The project that kicked off downtown D.C.'s ongoing wave of office-to-residential conversions has landed a refinancing deal.
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Willco secured $64M from Truist Bank for the Elle at 1111 20th St. NW., a 163-unit redevelopment of the former Peace Corps headquarters, according to deed records.
It refinances a $56M loan it obtained in 2022 from MidCap Financial, documents show.
Willco President Gary Cohen didn't respond to a request for comment.
When the building delivered in the summer of 2024, Mayor Muriel Bowser celebrated it as the first major office conversion to complete construction downtown.
With help from city tax incentives, D.C. has become a national leader in office-to-residential conversions, with a string of such projects now completed, underway or planned.
SALES
The developers behind a planned 530-unit Arlington residential community have closed on the site. Crescent Communities and Rockefeller Group, which are working together for the first time, are planning to build Novel Arlington with 493 multifamily units and 37 townhomes at the 5.5-acre site at 2480 S. Glebe Road.
This week's announcement of the acquisition, which the Washington Business Journal first reported was a $50M deal, also provided additional details on the team's financing. The developers secured equity from Shimizu Realty Development and Mitsubishi Estate New York and construction financing from Sumitomo Mitsui Trust Bank New York Branch, though they didn't disclose the development cost. Novel Arlington is expected to deliver in early 2028.
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Carr Properties and Barings purchased 1401 New York Ave. NW, a 212K SF office building near the White House, Carr announced this week. It didn't disclose the price, but D.C. deed records show that the acquisition was for $85M and that the partnership secured a $73.4M loan from Rialto Capital Management. The sellers were BNP Paribas AM Alts and Stewart Investment Partners, the WBJ reported. The new owners plan to renovate the rooftop, including the addition of a new indoor space, as well as updating the lobby, fitness center and conference facilities.
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MILESTONES
Mayor Muriel Bowser, Philadelphia-based Post Brothers and their capital partners celebrated the groundbreaking Thursday on D.C.’s largest office-to-residential conversion to date. The Geneva, planned to total 532 apartments, is a redevelopment of the Universal Building near Dupont Circle. Post Brothers is receiving a 20-year tax abatement from D.C.’s Housing in Downtown program. It secured a record $465.3M commercial property assessed clean energy loan at the end of last year, Bisnow first reported this month.
FINANCING
The Bowser administration has awarded two more planned D.C. conversions with 20-year tax abatements through its HID program. One of the new recipients is Carr Properties’ project at 2121 Virginia Ave. NW, which the developer plans to convert into 300 apartments. The other is Jair Lynch’s redevelopment of 899 Maine Ave. SW., which it is converting into 511 units.
PERSONNEL
Josh Posnick is joining Trammell Crow Co. as its global head of capital markets, the company announced this week. Posnick comes from a 12-year stint at Mill Creek Residential, where he was most recently senior managing director of capital markets for U.S. projects. Posnick will continue to be based in D.C. and will lead TCC’s debt and equity programs globally. He will report to TCC CEO Adam Nims.
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