Inability to Secure 'Trophy' Hotel Puts Robinson Terminal North Development on Hold

ALEXANDRIA, VA — The redevelopment of Robinson Terminal North on Alexandria's waterfront is temporarily on hold because the developers could not secure a "trophy" hotel for the project, a representative for the owners said Monday morning.

A brokerage firm hired by the owners of the project to market it to potential companies could not secure a top-tier "significant flagship brand" hotel that would command top prices for and serve as the heart of the development, said Kenneth Wire, a representative for McGuireWoods LLP.

In addition to not being able to attract a trophy hotel, Wire said that "construction costs are up" and "uncertainty in the financial markets" also played a part in the owners' decision to put a temporary hold on the project.

"They were ready to demo this summer," said Jack Browand, who serves as a liaison between the Waterfront Commission and the city. He said he expects Wire to lay out more details at a meeting Aug. 15 at 5:30 p.m. at City Hall.

Plans call for the owners, the City and the community to hold new meetings to come up with a new plan, Wire said. "They bought the site because they believe in it," he said.

Robinson Terminal North, located at 500 and 501 N. Union St., is a joint venture development between Rooney Properties and CityInterests, a Washington, D.C.-based developer. Located on the Potomac River in Old Town Alexandria, the current property served as a Washington Post shipping hub for more than 70 years.

Spanning both sides of North Union Street, the redevelopment as approved by the city was to consist of two distinct yet interacting buildings connecting Oronoco Park and Founders Park. The west building was planned to house a boutique hotel anchored to the north and south by two residential condominium towers, and the east building was expected to consist of luxury residential condominiums above ground floor retail space. The development is planned to incorporate historic aspects of Alexandria and to significantly enhance the waterfront.

"Robinson Terminal North is an ambitious and complicated project that is an important piece of the City’s adopted vision for a revitalized waterfront, and is critical in realizing our goal of connected public access along the entire shoreline," said Stephanie Landrum, president and CEO of Alexandria Economic Development Partnership.

"Robinson Terminal North is planned as a mixed-use development, with condominiums and destination retail, restaurant and hotel anchors," Landrum said. "The commercial uses will complement and activate our waterfront public spaces, and generate significant positive economic impact. We look forward to supporting the owners as they evaluate design and economic alternatives to make sure this site's full potential is realized in the near future."

Wire, the representative speaking for the owners of the Robinson Terminal North project, also cited uncertainties with Congress and the British exit from the European Union as reasons cited by the owners to put the Alexandria project temporarily on hold.

The chairman of Rooney Holdings, Francis Rooney, a Republican who lives in Naples, Florida, is himself running for public office for the first time, to represent Florida's 19th District in Congress.

The decision by the owners to put the project on hold also comes at a time when the MGM National Harbor casino and hotel are set to open across the Potomac later this year.

Other major development projects in Alexandria continue to move forward, including the Indigo Hotel by Carr Hospitality, Robinson South by EYA and the Old Dominion Boat Club's new building at its new location.

Photo: Rendering of Robinson Terminal North project courtesy of Rooney Properties