BXP Buys Beleaguered D.C. Office for $55M, Inks Anchor Lease With Global Law Firm

With a new development firm taking the reins, a once-distressed office-to-residential conversion project in Washington, D.C., will reverse course and reclaim its office use status. 

Office titan BXP announced it paid $55 million to acquire the 300,000-square-foot property at 2100 M Street NW from seller AllianceBernstein. The Boston-based real estate investment trust plans to demolish the existing building and construct a 320,000-square-foot trophy workspace, anchored by a new 240,000-square-foot lease with law firm Sidley Austin. 

The existing building at 2100 M has a complicated recent history. AllianceBernstein had financed previous owner Post Brothers’ $66.8 million acquisition in 2023. Post Brothers had concocted plans to transform the office into a 400-unit mixed-use complex, though was ultimately unable to find financing. AllianceBernstein cast a winning bid of $20.1 million at a foreclosure sale in August after the property had bounced in and out of auctions earlier this year. 

BXP plans to begin construction of the replacement 2100 M in 2028, with Sidley expected to move in by 2031. CBRE’s Lou Christopher and Jordan Brainard represented Sidley in lease negotiations, while an unnamed Eastdil Secured brokerage team represented AllianceBernstein in the sale. 

BXP’s plans for 2100 M echo its plans for 725 12th Street NW in D.C. The REIT paid just $34 million for that property at the end of last year, and is set to demolish and redevelop the site into a 320,000-square-foot trophy office. The developer even inked a 150,000-square-foot anchor pre-lease there with law firm McDermott Will & Emery following its acquisition.

“We ended 2024 with an exciting acquisition in Downtown Washington and we are thrilled to be closing 2025 with another,” Pete Otteni, executive vice president and co-head of the BXP’s Washington, D.C., operations. “This trophy redevelopment will contribute to the success of our clients and support the District’s overall office recovery. 

“As prominent organizations, especially law firms like Sidley, continue to pursue high-quality workplaces, we are developing premier buildings that promote collaboration, connection and productivity within our core markets, further reinforcing our reputation as the pre-eminent build-to-suit developer in Washington, D.C., and enhancing shareholder value for BXP.”

Sidley’s office deal is actually the third nine-figure law firm lease secured by BXP so far this year. In April, BXP signed California-based firm Cooley to a 20-year, 126,000-square-foot lease at the redeveloped 725 12th Street NW, which is expected to open in 2028.

Nick Trombola can be reached at ntrombola@commercialobserver.com.