Covid relief bill may include $1.8B FBI headquarters

Opportunity for developers to build massive federal project

TRD NATIONAL /
Jul.July 28, 2020 07:00 PM
Larry Silverstein, Steve Roth and the J. Edgar Hoover Building (Getty)

Larry Silverstein, Steve Roth and the J. Edgar Hoover Building (Getty)

Three years ago, Silverstein Properties and Vornado Realty Trust were among four finalists to redevelop the FBI’s headquarters. The government scrapped that plan, but the project’s renewed momentum — in the form of funding tucked into a proposed Covid relief bill — presents another opportunity for developers.

As part of the second major federal coronavirus relief package, Senate Republicans proposed setting aside $1.75 billion for a new FBI headquarters in Washington, D.C. According to the bill, the construction financing would help the FBI “prevent, prepare for, and respond to coronavirus, domestically or internationally.”

President Donald Trump has pushed for a new headquarters on the site of the FBI’s current home, the deteriorating J. Edgar Hoover Building.

Previous plans called for the headquarters to be moved outside Washington, D.C. The General Services Administration, the agency that manages federal real estate, had launched a competition to find a developer to build the headquarters and also get the opportunity to redevelop the J. Edgar Hoover Building, which is down the street from the Trump International Hotel at the Old Post Office Pavilion.

When plans to relocate the headquarters were halted, Democrats accused the president of intervening to shield his hotel against possible competition from whatever is built on the current site. According to the Washington Post, the Justice Department’s inspector general is still investigating what led to the plan’s cancellation.

It is unclear whether the nearly $1.8 billion will ultimately be approved, if it would hinge on the headquarters remaining in downtown D.C., and if outside developers would be involved. If the headquarters is moved, it is not known whether the GSA will restart the bidding.

Since the original plan’s cancellation, Vornado has largely pulled out of the D.C. market, having finalized its spinoff of JBG SMITH Properties. An industry source indicated that Silverstein is still interested in the headquarters.

Representatives for Silverstein declined to comment, and Vornado was not immediately available. A representative for the GSA referred questions to the FBI, which did not return requests for comment.

Write to Kathryn Brenzel at [email protected]


Related Articles

arrow_forward_ios
Make Greenland Great Again? Trump wants to buy Arctic territory

Make Greenland Great Again? Trump wants to buy Arctic territory

Make Greenland Great Again? Trump wants to buy Arctic territory
Hamptons’ priciest summer rental to host MAGA extravaganza next month

Hamptons’ priciest summer rental to host MAGA extravaganza next month

Hamptons’ priciest summer rental to host MAGA extravaganza next month
From left: Donald Trump (pictured in the 1980s), Steve Ross, Charles Kushner, Harry Macklowe with (inset) Hiten Samtani and Charles Bagli (Getty, Sasha Maslov)

Scoundrels of the skyline: Charles Bagli on the most colorful characters in the real estate biz

Scoundrels of the skyline: Charles Bagli on the most colorful characters in the real estate biz
Manhattan District Attorney Cyrus Vance and President Donald Trump (Getty, iStock)

Trump lawyers, resisting subpoena, demand more details of Manhattan DA inquiry

Trump lawyers, resisting subpoena, demand more details of Manhattan DA inquiry
President Donald Trump and Blackstone CEO Stephen Schwarzman (Trump by Scott Olson/Getty Images; Schwarzman by David Fitzgerald/Sportsfile for Web Summit via Getty Images)

Blackstone boss leads Wall Street charge for Trump

Blackstone boss leads Wall Street charge for Trump
Deutsche Bank CEO Christian Sewing and President Donald Trump (Sewing by Thomas Lohnes/Getty Images; Trump by Drew Angerer/Getty Images)

Deutsche Bank probed in Manhattan DA’s Trump Org investigation

Deutsche Bank probed in Manhattan DA’s Trump Org investigation
President Donald Trump and Manhattan District Attorney Cyrus Vance (Trump by BRENDAN SMIALOWSKI/AFP via Getty Image; Vance by Kevin Hagen/Getty Images)

Trump Org may be focus of broader fraud investigation by Manhattan DA

Trump Org may be focus of broader fraud investigation by Manhattan DA
President Donald Trump (Photo by Doug Mills-Pool/Getty Images; iStock)

Trump says he is “going to stop” evictions

Trump says he is “going to stop” evictions
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...