The District of Columbia will pay the Army $22.5 million for 66 acres at the former Walter Reed Army Medical Center, according to an agreement Mayor Muriel Bowser submitted to the D.C. Council.
The deal follows lengthy negotiations between the District and the Army, and paves the way for site work to begin at the site in northwest Washington, reported the Washington Business Journal. The reuse plan for the mixed-use project, the Parks at Walter Reed, calls for the construction of 3.1 million square feet of residential, office and retail space over two decades. The remaining 44 acres of the Walter Reed campus will be transferred to the State Department.
The city government also reached agreement with its master development team — a joint venture of Hines Interests LP, Urban Atlantic and Triden — on a long-term lease that will generate $25 million over eight years, offsetting the site’s acquisition cost.
On Wednesday, Bowser and other city officials held a groundbreaking ceremony for a $12 million fire station that will serve the former hospital campus. The fire house marks the first significant development to begin on the site.
The reuse project is slated for 2,100 residential units, including 432 affordable units; two charter schools; a town center with a large-format grocery store; 185,000 square feet of office space; a non-emergency ambulatory care clinic from Howard University; housing for homeless veterans and seniors; and 14 acres of open space. It will include a commercial area focused on bioscience and health, and a hotel/conference center in the historic Walter Reed hospital, according to the story.
The project will begin with the demolition of the main hospital building; residential construction will begin within three years.