The District of Columbia is slated to take ownership of 66 acres of the former Walter Reed Army Medical Center by the end of the month, marking a critical milestone in the effort to redevelop the property into a mix of residential, office and retail space over the coming decades.
A 10-day review of the transfer agreement by the D.C. Council ends July 10. If no action is taken to stop the purchase, it will be considered approved without a vote, reported the Washington Business Journal.
The District will pay the Army $22.5 million and obtain the parcel through an economic development conveyance, under an agreement announced last November. The first payment of $10 million will be due at closing and will come from the District’s coffers as well as the city’s master development team. The balance will be due one year later. The deal does not include any revenue sharing.
After closing, the city will lease the site to its master developers — a joint venture of Hines Interests LP, Urban Atlantic and Triden Development Group. Revenue from eight years of lease payments will offset the site’s acquisition cost.
The reuse plan for the project, the Parks at Walter Reed, calls for 2,100 housing units (432 affordable), 250,000 square feet of retail anchored by a large-format supermarket, 14 acres of open space, a Hyatt hotel and conference center, space for arts organizations, an ambulatory care clinic from Howard University, and an innovation core anchored by George Washington University and the Massachusetts Institute of Technology.
The Army already has handed over about 33 acres of the 110-acre campus to the State Department for the development of a foreign missions center, according to the story. Much of the remaining property will be conveyed to Children’s National Medical Center.