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The federal government has sold the first of what is expected to be a long slate of office buildings in the Southwest D.C. federal corridor
D.C.-based Dalian Development purchased a nearly 1M SF office building at Seventh and D streets southwest that formerly housed General Services Administration employees. D.C. deed records show it paid $24.3M.
At a press conference Wednesday, the buyer said the plan is to convert the property to a mix of uses, likely including residential and possibly with a museum, the Washington Business Journal reported. The details are still being worked out.
“This project is an opportunity to create something beautiful for Southwest Washington — something aligned with the city’s larger vision for the neighborhood and a catalyst for its resurgence,” Dalian Development CEO Hossein Fateh said in a statement released by the GSA the same day.
“I have had a home in Washington for more than four decades, and realizing this vision will require a substantial investment of time and capital — a reflection of my long-term commitment to this city,” he added.
Sitting on over 3.4 acres near the L’Enfant Plaza Metro station, the property at 301 Seventh St. SW was originally constructed as a warehouse between 1929 and 1932. It previously housed the GSA’s National Capital Region team but has sat vacant since March 2025, per the GSA.
“This move demonstrates GSA’s commitment to President Trump’s agenda to shrink the federal real estate portfolio to a better core that focuses on workspace needs and agency missions,” GSA Administrator Edward Forst said.
He added the sale is expected to save taxpayers over $200M in maintenance costs and $5.5M in annual operating and maintenance expenses.
FINANCING
Carr Properties announced it has entered into a joint venture with Northwestern Mutual to fund its 315-unit office-to-residential conversion in Clarendon. Carr said the financial firm is providing a construction loan for the project but didn’t disclose the loan amount or total cost of the conversion. The conversion of 3033 Wilson Blvd. is planned to include a fitness center, coworking lounge, courtyard and community garden as well as a rooftop pool, clubroom and wellness spa. Construction is set to begin in April.
