Construction is underway at CityMarket at O Street, a $300 million mixed-use development that was fast-tracked last month for federal funding by the Obama administration.

The project will restore the historic; 19th century O Street Market building, creating a multi-use development that will include a new 71,000-square-foot Giant Food Store, residences, a Cambria Suites Hotel, retail and residences. Construction got underway with funding from the Department of Housing and Urban Development.

The O Street Market, constructed in 1881 and opened as the Northern Market, was one of several public markets that served D.C. through the mid-20th century. In the early 1960s, it was the only major market in the city that remained open when the commercial supermarkets were struck by the unions.

Preparatory construction broke ground in September 2010 and a Giant store currently on the site behind the façade of the old market will be closed and razed, and is scheduled to reopen in 2013.

According to, the CityMarket at O is expected to bring more than 2,400 jobs, including construction and factory jobs and permanent positions, and bring 1,000 new residents to the Shaw neighborhood.

“CityMarket at O will enhance the quality of life in Shaw and act as a bridge from this historic neighborhood to Downtown, Gallery Place, the U Street Corridor? and Howard University?,” Richard Lake, one of the three partners of Roadside Development, told the Web site. “This two block development will also help create an enhanced environment for the Convention Center and the surrounding neighborhood.”