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GSA selects Trump Organization to redevelop the Old Post Office into a hotel

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The Donald has trumped other suitors again. Ten months after picking up the Kluge Estate Winery in Albemarle County for $6 million at a foreclosure auction, the real estate baron has secured a major project in the nation’s capital. The U.S. General Services Administration selected the New York-based Trump Organization to redevelop the Old Post Office building and annex in downtown Washington, D.C, into a luxury hotel. 

“Deciding to move forward with redeveloping this iconic property will save millions in taxpayer dollars,” Robert Peck, GSA’s commissioner of the Public Buildings Service, said in announcing the GSA’s selection. “The tremendous response from the private sector allowed us to select a proposal that will provide a positive economic return for the federal government and better utilize a historic property on our nation’s Main Street.”

The Old Post Office is located at the corner of 12th Street and Pennsylvania Avenue. The Trump proposal calls for converting the builidng to a luxury hotel with more than 250 rooms, along with restaurants, a spa, and conference facilities, while preserving its historic features.

GSA and the Trump Organization will spend the next year negotiating a detailed agreement for the building’s redevelopment – specifying building usage, historic preservation requirements and details of the federal government’s revenue stream.  The GSA said it will only move forward if an agreement is reached that provides a positive return for the taxpayer.

While negotiations proceed, GSA will relocate the existing federal tenants in the Old Post Office, including the National Endowment for the Humanities. If all goes well, redevelopment is expected to begin in 2014 with occupancy in 2016. At the end of the lease, control of the building will revert to the federal government.

Trump’s first acquisition in Virginia came in 2009 when he purchased a 600-acre golf course along the Potomac River in Loudoun County that he renamed Trump National Golf Club.

 


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