November 21, 2006

Archstone-Smith and Hines Announce Approval of the Former Convention Center Site Master Plan

(Washington, DC)   Archstone-Smith (NYSE:ASN), one of the nation’s largest apartment companies, and Hines, the international real estate firm, jointly announced today that they recently received approval on the master plan concept for the former Convention Center site redevelopment, a 10-acre site in downtown Washington, D.C.

The approval was granted by the District of Columbia Deputy Mayor’s Office for Planning and Economic Development, on behalf of Mayor Anthony Williams, and follows an intensive community outreach process which commenced in July 2005.  Through public meetings with diverse stakeholders and community design workshops, input to the proposed master plan was received from more than 20 organizations.  These organizations included Advisory Neighborhood Commissions 2C and 2F, the Downtown Cluster of Congregations, the Committee of 100 on the Federal City, the D.C. Chamber of Commerce, the Greater Washington Board of Trade, the Penn Quarter Neighborhood Association, the Sierra Club and the Downtown D.C. Business Improvement District.

The final master plan completes the initial design phase of the project and sets the parameters for the overall development of the site.  Specifically, the plan outlines the approach to streets and alleyways; the preferred location for a new central library (to the extent that it is approved by City Council); the preferred location and general size of open space on the site; building locations and massings; the location of central cores and lobbies; parking and loading configurations; transportation and access issues; and landscape design.  This project is anticipated to generate 7,584 construction-period jobs and 5,217 permanent jobs, as well as $30 million a year in new tax revenues.  At least 51 percent of all new jobs created will go to District residents.

The master plan will create a new neighborhood that integrates into DC while also becoming a special destination. The design goals for the site include energized streets and urban spaces, great shopping, enjoyable pedestrian experiences, a high level of visibility and access through the site, urban public spaces that will draw people to the site, and the highest quality of architectural and urban design.

The new residences will bring over a thousand new residents to downtown and will animate the streets and public spaces throughout the day. The half-acre Central Plaza will be the public’s living room for the new energized downtown, showcasing entertainment and public programming while creating a special destination for locals and out-of-towners, alike.  I Street will become a grand shopping boulevard drawing diverse people from throughout the region. The project will devote 30% of retail space to unique and local retailers to set this destination apart from all others. This project will be designed in anticipation of future LEED criteria and will serve as an example for development in Washington, DC for many years to come.

Bill Alsup, the senior vice president of Hines in charge of the firm’s Washington, D.C. office stated, “We are pleased that our team and staff members from the Deputy Mayor’s Office and the Office of Planning have reached an agreement on the project’s direction.  We also appreciate the feedback that we have received from the community, and will continue to seek input from various interest groups as we strive to make further progress.”

Al Neely, Archstone-Smith’s chief development officer added, “We feel that we are on our way toward creating a very unique community that will have a lasting and profound effect on downtown – for living, working, shopping and dining.” 

The program for the site includes 280,000 square feet of retail; 686 residential units (20 percent of which will be affordable); 415,000 square feet of office space; approximately 1,700 below-grade parking spaces; open space; a re-instatement of I Street and Tenth Street through the site; and the re-construction of Reservation 174 (land that is presently controlled by the National Park Service).

In addition, the District has reserved approximately 110,000 square feet of land on the site that includes the location of a new central library or alternative uses.

Archstone-Smith and Hines’ design team is led by Foster and Partners, the London-based international architectural firm, and the Washington, D.C.-based architectural firm Shalom Baranes Associates.

Archstone-Smith (NYSE: ASN), an S&P 500 company, is a recognized leader in apartment investment and operations. With a current total market capitalization of more than $20 billion, the company’s portfolio is concentrated in many of the most desirable neighborhoods in the Washington, D.C. metropolitan area, Southern California, the New York metropolitan area, the San Francisco Bay Area, Boston, Seattle, Southeast Florida and Chicago. The company continually upgrades the quality of its portfolio through the selective sale of assets, using proceeds to fund investments in assets with even better growth prospects. Through its two brands, Archstone and Charles E. Smith, Archstone-Smith strives to provide great apartments and great service to its customers – backed by unconditional service guarantees. As of September 30, 2006, the company owned or had an ownership position in 354 communities, representing 90,093 units, including units under construction.

Hines is a privately owned real estate firm involved in real estate investment, development and property management worldwide. The Hines portfolio of projects completed, underway, acquired and managed for third parties includes 915 properties representing approximately 360 million square feet of office, mixed-use, industrial, hotel, medical, sports facilities and residential properties, as well as large, master-planned communities and land developments.  With offices in 64 U.S. cities and 15 foreign countries, and controlled assets valued at approximately $13.5 billion, Hines is one of the largest real estate organizations in the world.  Since the firm opened its Washington, D.C. office in 1982, Hines has developed over 3.5 million square feet of office space and acquired 3.6 million square feet of properties.

A PDF file of the press release and three conceptual renderings may be accessed using the link below.