Developer Buys Federal Building With Conversion Plans: The D.C. Deal Sheet
The federal government has sold the first of what is expected to be a long slate of office buildings in the Southwest D.C. federal corridor.
D.C.-based Dalian Development purchased a nearly 1M SF office building at Seventh and D streets southwest that formerly housed General Services Administration employees. D.C. deed records show it paid $24.3M.
At a press conference Wednesday, the buyer said the plan is to convert the property to a mix of uses, likely including residential and possibly with a museum, the Washington Business Journal reported. The details are still being worked out.
“This project is an opportunity to create something beautiful for Southwest Washington — something aligned with the city's larger vision for the neighborhood and a catalyst for its resurgence,” Dalian Development CEO Hossein Fateh said in a statement released by the GSA the same day.
“I have had a home in Washington for more than four decades, and realizing this vision will require a substantial investment of time and capital — a reflection of my long-term commitment to this city,” he added.
Sitting on over 3.4 acres near the L’Enfant Plaza Metro station, the property at 301 Seventh St. SW was originally constructed as a warehouse between 1929 and 1932. It previously housed the GSA's National Capital Region team but has sat vacant since March 2025, per the GSA.
“This move demonstrates GSA’s commitment to President Trump’s agenda to shrink the federal real estate portfolio to a better core that focuses on workspace needs and agency missions,” GSA Administrator Edward Forst said.
He added the sale is expected to save taxpayers over $200M in maintenance costs and $5.5M in annual operating and maintenance expenses.
FINANCING
Carr Properties announced it has entered into a joint venture with Northwestern Mutual to fund its 315-unit office-to-residential conversion in Clarendon. Carr said the financial firm is providing a construction loan for the project but didn't disclose the loan amount or total cost of the conversion. The conversion of 3033 Wilson Blvd. is planned to include a fitness center, coworking lounge, courtyard and community garden as well as a rooftop pool, clubroom and wellness spa. Construction is set to begin in April.
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An effort to rehabilitate a 178-unit affordable apartment building in Ward 8 secured public financing, the D.C. Housing Finance Agency announced this week. Urban Atlantic and Capitol Housing Partners, a subsidiary of the D.C. Housing Authority, are behind the $103M renovation of Henson Ridge II.
The project received $40M in tax exempt bonds as well as $37.5M in federal and $9.3M in D.C. low-income housing tax credit equity. The project would partition 64 apartments as LIHTC units and 114 for project-based voucher units. All the units will be reserved for residents earning up to 60% of the area median income.
MILESTONES
Georgetown University professor Jonathan Morris and his former student Bobby Wilson formed a new venture focused on buying discounted multifamily as well as targeting office-to-residential conversion plays, Commercial Observer reported this week. Renaissance Realty Trust is starting out as a private REIT, but the partners plan to eventually take it public. It will first target assets in the D.C. area before expanding nationally.
LEASES
JBG Smith inked a tenant for the ground-floor retail space of a Navy Yard apartment building. The Bethesda-based REIT is bringing bar and billiards room Skylark to 1201 West Half, a 465-unit mixed-use building adjacent to the Bullpen. Expected to open this fall, Skylark will occupy 4K SF and feature pool tables, dart boards, mounted TVs and a nearly 2,000 SF private patio. The bar is a collaboration between three longtime D.C. hospitality owners and operators: Daniel Williams, Todd Greene and Curt Large.
