After a 2006 plan to move Washington, D.C., police headquarters to the former newspaper printing plant at 225 Virginia Ave. SE fell through, the city faced the dilemma of what to do with an unfinished, unoccupied building costing taxpayers $6.5 million in rent annually.
After purchasing the 404,000 square-foot property, which had sat unoccupied since 1988, the District entered into a 20-year public-private partnership with developer StonebridgeCarras, LLC to redevelop the site into space it could use to house the city’s agencies.
Upon compleation, the project allowed the city to upgrade the three agencies from their existing, aging offices into double LEED Platinum space for a period of 20 years, at almost identical leasing costs and at the conclusion of the 20-year lease, the valuable property and its improvements will revert to the District.
The city and the developer agreed to a lease and financing structure that enabled risk sharing between both parties. The developer arranged for the construction and permanent financing of the improvements so the District could avoid having to access the bond market to issues additional debt necessary to fund the project. In return, the District agreed to provisions that made the loan more attractive to private capital.
The 200 Eye Street project – the building’s new name following a rebranding – successfully leveraged private investment, development, and construction expertise with the District’s strong credit rating to unlock underutilized infrastructure for the District.
In recognition of the projects long-term value, NCPPP is awarding the 2014 National Public-Private Partnership Infrastructure Project Award to the District of Columbia – Department of General Services, StonebridgeCarras, LLC, and Bostonia Partners LLC for their work on redeveloping 200 Eye Street SE (formerly known as 225 Virginia Ave.).