DivcoWest JV Plans Office-to-Resi DC Conversion
The future community will include affordable units.
A partnership between DivcoWest and Jemal Real Estate Strategies has drawn up plans for converting the office building at 1255 23rd St. NW, in Washington, D.C., into a 323-unit residential community.
Madison Realty Capital has originated a $40 million acquisition and predevelopment loan for the recapitalization of the property into the newly formed venture. FILLAT + Architecture serves as the conversion project’s architect, while CBG Building Co. is the general contractor.
The office building has been under DivcoWest’s ownership since 2018, when the company paid $166.2 million to Carr Properties to purchase it, according to Yardi Matrix information. As for the upcoming conversion, DivcoWest retained an equity interest in the asset, alongside Jemal Real Estate Strategies.
Completed in 1982, the 342,000-square-foot property features 50,000-square-foot floorplates across eight stories. Plans for the conversion include up to 36 affordable housing units. The venture will keep the building’s 22,000-square-foot retail space on the ground floor. Other amenities at the LEED Gold-certified property include a 257-spot parking area and seven passenger elevators.
Something old and something new in West End
The future community is in D.C.’s West End, between Georgetown, George Washington University and Dupont Circle and in proximity to Foggy Bottom-GW University metro station, with access to the Blue, Orange and Silver lines. One mile south of 1255 23rd St. NW, at 2121 Virginia Ave. NW, Carr Properties began converting an office building into a 299-unit luxury community last month.
Washington, D.C. is expected to add roughly 5,000 units over the course of this year, according to a report by Marcus & Millichap, marking a 54 percent drop from the number of housing completions in 2025. Over the past decade, the metro saw approximately 12,500 units delivered annually, half of which were across D.C.’s western submarkets. Projections for the District itself amount to around 1,000 units delivered this year.
