Amtrak Closes $505M Settlement Over D.C. Union Station
Amtrak will pay Rexmark more than two-times what it first offered for control of the station’s 607,000-square-foot commercial complex
By Nick Trombola March 11, 2025 2:15 pm
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A settlement has been reached in the lawsuit between Amtrak and Rexmark, ending the long-running saga over control of Washington, D.C.’s Union Station’s commercial element and opening the door for an $8.8 billion remake.
The legal dispute between Amtrak and New York-based investment firm Rexmark came to a formal conclusion at the end of last week, Commercial Observer can first report. Amtrak — which controls the rails and gates at the station in central D.C. — will pay the $505 million settlement to Rexmark for ownership of the leasehold interest of the station’s roughly 607,000-square-foot commercial section, a person familiar with the proceedings confirmed. Law firm Haynes Boone represented Rexmark in the settlement.
The settlement ends a years-long dispute over the 118-year-old station’s commercial component. An entity controlled by developer and investor Ben Ashkenazy acquired the leasehold interest in 2007 for $160 million, according to reports at the time, though in 2020 the firm defaulted on $100 million in mezzanine debt tied to the property provided by South Korea’s Kookmin Bank. Rexmark operates as the bank’s U.S. agent.
“Although we are sad to no longer be involved with this remarkable asset, we are pleased that a resolution was reached,” Michael Rebibo, managing principal of Rexmark, said in a statement. “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.”
Rexmark took over the leasehold at foreclosure auction in early 2022. But Amtrak filed an eminent domain suit against Rexmark that same year for control of the station, offering $250 million in just compensation. Amtrak was within its legal rights to wrestle control of the station, a judge ruled last year, though Rexmark appealed. The new settlement ends the dispute.
Ashkenazy’s company had attempted to throw a wrench in the proceedings by filing an injunction last month, arguing that it was entitled to a piece of the Union Station pie. But Judge Gregory Woods, of the U.S. District Court for the Southern District of New York, dismissed Ashkenazy’s claim last week, ruling that his company had no legal claim to the property, and that its arguments “fall flat,” according to the ruling.
The U.S. Department of Transportation formally owns the station, and the nonprofit Union Station Redevelopment Corporation (USRC) acts as the property’s landlord.
Amtrak’s takeover of the leasehold sets the stage for USRC’s long-pending redevelopment of the storied train and bus station, estimated to cost $8.8 billion. Plans for the makeover include a new rail terminal, new bus facility, pedestrian throughway and more commercial space, though full funding for the project has not yet been secured.
“We’re focusing on improving operations and creating a more welcoming environment for travelers and other visitors,” Roger Harris, Amtrak’s president said in a statement regarding its newfound control of the station.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
