Report: Amtrak to Control Washington Union Station Leasehold (UPDATED 3/13)
According to the newspaper, Amtrak took “control of the station’s commercial side last year through eminent domain, saying a private developer had let it languish during the pandemic”; “Rexmark, which won the property in a 2022 foreclosure [by Ashkenazy Acquisition Corp.,] … accused Amtrak of illegally taking over the station after unsuccessfully trying to buy it for $250 million.”
In a court document filed earlier this year, the parties said they “are pleased to report that they have reached a settlement that will allow the Court to facilitate the payment of just compensation on an expedited basis and close this case,” according to 7News Washington.
Amtrak supplied 7News with a written statement on Feb. 11: “We have reached a settlement in the U.S. District Court case that granted Amtrak possession of Washington Union Station, pending a joint motion for dismissal by the judge. Since taking possession in 2024, we’ve made significant improvements to the station. We will work with our partners to implement more improvements to the historic station for travelers, visitors, and the community.”
Amtrak launched the improvement projects in coordination with the Federal Railroad Administration (FRA), which represents the U.S. Department of Transportation, the station building owner, and the Union Station Redevelopment Corporation (USRC), which leases the building from USDOT. The commercial areas inside, according to The Washington Post, “have been leased to private firms for decades.”
USRC told 7News that “as the master leaseholder and representative of the federal government’s interest, [it] is pleased that Amtrak and [Rexmark/]Union Station Investco (USI) have settled litigation over the station’s commercial sub-lease. This anticipated resolution now enables USRC and Amtrak, along with our federal partners, to focus on USRC’s objective of delivering capital improvements while advancing the multi-billion dollar Station Expansion Project. Our goal with any partner remains the same: to facilitate the ongoing transformation of Union Station into a modern, world-class facility.”
The FRA last year signed the combined Final Environmental impact Statement (FEIS), Record Of Decision (ROD) and Final Section 4(f) Evaluation for the Station Expansion Project’s proposed preferred alternative. It also awarded Amtrak up to $24 million for the project, which includes realignment and improvements to tracks, platforms, and concourses; construction of a new bus facility, parking garage, and train hall; and improvements to bicycle and pedestrian infrastructure.
Opened in 1907, Washington Union Station is the second busiest station in the Amtrak national network. Amtrak ridership at the station in FY2024 was 5.6 million. The Amtrak Acela, Northeast Regional and fleet of overnight trains, in addition to Amtrak Virginia and North Carolina trains serve the station, in addition to Washington Metro transit, MARC and Virginia Railway Express commuter lines, local and intercity buses, and streetcar services.
3/13 UPDATE:
Amtrak and Rexmark on March 11 announced that their case regarding the lease of the majority of the customer-facing area of Washington Union Station has come to a close. Following the parties’ settlement agreement, a judge for the U.S. District Court for the District of Columbia formally ended the case on March 7.
“We’re focusing on improving operations and creating a more welcoming environment for travelers and other visitors,” Amtrak President Roger Harris said. “With our partners, a new and exciting chapter for Washington Union Station is underway to ensure this historic station remains a vibrant place for all.”
“Although we are sad to no longer be involved with this remarkable asset, we are pleased that a resolution was reached,” commented Michael Rebibo, Managing Principal of Rexmark, the master leaseholder of Washington Union Station. “We worked hard to be good stewards of this iconic property in recent years despite numerous challenges and look forward to seeing it grow and prosper.”
Amtrak is responsible for the day-to-day management and operations of the station, including the drop-off lanes between the station and Columbus Circle. Amtrak manages the safety, security, repair, and maintenance of the station, in addition to the leasing of retail, office, and advertising space, kiosks and special events. This responsibility does not include the parking garage and Columbus Circle, located outside the front of the station.
