This Week’s D.C. Deal Sheet: Downtown Office Conversion Gets $63M Loan
The downtown D.C. office building formerly home to the Air Line Pilots Association has received funding for a planned conversion into 157 residential units.
National Real Estate Development secured a $62.8M loan from Bank of America for its project at 1625 Massachusetts Ave. NW, according to documents posted in the D.C. Recorder of Deeds.
NRED confirmed it obtained the loan but declined to comment further. Bank of America didn't respond to requests for comment.
The developer filed plans with D.C.'s Historic Preservation Office one year ago to transform the property between Dupont Circle and Logan Circle, with Eric Colbert & Associates as the architect on the designs. The 114K SF building was constructed in 1971.
NRED plans to start construction on the project in October, Vice President of Development Katherine Hartley said at a Bisnow event last month.
1625 Massachusetts Ave. NW is one of the first three conversion projects to be approved for the city’s 20-year office-to-residential tax abatement. Mayor Muriel Bowser’s office announced the recipients last week.
The other projects approved for the tax abatement were Post Brothers’ planned conversion of 1825 and 1875 Connecticut Ave. NW into 525 units and Monument Realty’s planned conversion of 615 H St. NW, into 69 units.
LEASES
Regional cabinet distributor CVC Distribution inked a 35K SF industrial lease in Chantilly, its first location in the D.C. region. The company is taking space at Daata Partners’ 3931 Avion Park Court, a 108K SF, two-story industrial property near Dulles International Airport. KLNB principal Scott Rabin brokered the deal on behalf of the owner.
FINANCING
Washington Property Co. has refinanced a 105K SF office building in Rockville. The Bethesda-based CRE firm refinanced 1390 Piccard Drive, Cushman & Wakefield Managing Director Marshall Scallan announced on LinkedIn. Maryland property records show that the owner received a $10.3M loan from Trustar Bank. WPC acquired the 1980s-era property in 2007, according to its website.
MILESTONES
The 70K SF Georgetown office property home to The Legal Services Corp. is on the market. CBRE is marketing 3333 K St. NW as an opportunity for an owner-occupier or a developer interested in an office-to-residential conversion. CBRE Executive Vice President Martha Hastings said in a LinkedIn post that the property could be "delivered substantially vacant at closing."
The seller, Friends of The Legal Services Corp., purchased the property in 2002 for $14.2M, according to filings with the D.C. Recorder of Deeds. CBRE’s Manny Fitzgerald, John Sheridan, Harry Stephens and Charlie Mangold are leading the marketing campaign.
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An 80-unit affordable apartment building on the edge of Howard University’s campus is reopening after an Amazon-funded renovation. UIP Property Management announced it started leasing Howard Manor at 654 Girard Ave NW. Howard University acquired the 1950s-era property in 2023 and with funding from Amazon’s Housing Equity Fund undertook a renovation. Units are reserved for residents earning up to 60% of the area median income.
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ONE Commercial Properties has plans to redevelop a trio of West End office buildings into 48 units with an activated pedestrian walkway. The Bethesda-based company plans to convert the properties at 2121 Ward Place, 2112 and 2115 Ward Court NW, and include two cafe/retail concepts, Urban Turf reported. One of the properties, known as the Duke Ellington Building, sits on the spot where the jazz legend was born in 1899.
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Post Brothers filed plans for an office-to-residential conversion at 2100 M St. NW. The Philadelphia-based developer plans to convert the 300K SF property into 400 units, UrbanTurf reported, citing plans filed with the city. Post Brothers purchased the 300K SF property in May 2023 for $67M. The 13-story conversion is set to house 20K SF of ground-floor retail and 178 below-grade parking spaces. Eric Colbert & Associates was the architect on the plans.
