About a month ago I posted about the closure
of the combo Kentucky Fried Chicken/Taco Bell at 1101 South Capitol Street, SW, noting that the site had been purchased in late May for $5.5 million by "URA Ventures", another name for Urban Realty Advisors
. So, when I saw a couple days ago the signs that have now gone up at the site (on the corner of South Capitol and L) touting leasing opportunities, with "Ruben Companies
" in big letters at the top, I was a little a'skeered I had screwed up. But with some e-mail inquiries and some digging in the DC Land Records
(you all owe me $8
), I've determined that URA borrowed the bucks from Ruben Capital Holdings to buy the site. So they're one big happy co-venture. According to the folks at Ruben, long-term plans for the site call for an office building.
This deal helps the Ruben folks to corner the market on properties on the southern two corners of South Capitol and L, since they are also developing a 350,000-sq-ft office building across the street at 1100 South Capitol. (Ruben also owns two-thirds of Square 648, bounded by South Capitol, L, Half, and K streets SW, but since neither of those two lots touch South Capitol Street, I'm blissfully ignoring them.)
While reading the deed from the KFC sale, I came across one paragraph that I'm sure is no surprise to folks in the biz but struck me as pretty funny. In completing the deal, the buyer agreed agree that, for the next 20 years, "no portion of the property shall be used for the operation of any facility deriving 25 percent or more of its gross sales of prepared food from the sale of (i) Mexican food; (ii) chicken or chicken products, including without limitation chicken wings; or (iii) pizza, pasta, Italian sandwiches, or other Italian food products; or (iv) hamburgers or (v) seafood. The foregoing food use restrictions shall not apply to: a) full-service, sit-down, dine-in restaurants, which offer alcoholic beverages and do not offer fast food over the counter or by means of a drive-through service or b) food service facilities which are intended for the use or convenience of tenants or occupants of improvements constructed on the property, or their guests or invitees, provided the food service provider shall not be a national or regional (i.e., more than 10 outlets) quick service restaurant concept." So, if you were hoping for a new fast-food joint in that spot, you're going to be disappointed.