Former Homeland Security Office Sells in $82M Deal

Matt Pacinelli, managing director of Stream Realty’s Washington, D.C, office, confirmed that the partners will convert the building into housing designed by Hickok Cole Architects. 

“It is a rare opportunity to deliver new housing in a prime downtown D.C. location,” he told Commercial Observer. “The investment reflects Lincoln Property Company and Cadillac Fairview’s belief in the long-term viability and value of downtown D.C. In addition, it is widely known that the District needs more housing.” 

Locate at 1125 15th Street NW, the 51-year-old, 12-story building most recently served as the home of the Department of Homeland Security and has sat vacant since the government agency moved out in 2018. S.C. Herman & Associates had reportedly planned to renovate it before the pandemic, but plans fell apart when the office market declined.

The joint venture’s plans for the 264-unit residential building are already underway, as the joint venture has filed for a special exception from the D.C. Board of Zoning Adjustment to go forward with the conversion.

Hickok Cole’s plans include 2,600 square feet for retail, plus a fitness center and a leasing office. There’s also a top-floor amenity space for residents, bike parking and underground parking consisting of 123 spaces.

The BZA is slated to review the plans on Feb. 2.

Pacinelli noted that a project like this is needed in the area and that challenges of the market caused by COVID-19 concerns are settling down.

“While it has been a difficult time for us all recently, we are starting to see the other side of the pandemic,” he said. “Demand for residential is perhaps at an all-time high and the office demand we began seeing in 2021 continues to grow.”

Requests for comment from S.C. Herman & Associates and the joint venture were not immediately returned.

Keith Loria can be reached at Kloria@commercialobserver.com.