Metro is putting its downtown D.C. headquarters on the market for a long-term ground lease, the transit agency announced Tuesday.
Metro said it will leave the Jackson Graham Building for a new location near L'Enfant Plaza by 2022. The long-term ground lease offer is "extremely rare" and an opportunity to redevelop the site for future high-density office, residential, hotel or mixed-use development, Metro said in a news release.
"Maximizing the value of our downtown property is in the best interest of Metro, the District, our employees and our riders," said Metro General Manager Paul J. Wiedefeld. "While the Jackson Graham Building has been our home for more than 40 years, the revenue that will be generated by the redevelopment of this property is an investment in Metro's future."
Since Metro would remain the owner of the Jackson Graham Building under a long-term lease, Metro said this would allow the transit organization to get more revenue to support bus and rail operations, keep fares affordable and contribute to the transit agency's long-term financial stability.
The 1.1-acre building has been Metro's hub for 45 years, sitting across from Capitol One Arena. The building has never undergone a major renovation and is inefficient, Metro said.
The current building does not meet current fire and life safety standards or Americans with Disabilities Act requirements. The cost to repair the building was "deemed prohibitive" and pushed Metro to purchase its new headquarters.
In October, Metro purchased a building on 7th Street NW near L'Enfant Plaza for its new headquarters.
As part of a broader consolidation effort by Metro, other employees and jobs will be relocated to new regional headquarters sites in Maryland and Virginia and will reduce Metro's 10 current locations to seven.
The effort will save tax payers an estimated $130 million over the next 20 years. The locations will be announced in upcoming weeks, Metro said.