The conversion loan is disclosed; the purchase price that decides returns is not.
The venture plans 323 apartments at a 1982 office building near Foggy Bottom, between Georgetown, George Washington University and Dupont Circle.
About 36 units, roughly 11% of the total (derived), would be affordable. The ground-floor retail stays.
Madison Realty Capital's $40M covers acquisition and predevelopment only. Construction financing has not been announced.
DivcoWest owns the property and keeps an equity stake alongside Jemal Real Estate, a platform launched in late 2025 for conversions.
The article does not give the purchase price, total project cost, construction start or delivery date.
Conversions fail on basis and floor plate, not on demand for apartments. At about 1,060 gross SF per unit (derived), the building's efficiency decides how much of the 342,000 SF becomes rentable units. The affordable set-aside and the undisclosed purchase price decide returns. A predevelopment loan is the cheapest dollar in the stack; the construction loan is where the risk sits.
Related coverage
Key Takeaways
- A conversion pencils on the basis paid for the office building, and that number is missing.
- The $40M loan equals about $124,000 per planned unit (derived), and funds only the acquisition and predevelopment phase
- The plan works out to about 1,060 gross SF of building per apartment (derived)
- Purchase price, total cost, start date and incentives were not reported
Commercial Observer, Jemal-Led JV Plans 323-Unit Office-to-Resi Conversion in D.C., Oct. 8, 2026
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