"This is such a rare opportunity for us because it's the biggest single open available space inside the Beltway and we think it's the finest development piece on the east coast," says Daniel B. Kohlhepp, Crescent's regional vice president for the mid-Atlantic region. "When I studied real estate back in the '60s, we dreamed about building new towns and cities, and now here's a chance to do that, and do it in the capital of the free world."

The site, which includes 88 acres in Arlington and 212 acres in Alexandria, was the subject of hundreds of meetings over several years as CAP officials put together a mixed-use plan that includes retail, office and residential space that met the approval of federal, state, county and city officials as well as local groups. The plan for Alexandria, approved in September 1999, includes 1.9 million sf of office space, a 625-room hotel, a 135,000 sf town center/neighborhood retail complex and 1,900 residential units.

The Arlington plan, approved last October, includes 2.8 million sf of office space, a 625-room hotel, 800 residential units and 100,000 sf of retail space. The plan also calls for a 25-acre park north of Crystal City that will be owned by Arlington County.