The District of Columbia could take possession of the former Walter Reed Army Medical Center as early as next spring, when the city and the Army are planning to close on the sale of the 66-acre portion of the property slated to be redeveloped into a mix of residential, office and retail space.
The District will pay the Army $22.5 million and obtain the parcel through an economic development conveyance, under an agreement announced last week that does not include any revenue sharing, said Randall Clarke, the city’s LRA director. 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, said Jason Cross, LRA project manager. The balance will be due one year later.
Striking a deal on the property transfer took about a year, Cross told 360.
The District also reached an agreement on a 30-year ground lease with the developers — a joint venture of Hines Interests LP, Urban Atlantic and Triden. Revenue from eight years of lease payments will offset the site’s acquisition cost. The city will collect a 1 percent administrative fee when the development team sells individual parcels to homebuilders and other developers, Cross said.
The agreements with the Army and the development team mark an important milestone in the District’s effort to convert the Army hospital campus into more than 2,000 residential units, a town center, a hotel/conference center, office space and other uses, he said.
“We’re looking forward to the council’s review and approval of the transaction as quickly as possible to move forward with the acquisition of the property and development,” Cross said.