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DC-USA & Target Corporation
Construction Financing Closes for DC-USA

500,000 Square Feet Anchored by Target Underway
$149.5 Million for Urban Retail in Columbia Heights

Completion Scheduled for Early 2008
 
Washington, DC- (February 13, 2006) Mayor Anthony Williams announced today the closing of financing and the commencement of construction for DC USA, the largest retail development in the District of Columbia.

DC USA, a $149.5 million, 500,000 square foot pedestrian oriented complex with a 1,000 car below grade parking facility is being built on a 5-acre site at 14th and Irving Streets NW in Columbia Heights, approximately 2.5 miles north of the White House.
 
DC USA is being developed jointly by Grid Properties Inc and Gotham Organization Inc in conjunction with Joseph Searles III and the Development Corporation of Columbia Heights (DCCH).

The land has been acquired by the developers from RLA Revitalization Corporation (RLARC), a subsidiary of National Capital Revitalization Corporation (NCRC).
 
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Signed Leases
Anchor Tenants
Specialty Retailers
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      DC USA Sixty Percent Leased   Signed Leases
           
 

Local, Small & Minority Business Opportunities

Fifteen thousand square feet have been reserved for local and minority-owned businesses at below-market rates
 
For Local & Minority Leasing Information, contact the DCCH Business Development Office at 202-483-4986, or by email:
 

Neighborhood Jobs

1,000 Permanent Jobs
700 Construction Jobs

 
The three-level complex will be anchored by a 2-level 180,000 square foot Target store, its first in the District. Other anchor tenants with signed leases include Bed Bath & Beyond, Best Buy, Marshalls and Staples. There will also be a 40,000 square foot Washington Sports Club complete with a swimming pool and a regulation sized basketball court.
 
Smaller specialty retailers who have signed leases include Lane Bryant, Radio Shack, Caribou Coffee, The Vitamin Shoppe, Mattress Discounters, Quiznos, and Panda Express.
 
Now approximately 60% pre-leased, DC USA will also have fifteen thousand square feet of space leased to local and minority-owned businesses at below-market rates.
 
DC USA will generate significant economic benefits for the District of Columbia, generating approximately 1,000 permanent jobs and 700 construction jobs. "National retailers locating within the District means we can keep more jobs and sales taxes here," said Dr. Natwar M. Gandhi, the District of Columbia's Chief Financial Officer. "This means added tax revenue that can improve the lives of District residents."
Anchor Tenants
  Target
  Bed Bath & Beyond
  Best Buy
  Marshalls
  Staples
  Washington
Sports Club
   
Specialty Retailers
  Lane Bryant
  Radio Shack
  Caribou Coffee
  Vitamin Shoppe
  Mattress Discounters
  Quiznos
  Panda Express
   
           
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New DC
Tax Revenue

Mayor Anthony Williams projects that DC USA will generate more than $12 million per year in new tax revenue for the District of Columbia
 
 
Development Details
 
Design
 
The project design, by Bower Lewis Thrower Architects of Philadelphia, maximizes street level transparency and provides for an atrium lobby entrance on 14th Street for access to Target, Bed Bath & Beyond, Best Buy and Marshalls.

With 500 feet of frontage on both 14th Street and Irving Streets and 250 feet on Park Road, most retailers will have direct street access to their stores.
Upon completion, DC USA will be structured as a three unit condominium. Target will own its store, the Developers will own the remainder of the retail space and NCRC will own and operate the parking facility.

 
Financing
Financing for DC USA includes a conventional construction loan of $88.6 million provided by Citibank and $46.9 million of tax-exempt bonds issued by NCRC and purchased by Citibank. The bonds are being secured by a TIF note which pledges the District's additional sales and real estate tax revenue generated by the project to pay the debt service on the bonds. The Developer's equity investment constitutes the balance of funds required for the project.

The project involves an innovative combination of public and private financing. Citibank is providing a conventional construction loan of $88.6 million. NCRC is issuing tax exempt bonds in the amount of $46.5 million in order to purchase the parking facility from the Developer. The Developer’s equity investment constitutes the balance of funds required for the project.

The NCRC bonds are secured by a tax increment financing (TIF) note which pledges the District’s resulting additional sales and real estate tax revenue generated by the project to pay the debt service on the bonds. DC USA will generate more than $12 million in new tax revenue per year for the city.

The legislation for the TIF was originally introduced by DC Councilmember Jim Graham, whose steadfast commitment to the project has been a key to its movement through the legislative and administrative approval processes.

$39.35 million of the bond issue will be used to pay for the actual construction of the parking garage.  The remainder will be used to fund a Columbia Heights Small Business Assistance Program and pay for the costs of issuing the bonds.

Once the bonds are paid, revenue from garage operations will be retained by NCRC to support its economic development initiatives.  
Development
 
DC USA is being developed by the DC USA Operating Co, comprised of Grid Properties Inc, Gotham Organization Inc, Joseph Searles III (25% Minority Partner) and the Development Corporation of Columbia Heights (DCCH).

Grid Properties and Gotham Organization are well known for their development of Harlem USA, the retail and entertainment complex, opened in 2000, which is widely credited with jump-starting the resurgence of Harlem. Mr. Searles, the first black member of the New York Stock Exchange, has been a key member of the Harlem USA development team.

The land was acquired by the developers from RLA Revitalization Corporation (RLARC), a subsidiary of National Capital Revitalization Corporation (NCRC).


Clark Construction Group Inc and the Sherman R. Smoot Corporation of Washington D.C. are the general contractors. Leasing agents are Newmark, Knight, Frank.

Developers

Grid Properties Inc
Gotham Organization Inc
Joseph Searles III
Development Corporation
of Columbia Heights (DCCH)
 

Architects

Bower Lewis Thrower Architects
 

Financing

Citibank
 

Contractors

Clark Construction Group
Sherman R. Smoot Corp
 

Leasing Agents

Newmark, Knight, Frank
 

Media Contacts

Robin Dolch,
Jennifer Houston
TMGpr
212.750.5755
   
 
Grid and Gotham's Harlem USA
 
           
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Revitalization of Columbia Heights

   
           
 

DC Councilmember
Jim Graham

"DC USA realizes a long standing ambition to revitalize Columbia Heights as a vibrant retail destination.  As a community we are particularly delighted to welcome Target and the other committed tenants to the District of Columbia and Ward 1.”
 

 

DC Gov Chief Financial Officer Dr. Natwar Gandhi

“National retailers locating within the District means we can keep more jobs and sales taxes here. This means added tax revenue that can improve the lives of District residents."

 
DC USA, according to Councilmember Graham “realizes a long standing ambition to revitalize Columbia Heights as a vibrant retail destination. As a community we are particularly delighted to welcome Target and the other committed tenants to the District of Columbia and to Ward 1.”
 
Grid Properties and Gotham Organization are well known for their development of Harlem USA, the retail and entertainment complex opened in 2000 which is widely credited with jump starting the resurgence of Harlem.
 
DC USA is the centerpiece of efforts to transform the area immediately surrounding the Columbia Heights Metro station at 14th and Irving Streets. There are currently 600 residential units underway, the historic Tivoli Theater has been renovated and a Giant Food opened last Spring. "With its mix of national, regional and local retailers, DC USA proves that a neighborhood-based retail model works," said Anthony Freeman, President and CEO of NCRC. "DC USA helps Columbia Heights once again become a center of commerce: a place to live, work and shop.”
 
“For so many years people have had to go outside the District to do their shopping,“ according to Robert Moore, the President and CEO of Development Corporation of Columbia Heights, which has been working for over twenty years to revitalize Columbia Heights through the development of affordable housing, job training programs and local business initiatives.

“DC USA will not only bring high quality businesses to Columbia Heights, but will create good jobs for local residents and good business opportunities for local and minority businesses.” Moore confirms.

DCCH
President & CEO Robert Moore

"DC USA will not only bring high quality businesses to Columbia Heights, but it will create good jobs for local residents and good business opportunities for local and minority businesses.”
 

NCRC
President & CEO Anthony Freeman

 
"With its mix of national, regional and local retailers, DC USA proves that a neighborhood-based retail model works. DC USA helps Columbia Heights once again become a center of commerce: a place to live, work and shop.”

DC Mayor
Tony Williams

"The opening of a Target store and the critical mass of other strong tenants will make Columbia Heights a retail destination.”
           
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