Kimco Realty plans to capitalize on new Amazon Arlington HQ2 campus
The Witmer is just the first phase of Pentagon Centre’s transformation into a mixed-use, lifestyle center. The 26-story, 440-apartment luxury tower will rise high above Pentagon Centre. And there’s no mystery behind Kimco Realty’s moves as Pentagon City, Alexandria’s Route 1 corridor and Crystal City are all expected to experience an economic surge upon Amazon’s arrival. A new, Amazon Arlington HQ2 campus will create 400 jobs this year.
Phase II of the plans at Pentagon Centre include a 11-story tower with 253 residences. This second phase will add about 16,000 square feet of retail, but plans call for a total of 346,000 square feet of retail once the entire redevelopment is completed. Expect a new hotel, with 200 rooms, and 705,000 square feet of office space, in addition to these 693 Phase I and Phase II Pentagon Centre luxury residences.
Kimco Realty reported strong first-quarter performance, increasing net operating income 3.7 percent over the same period a year ago and improving occupancy to 96 percent. Kimco occupancy improved by 20 basis points. The developer and investor is also behind the transformation at Kentlands Market Square, Gaithersburg, Md., adding a new promenade, cinemas and retail opportunity.
Move-ins at The Witmer at Pentagon Centre are expected to begin this summer. Also, Bozzuto will manage residential leasing at the luxury tower.
“With The Witmer’s location directly above the Metro Station and its stunning views of the Pentagon, Potomac River and Washington Mall, it will be at the heart of this new center of gravity,” said Conor Flynn, Kimco chief executive, in a fall statement. “The entitlements we’ve secured for additional density will enable us to fully realize the highest and best use and create the ultimate live/work/play environment.” WDG Architecture was tapped for The Witmer’s bold design.
In addition to The Witmer, Washingtonian Magazine reports that developers, including Bozzuto, JBG Smith and Roseland Residential Trust, are either planning new development or expanding current residential capacity. In the Pentagon City and Crystal City neighborhoods, this is more than 3,000 residential units coming available and being considered for construction over the next two years. The article also cites an estimate that about 25 percent of new Amazon employees will live in the immediate area surrounding Amazon Arlington HQ2.
Additionally, the Clark and the Sur apartment buildings are set to commence leasing later this year, adding more than 700 apartments in Alexandria, says the report. Amazon expects another 1,200 employees to move in to National Landing in 2020.
The Witmer, 710 12th Street, Arlington, Va. 22202
Photo credit: Kimco Realty (featured), WDG Architecture (inline)
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