D.C. is beginning its push to move agencies east of the Anacostia River with a major new deal in Ward 7.

Mayor Muriel Bowser announced Thursday that D.C. signed a letter of intent to move the Department of General Services to a newly built headquarters at 3924 Minnesota Ave. NE.

The agency plans to move to a redevelopment of the Senator Square shopping center, which Cedar Realty Trust acquired in 2018. It would move nearly 700 employees from the Reeves Center on U Street NW, a property the city plans to redevelop.

The mayor began the search for a new DGS headquarters in September with a request for between 175K SF and 225K SF. She did not announce the size of the deal Thursday. The move is part of Bowser's push to use D.C. office relocations to spark economic activity in the underserved neighborhoods east of the river.

“We are excited to bring our DGS headquarters to Minnesota Avenue," Bowser said in a release. "My charge was to use our resources and leasing power to attract much-needed retail, amenities, and jobs, and that is what we will do for the residents of Ward 7.”

The property sits near the intersection of Minnesota Avenue and Benning Road NE, about a half-mile from the Minnesota Avenue Metro station. It is also along the line where D.C. plans to extend the H Street streetcar, a project Bowser kept in her latest budget proposal.

Cedar Realty has not unveiled its full plans for the redevelopment, which it is branding as Northeast Heights. The firm also owns the adjacent East River Park Shopping Center, and Cedar Realty Chief Operating Officer Robin Zeigler told Bisnow in 2018 it planned to build a multifamily and retail project on that site.

Zeigler said in Thursday's press release the project will include office, residential and retail uses, and she indicated the development would include both shopping center properties.

"This transaction will be one of the most significant office leases in the area, and it reflects our success at creating a working relationship with the district for the betterment of the entire community," Zeigler said in the release. "In transforming the two existing shopping centers into a mixed-use asset that will also feature office and residential use, we are bringing a vibrant property to the area, and ensuring Ward 7's continued prosperity for many years to come.”