Stream Realty Partners recently handled the sale of 1125 15th St. NW in Washington, D.C., to a joint venture between Dallas-based Lincoln Property Company and Toronto, Canada-based Cadillac Fairview for $82 million. The 273,000-square-foot, 51-year-old office building is in the heart of Downtown Washington’s East End submarket.
The new owners plan to convert the 12-story, former Department of Homeland Security building into 264 residential units designed by Hickok Cole Architects. The project’s D-6 zoning allows for maximum residential density, thus making it ideal for a converstion from office space. In addition, the property is nearly free-standing, allowing for windows on most of the perimeter walls. Homeland Security consolidated offices and moved out of the building in 2018, leaving the asset fully vacant following several years of U.S. Government occupancy. Originally built In 1970 as the headquarters of the International Brotherhood of Electrical Workers (IBEW), the organization sold the building to S.C. Herman & Associates, Inc. in 2004.
Most floors in the renovated building will house approximately 25 residential units of various sizes, with a portion of the top floor serving as amenity space. The completed project will also consist of approximately 2,600 square feet of retail space, a fitness center, and space for a leasing office on the ground floor.
“There is substantial capital demand for multifamily investments relative to office at this point In the cycle,” Pacinelli said. “As such, we were able to achieve favorable pricing that met the objectives of both the buyer and seller.”
Read more about the project in the Washington Business Journal.