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Capital Business
Posted at 03:34 PM ET, 09/28/2012

GSA proposes massive overhaul of Southwest office buildings into a new Federal Triangle South


The Forrestal Building is one of the properties that could be redeveloped. (Ken Shipp; U.S. Department of Energy)
Introducing “Federal Triangle South.”

Five buildings near the National Mall in Southwest D.C. — some of them considered the most block-like and dull properties downtown — could be subject to a massive redevelopment plan under a proposal released by the General Services Administration on Friday.

The agency issued a “Notice of Intent” to private sector developers interested in redeveloping a cluster of five buildings on 22 acres along Independence Avenue immediately south of the National Mall. The buildings are the Cotton Annex, the Forrestal Complex, the Orville and Wilbur Wright Buildings and GSA’s own regional office building.

“This is an example of GSA’s ongoing commitment to not only shrinking the federal government’s real estate portfolio, but also to maximizing the efficiency and value of federal workplaces,” said Daniel M. Tangherlini, GSA’s acting director.

The area, which GSA is calling Federal Triangle South, is bounded by Independence Ave to the north; 6th Street to the east; Maryland Avenue and portions of D Street to the south; and 12th street to the west.

Workers for four agencies, the Department of Energy, Federal Aviation Administration, the Department of Homeland Security and the General Services Administration, currently occupy the buildings. Each agency is looking to consolidate space following President Obama’s 2010 memorandum asking that the government reduce its real estate footprint.

GSA said the purpose of the proposal was to “leverage the value of its real property assets to provide more efficient facilities for Federal Customers and potentially create the catalyst for a revitalization of this area of Southwest Washington.” The agency posted information for interested private sector development partners on FedBizOpps.gov Friday afternoon.

In addition to reform efforts following a convention scandal that brought down GSA’s top leaders, the GSA’s real estate unit, the Public Buildings Service, has been under scrutiny from members of Congress eager to see the government save money on vacant or under-utilized real estate.

Rep. John L. Mica (R-Fla.) and Rep. Jeff Denham (R-Calif.) have repeatedly pressed the agency to sell, lease or use vacant properties including the Old Post Office pavilion, which the GSA selected the Trump Organization to turn into a hotel, and the Cotton Annex.

“Today GSA acknowledged 22 acres on the National Mall are sitting vacant or under-utilized, and that it is time to put them to better use for the American taxpayer,” Mica said in a statement. “It looks like our hearings and legislation are finally pushing GSA into action.”

Denham said the federal government wasted an estimated $1.7 billion operating vacant or under-utilized real estate in the 2009 fiscal year. The following year, Mica and Denham issued a report, “Sitting On Our Assets,” which detailed those losses.

“In the face of a $16 trillion debt, it’s time GSA gets serious about eliminating waste and increasing efficiency in our government,” Denham said.

Redevelopment of the area could provide a big boost to the District's efforts to revitalize neighborhoods in Southwest. Although they house thousands of workers, the buildings are considered impediments to a revitalization because they create large blocks with little street activity or retail and sometimes interrupt the street grid and hamper pedestrian connections.

Neighborhoods in Southwest currently offer little to attract visitors south of the National Mall, despite having a waterfront along the Washington Channel and four Metro stations, and the National Capital Planning Commission has proposed turning the larger area into an “ecodistrict” over the next 20-25 years.

Follow Jonathan O’Connell on Twitter: @oconnellpostbiz

By  |  03:34 PM ET, 09/28/2012

Tags:  Federal Triangle South, commercial real estate, General Services Administration, Federal Aviation Adminitration, Department of Energy, Old Post Office pavilion, Trump Organization, Donald Trump, Department of Homeland Security

 
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