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The transformation of the Old Post Office building on Pennsylvania Avenue NW into a luxury hotel took a big step forward today with an announcement from the General Services Administration that it’s reached a deal with Donald and Ivanka Trump.

According to a press release from GSA, the agreement cements a 60-year lease for the Trumps to redevelop the building, and stipulates that $200 million in private-sector funds will be invested in restoring the 114-year-old building and turning it into a hotel, restaurants, a spa, and conference and ballroom facilities. The hotel will have more than 260 rooms and is expected to open in 2016.

GSA spokesman Dan Cruz says that the Trump Organization will be paying GSA an initial base rent of $250,000 a month, which will increase over time in proportion with the consumer price index.

Current GSA tenants in the building, including the Advisory Council on Historic Preservation, the National Endowment for the Arts, and the National Endowment for the Humanities, will be relocated.

This post has been updated to include the rent to be paid by the Trumps.

Donald Trump photo from Shutterstock