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Howard University Allows 99-Year Ground Lease for 525K-SF Mixed Use
Lowe, in partnership with FLGA and Davenport Group and in collaboration with USAA Real Estate, has secured a 99-year ground lease from Howard University for a 1.85-acre property in Washington DC’s Shaw neighborhood. The property, 2251 Sherman Avenue NW and 2047 9th Street NW, is currently used as parking lots for Howard University.
JLL represented the partnership in securing $45.1 million in bridge financing for the land transaction from Eagle Bank.
The development team plans to construct an approximately 525,000-square-foot, 10-story building that will include up to 500 residential units, approximately 27,000 square feet of retail space and 246 below-grade parking spaces.
The transaction is the latest in a series of property transactions undertaken by Howard University that will contribute significant new housing along with a mix of retail, office, hotel and entertainment venues to the upper Shaw neighborhood.
The transaction continues Howard’s strategy to utilize long-term ground-lease structures that preserve the institution’s real estate portfolio while allowing it to reinvest in its academic facilities. The Lowe team’s development is part of the larger Howard University approach to repositioning portions of its real estate in accordance with the District of Columbia’s DUKE Framework, a plan to restore this historic community as a cultural destination. Howard currently refers to this area as the Duke District, a nod to the framework and this neighborhood’s past as the heart of an important economic, cultural, social and institutional center of a proud and accomplished African-American community, many of which were affiliated with Howard University and Hospital.
A key project component is the creation of a 25-foot-wide public plaza fronting the future extension of W Street that will provide an activated gathering space, including amenities for Howard University community members, and a connection between Howard University and the burgeoning north Shaw neighborhood.
- ◦Development
