650,000-SF Mixed-Use Project Takes Shape on Capitol Riverfront

WASHINGTON, DC-Skanska USA Commercial Development and Grosvenor Americas both liked the potential of the stretch of block on the Capitol Riverfront that runs between M and N streets and is fronted by First Street. So they decided to cooperate—but not partner—on complementary projects there that will eventually result in a 650,000-square foot mixed-use project. “This is not a JV,” Rob Ward, president and regional manager of Skanska USA, tells GlobeSt.com. “Rather it's collaborating neighbors buying adjacent parcels at the same time.”

So, Skanska is developing an 11-story, 224,000-square-foot office building that will be designed to LEED Platinum standards and of which Skanska will be the sole owner. For its part, Grosvenor is developing a 170-key hotel, two residential buildings with 285 units, 23 of which will be affordable dwelling units, and 43,000 square feet of retail space on the ground level of the office, hotel, and residential buildings, as well as in a separate two-level structure that will be on the corner of 1st and N streets. The two companies are collaborating on design and construction elements, Ward says.

The plan received approval at the start of the month by the DC Zoning Commission with minor modifications. Final approval is expected later in the month. The developers also have the support of Advisory Neighborhood Commission 6D. Specifically, the site, which offers direct access to Metrorail’s Navy Yard station, consists of the eastern half of Square 701, bounded by N street, SE to the south, M street on the north, 1st street on the east, and Cushing Place on the west. The office building will be located on the northern end of the site fronting M Street. The hotel will be directly south of the office building fronting First Street. The two residential assets will be separated by a courtyard and connected by a trellised glass bridge.

Development costs are not yet set, Ward says, largely because the design phase is still underway. The company just acquired its land parcel this week, he adds, “and now we're moving full speed on the design. We're looking at a number of scenarios.”

For that reason Skanska, which is known for self-financing projects, is still uncertain whether this will be a spec project or the company will wait for pre-leasing activity. “We expect we'll start having those discussions at the middle of next year,” he says. Grosvenor was unable to return a call to GlobeSt.com in time for publication.