D.C. United Stadium Deal Undervalues Reeves Center, Overvalues Buzzard Point

by Lark Turner


The District is spending about $25.7 million too much on a land-swap deal to build a new stadium for D.C. United, according to a report released Wednesday.

The report, a cost-benefit analysis of the 2014 Soccer Stadium Development Act, was commissioned by the D.C. Council. The Act outlined an agreement to trade land at Buzzard Point, the planned site of the new stadium, for the Frank D. Reeves Center at 14th and U Streets NW, one of the most sought-after city-owned properties in the city.

As described by the report, the deal is “a series of land exchanges” in which D.C. would get the Buzzard Point property and lease it to D.C. United. The team would then build the stadium and develop other parts of the property, including a planned hotel. In addition to being home base for D.C. United, the stadium would also host exhibition games, concerts, and other events. As part of the deal, the Reeves Center would be exchanged with developer Akridge, which would lease it back to D.C. for three years. After that, the company plans to demolish the building and construct a mixed-use project redeveloping the site with office, retail, housing, parking and a farmer’s market.

The cost of the proposed stadium is estimated at $286.7 million, of which the D.C. government would commit to contributing $131.1 million. The report notes that the price would make the new arena the most expensive professional soccer stadium in the U.S.

The report concludes that “the proposed agreements overvalue property to be acquired for the stadium by at least $19.4 million and undervalue the Reeves Center by $11.2 million. After a committed contribution of $4.9 million from D.C. United and Akridge, the net overpayment is estimated to be approximately $25.7 million. Using eminent domain to acquire these properties could result in lower acquisition prices, but there are also costs associated with the condemnation process.”

But it notes that the stadium would likely generated $2.6 billion from 2015-2046. Over the 32-year period, the report suggests that benefits would exceed the costs of the stadium by about $110 million as well as significantly speed up development in the Buzzard Point neighborhood.

See other articles related to: stadium, reeves center, dc united, city council

This article originally published at https://dc.urbanturf.com/articles/blog/council_report_stadium_deal_undervalues_reeves_center_overvalues_buzzard_po/9190

1 Comment

  1. AbD said at 7:08 am on Thursday November 6, 2014:

    Does the analysis take into account the development restrictions being put on the Reeves center? Ie DC won’t let the developers build luxury condos there (the best and highest use); they are going to require that a portion be office and affordable housing,  and they may require that low value retail remain (like the post office). This would reduce the sale/attributable value of the Reeves Center (but provide other sources of value to the District).

Comments are closed.

DC Real Estate Guides

Short guides to navigating the DC-area real estate market

We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!

Northern Virginia

Profiles of 14 neighborhoods across Northern Virginia

Looking to Give People A Reason to Stay Past 6pm
Happily Straddling the Line Between City and Suburb
Columbia Pike
Arlington’s Neglected Stepchild is Getting a Makeover
Crystal City
Turning Lemons into Lemonade
Lyon Village
Developing An Air of Exclusivity?
Hitting Its Growth Spurt
An Urban Village Hitting Its Stride
Del Ray
Virginia’s Small Town Near the Big City
Eisenhower Avenue
The Vibrancy Might Take a Few Years
The Quiet Neighborhood By the Beltway
Old Town
Mayberry By The Potomac
132 Commerical-Free Acres
Downtown Falls Church
Staying the Same in the Midst of Change
Tysons Corner
Radical Change Could Be On The Way

See more Northern Virginia »


Profiles of 14 neighborhoods in suburban Maryland

Small-Town Living in the State Capital
Bedroom Community Gets Buzzing Cache
Cabin John
In With The New While Maintaining the Old
Chevy Chase
Affluence, Green Lawns and Pricey Homes
Downtown Silver Spring
Experiencing a Resurgence After a Bumpy History
A Suburb on Steroids
Rockville Town Square
Despite the Dynamism, Still Somewhat Generic
Takoma Park
More Than a Little Bit Quirky
A Foodie Magnet on the Verge of Change
Capitol Heights
Kudzu, Front Porches and Crime
Glass Half Full or Half Empty?
Mount Rainier
Artists, Affordable Homes and A Silo Full of Corn
National Harbor
A Development Rises Next to the Potomac
Riverdale Park
A Town Looking For Its Identity

See more Maryland »

Northwest DC

30+ neighborhood profiles for the city's biggest quadrant

16th Street Heights
DC's Sleeper Neighborhood
Where (Almost) Everyone Knows Your Name
AU Park
One of DC’s Last Frontiers Before the Suburbs
DC’s Northern Neighborhood on the Cusp
DC’s 535 House Neighborhood
Cathedral Heights
Do You Know Where That Is?
Chevy Chase DC
Not to Be Confused With the Other Chevy Chase
Cleveland Park
Coming Back After A Rough Year
Columbia Heights
DC’s Most Diverse Neighborhood, But For How Long?
An Island of Serenity East of the Park
Dupont Circle
The Best of DC (For a Price)
Foggy Bottom & West End
Where the Institutional Meets the International
Forest Hills
Ambassadors and Adventurous Architecture
Foxhall Village
350 Homes Just West of Georgetown
Friendship Heights
A Shopping Mecca With a Few Places to Live
History, Hoyas and H&M
Glover Park
One of DC’s Preppier and More Family-Friendly Neighborhoods
A Posh View From Embassy Row
LeDroit Park
A Quiet Enclave in the Middle of the City
Logan Circle
Trendy Now, But Not By Accident
Mount Pleasant
Sought-After Homes Surround Main Street in Transition
Mount Vernon Triangle
From Seedy to Sought-After
The Long, Skinny Neighborhood at the City’s Northwest Edge
Park View
It’s Not Petworth
Penn Quarter/Chinatown
DC’s Go-Go-Go Neighborhood
Getting a Vibrancy of Its Own
The Duke’s Former Stomping Ground
Shepherd Park
DC’s Garden of Diversity
Spring Valley
A Suburb With a DC Zip Code
Not To Be Confused With Takoma Park
Not Quite Like Its Neighbors
U Street Corridor
The Difference a Decade Makes
Woodley Park
Deceptively Residential
Adams Morgan
No Longer DC’s Hippest Neighborhood, But Still Loved by Residents

See more Northwest DC »

Southwest DC

The little quadrant that could

Southwest Waterfront
A Neighborhood Where A Change Is Gonna Come

See more Southwest DC »

Northeast DC

Profiles of 10 neighborhoods in NE

New Development Could Shake Up Pastoral Peace
A Little Bit of Country Just Inside the District’s Borders
Not to Be Confused With Bloomingdale
Fort Totten
Five Years Could Make a Big Difference
H Street
A Place To Party, and To Settle Down
The Northeast Neighborhood That Few Know About
Michigan Park
A Newsletter-On-Your-Doorstep Community
Evolving from a Brand to a Neighborhood
Ripe for Investment Right About Now
The Difference 5 Years Makes
Big Houses, A Dusty Commercial Strip and Potential

See more Northeast DC »

Southeast DC

6 neighborhoods from Capitol Hill to East of the River

Capitol Riverfront
Still Growing
Hill East
Capitol Hill’s Lesser Known Neighbor
Congress Heights
Gradually Rising
Notable for Its Neighborliness
Historic Anacostia
Future Promise Breeds Cautious Optimism
Eastern Market
A More European Way of Living

See more Southeast DC »

Upcoming Seminars ▾