Hot off the press: Donald and Ivanka Trump have signed a 60-year lease for the Old Post Office, which will be redeveloped into a 275-room luxury hotel. The deal culminates a 27-month process that began with the U.S. General Services Administration (GSA) issuing a request for proposals (RFP) to have a private partner restore the 113-year-old historic landmark. Construction could begin in the first quarter of 2014, with an opening date in late 2015 or early 2016.
All told, the Trump International Hotel will create 500 construction jobs and 500 permanent positions once it opens. It will join the Newseum (555 Pennsylvania Avenue), Central Michel Richard restaurant (1001 Pennsylvania Avenue) and Café du Parc (1401 Pennsylvania Avenue) as a vibrant addition to America’s Main Street.
Leasing the property is a huge win for Downtown, D.C. and American taxpayers. Several members of Congress, including DC Delegate Eleanor Holmes Norton—a longtime champion of redeveloping the 400,000-square-foot Old Post Office and the adjacent vacant pavilion—were anxious to move the property forward. The property reportedly loses more than $5 million annually because of underutilized space, low retail rents and high operating costs.
In addition to the hotel, a museum will be built at the site. The museum will include a story about the popular, 315-foot clock tower, which will remain open to the public and continue to be operated by the National Park Service (NPS) once the project is completed.
The Trumps will not be using equity partners on this deal, preferring to hold the property for the long term, according to Capital Business. The paper quoted Ivanka Trump as saying “the deal is exactly what the deal was that we proposed in the RFP,” which included creating retail and cafe space with outdoor seating on C Street and on Pennsylvania Avenue.
The DowntownDC BID was a consulting partner with the GSA through the Section 106 process and, therefore, was involved with meetings concerning the project.