Capitol Riverfront BID Annual Report be out FRONT

Capitol Riverfront BID Annual Report 2009 be out FRONT

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TABLE OF CONTENTS ANNUAL REPORT STATE OF THE FRONT About the Capitol Riverfront BID 2 Development Summary 22 Letter from the Chairman and Executive Director 4 Office Market 26 Clean Team and Hospitality Ambassadors 6 Residential Market 30 Public Realm 8 Retail Market 34 Economic Development 10 Parks, River and Environment 38 Branding, Marketing and PR 14 Front Row Events 16 Financials 18 Board of Directors and Staff 20 1

ABOUT THE CAPITOL RIVERFRONT The Capitol Riverfront, The Front, is DC s new neighborhood on the river, a growing district-within-the-district that extends the city s skyline to the water s edge. Located just five blocks south of the U.S. Capitol building, the Front offers the best in city living with the extraordinary advantages of a riverfront setting; a distinct maritime and industrial heritage; and access to what matters: unique parks and riverwalk trails, sports and entertainment, exceptional value, and proximity to Capitol Hill. In the Front, DC s businesses and residents are part of a oncein-a-generation opportunity to shape a new community on the river in one of the largest riverfront redevelopment projects in the U.S. The Front encompasses an area of approximately 500 acres located between the U.S. Capitol building and the Anacostia River. The Capitol Riverfront is already home to a daytime employment population of 35,000 people in 6.5 million SF of office including the U.S. Navy Yard and U.S. Department of Transportation, 2,500 residents, the 200-room Marriott hotel, Diamond Teague Park and Piers, and the 41,000-seat Nationals Park. Upon build-out over 60% of the area will have been demolished and rebuilt with new office, residential, retail, hotels and parks. 2 The Capitol Riverfront BID serves as the management entity for this area and is governed by a board of directors composed of twenty-one (21) voting members that pay the BID tax, and seven (7) at-large, non-voting community stakeholders that are BID tax exempt. Our FY09 operating budget was approximately $1.5 million and is funded through a special tax that owners vote upon themselves. Our organization is staffed by four (4) full-time professionals and nine (9) full-time Clean and Safe Team members.

In FY09, the Capitol Riverfront BID provided the following services: Clean Teams and Hospitality Ambassadors every Monday through Saturday Public realm improvements Economic development and business attraction efforts Transportation analysis and coordination Marketing, branding and public relations initiatives Community building events and activities Advocacy and educational outreach The mission of the Capitol Riverfront BID is to provide management services that assist in creating a neighborhood that is clean, safe, and friendly, as well as vibrant, fresh, progressive, and surprising. The BID supports the development of the Front as a new mixeduse riverfront community in Washington, DC. A view of The Yards from the river WHERE IS THE FRONT? The Front encompasses an area of approximately 500 acres located between the U.S. Capitol building and the Anacostia River. Upon build-out over 60% of the area will have been demolished and rebuilt with new office, residential, retail, and hotel uses. Four new parks will also be constructed that will enhance the sense of place and community in the Capitol Riverfront. 23th St Virginia Ave 19th St George Washington Parkway WHITE HOUSE NATIONAL MALL 14th Street Bridge Tidal Basin 14th St 12th St 9th St Constitution Ave Independence Ave Maine Ave 7th St 6th St D St I St M St S Capitol St UNION STATION U.S. CAPITOL Mass. Ave 2nd St Capitol South Navy Yard 4th St 6th St E Capitol St Pennsylvania Ave Maryland Ave 8th St Eastern Market CAPITOL HILL VIRGINIA P O T O M A C R 3 Reagan National Airport East Potomac Park I V E R 2nd St N St P St Nationals Park ANACOST I A R I V E R Frederick Douglass Bridge 1mile 1kilometer 11th St Bridge

LETTER FROM THE BOARD CHAIR & EXECUTIVE DIRECTOR The impacts of the recession have certainly been felt nationally, in Washington, DC and in the Capitol Riverfront. However, for all the bad economic news and challenges, the Capitol Riverfront BID and our stakeholders have partnered to keep moving numerous projects forward and to continue to position the Front for the next wave of development opportunities. In 2009, the Capitol Riverfront embarked on an extensive branding process. The outcomes of the 8-month process included the development of the new Capitol Riverfront logo, the Be Out Front campaign, and a style guide to influence the look and feel of BID materials. In addition, the brand campaign helped us develop succinct messaging about the Front s competitive advantages in the marketplace. Every aspect of the BID s work from the redesign of the website to the hanging of new banners and the content of public presentations to promotion of events has been impacted by the new brand. The Front s brand campaign has been well received and has proved highly effective in promoting the neighborhood. Even though the development dynamic of our city slowed, the BID continues to help effect forward momentum in the Capitol Riverfront. This past year the BID focused resources on creating the highest quality public realm and maintaining it at the highest level; programming events and activities that help create destination and place; laying the groundwork for business attraction and advocating for incentives that can stimulate the marketplace; and building a strong urban neighborhood with a sense of community among residents, employees and visitors. The two largest successes of 2009 were the development of the Front s residential community and the forward progress on three of the Front s parks. The Front s residential development has moved forward at a rapid pace with over 2,400 residential units completed and over 70% now occupied. Over 2,500 residents now call the Front home and the number of residents is anticipated to top 3,000 in 2010. In addition, Diamond Teague Park and Piers opened in July 2009; construction began on the 5.5-acre Riverfront Park, keeping it 4

on schedule to open in July 2010; and the 3-acre Canal Park site is cleared of school buses, has completed a redesign, and will start construction in 2010 to open in 2011. The BID will continue to promote and brand the Front s three defining characteristics and competitive advantages: 1) At the Forefront the neighborhood is a once-in-a-generation opportunity to create and enjoy a new community on the river; 2) Riverfront here is an opportunity to create a vital riverfront on the Anacostia for current and future generations; and 3) Front and Center the Capitol Riverfront provides an opportunity to be a part of the neighborhood that has access to everything from the river, to Capitol Hill, downtown and the region. Much was accomplished this year but much work remains to be done. The Capitol Riverfront BID is committed to being the management entity, advocate and change agent in this exciting neighborhood as the Front continues to grow and evolve, as issues and opportunities emerge, and as more residents, employees and visitors come to our neighborhood. We look forward to partnering with you over the coming years in achieving the vision of a new district-within-the-district on the Anacostia River a new community that we think will be the centerpiece of Washington s riverfront renaissance. We hope that you enjoy this annual report update on the 2009 activities, accomplishments and developments of the Capitol Riverfront BID. Eric Siegel CHAIRMAN, CAPITOL RIVERFRONT BID Michael Stevens, AICP EXECUTIVE DIRECTOR, CAPITOL RIVERFRONT BID 5

Clean Team & Hospitality Ambassadors The Capitol Riverfront BID s Clean Team maintains the day-to-day cleanliness and appearance of the neighborhood while the BID s Hospitality Ambassadors are stationed near the Metro exits to greet passersby, answer questions and monitor activity on the street. The Clean Team and Hospitality Ambassadors create an attractive and welcoming environment in the Capitol Riverfront. 6

In FY09, the BID increased Clean Team and Hospitality Ambassador service hours until 6 p.m. Monday to Friday and added Saturday service from 10 a.m. to 2 p.m. The BID also leveraged resources through a contract with the DC Department of Employment Services (DOES) that doubled, at no cost to the BID, the size of our clean team. The twelve Clean Team members pick up litter and empty trash cans, mow the grass on the future site of Canal Park, water flowers in the landscape planters, rake leaves and clear snow, remove handbills/graffiti, respond to illegal dumping, and support community events. The two Hospitality Ambassadors greet passersby, answer questions and provide directions, and actively monitor activities on the streets. The crew members carry Nextel radios to communicate with the supervisor and fill out daily reports of work tasks and happenings in the neighborhood. The Clean Team increased the number of bags of trash collected from 3,600 bags in FY08 to 7,526 bags in FY09 and the number of hospitality ambassador assists increased from approximately 9,100 assists in FY08 to 9,400 assists in FY09. The Capitol Riverfront perception survey shows that more respondents felt positively about the neighborhood s cleanliness and safety compared to last year s survey. This year the perception survey shows 84.7% of respondents think the BID is clean or very clean (compared with 58.4% last year) and 56.5% perceive the BID is safe or very safe (compared with 44.9% last year). Capitol Riverfront BID Clean Team and Hospitality Ambassadors More respondents felt positive about the neighborhood s cleanliness and safety compared to last year s survey. 100% 80% 60% 40% 20% 0 6% 6.1% 2007 CLEAN & SAFE PERCEPTION RESULTS* 84.7% 58.4% 56.5% 44.9% 2008 2009 CLEAN OR VERY CLEAN SAFE OR VERY SAFE *Capitol Riverfront BID, October 2009 - % of survey respondents who think the neighborhood is Clean or Very Clean and Safe or Very Safe 7

PUBLIC REALM The BID works to improve the public realm in order to create a clean, high-quality and unified look and feel in the Front. This year the BID installed banners, trashcan plates and gateway signage that showcased the new Capitol Riverfront logo and incorporated the new Be Out Front brand campaign. 8

During the holiday season the BID installed lighted snowflakes. The new decorative light pole banners add bright blue, orange, and green colors along the main transit corridors throughout the BID, while the fence wrap panels add a welcoming entrance to the Front at New Jersey Ave, SE and 8th St, SE. During the winter holiday season, the BID installed 30 lighted snowflakes along M St, SE, New Jersey Ave, SE, and 8th Street, SE in order to create a more warm and festive winter atmosphere. In addition, this summer the BID installed 21 large stone planters along M Street, SE and planted them with rose bushes, colorful mums, and high grasses. The planters provide visual continuity and color to the street and will be maintained with winter and spring plantings. Stone planters help to provide visual continuity and color to the street. In the year that we have lived in the Capitol Riverfront, we have seen improved cleanliness and greatly increased walking traffic which is terrific! Capitol Riverfront resident submitted via 2009 Perception Survey 9

ECONOMIC DEVELOPMENT The Capitol Riverfront BID emphasizes economic development as one of its core work programs. The BID partners with property owners, the District Government and other entities to facilitate economic development activities in the Capitol Riverfront including business attraction; transportation and access planning; research and information; and development of the public parks. 10

Business Attraction The BID collaborates with property owners and brokers to give presentations and tours to numerous office tenant and retail prospects. The BID also hosts a number of business events for brokers and other key stakeholders to continue to update them on the development and opportunities in the Capitol Riverfront. The BID was a sponsor of the Washington, DC, booth at the International Council of Shopping Centers convention in Las Vegas and has an ongoing effort with the Washington, DC Economic Partnership to recruit retailers to the Front. During the course of the past year the BID has made over 100 presentations to brokers, office and retail tenants, and other potential investors. The BID offices also serve as a marketing center for the entire neighborhood and meeting place for office, retail and residential prospects. The BID sponsored Washington, DC s booth at the national ICSC convention. Capitol Riverfront office buildings offer phenomenal views of the DC skyline including the Capitol dome and Washington Monument. Transportation AND Access Planning The Capitol Riverfront BID worked closely with DC Surface Transit and the District Department of Transportation (DDOT) to launch a new Circulator route connecting the Union Station Metro Station and the Navy Yard Metro Station. The Circulator is a unique and high-quality bus service that provides an express route with limited stops, arrives every ten minutes or less, and costs only one dollar. The Circulator service runs Monday to Friday from 6 a.m. to 7 p.m., with extended hours on ballgame days. During its first six full months of operation from April 2009 to September 2009, the Navy Yard-Union Station Circulator route has averaged about 31,900 riders per month. 11 The Circulator connects the Front to Union Station. The BID also worked with the DC Commission on Fine Arts and DDOT to install five artistic bike racks in the public realm and partnered with the Nationals on the first Bike to Work Day Pit Stop at Nationals Park featuring entertainment, food, drinks, and raffles. The BID also sponsored the DDOT M Street, SE bike lane study. The BID continues to work with DDOT on the plans for the Riverwalk Trail and the 11th Street and Fredrick Douglass Bridge projects.

Parsons Engineering moved into its 80,000 SF headquarters in January of 2009. The BID research serves as a platform for external attraction activities and is available in many forms on our website, including an interactive map. Interactive maps, downloadable data and resources are available online at www.capitolriverfront.org. Research and Information The BID s research and data gathering efforts include summaries on the status of projects; absorption analysis; office lease comparables and residential rent/sales analyses; type and value of public and private investments; Metro ridership statistics; and neighborhood demographics. The BID office produces reports, brochures, maps and graphs illustrating many of these data sets and development summaries. In addition to the general neighborhood marketing brochure, in FY09 the BID produced a retail-specific brochure and tear sheets for the office, residential, retail, and park submarkets. The BID research serves as a platform for external attraction activities and is available on our website in the interactive map and as downloadable documents and maps. The Capitol Riverfront BID also partnered with several other DC BIDs and government agencies to conduct original research for the Nonprofit Real Estate Trends study and the Cost of Doing Business in DC study. 12

Groundbreaking at The Yards Riverfront Park, May 2009 Public Parks The BID has been a strong advocate for the construction of the four new public parks in the Front: Diamond Teague Park, Canal Park, The Yards Riverfront Park, and Tingey Plaza. These four parks distinguish the Front and are part of the Front s competitive advantage in the market. The BID has been involved in writing of legislation for the BID to assume responsibility for the maintenance and programming of the Yards Park when it opens summer 2010. The BID has also worked with the Canal Park Development Association on the redesign of Canal Park to make it a more userfriendly and active neighborhood park. The BID sees these parks as a unique opportunity to build community, identity and sense of place while marketing them as assets in our business and residential attraction efforts. Forest City Washington s The Yards Riverfront Park Canal Park is targeted to deliver in 2011. The parks are a unique opportunity to build community, identity and sense of place. 13

BRANDING, MARKETING & PUBLIC RELATIONS The Capitol Riverfront BID focuses on marketing and promoting the neighborhood and its development while branding the Front as the new district-within-the-district on the river. In FY09, the BID completed an eight-month branding process that resulted in the development of a new logo and graphic identity, shortening of the Capitol Riverfront name to the Front, creation of messaging platforms and implementation of a Be Out Front marketing campaign. 14

Presentations, Trade Shows and Conferences The BID office on the 10th floor of 1100 New Jersey Ave, SE with the scale model of development along the Anacostia River serves as a marketing center and showroom where property owners and brokers bring prospective tenants and retailers to learn about the Front. The BID staff also attends and often presents at tradeshows and conferences to educate people about and to promote the Capitol Riverfront. This past year the BID participated in the International Council of Shopping Centers (ICSC) conferences in Las Vegas, New York, and in DC, the GWCAR REAL Tour, GSA Customer Connections, GSA First Friday, the WDCEP Annual Showcase, ULI Urban Marketplace and more. Electronic and Print Marketing The BID redesigned the website with fresh colors and photography to incorporate its new brand and better promote the Front. The website redesign also makes it easier for website visitors to find information. The total individual website sessions increased from 63,063 sessions in FY08 to 125,482 sessions in FY09, and the average individual sessions per month increased from 5,255 sessions per month in FY08 to 10,457 sessions per month in FY09. July 2009 alone had 17,125 sessions the highest number of website sessions per month since the website was created. In addition, the BID redesigned the e-newsletter as the Front Page The Front s website received a facelift and improved functionality. newsletter and created a Facebook page, Flickr page, and Twitter feed. By the end of FY09, the e-newsletter was reaching 3,790 people, compared to 2,500 people in FY08. The BID s Facebook page has grown as well and now includes over 400 fans. The BID also updated the marketing brochures, showcase boards, and neighborhood maps to reflect and incorporate the new brand. The Front s new marketing video played before each Nationals home game. Media and Video Promotion The Capitol Riverfront was in the press over 120 times in FY09, compared to 115 times in FY08. In addition to articles in newspapers, magazines, and blogs, the Front expanded its presence in television media with several News Channel 8 interviews and in radio media with features on WTOP and WAMU. The BID also worked with several property owners to publish a 20-page advertising supplement in the Washington Business Journal s On-Site Magazine. Lastly, the BID produced a 30-second video that was shown on the Jumbotron screen before every Nationals home game and a 3-minute video that provides a more extensive overview of the Front s development dynamic, transportation access, and events. Both videos are available on the BID s website. 15

FRONT ROW EVENTS The Capitol Riverfront produces special events in order to build and foster a sense of community among residents and employees, attract new visitors to the neighborhood, and activate open spaces. The Front expanded the concerts, movies, and farmers market from last year, as well as debuted several new events and hosted the largest-ever Artomatic. 16

ARTOMATIC 2009 Artomatic, a five-week arts extravaganza, drew over 76,000 attendees to the Capitol Riverfront. Artomatic was held at Monument Realty s 55 M Street, SE from May 29 to July 5, 2009, and showcased over 1,000 visual and performing artists on 9 floors. Artomatic 2009 was the 10th-anniversary celebration, drawing increased media coverage in addition to the 40% increase in attendance from last year. The BID also hosted business events for retail and office brokers and a Breakfast with the Washington Business Journal at Artomatic. Expansion of Concerts, Farmers Market and Movies The Capitol Riverfront, in partnership with JBG Company, doubled the Wednesday lunchtime concert performances to a 20-week series and added Sweetgreen Frozen Yogurt for an additional food offering. The BID expanded Riverfront Reel to be a 12-week series of 80s Outdoor Movies which averaged 350 attendees each week. Moviegoers brought picnics and participated in Wii Karaoke before the movie screening. The BID Clean Team also continues to support the DOT Farmers Market and Vendor Day. 80s Outdoor Movies averaged 350 attendees per night. Artomatic s Art and Fashion Show photo courtesy of Eric Shutt 17 Rock the Rooftop happy hour at the Onyx on First New Events in the Front This year the BID launched its first Holiday Market in December 2008. The Holiday Market included nine arts and crafts vendors and ran for three days in December, offering workers and residents the opportunity to buy local holiday gift items. The BID hosted a Monday Night Football meet-and-greet for residents of the neighborhood and supported the Summer Rock the Rooftop happy hour events. The BID also partnered with the Nationals for a Concessions Tasting Night, at which Front employees attended a free concession tasting prior to the opening of the ballpark season. The BID also partnered with the Nationals Dream Foundation for an Anacostia River Clean-up Day. Lastly, the BID produced a Canal Park Picnic and Home Tour event, in conjunction with the September WalkingTown DC. The Canal Park Picnic and Home Tour event included a day of lawn games, a live band, free BBQ, and the opportunity to tour several residents homes.

FINANCIALS Statement of Financial Position: September 30, 2009 (Unaudited), September 30, 2008 (Audited) 2009 2008 UNAUDITED AUDITED ASSETS Cash and Cash Equivalents 228,655 280,077 Accounts Receivable, net 238,590 97,525 Prepaid Expenses 66,221 6,986 Property and Equipment, net 64,968 69,023 Total Assets $598,434 $453,611 LIABILITIES AND NET ASSETS Accounts Payable and Accrued Expenses 23,620 40,190 Line of Credit and Loans 33,124 90,715 Notes Payable - Stakeholders 2,679 12,679 Prepaid Assessments 22,945 43,230 Net Assets 516,066 266,797 Total Liabilities and Net Assets $598,434 $453,611 18

Statement of Activities: Year Ended September 30, 2009 (Unaudited) and Year Ended September 30, 2008 (Audited) 2009 2008 UNAUDITED AUDITED SUPPORT AND REVENUE Assessment Revenues 1,642,255 1,233,297 Contributions and Other Revenue 99,108 139,817 Total Support and Revenue $1,741,363 $1,373,114 EXPENSES Administration 209,630 190,901 Marketing 465,569 237,849 Public Realm 61,791 21,405 Clean and Safe Services 476,326 445,714 Community Building 44,667 7,512 Economic Development 127,520 33,205 Professional Fees 87,174 69,080 Transportation 12,233 - Other Expenses 7,185 29,967 Total Expenses $1,492,094 $1,035,634 CHANGE IN NET ASSETS $249,269 $337,480 19

BOARD MEMBERS Three-Year Term Two-Year Term One-Year Term At-Large Stakeholders Daryl Jackson Capitol Hill Tower Co-op Dodd Walker Akridge Jason Goldblatt COFELD James Dalpee Barracks Row Main Street Carey Majeski DRI Development Eric Siegel Cohen Companies Bert Donohoe Donohoe Real Estate Services Erik Moses DC Sports & Entertainment Commission Leon Kafele ICP Partners David Jacobs JBG Cindy Muller Lerner Enterprises Annette Gantt Earth Conservation Corps David Brainerd Madison Marquette Greg Lamb Jefferson Apartment Group Steve Cohen Opus East Ramsey Meiser Forest City Washington Linda Cogburn Monday Properties Amy Phillips Monument Realty Steven Gewirz Potomac Investments Gregory McCarthy Washington Nationals Baseball Club Vincent Orange Pepco Brad Fennell William C. Smith & Co. Marvin Rosskopf Ruben Companies John Dillow Living Classrooms John Clark III Steuart Investments John Malone Faison Sheldon Stein Valhal Jennifer Ney Anacostia Community Boathouse Association 20

STAFF Michael Stevens, AICP Executive Director Claire Schaefer Deputy Executive Director Ted Skirbunt Director of Research and Information Systems Kathleen Kruczlnicki Office Manager and Events Coordinator Leon Johnson Operations Manager, Clean Team and Hospitality Ambassadors 21 2009 Artomatic held at 55 M Street, SE, photo courtesy of Meredith Keen

2009 Development Highlights DEVELOPMENT SUMMARY Six projects totaling an estimated $260 million were completed, including: Diamond Teague Park and Piers delivered, enabling commercial water taxi service to and from the Front Three residential projects totaling 517 new units and $152 million One office building totaling 275,000 SF of office, 15,000 SF of retail, and $100 million Projects under construction or scheduled to resume construction in the near term as of October 2009 include: The remaining 80 of 160 total residential townhouses at Capitol Quarter phase I The $42 million riverfront park at The Yards One office building totaling $180 million and 379,000 SF of office space and 21,000 SF of retail space* The 170-unit Foundry Loft apartments* *Denotes projects that began construction which paused, but are scheduled to resume construction in the near term (next 6 months). 22

While the national economic recession continued, the Capitol Riverfront remained resilient in 2009. The Front added residents, welcomed new office tenants and retailers, witnessed the completion of one new riverfront park and piers and the groundbreaking of a second park. Inherent within the people and organizations investing in the Front is a common understanding and belief the Front is a once-in-a-generation opportunity to shape a new community on the river in our nation s capital. DEVELOPMENT SUMMARY Office Sq Feet Retail Sq Feet Residential Units Hotel Rooms Total Sq Feet Estimated Total Cost Existing/ Completed Under Construction** 6,522,967 150,280 2,347 204 10,205,493 $2.3 billion 379,000 31,000 250 0 713,000 $287 million Planned 8,704,780 850,655 5,612 921 24,252,865* $6.2 billion Totals 15,606,747 1,031,935 8,209 1,125 35,171,358* $8.7 billion Source: Capitol Riverfront BID, October 2009 * Total sq. ft. numbers include the allowed zoning by right on lots where a building program has not yet been determined ** Includes both projects under construction and paused projects scheduled to resume construction in the near term (next 6 months) 23

DEVELOPMENT MAP *Includes both projects under construction and paused projects scheduled to resume construction in the near term (next 6 months) 5 18 11 1 2 3 16 4 23 40 41 42 17 NATIONALS PARK 19 20 22 21 6 7 8 44 9 10 48 24 30 25 26 27 Canal Park 2011 28 35 35 35 29 32 43 43 47 The Yards Park (2010) 33 34 48 52 48 48 50 31 45 48 49 51 46 48 48 37 35 36 AS OF OCTOBER 2009 54 57 56 55 WASHINGTON NAVY YARD EXISTING/RECENTLY COMPLETED UNDER CONSTRUCTION* PLANNED PARKS/OPEN SPACE 53 38 39 Diamond Teague Park (2009) E X I S T I N G / P R O P O S E D R I V E R 12 W A L K 14 14 15 13 1. THE JEFFERSON Residential: 448 apt. units 2. THE AXIOM Residential: 246 apt. units 3. 23 I STREET Ruben Companies Mixed Use: TBD 4. THE 909 Residential: 237 units Retail: 6,000 SF 5. 1000 SOUTH CAPITOL Lerner Office: 320,000 SF Retail: TBD 6. 55 M STREET Office: 275,000 SF Retail: 15,000 SF 7. W ALOFT HOTEL 196 Rooms Retail: 5,000 SF 8. MONUMENT RESIDENTIAL Residential: 340 units Retail: 30,000 SF 9. SQUARE 740 Akridge Mixed Use: TBD 10. 1111 NEW JERSEY Donohoe Office: 203,000 SF Retail: 8,000 SF 11. 1100 SOUTH CAPITOL Ruben Companies Office: 350,000 SF Retail: TBD 24

12. RIVERFRONT ON THE ANACOSTIA FRP Development Office: 545,000 SF Retail: 80,000 SF Residential: 275 units Hotel: 325 rooms 13. 1900 HALF ST SW Douglas Development Office: 477,562 SF 14. 100 V ST SW Akridge Mixed use: 2.7 million SF 15. COAST GUARD HQ Monday Properties Office: 592,000 SF 16. PLAZA ON K DRI Development Office: 795,000 SF Retail: 30,000 SF 17. VELOCITY CONDOS Cohen Companies/ADC Residential: 200 units additional phases of mixed use TBD 18. 1015 HALF STREET Douglas Wilson Co. Office: 379,000 SF Retail: 21,000 SF 19. ONYX ON FIRST Faison/Canyon-Johnson Residential: 266 apt. units 20. 50 M STREET Monument Realty Office: 135,000 SF Retail: 5,000 SF 21. 100 M STREET Office: 225,000 SF Retail: 12,000 SF 22. 80 M STREET Spaulding & Slye Colliers Office: 275,352 SF 23. 20 M STREET Lerner Office: 180,633 SF Retail: 10,000 SF 24. 800 NEW JERSEY William C. Smith & Co. Mixed use: 1.5 million SF 25. CAPITOL HILL TOWER CO-OP Valhal Corp. Residential: 344 co-op units Retail: 9,500 SF 26. COURTYARD BY MARRIOTT 204 rooms; Retail: 4,000 SF 27. FEDERAL GATEWAY I William C. Smith & Co. Office: 293,000 SF Retail: 18,000 SF 28. 225 VIRGINIA AVE DC Government Office: 350,000 SF 29. 250 M AT CANAL PARK William C. Smith & Co. Office: 213,000 SF Retail: 12,000 SF 30. MULTI-FAMILY HOUSING DCHA/Forest City/Urban Atlantic Residential: 322 units 31. CAPPER SENIORS DCHA/Forest City/Urban Atlantic Residential: 162 units 32. 300 M STREET Potomac Investments Office: 278,500 SF Retail: 3,000 SF 33. CAPITOL QUARTER DCHA/EYA Residential: 323 townhouses 34. 400 M STREET DCHA/Forest City/Urban Atlantic Residential: 138 apt. units 35. MULTI-FAMILY HOUSING DCHA/Forest City/Urban Atlantic Residential: 802 units 36. 600 M STREET DCHA/Forest City/Urban Atlantic Office: 484,780 SF Retail: 15,000 SF 37. MARINE BACHELOR ENLISTED QUARTERS Dept. of Navy Residential: 166 dorms sports field, rehearsal hall & parking garage 38. MARITIME PLAZA I & II Brickman Office: 345,000 s.f. 39. MARITIME PLAZA III, IV, V Office: 350,000 SF Hotel: 200 rooms PUD allows 2 more office bldgs. & 1 hotel 40. 25 M STREET Akridge Office: 243,000 SF Retail: 18,000 SF 41. 1201 HALF STREET Akridge Office: 115,000 SF Retail: 10,000 SF 42. AKRIDGE RESIDENTIAL Akridge Residential: 280 units Retail: 47,000 SF 43. U.S. DEPT. OF TRANSPORTATION JBG Office: 1,350,000 LSF Retail: 22,300 SF 44. SQUARE 701 Wilco Companies Office: 350,000 SF Residential: TBD 45. 401 M STREET SE Forest City Washington Office: 376,000 SF Retail: 56,000 SF (planned grocery store) 46. 400 TINGEY STREET Forest City Washington Residential: 190 apt. units 47. BOILERMAKER SHOPS Forest City Washington Retail: 33,540 SF Office: 12,000 SF 48. PHASE II DEV. PARCELS Forest City Washington Mixed use: 3.6 million SF 49. FACTORY 202 FCW/PN Hoffman Residential: 250 condo units 50. PARK PAVILIONS Forest City Washington Retail: 57,500 SF 51. BUILDING 74 Forest City Washington Residential: Townhouses 52. FOUNDRY LOFTS Forest City Washington Residential: 170 apt. units Retail: 10,000 SF 53. 1333 M STREET Cohen Companies Office: 250,000 SF available FAR 54. ADMIRAL AT BARRACKS ROW Old City Development, LLC Office: 19,000 SF Retail: 3,000 SF 55. 900 M STREET Retail: 7,480 SF 56. THE BLUE CASTLE Madison Marquette Existing: Charter Schools Planned Retail: 94,400 SF 57. 1099 8TH STREET G Properties Retail: 10,000 SF 25

FRONT OFFICE: OFFICE Despite no new office buildings breaking ground in 2009 due to an excess supply of regional office space, there was significant development and leasing activity in the Capitol Riverfront office submarket. The signed leases in the Capitol Riverfront comprised nonprofits, government agencies, and private sector tenants. The buildout of established downtown markets, when combined with the city s height restriction and federal government presence, will continue to push development into emerging office submarkets such as the Capitol Riverfront. The Front offers tenants LEED-certified Class A space with full service rents $15 20 PSF lower than downtown submarkets. 2009 Office Development Highlights The Coast Guard renewed its 592,000 SF lease at 2100 2nd St, SW for 10 years. Parsons Engineering moved into its new 80,000 SF headquarters at 100 M Street, SE. The Bureau of Land Management signed a 94,435 SF lease at 20 M Street, SE. One office building was completed in 2009, totaling 275,000 SF of office space, 15,000 SF of retail space and $100 million. Sayres & Associates signed a 20,000 SF lease at 55 M Street, SE. Other 2009 leases include Battelle and the Owner Operated Independent Drivers Association. The DC Government purchased 225 Virginia Ave, SE and will renovate it to house the offices of three government agencies in 350,000 SF. 26

CAPITOL RIVERFRONT BID OFFICE MARKET Source: Capitol Riverfront BID, October 2009 SQUARE FEET Existing PRIVATELY OWNED, RENTED 4,322,967 Existing GOVT. OWNED, OCCUPIED 2,200,000 Total Under Construction 379,000 Total Planned 8,704,780 Office Statistics* Vacancy Rate** 17.3% YTD Net Absorption 97,604 SF Avg Full Service Rent PSF $44.45 *Source: 3Q 2009 Capitol Riverfront BID averages based on data from CB Richard Ellis, CoStar, Lincoln Property Company, and Delta Associates **Does not include Government owned, occupied space 27

OFFICE DEVELOPMENT MAP 23 24 S CAPITOL ST 25 2 1 3 4 5 6 7 8 9 10 11 12 M ST 14 15 16 17 18 19 TINGEY ST Nationals Park 22 NJ AVE F. DOUGLASS BRIDGE 28 I-295 13 8TH ST 27 26 20 11TH ST BRIDGE EXISTING UNDER CONSTRUCTION PLANNED/FUTURE PARKS/OPEN SPACE 21 1. 800 NEW JERSEY AVE Mixed Use: 1,500,000 SF 3. 1000 S. CAPITOL Office: 320,000 SF Retail: TBD 7. 80 M STREET Office: 275,352 SF 9. 1111 NEW JERSEY AVE Office: 203,000 SF Retail: 8,000 SF 10. FEDERAL GATEWAY I Office: 293,000 SF Retail: 18,000 SF 12. 300 M STREET Office: 278,500 SF Retail: 3,000 SF 13. 600 M Street Office: 500,000 SF Retail: 20,500 SF 16. Square 701 Office: 350,000 SF 17. THE YARDS PHASE II Office: 1,400,000 SF 18. U.S. Dept. of Transportation Office: 1,350,000 LSF Retail: 22,300 SF 19. 401 M STREET Office: 376,000 SF Retail: 56,000 SF 20. MARITIME PLAZA I & II Office: 345,000 SF 21. 1333 M STREET Office: 250,000 SF 22. RIVERFRONT ON THE ANACOSTIA Office: 545,000 SF Retail: 80,000 SF 23. 100 V STREET Mixed Use: 2.7 million SF 24. COAST GUARD HQ Office: 592,000 SF 25. 1900 HALF ST SW Office: 477,562 SF 27. THE ADMIRAL Office: 19,000 SF Retail: 3,000 SF 28. 225 VIRGINIA AVE Office: 350,000 SF 28

2. PLAZA ON K Office: 795,000 SF Retail: 30,000 SF 4. 1015 HALF STREET Office: 379,000 SF Retail: 21,000 SF 5. 1100 SOUTH CAPITOL STREET Office: 350,000 SF Retail: TBD 6. 20 M STREET Office: 180,633 SF Retail: 10,000 SF 8. 100 M STREET Office: 225,000 SF Retail: 15,000 SF 11. 250 M AT CANAL PARK Office: 213,000 SF Retail: 12,000 SF 14. 25 M STREET / 1201 HALF STREET Office: 370,000 SF Retail: 75,000 SF 15. 55 M STREET Office: 275,000 SF Retail: 15,000 SF 29 26. NAVY YARD Office: 2.2 million SF

FRONT DOOR: RESIDENTIAL As of October 2009, the Capitol Riverfront BID saw its estimated population increase by 1,400 people during the year to a total of 2,500 residents living in the Front. As the 517 units delivered in 2009 continue to lease and the remaining 80 townhomes of Capitol Quarter s first phase deliver, it is projected that the Capitol Riverfront population will rise to more than 3,000 residents in 2010. Currently an estimated 27,645 people live within one mile of the intersection of 3rd Street, SE and M Street, SE with an average household income of more than $86,000.* 2009 Residential Development Highlights Three luxury apartment projects were completed, totaling 517 new units and $152 million. DCHA was awarded $9.5 million in Public Housing Capital Funds from HUD via the American Recovery and Reinvestment Act to fill the finance gap needed to construct Phase II of the Capitol Quarter townhomes. The Front s estimated population more than doubled to 2,500 residents. *Source: DC Economic Partnership, ESRI, 2008 Estimates 30

CAPITOL RIVERFRONT BID RESIDENTIAL UNIT & POPULATION GROWTH # of units/population 4000 3500 3000 2500 2000 1500 1000 500 0 1000 POPULATION RESIDENTIAL UNITS 870 1830 1100 2500 2347 2427 2007 2008 2009 2010 2011 3050 3520 2677 Source: Capitol Riverfront BID, population estimates based on 1.5 residents per occupied unit and estimated absorption rates, October 2009 Average Face Rent for New Luxury High-Rise Apartments District of Columbia Average Face Rent *$2.81PSF **$2.90 PSF Capitol Riverfront Average Condo price per SF *$478 Distict of Columbia Average Condo price per SF ***$510 * Capitol Riverfront BID, October 2009 ** Delta Associates, 3Q 2009 *** Downtown BID, 2008 State of Downtown Report 31

RESIDENTIAL DEVELOPMENT MAP S CAPITOL ST 1 2 5 3 6 4 7 8 10 9 M ST Nationals Park 21 F. DOUGLASS BRIDGE NJ AVE I-295 17 18 19 11 12 13 14 TINGEY ST 15 16 20 8TH ST 11TH ST BRIDGE EXISTING UNDER CONSTRUCTION PLANNED/FUTURE PARKS/OPEN SPACE 10. SQUARE 701 RESIDENTIAL 11. THE YARDS PHASE II 12. THE YARDS PHASE II 13. THE YARDS PHASE II 15. THE YARDS PHASE II 16. THE YARDS PHASE II 17. 400 TINGEY STREET 190 units 18. FACTORY 202 250 units 19. BUILDING 74 20. MARINE BEQ 166 units 21. RIVERFRONT ON THE ANACOSTIA 275 units 32

1/2. Jefferson/axiom at CAPITOL YARDS JPI, 694 units 3. 909 at capitol yards JPI, 237 units 4. capitol quarter & capper/carrollsburg EYA/Urban Atlantic/Forest City, 1,747 units 5. velocity condominiums Cohen Companies, 200 units 6. capitol hill tower Valhal, 344 units 7. ONYX ON FIRST Faison, 266 units 8. AKRIDGE AT HALF STREET Akridge, 280 units 9. half street residential Monument Realty, 340 units 33 14. foundry lofts Forest City Washington, 170 units

STORE FRONT: RETAIL, ENTERTAINMENT & HOSPITALITY The Capitol Riverfront did make progress in retail attraction welcoming five new establishments in 2009. The Bullpen, Cornercopia Market and Deli, and Justin s Café are three significant additions to the Front s growing restaurant and entertainment market. Additionally the Front hosted over 2 million visitors at events and games at Nationals Park, the Navy Museum and Artomatic. 2009 Retail, Entertainment, and Hospitality Development Highlights The Bullpen, Cornercopia Market & Deli, SunTrust bank, and Domino s Pizza opened. Justin s Café is under construction and scheduled to open in the 4Q 2009 1Q 2010. The 204 room Courtyard Marriott averaged 81% occupancy. The Courtyard Marriott bar opened additional outdoor seating areas. Elton John and Billy Joel played the inaugural live concert at Nationals Park to a sold-out crowd. 34

TOTAL RETAIL SPACE IN THE CAPITOL RIVERFRONT VISITORS TO THE CAPITOL RIVERFRONT* 250,000 3 mil retail space in square feet 200,000 150,000 100,000 50,000 0 72,280 2007 127,280 2008 150,280 2009 181,280 2010 214,780 2011 2 mil 1 mil 0 181,000 2007 2.5 million 2008 2 million 2009 Source: Capitol Riverfront BID, October 2009 *Capitol Riverfront BID, estimated vistor total based on events at Nationals Park, Navy Museum, and other special events such as Artomatic 35

RETAIL/ENTERTAINMENT/HOSPITALITY DEVELOPMENT MAP 39 S CAPITOL ST 1 2 20 3 4 5 8 6 7 18 9 10 11 12 13 40 14 15 16 17 M ST 23 28 31 24 23b 25 26 27 29 30 TINGEY ST 32 33 34 35 37 36 38 NJ AVE F. DOUGLASS BRIDGE I-295 8TH ST 19 21 22 11TH ST BRIDGE EXISTING UNDER CONSTRUCTION PLANNED/FUTURE PARKS/OPEN SPACE 1. McDonalds 2. 800 NEW JERSEY AVE 3. 23 Eye STREET 4. Plaza on K 5. 909 at Capitol Yards 6. 1015 Half Street 8. Capitol Hill Tower & Courtyard MarRiott/CONGRESSIONAL CLEANERS 9. SC 1100 10. 20 M Street/WACHOVIA BANK 11. 50 M Street 12. 100 M Street/SUNTRUST BANK 13. 1111 New Jersey Ave 15. 250 M AT CANAL PARK 16. 300 M Street/SIZZLING EXPRESS 17. 600 M Street 18. Blue Castle 19. Neigborhood Retail 20. Barracks Row Restaurants 21. The Admiral 22. 900 M Street/DOMINO S PIZZA 23b. THE BULLPEN 25. Square 701 26. The Yards Phase II 27. Tingey Plaza 28. U.S. Dept of TranspORTATION 29. Building 170 32. The Yards Phase II 33. Foundry Lofts 34. The Yards Phase II 35. The Yards Phase II 38. RIVERFRONT ON THE ANACOSTIA 39. 100 V Street 40. CORNERCOPIA 36

7. JUSTIN S CAFE 14. FEDERAL GATEWAY I CVS, Five Guys, Subway, Chevy Chase Bank 23. AKRIDGE AT HALF STREET 75,000 SF 24. HALF STREET 50,000 SF, 196 hotel rooms 30. BOILERMAKER SHOPS 45,500 SF 31. 401 M STREET 56,000 SF 36. PARK PAVILIONS 57,500 SF 37. NATIONALS PARK 41,888 seats, 40,000 SF 37 40. CORNERCOPIA

FRONT YARD: PARKS, RIVER, & ENVIRONMENTAL SUSTAINABILITY The Front is the only DC neighborhood with three parks opening in the next three years: Diamond Teague Park with water taxi piers (2009); the 5.5-acre Park at the Yards (2010); and Canal Park, a three-block park that is a model of environmental sustainability (2011). These three parks not only provide access to the river and neighborhood recreation opportunities, but also serve as the front yard for the Capitol Riverfront neighborhood and are integral to the efforts to create community and a sense of place in the Front. The Capitol Riverfront BID will be responsible for the maintenance and programming of the Park at the Yards and Canal Park. 2009 Parks, River, and Environmental Sustainability Highlights Completion of Diamond Teague Park and Piers Groundbreaking of the 5.5-acre Riverfront Park at The Yards Removal of buses from Canal Park site and planting of sod for interim green space until construction in 2010 38

The Riverfront Park at The Yards under construction in October 2009. Rendering of the completed Riverfront Park at The Yards, courtesy of Forest City Washington 39

PARKS MAP The Front is home to: S CAPITOL ST Nationals Park NJ AVE F. DOUGLASS BRIDGE 8 6 1 5 7 M ST TINGEY ST I-295 2 9 8TH ST 3 11TH ST BRIDGE 4 More than 30 existing or planned LEED-certified buildings The largest green roof in DC on the U.S. DOT building (65,000 SF) The first LEED-certified stadium in the country A LEED for neighborhood development pilot project at The Yards The largest LEED for homes project in the country at Capitol Quarter 40

1. CANAL PARK (2011) 2. JOY EVANS BEFORE & AFTER SCHOOL DAY CARE 3. VIRGINIA AVE COMMUNITY GARDEN 4. BOATHOUSE ROW 5. TINGEY PLAZA 6. TINGEY SQUARE 7. THE YARDS RIVERFRONT PARK (2010) 8. DIAMOND TEAGUE PARK (2009) 9. ANACOSTIA RIVERWALK TRAIL 41

1100 New Jersey Avenue, SE Suite 1010 Washington, DC 20003 202.465.7093 www.capitolriverfront.org