DC Waterfront Office-to-Resi Conversion Gets $60M Construction Financing
The developers also secured more than $20 million in C-PACE financing for the project.
ONE Street Commercial Properties has secured nearly $60 million across two financing deals for the conversion of a 1980s-era boutique office building along Washington, D.C.’s Georgetown waterfront to a 22-unit luxury condominium and retail property.
The adaptive reuse project at 3333 K St. NW is scheduled for completion by late 2027. The redevelopment has received approvals from the Advisory Neighborhood Commission, Old Georgetown Board and Commission of Fine Arts.
OakNorth and Hickory CRE Lending have provided the developer with a $37.8 million co-loan to support the adaptive reuse project.
Last month, DC Green Bank and PACE Equity Finance announced the closing of $20.6 million in C-PACE financing for the project. The C-PACE financing will fund upgrades to the building envelope, HVAC, lighting, plumbing and elevators, that are estimated to save nearly $160 million in yearly operating costs.
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Plans call for adding a sixth floor to the five-story, approximately 70,000-square-foot property. The community will have retail and restaurant space on its ground floor, with residences, including a penthouse with a rooftop terrace, pool and garden, on the upper floors. The renovated building will have 21 for-sale condo units and one affordable unit. The development’s amenities will include a 24/7 concierge, valet parking, a fitness center, a swimming pool, a resident lounge, a club room and 70 parking spaces. It will also have at least five EV chargers for residents and visitors.
Last year’s lead-up
ONE Street acquired the property in May 2025 from the seller, Friends of The Legal Services Corp.for $29.2 million. LSC, which had its headquarters at the Georgetown building, has relocated to 18 and I Streets NW.
CBRE arranged the deal and represented the seller in the transaction. McLean Partners acted on behalf of ONE Street.
ONE Street obtained a $16 million senior loan and $1 million mezzanine loan from G4 Capital toward the acquisition, the Washington Business Journal reported at that time. New reporting from Bisnow stated that part of the loan from Hickory and OakNorth was used to pay off acquisition financing.
Completed in 1988, the boutique office property is situated at the southern end of Georgetown, fronting K Street/Water Street NW, with the C&O Canal to the north and the Potomac River and Georgetown Waterfront Park to the south. It is located near the M Street retail corridor and also has views of the Key Bridge, Kennedy Center and Rosslyn, Va., skyline.
Multiple D.C. conversions underway
The historic Georgetown neighborhood is just one part of D.C. that is seeing multiple office-to-residential redevelopment projects. The biggest Georgetown conversion is taking place at 1000 and 1050 Thomas Jefferson NW, where Rockpoint, LCOR and Potomac Investment Properties have formed a joint venture to turn two former office buildings into 299 apartments.
The project will be the first multifamily development to deliver more than 150 units to Georgetown in more than a century. PIP developed the two buildings totaling roughly 349,000 square feet in 1980 and 1981 and has owned them since that time. Plans call for the construction of a 179-unit, 10-story building and a 120-unit, nine-story property. The development will have 18,100 square feet of retail space, in addition to 282 below-grade parking spaces.
Last week, a partnership between DivcoWest, Jemal Real Estate Strategies and JLS Capital unveiled plans for the conversion of 1255 23d St. NW in the West End neighborhood, between Georgetown, George Washington University and Dupont Circle, 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. The development will include up to 36 affordable housing units, and the partners plan to keep the eight-story property’s 22,000-square-foot retail space on the ground floor.
DivcoWest had owned the office asset since 2018, when it purchased it from Carr Properties for $166.2 million, according to Yardi Matrix data.
Earlier in September, just one mile south of that redevelopment site, Carr Properties began converting another office property at 2121 Virginia Ave. NW, into a 299-unit luxury community.
