District’s First Target Store Washington, DC, – The National Capital Revitalization Corporation (NCRC) and its subsidiary, the RLA Revitalization Corporation (RLARC), closed on the deal to bring a 500,000 retail center – and DC’s first Target – to Columbia Heights. The transaction was completed between NCRC and the DC USA Operating Co., which is the developer for the DC USA project. NCRC issued $46.9 million in tax-exempt bonds to finance the construction and acquisition of the DC USA parking garage, and the funding of a Columbia Heights small business assistance program. Citi purchased the bonds and provided the construction financing for the project.
“With the financing tools used for DC USA, we can access new markets to provide innovative capital sources and structures for community-based investments,” said Anthony C. Freeman, President and CEO of NCRC.
Overall, $39.35 million of the bond proceeds will be used to pay for the actual construction of the DC USA parking garage. The remainder of the proceeds will be used to fund for a Columbia Heights Small Business Assistance Program and pay for the costs of issuing the bonds.
“The deal is closed, financing is in place, the site is cleared, and construction is just around the corner,” said Ward 1 Councilmember Jim Graham. “This is great news for residents who have been excited about this shopping center and for local businesses that will participate in the small business assistance program.”
“When we looked at NCRC’s proposal for bonds to finance the garage, we saw a strong retail market in the District and a competent partner in NCRC,” said Priya Jayachandran, Vice President with Citibank. “Citibank decided to invest in the retail center because we see a lot of opportunity for investment in other neighborhoods and are pleased to develop a working relationship with NCRC.”
NCRC will own and operate the garage. Once the bonds are paid, revenue from garage operations will be retained by NCRC to support its economic development initiatives.
DC USA will be a 500,000 square foot urban retail and entertainment center that will be anchored by Target and include Bed, Bath and Beyond; Washington Sports Club; and Best Buy. DC USA is expected to generate more than $12 million in new tax revenue per year for the city. This project will create more than 1,000 permanent and 700 construction jobs. It is located adjacent to the Columbia Heights Metro station off of 14th Street, NW, between Park Road and Irving Street.
NCRC is responsible for spurring economic development in the District of Columbia’s underserved neighborhoods. Together with its subsidiary the RLA Revitalization Corporation and other affiliates, NCRC is helping to bring approximately $1 billion of private investment to District neighborhoods. This investment includes the development of more than 2 million square feet of retail, approximately 2,000 new homes, and is helping to create more than 2,000 jobs for DC residents and substantial business opportunities for local small businesses.
For more information on developments in priority neighborhoods, please visit our newly designed Web site at www.ncrcdc.com.