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Description:
Washington Gateway is a planned 412,550-sq.-ft. destination retail center to be located on New York Avenue at South Dakota Avenue on the southern edge of Ft. Lincoln New Town, a 176-acre mixed-use development. Tenants will include Costco (151,700 sq. ft.), Shoppers Food Warehouse (67,500 sq. ft.), Staples and Target (123,735 sq. ft.). The Peterson Companies will development the retail component of Ft. Lincoln to include a mix of neighborhood and regional retailers, restaurants and other service providers. Plans call for approximately 2,000 parking spaces and for the retail portion to be completed in 2009. The RLA Revitalization Corporation (RLARC), a subsidiary of the National Capital Revitalization Corporation (NCRC), a publicly chartered development company committed to spurring economic development throughout neighborhoods of the District of Columbia, is charged with the disposition of the site to Fort Lincoln New Town/Washington Gateway, LLC.

Development Team
Developer(s): Washington Gateway LLC , Peterson Companies , Fort Lincoln New Town Corporation
Architect(s):
Construction Type
Type: New Construction

Components
Retail Sq. Ft: 412,550
Parking Spaces: 2,100
Construction Status:
Status: Planned
Expected Groundbreaking: 04/2008
Targeted Delivery: 06/2009
Enterprise Zone:
Primary

Data last updated: 08/25/06What's new in D.C.?

Washington Gateway is a highly visible 42-acre site located on New York Avenue, just inside the District of Columbia. The project is easily accessible from points in D.C. and Prince George's county. Planned uses include a Warehouse Club, a Grocery Store, Full Service Restaurants, a Bank, and a mix of Hard and Soft Goods Retailers.
Project Facts:
Land Area: 42 acres
GLA: 390,000 sq.ft.
Parking: 2,000 all-surface spaces.
Location: New York Avenue (Rt.50) and South Dakota Avenue, just inside the District of Columbia.
Construction Timing: Groundbreaking – 2007
Opening - 2008
2004 TRADE AREA
POPULATION: 281,800
HOUSEHOLDS: 117,539
AVERAGE HH INCOME: $53,196
MEDIAN HH INCOME: $40,482

ADT TRAFFIC
135,000
(New York Ave, Rt. 50)

50,000
(South Dakota Ave and 33rd Pl)


Center will break ground in summer, 2007, delivery in 2008.
Project of NCRC DC.
http://wdcep.com/

Costco - 151,700
Target 123, 775
Staples - 28,000 (?)
Shoppers 67,000
two pad restaurants - 8,000 each
bank pad site 2,750
additional 15,000 of retail - attached to Shoppers

adjacent to Pulte's Dakota Crossings project - 209 luxury townhomes

article from 2003
Washington Gateway makes headway
Washington Business Journal -
by Eleni Kretikos
Staff Reporter

Shoppers Food Warehouse and Staples are negotiating letters of intent for the Washington Gateway project, a giant step forward for retail-starved Northeast D.C.

Meanwhile, wholesale club operator Costco continues lease negotiations on the site, which is bounded by New York Avenue, South Dakota Avenue and 33rd Place, near the entrance to the Baltimore-Washington Parkway.


Fairfax-based Peterson Cos. is developing the 40-acre site along with private developer Fort Lincoln Newtown. Peterson is a prolific suburban retail developer; Washington Gateway would be its first retail development in D.C.

The 350,000- to 400,000-square-foot power center could break ground this fall and be completed in late 2005. With the three potential tenants, the project would be about two-thirds committed, says Paul Weinschenk, vice president of retail at Peterson (www.petersoncos.com).

Once those deals are worked out, attention will turn to signing a couple of retail stores in the 15,000- to 20,000-square-foot range, filling 30,000 to 40,000 square feet more in smaller shop space and landing up to four restaurants.

"We're getting there," Weinschenk says. "We're telling a story to the retailers, and helping to educate them about the market and letting them know there is income to be spent."

The average household income in Northeast is $56,000 a year. And about 135,000 vehicles a day pass the site on New York Avenue and 50,000 a day pass along South Dakota Avenue.

"If it's designed correctly and managed correctly -- and the mix is set up properly -- these centers [in lower-income areas] are very successful ... ," says Gary Rappaport, president of The Rappaport Cos. (www.rappaportco.com) in McLean.

He should know. Rappaport bought the 300,000-square-foot Penn Mar Shopping Center in Prince George's County about seven years ago. He's since added 100,000 square feet with tenants such as Shoppers Food, Starbucks and Marshalls.

"Today, we're sitting there with half a dozen retailers who want to be there with Target across the street," he says.

The same kind of successes could lie ahead for Washington Gateway.

"That is a very underserved marketplace," says retail broker Richard Lake, a principal at Madison Retail Group (www.madisonretailgroup.com). "Those folks have been forced to go outside the city for goods and services."

In 2001, Peterson signed a deal with Fort Lincoln Newtown, which holds development rights for the site. Before that, Fort Lincoln had tried for eight years to develop the site. Federal Realty Investment Trust also took a stab at it, as did Trammell Crow.

Though it can sometimes be a challenge to convince retailers of a market's viability, Lake says, "once they get into that density with a captive audience, it's incredible the volumes they do."

article from 2004
Developers at the gate for Costco-anchored center
Washington Business Journal -
by Eleni Kretikos
Senior Staff Reporter

Developers are pushing to break ground this year on Washington Gateway, a $58 million shopping center in Northeast D.C. that would bring Costco to the District.

But first, they have a few important issues to hammer out with the city.
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In December, the D.C. Council approved $10 million in tax-increment financing for the 390,000-square-foot shopping center, which is bounded by New York and South Dakota avenues and 33rd Place, near the entrance to the Baltimore-Washington Parkway.

Now the developers and the city are working on the development agreement, a process that could be completed in the next 45 days.

Washington Gateway is envisioned as the commercial center of the Fort Lincoln area. Development is planned on all but about 40 of its 265 acres, but that's likely to change soon.

"It's now a matter of the deals coming to fruition," says Tony Freeman, chief executive of the National Capital Revitalization Corp. (www.ncrcdc.com), which is overseeing the development in Fort Lincoln.

Freeman says he's looking for preliminary site and infrastructure work on Washington Gateway to begin later this year. If that happens, retailers are expected to start opening in late 2006 and into 2007.

Fairfax-based Peterson Cos. (www.petersoncos.com) is developing the 43-acre site with private developer Fort Lincoln Newtown, which holds the development rights.

It's been a long time in coming. Before 2001, D.C.-based Fort Lincoln Newtown had tried for eight years to develop the site. Federal Realty Investment Trust also took a stab at it, as did Trammell Crow Co. So far, Peterson's formula seems to be working.

In addition to Costco, which is expected to generate annual revenue of $250 million, Shoppers Food Warehouse and Staples have signed letters of intent for Washington Gateway. There are also free-standing sites for two sit-down restaurants.

Along with the much-needed retail stores, Fort Lincoln is likely to see residential development in the near future.

In August, Pulte Homes, Fort Lincoln Newtown and the Concordia Group are projected to break ground on 209 three-level townhouses marketed to moderate-income buyers; most will be priced below $300,000. And a nonprofit, trying to pin down its financing options, has proposed a high-rise senior housing complex close by.

Photos:

Maps:

Landmark Events Affecting Shoppe, Port Towns Area Retail, popular places, Port Towns Area RE Development

Tags:

staples , shopping center , big box center , target , shoppers , peterson , grocery ncrcdc , costco , pulte , fort lincoln , washington gateway , south dakota avenue , national capital revitalization corp.