CityCenter DC development schematic model courtesy Hines|Archstone

Hot news from the Washington Business Journal this morning on the long-stalled CityCenter DC project. Tierney Plumb reports that mega-law firm Skadden has signed a letter of intent to lease 350,000 sq. ft. of office space at the yet-to-be constructed project planned for the old convention center site.

The lease is a key development in getting the long-stalled project off the ground. CityCenter was originally scheduled to break ground in January 2009, but the collapse of the lending market made securing financing virtually impossible. Now that Skadden appears ready to sign-on, a new timetable has at last emerged.

The CityCenter developers have been talking to unnamed potential equity investors since mid-2009, but those conversations have recently evolved into detailed, in-depth discussions. Hines Interests LP hopes to complete negotiations with equity investors and Skadden soon, so construction on the first phase could start in the first quarter of 2011 with a July 2013 move-in date. Skadden’s current lease expires in October 2013.

Plans for the first phase of CityCenter include 500,000 sq. ft. of office space, 450 apartment units, 220 condo units and about 185,000 sq. ft. of retail. A 400-room, four-star hotel would eventually follow north of the mixed-use development.