The largest project east of the Anacostia River in decades was dealt a setback yesterday when the District's primary partner dropped out of the deal, citing risks in the struggling capital market, city officials said yesterday.
Clark Realty Capital, a Bethesda-based company, beat out several other high-profile firms last year to win the right to help the city create up to $2.5 billion in mixed-use development at Poplar Point, a 110-acre swath of parkland in Ward 8, just across from the new Nationals stadium. The winning proposal featured housing, offices, restaurants, a park and, possibly, a soccer stadium for D.C. United.
Clark agreed to fund the construction in exchange for the right to sell off the developed parcels, a government source familiar with the deal said. In the wake of the economic meltdown, however, Clark asked the District to fund the construction and pay Clark a fee to act solely as the builder, said the source, who spoke on the condition of anonymity because the talks were private.