Bowser Administration Announces Financing Complete for Skyland Town Center
(Washington, DC) – Today, the Bowser Administration announced that construction of Skyland Town Center is underway following the closing of the first phase of commercial financing, thereby paving the way for the issuance of the Tax Increment Financing bonds that will support the long-delayed project. The first phase includes construction of 263 units of workforce housing and 80,000 square feet of retail and is expected to be completed in approximately two years.
“Washingtonians have waited long enough – it is time to see buildings rise and housing come online for a project that has been in the works for more than 15 years,” said Mayor Bowser. “Skyland Town Center will bring new job opportunities, redeveloped space for our local small businesses, and quality housing for residents in Wards 7 and 8.”
For more than 15 years, the District has sought to redevelop the blighted Skyland Shopping Center, located at the intersection of Alabama Avenue, Naylor Road, and Good Hope Road in Southeast Washington, DC. The Bowser Administration paved the way for the project to move forward by providing a $7 million grant for infrastructure work as well as up to $3.6 million to Safeway to release a covenant on the site that was preventing the deal from moving forward. Additionally, the mixed-use project was approved for Tax Increment Financing funding, which the Administration restructured after the anchor tenant broke their commitment to the project.
Construction of the infrastructure was completed in the fall of 2017, and excavation began in December 2017. Retail leasing for Skyland Town Center is underway with CVS Pharmacy leasing 10,000 square-feet and interest from full-service restaurants. Leasing of the residential units will begin as the project nears completion.
“Gary and I are excited to move this project forward. We couldn’t have done it without Mayor Bowser who stepped up when Walmart backed out. The Skyland Town Center is a legacy project for both Rappaport and WC Smith,” said Chris Smith, Chairman and CEO of WC Smith.
The site has received zoning approval for up to 320,000 square-feet of retail and 450 to 500 residential apartments in a dynamic town square setting. It is the largest retail development in Southeast DC, and it will provide new Class A rental housing. Eagle Bank serves as the senior lender for the project’s residential component. DCRC Skyland LLC, an affiliate of the DC Regional Center providing EB-5 financing, serves as the senior lender for the project’s retail and infrastructure components.
Follow construction progress in real-time via the Skyland Town Center webcam at www.skylandtowncenter.com/location/skyland-webcams.