A new vision for replacing the Pentagon Centre shopping center, including the Costco, is coming into focus.
Kimco Realty Corporation revised its plans envisioning the long-term redevelopment of the 16.8-acre site, which were first approved by the Arlington County Board in 2015. Kimco submitted documents articulating these changes — which call for new high-rise residential and commercial buildings — in late December.
“With the redevelopment approvals that have been granted since 2015, and because the Pentagon City Metro Station is contained within the Pentagon Centre block, Pentagon Centre should be part of the intensification of redevelopment — in height, in mix and in overall density — to leverage the significant positive impacts of Metro ridership, job creation and livability here in Arlington County,” per the plan.
Pentagon City has recently been the focus of private redevelopment and county planning initiatives. On the Pentagon Centre site, Kimco has completed the redevelopment of surface parking into an apartment building dubbed the Witmer (710 12th Street S.) in 2019. Another apartment tower, dubbed the Milton (1446 S. Grant Street), is nearing completion.
Elsewhere, the first phase of Amazon’s second headquarters is set to open this summer, and — once economic headwinds change for the company — a second phase with the marquee “Double Helix” building is still planned, though delayed. JBG Smith, meanwhile, plans to redevelop acres of surface parking at the RiverHouse apartment complex into more residences.
Kimco updated its guidelines for redeveloping the Pentagon Centre site because much has changed in seven years. Office demand dropped due to the pandemic, so the real estate company proposes swapping some proposed office space for more apartments. It made changes to align with the 2022 Pentagon City Sector Plan, which guides long-term growth in the neighborhood.
“While we are not part of the sector plan, we thought it was a good time to look at the plan,” Kimco’s Director of Multifamily Development Abbey Oklak told the Arlington Ridge Civic Association during a meeting last week.
The new plans propose two office buildings, down from three, as well as three additional residential towers. Green space increased by about 30%, to nearly three acres, criss-crossed by planted paths, or “green ribbons,” envisioned in the Pentagon City Sector Plan.
Kimco divides the redevelopments into two phases. In the new first phase, S. Grant Street — which currently dead-ends at the southern edge of the mall — will extend through the site as a double-sided retail street.
Existing retail space west of the extended S. Grant Street, including Marshalls, Best Buy and restaurants, would become a pair of towers, one residential and one office, with ground-floor retail and parking.
“We wanted to look at the realignment of S. Grant Street so that Costco could stay,” Vice President of Development at Kimco Greg Reed said. “We’d take the mall down and bring the tenants back if they want to stay, in a different format… and have density above that in the future.”
In the new second phase, the Costco and parking garage on S. Fern Street would become an apartment building, an office tower with a conference center and a mixed-use hotel and apartment building, all with retail at the base.
These changes will not be happening for a while, as Kimco is still signing 10-year deals with retailers in the shopping center with 5-year extension options beyond that, civic association meeting attendees were told.
The company has yet to receive substantive feedback on its revisions, according to Evan Pritchard, a land use attorney representing Kimco.
Meanwhile, the apartment dubbed the Milton is expected to be completed in May, with pre-leasing already beginning for June 1. Kimco aims to have retail space in the building open up by the end of 2023.
While Oklak did not share information on forthcoming tenants, she said Kimco aims to have a mix of services, such as banks, spas and gyms, and food and beverage retailers.
Reed said it is hard to lease to tenants before they can visualize the space.
“The toughest part is for retailers to see what it’ll look like without all the construction in the way,” Reed said. “They can’t see the vision with all our fencing and cranes.”
While the second phase of Amazon’s HQ2 has been paused, another major nearby development might be in the process of being unpaused. The Washington Business Journal reported last week that Brookfield’s existing plans to redevelop the former Transportation Security Administration headquarters, across 12th Street S. from Pentagon Centre, “look like they’re underway again.”