GSA and Trump Organization Reach Deal on Old Post Office Lease

12th and Pennsylvania Ave, NW

Ed. Note: You can read an awesome history of the Old Post Office Building here.

From a press release:

The U.S. General Services Administration (GSA) announced it has completed negotiations with the Trump Organization on a 60 year lease agreement to redevelop and manage the iconic Old Post Office building and annex on Pennsylvania Avenue in Washington, D.C. Under the agreement, $200 million of private sector funds will be invested to restore the 114 year old federal building and convert it into a luxury mixed-use development — Trump International Hotel, The Old Post Office, Washington D.C.– that will serve the local community, preserve the facility, and save taxpayer dollars. The pending agreement now moves to Congress for a review period of 30 in-session days.

Continues after the jump.

“Redeveloping the Old Post Office with a private sector partner will save millions of taxpayer dollars while restoring a unique and important historic asset,” said Dan Tangherlini, GSA Acting Administrator. “GSA is committed to delivering the best value for the American people and managing federal real estate assets efficiently. We are pleased that the negotiations have finished and the deal now moves to Congress for review.”

“It is a great honor and privilege to be given the responsibility of transforming one of our country’s most important landmarks into what will be one of the great hotels of the world,” said Donald J. Trump, Chairman and President of The Trump Organization.

“It has been a tremendous pleasure to work with the GSA and the numerous agencies and organizations that have been involved in getting us to this important milestone in the project’s redevelopment. Our plans are virtually complete and we look forward to starting construction immediately upon turnover of the building,” added Ivanka Trump, Executive Vice President of Development and Acquisitions.

GSA and the Trump Organization have been negotiating for over a year on the terms and conditions of this complex transaction. GSA selected the Trump Organization as the preferred developer after an open and robust competitive process. The Trump Organization’s offer was deemed the most compelling, and it included the strongest development team, provided long term benefits to the local community, and offered the best overall proposal to the federal government.

The Old Post Office, located at the corner of 12th Street and Pennsylvania Avenue in the Federal Triangle neighborhood, is currently used primarily as federal office space. Through the Old Post Office Redevelopment Act of 2008, Congress directed GSA to redevelop the Old Post Office in a cost effective manner. The lease agreement provides a path forward for the preservation of the historic features while allowing the private sector to develop it to its fullest potential while also creating economic development opportunities. GSA is relocating the existing federal tenants in the Old Post Office, including the Advisory Council on Historic Preservation, the National Endowment for the Arts and the National Endowment for the Humanities.

The Trump Organization proposal calls for converting the Old Post Office to a luxury hotel with more than 260 rooms, along with world renowned restaurants, an expansive spa, conference and ballroom facilities, while preserving and enhancing all of its historic features. The redevelopment is expected to start in 2014 with the hotel opening scheduled in 2016. Under the agreement, the Old Post Office’s clock tower will continue to be open to the public and will continue to be managed by the U.S. Department of the Interior’s National Park Service.

16 Comment

  • That building will make an awesome hotel. Hate to see that windbag’s name displayed in DC though.

  • I predict this will end badly.

    • Whose pockets were lined for this to happen? I’m genuinely curious – totally not judging right this second.

  • Is it still open? For some strange reason I never went inside of it because I though it was closed up for good a long time ago. Would love to see inside before Trump makes it a douchebag estate.

    • personal opinion… but the outside of the building is the special part. inside is blah.

    • yes, it’s open. There’s a food court and a little arcade inside. Worth checking out as it will soon be a thing of the past.

    • I think it has weird hours. I remember trying to go on a weekend day once and it wasn’t open.

      • I work in the Old Post Office. The interior has what can only be described as a post-apocalyptic food court, which is adjacent to an abandoned shopping mall (“the pavilion”). The whole complex is delightfully weird. You should check it out before its gone. The tour offers a nice view of downtown (with much bigger windows than the Washington Monument) and the Bulgogi at the Japanese/Korean place inside is surprisingly delicious. I’m no fan of Trump, but it is good that more is happening with this building, though it is sadly displacing some vendors that have been there for decades.

        • oh, and the hours are only weird on Sunday when it opens at noon. Every other day is 8:00 to 6:00 or so.

  • The clock tower is one of my favorite places to take visitors. For anyone who hasn’t been up there, it’s totally worth it!

  • How long does it take to start making a profit with a $200 million dollar investment?

  • Did DC give up any tax concessions for this?

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