WASHINGTON, DC-Groundbreaking began this morning on the long-stalled CityCenterDC, a development by Hines|Archstone. Its launch had been rumored for months - and technically construction began at the end of March - along with the news that equity financing had been secured for the $700 million project. Today at groundbreaking, the project’s anchor investor was announced: Qatari Diar Real Estate Investment Company, the real estate investment arm of the Qatari Investment Authority, is providing 100% of the project’s equity. The financing was put in place by Barwa Bank’s investment banking subsidiary The First Investor, which will co-invest in and manage the dedicated TFI U.S. Real Estate Fund.

It is not surprising Qatari Diar is the investor, Association of Foreign Investors in Real Estate CEO James A. Fetgatter tells GlobeSt.com. “They have been taking an active role in foreign investment in real estate lately, particularly in London where they have been fairly active.” In general, reports of foreign investors stepping up their activities in the US are starting to gain momentum. Some of these investments are coming in the form of joint ventures; others are via less-than-transparent vehicles, such as co-mingled funds, making it difficult to track just how much new capital is flowing into the U.S. from these funds.

CityCenter DC is a 10-acre, mixed use project on a parcel bounded by New York Ave., 9th, H and 11th Streets. It is expected to be almost complete by fourth quarter of 2013. The first phase of the project will include more than 185,000 square feet of retail situated at the base of six buildings that encompass 458 rental apartment units and 216 condominium units. There will also be 520,000 square feet of office space. The second phase of the project is planned to include a 350-room upscale hotel, along with 110,000 additional square feet of retail.