CityCenterDC Breaks Ground

Construction began this week on six new buildings and a public plaza for the CityCenterDC Complex, a project that city officials say could cost $950 million and be one of the largest active developments on the East Coast according to the Washington Post The project is being 100% funded by equity financing with Qatari Diar Real Estate Investment Company as the anchor investor for the development. The financing was arranged by Barwa Bank’s investment banking subsidiary The First Investor. DC is leasing the property to Hines|Archstone for $500,000 annually over a 99-year period and expects to collect about $30 million annually in taxes according to the article.

Designed by Foster + Partners, CityCenterDC is a 10-acre, mixed-use development at the site of the old Convention Center in downtown Washington. The complex is expected to reach substantial completion by the fourth quarter of 2013. he first phase of the project, scheduled for completion in late 2013, is expected to include 185,000 square feet of retail, 458 rental apartments, 216 condominium units, 520,000 square feet of office and 1,555 parking spaces. A 350-room hotel and another 110,000 square feet of retail are planned for a second phase.

"This is one of the most valuable pieces of property in the world," said D.C. Council Chairman Kwame Brown. "It's going to create thousands of jobs and we have local equity participation, which means local business will own a piece of the development."

Mohammed Al Hedfa, CEO of Qatari Diar said, "We are delighted to provide the anchor investment in the TFI US Real Estate Fund. In conjunction with our co-investors and strategic partners, Hines|Archstone, we look forward to the realization of this landmark development."

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