Shovel-Ready for 2010: CityCenter?

With the economy slowing real estate development (just a touch), developers are finding themselves on the defensive about projects in the planning stage. A skeptical public might think it a case of protesting too much, but promoters seem compelled to assuage public doubt while struggling to convince once-bitten investors. Case in point, the rumor mill was rife recently with reports that Archstone and Hines Interests’ redevelopment of the old Convention Center - the important and hugely visible CityCenter – was being taken off the table. Not so, says Ken Miller, a Senior Vice President at Archstone. In fact, despite issues with financing and retail partnering, according to Miller, DC might just be seeing the project sooner than cynics expect.

"We are within a year of breaking ground," said Miller. "We are continuously meeting and speaking with retailers that expressed interest."

And yet the project has missed several projected groundbreakings since the developers' first estimate of a groundbreaking by last January, and despite numerous assurances that the delay isn't affecting retail interest in CityCenter, no major retailers have been announced. The multi-phase, mixed-use development will commandeer 10-acres of vacant downtown property to eventually realize 400,000 square feet of retail space, more than a million square feet of office space, 670 residential units and a 400-room “high-end” hotel with its own 100,000 square foot retail plaza, under a 99 year lease from the city. It may sound a little on the ambitious side, but Archstone claims they have more than enough time – and resources – to see it through.

"At this point in time, we still have months to complete our construction documents and get our final permits and entitlements. We’re busy meeting with potential investors and banks that have expressed interest,” said Miller. “By year’s end, even though we’re in a challenging state with capital markets, we’ll be able to get the financing lined up and be able to break ground.”

The last time DCmud reported on the status of CityCenter last September, a Hines representative relayed that the project was “85% ready to go” and that the development team would seek a general contractor “in the next few weeks.” Though neither has yet transpired, there was recently one sign that wheels are again turning after a dour Spring; on April 28th, the development team met with potential contractors at a pre-bid "requirement conference."

The District Government swapped land in 2007 with Kingdon Gould, who gave up land on the site of the future Convention Center Marriott to get the northeast parcel of CityCenter from the District government (labeled 'District Parcel' in the rendering). Gould will be developing his land separately, but has also not committed in time or in scope, nor has the much discussed Convention Center Marriott broken ground yet.