Transwestern Development to Buy and Convert D.C. Office Into Apartments
Foulger Pratt was previously under contract to do the same, though has since sunset its plans
By Nick Trombola December 3, 2024 5:31 pm
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The developer behind a planned office conversion in Washington, D.C., has walked away, but a residential flip is still very much on the table.
An affiliate of Transwestern Development Company is now under contract with the Tower Companies to buy the 12-story, 199,000-square-foot building at 1133 19th Street NW for an undisclosed price, with plans to convert it into housing, according to the Washington Business Journal, citing a zoning application for the project. Transwestern aims to build about 220 units in the development, along with 4,000 square feet of retail space, designed by WDG Architecture, and wants construction to begin around mid-2025.
Maryland-based developer Foulger Pratt was previously under contract to buy the building and convert it to a residential property with between 175 and 187 units, along with a 1,500-square-foot penthouse and 3,000 square feet of retail space, according to plans for its version of the project from late 2022. It wasn’t immediately clear why the developer opted out of the contract.
“We see significant opportunity for conversions in the District and specifically with this property,” Toby Millman, Transwestern Development’s mid-Atlantic regional partner, told Commercial Observer via email. “The physical building lends itself well to conversion and the 19th Street neighborhood is a vibrant section of downtown with an abundance of retail and amenities for prospective residents.”
Representatives for Tower did not immediately respond to a request for comment.
With record-high office vacancies at the moment, the District is doing all it can to incentivize new conversion projects for offices that would otherwise sit empty. Earlier this year, the city introduced a 20-year tax abatement for conversion projects Downtown, capped at $41 million.
That move, along with the startling decline in office property values, appears to have spurred at least some investment. Post Brothers landed approval from the D.C. Board of Zoning Adjustment in October to convert an eight-story building in the District’s West End into 400 apartment units. Meanwhile, Dune Real Estate Partners and TF Cornerstone have launched a new $1 billion fund to support conversion projects across the U.S., including in D.C.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
