Zoning Change to Bring Hotel and 150 Residences to Capitol Crossing

• April 17th 2019

by Nena Perry-Brown

There has been a change in course for two of the buildings central to Capitol Crossing. 

Property Group Partners (PGP) has applied to seek flexibility for the use of an approved office-over-retail building on the center block of Capitol Crossing, requesting that the retail be topped with either office, hotel or college education use instead. The Capitol Crossing development has begun delivering almost two million square feet of office space and 62,687 square feet of commercial space above the Center Leg Freeway at the intersections of Massachusetts Avenue, 2nd Street and E Street NW (map). 

This week, PGP also withdrew the application to convert a planned residential building into a hotel, an application which was tied to the developer's commitment to finance an all-affordable residential project in Southwest.

"The Applicant has recently learned that timing for development of the 1530 First Street project is later than initially anticipated," the application states. "Thus, because occupancy of the proposed hotel building would be conditioned on occupancy of the 1530 First Street building (for which the Applicant has no control), the modification request to the Residential Building is no longer feasible." It is unclear whether or how this shift in tactics will affect development of the First Street SW project.

In the meantime, PGP will move forward with the previously-approved 150-unit residential-over-retail building, and is seeking the option of dropping office in the center block.

"Property Group Partners has decided to continue with the originally planned and approved residential component of Capitol Crossing, which includes delivering at least 50 affordable housing units in the center block portion of our project," PGP said in a statement to UrbanTurf. "This course of action allows delivery of affordable housing units to the city in the most efficient and timely manner. PGP has also decided to construct a hotel on the center block that was initially intended for office use. A hotel is an important amenity for Capitol Crossing, the surrounding neighborhoods and office market."

This article originally published at https://dc.urbanturf.com/articles/blog/office-nixed-in-favor-of-hotel-and-150-residences-at-capitol-crossing/15278.