org

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