Jemal-Led JV Plans 323-Unit Office-to-Resi Conversion in D.C.
Madison Realty provided a $40 million loan for the acquisition and predevelopment of 1255 23rd Street NW
By Greg Cornfield October 8, 2026 2:30 pm
reprints
Jemal Real Estate, DivcoWest and JLS Capital have formed a joint venture to extend the wave of office-to-residential conversions in Washington, D.C.
The JV plans to convert a 342,000-square-foot office building at 1255 23rd Street NW in D.C.’s West End into 323 apartments — including about 36 affordable units — while 22,000 square feet of ground-floor retail will remain.
Madison Realty Capital provided a $40 million loan to support the acquisition and predevelopment.
DivcoWest owns the eight-story property and will retain an equity stake alongside Jemal Real Estate. Fillat+ Architecture is designing the conversion.
Built in 1982, the property includes 257 covered parking spaces and sits a few blocks from the Foggy Bottom-GW University Metro station, between Georgetown, George Washington University and Dupont Circle.
Norman Jemal, a senior managing principal at Douglas Development, launched Jemal Real Estate in late 2025 to target such conversions.
“Adaptive reuse will play an increasingly important role in the future of Washington’s neighborhoods,” Jemal said in a statement. “Despite being an office building, 1255 23rd Street NW has the geometry and bones for a stunning residential building.”
Jemal Real Estate has also led the adaptive reuse of a Syracuse, N.Y., office and mixed-use property into 57 apartments, and a 20-story office tower in Richmond, Va., into 288 apartments and 210 hotel rooms.
The Jemal family has been acquiring assets around the Greater DMV. Matthew Jemal’s Jemal Equities put down $92 million for a 254,000-square-foot office building in Dupont Circle. That deal was Jemal Equities’ fourth D.C. office purchase in about 14 months.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
