Patriot Yards, Washington, D.C.

Challenge

Hecht’s operated from this historically significant warehouse building since 1937, expanding and restoring the facility to 775,000 square feet in six buildings completing the last building in the mid-’90s. After Federated Department Stores Inc. acquired Hecht’s parent company, May Department Stores Co., in 2005, operations at this site were consolidated to a modern distribution center in Jessup, MD.

This warehouse was originally constructed at the height of the Art Deco movement in Washington D.C. and stands as one of the most definitive examples of the style in the United States. Its extensive use of glass block as a building material was a first in 1937. At the time, this approach was more efficient for insulation than windows, and provided ample natural light for working. Heralded by the Smithsonian as one of the “most significant industrial Deco buildings in the world”, and further acknowledged by the late Sen. Millard Tydings of Maryland as a monument to the “business genius which made America the country it is”, features such as the smooth lines of the building’s corners and its crowned tower are primary accents that make this asset a landmark to over 100,000 cars passing the site daily on New York Avenue.

With a new home for its warehouse and distribution operations, Federated needed to dispose of this underutilized multi-story facility that was negatively impacting the company’s fiscal bottom-line. With a substantial legacy in D.C., the company needed a partner who could redevelop this landmark to a higher and better use to create new jobs and help promote the evolution of the District’s emerging NE corridor, while simultaneously preserving the buildings 70+ year history.

Solution

A successful track record of repositioning historic assets in emerging neighborhoods led Patriot to recognize a rare opportunity to aggregate in excess of 15 acres in one of the city’s most prominent areas for revitalization. Patriot will transform the site into Patriot Yards, a mixed-use development consisting of industrial distribution, flex, and retail space.

Much of the redevelopment will take advantage of the building’s inherent industrial features. In addition to generous ceiling heights, over 100 dock doors, and abundant trailer storage, the asset’s spacious internal and external truck courts provide loading accessibility virtually unmatched in the District. Within close proximity to the North of Massachusetts Ave (NOMA) region and new and existing residential developments, additional plans are being finalized for over a half-million square feet of 2-3 story urban big box retail. Patriot has engaged several nationwide retailers to serve the neighborhood’s evolving need for a cost-effective retail solution.

Result

Repositioning of the site will commence immediately as the project is simultaneously marketed to industrial, warehouse, flex, and retail tenants. Demised space at Patriot Yards will start at 19,000 square feet and range up to the entire 775,000 square feet for a single user. This multi-use project will further the revitalization of New York Avenue, bringing a renewed vibrancy and job opportunities to this NE D.C. “gateway” and surrounding neighborhoods.