Case Studies
The case studies below represent a sample of our work and demonstrated results.
Client: District of Columbia Office of the Deputy Mayor for Planning and Economic Development
Real Property Site Due Diligence, Environmental Baseline Analysis, Valuation Analysis, Solicitation Support, Project Marketing, Developer Selection
THE SITUATION
The District of Columbia (the “District”) owned two aging public facilities, a library and fire station, located on separate parcels (“Square 37” and “Square 50”) in the city’s West End neighborhood. Unable to budget for new facilities during the significant economic downturn of the Great Recession, the District sought to utilize the value of the air rights of each site to deliver new public facilities as part of a larger public-private, mixed-use development project. The District, through the Office of the Deputy Mayor for Planning and Economic Development (DMPED), and in partnership with the District of Columbia Public Library (“DC Library”) and District of Columbia Fire and Emergency Medical Services Department (DC FEMS), sought a dynamic development partner that had the ability to work with DMPED to plan for two separate mixed-use development projects, each including a specific public facility important to the West End neighborhood.
ACTIONS & RESULTS
Member(s) of our team, while working for DMPED, managed the solicitation and selection process for the West End Parcels. After DMPED selected its development partner, EastBanc (the “Developer”), member(s) of our team successfully negotiated a partnership agreement between the District and the Developer. After the partnership agreement was executed, member(s) of our team played a key role in the entitlement process and in capitalizing the project, including securing public funding to offset the cost of developing affordable housing and to develop a temporary fire station. Both parcels broke ground in December 2014.
Client: District of Columbia Office of the Deputy Mayor for Planning and Economic Development
Technical Support, Reporting, Benchmarking, Issue Resolution, Financial Analysis
THE SITUATION
The District of Columbia (the “District”) sought to identify a development partner to redevelop approximately 27 -acres of land and 50- acres of riparian rights along the historic Washington Channel, which is part of the Potomac River. Located within walking distance of the U.S. Capitol, the Smithsonian, and several national monuments, the District had a vision of a world-class mixed-use waterfront neighborhood including restaurants, shops, hotels, public piers, and new cultural attractions.
The District, through the Office of the Deputy Mayor for Planning and Economic Development (“DMPED”), began the process for identifying a development partner in 2005.
ACTIONS & RESULTS
Member(s) of our team, while working at a previous firm hired by DMPED, effectively managed the solicitation and developer evaluation/selection process for the Southwest Waterfront redevelopment. Once a development partner was identified and selected by the District, member(s) of our team, while working for DMPED, assisted in the negotiation of a partnership agreement between the District and Hoffman-Madison Waterfront, LLC, the developer. The partnership agreement outlined a mixed-use project of approximately 3.14M Gross Square Feet (GSF); including for-sale residential, rental residential, hotel, retail, class-A office, and cultural uses.
Additionally, member(s) of our team assisted in the negotiation of a public financing agreement, in which the District agreed to utilize Payment-In-Lieu-Of-Taxes (PILOT) and Tax Increment Financing (TIF) mechanisms to fund approximately $200M in public infrastructure.
The first phase of the project broke ground in June of 2014 and delivered in October of 2017. Design and entitlements are being finalized for the second phase.
Client: District of Columbia Office of the Deputy Mayor for Planning and Economic Development
Strategic Support, Transaction Assistance, Project and Portfolio Management Oversight
THE SITUATION
The District of Columbia (the “District”) owned approximately 7 acres of air rights above I-395 in the city’s growing East End submarket. A prior attempt to enter into a partnership to develop the air rights had failed and left the District with a financial judgement against it. While appealing the judgement, the District, through the Office of the Deputy Mayor for Planning and Economic Development (DMPED), sought to find a way to push the development of the air rights forward with a new development partner.
ACTIONS & RESULTS
Member(s) of our team, while working for DMPED, effectively navigated the complex legal and financial issues of the existing lawsuit and negotiated a new partnership agreement with the District’s new development partner, Property Group Partners, LLC. The partnership agreement outlined a mixed-use development plan to redevelop the land and air rights above and adjacent to the Center Leg Freeway (I-395). The project is approximately 2.2M Gross Square Feet (GSF), with approximately 180K GSF planned for residential, approximately 75K GSF for retail, and the remainder slated for trophy, Class-A office space. The entire project, including the platform, will be a national leader in sustainability design.
Concurrent with negotiations, member(s) of our team sought and received approval from the U.S. Department of Transportation to execute the partnership agreement between the District and Property Group Partners. The agreement was required because the development was occurring over a highway. All approvals, both local and federal, were received and the project broke ground in May of 2015.
The project is multi-phased master and will remove the very visible scar of the sunken I-395 corridor in the District’s downtown. The project will re-knit the growing East End submarket with the NOMA/Capitol Hill submarket. It will attract new residents to downtown and generate much needed tax revenues from a site that has long generated no benefit to the District.
Client: District of Columbia Office of the Deputy Mayor for Planning and Economic Development
Capital Investment Planning, Data Validation, Project Prioritization
THE SITUATION
After the demolition of the city’s old convention center, the District of Columbia (the “District”) controlled a vacant 10-acre site located in the city’s downtown submarket. The site’s central location, in close proximity to two of the District’s busiest Metro stations and the newly-developed Walter E. Washington Convention Center, presented the District with an opportunity to fundamentally change its downtown core from a traditional office-only submarket to a more dynamic mixed-use area with housing, retail, office, and publicly-programmed open space. The District, through the Office of the Deputy Mayor for Planning and Economic Development (DMPED), sought a development partner that shared its vision to change Washington, DC’s downtown into a vibrant mixed-use community.
ACTIONS & RESULTS
Member(s) of our team, while working for DMPED, negotiated a partnership agreement with the District’s selected development partner, Hines. The partnership agreement outlined a mixed-use development plan to redevelop the site in two phases. In addition to being responsible for partnership negotiations, team members assisted Hines in the planning and entitlement process, as well as the capitalizing the project with the single largest foreign direct investment in city history.
The project is approximately 2.5M Gross Square Feet (GSF).
- Phase 1 included 522K GSF of office space, 191K GSF of retail, 458 units of residential rental, 216 units of for-sale residential, a new public park, and a central plaza. Phase 1 broke ground in April of 2011 and delivered in early 2014.
- Phase II includes a 360-key luxury hotel and 30,000 GSF of retail. It broke ground in June of 2016 and is expected to open in early 2019.
- A third phase, controlled by a separate development entity, calls for an additional 500,000 GSF of office and 40,000 GSF of retail.
