WASHINGTON, DC—Yesterday GlobeSt.com reported that a start-up company called Lima Hotels announced it would build a 14-story hotel at 317 K St., NW, on the corner of 4th and K streets. The company is headed by developer Habte Sequar, whose focus to date in the area has been on condos. GlobeSt.com spoke with Sequar about the project's timeline -- and the reason behind it curious hybrid structure.
Lima Hotels just filed the application for zoning variance, Sequar says. Also, the land is under contract. Once those two steps are complete -- likely within four to five months -- then the company will zero in on a flag and a management company.
Ground breaking should happen in 2016, about eight to nine months from now, he said.
Construction costs are anticipated to be $60 million to $70 million, which will be financed.
Again, though, Lima Hotels must get through the zoning process first, which brings us to the mix of uses in the proposal. The building will be a high-rise property, with 200 hotel rooms through the 11th floors and 30 apartments on the 12th through 14th floors.
One might wonder if Sequar has hit on some innovative project ROI that combines two separate income streams, but no -- actually, he laughs a bit at the question. "I'm not trying to be smart here," he says. "That is what we came up with in response to a zoning issue. There is a limit to how much commercial and residential use there can be here."
Also, the project is not unique to DC although it is very rare.
One of the last projects the DC Council approved in 2014 was the long-stalled project Peebles Corp. wanted to build at 5th and Eye streets, NW. It is a 198-key Standard International Hotel, with 7,600 square feet of retail on the ground floor -- and 59 condos. It is partnering with MacFarlane Partners and the Walker Group for the project, which will be located at 901 5th St., NW.
As part of the deal, Peebles also agreed to develop workforce housing east of the Anacostia River and two parks, Milian Park and Seaton Park, into recreation areas.
We'll see what Lima Hotels has to do.
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