Project 01 / Built · 2002 WBJ Deal of the Year

U.S. Department of Transportation Headquarters

A 1.45-million-square-foot federal headquarters at 1200 New Jersey Avenue SE, financed by the District's first Payment-in-Lieu-of-Taxes structure. Trophy on Bob's desk.

Address
1200 New Jersey Avenue SE, Washington, DC
Location
Capitol Riverfront, Washington, DC
Datum
38.876°N, 77.005°W
Floor area
1.45M GSF
Cost basis
$490M (development); $760M sale to GSA, 2020
Years
2002–2007
Firm
The JBG Companies
Role
Senior development officer — led $490M bond financing (2004) and $140M PILOT structure (2007)
Outcome
Delivered ~2007. Original 15-year GSA lease ran through ~2022. JBG Smith sold to GSA for $760M in 2020.
Award
Winner — 2002 WBJ Real Estate Deal of the Year (overall) AND 2002 GSA Deal of the Year

The deal

DOT HQ is the project on Bob's desk, in trophy form. A $490M, 1.45M GSF build-to-suit at 1200 New Jersey Avenue SE for the U.S. Department of Transportation. Bob led the $490M bond financing — closed in 2004 — and the $140M Payment-in-Lieu-of-Taxes negotiation with the District's Deputy Mayor's office, which closed in 2007. The PILOT was the first of its kind for a project on the Anacostia waterfront and set the template for everything that followed in the Capitol Riverfront sub-market.

The building was delivered in approximately 2007. The original 15-year GSA lease ran through 2022. JBG Smith sold the asset to GSA outright in March 2020, for $760M.

Recognition

  • Winner, 2002 Washington Business Journal Real Estate Deal of the Year (overall).
  • Winner, 2002 GSA Deal of the Year.

WBJ award years follow the deal year, not the ceremony year — the trophy was conveyed in April 2003.

References

  1. GSA Acquires DOT Headquarters in $760M Deal · Commercial Observer, 2020
  2. GSA to Buy Department of Transportation Headquarters for $760M · Bisnow
  3. U.S. DOT, GSA Celebrate Two Trailblazing Former Secretaries · transportation.gov
  4. DC poised to allow PILOT bonds for Anacostia Waterfront projects · The Bond Buyer
  5. District to provide $111.5M for Anacostia Waterfront · DMPED, DC