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Office-to-Residential Conversion at 1625 Massachusetts Ave Breaks Ground in D.C.

The first office-to-residential conversion to receive a tax abatement from the Housing in Downtown program will bring transformative residential solutions to the Dupont Circle neighborhood of Washington D.C.

 

Today marks the groundbreaking for 1625 Massachusetts Avenue, the latest office-to-residential conversion project in the Dupont Circle neighborhood of Downtown Washington D.C. The project is owned by National Real Estate Advisors, LLC (National), on behalf of its clients, and developed by its subsidiary, National Real Estate Development, LLC (National Development), with Clark Construction serving as the General Contractor. Upon completion, the project will embrace the existing building’s architectural heritage as the former Air Line Pilots Association headquarters while delivering modern residential units and state-of-the-art amenities for future residents.

In collaboration with architects DXA Studio and Eric Colbert & Associates, and designer Gaëtane & Co. Design, the underutilized 114,000 square-foot office building will be redeveloped to offer 157-units. Prioritizing sustainability in design and operation, the all-electric project is targeting LEED Gold and will retain the building’s original structure and iconic exterior travertine fins. A new penthouse structure will be added to the building’s roofline, and will provide sweeping views of the district. Interiors pay homage to the building’s heritage and the golden age of aviation. Exterior landscaping plans will vastly green and improve the public spaces along Massachusetts Avenue and 17th Street.

“Repurposing 1625 Massachusetts Avenue exemplifies the power of strong partnerships which are allowing this project to break ground in challenging economic times and developing much-needed housing for the District,” said Katie Hartley, Director, National Development. “Aligning with our core mission, the project is responding to the demands of the local market and community, while pursuing positive returns for National’s clients.”

The project’s capitalization combines public and private initiatives; led by National, as investment adviser to the project’s sole owner and investor, a tax abatement commitment from the District of Columbia’s Housing in Downtown Program and a $62.8MM construction loan from Bank of America.

“Bank of America is proud to partner with National and the broader development team on the transformation of 1625 Massachusetts Avenue, and being part of the solution for this underutilized office in the District,” said Mark Sharer, DC-based Mid-Atlantic Market Executive at Bank of America.

Cushman & Wakefield, led by Marshall Scallan and Bindi Shah, arranged the construction financing.

Construction is scheduled to complete in the spring of 2026.

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National Real Estate Development

National Real Estate Development, LLC (National Development), is a real estate development firm focused on developing innovative, high-quality projects throughout the country. Since its inception in 2013, National Development’s direct development projects that are completed or under construction have totaled nearly 6.3 million square feet in major markets such as Philadelphia, Washington, D.C., Los Angeles, and San Francisco.

National Development specializes in multi-faceted projects across the country. With a proven track record of creating dynamic, vibrant spaces designed to foster connections, National Development’s talented professionals actively seek out unique, challenging, and forward-thinking ventures. From land acquisition to delivering the final project, the team possesses a diverse skill set and extensive expertise, which we believe ensures the highest standards in quality and design. National Development has expertise developing across all major real estate asset classes, including mixed-use, apartments, traditional and medical office, and retail.

Notable projects include East Market in Philadelphia, The Stacks in Washington, D.C., and The Bloc in Los Angeles. National Development is the wholly owned, full-service development subsidiary of National Real Estate Advisors, LLC. To learn more, visit www.natrealestatedevelopment.com.

National Real Estate Advisors

National Real Estate Advisors, LLC (“National”) is an investment manager developing, operating, and managing commercial real estate projects across the United States. National’s mission is to create lasting value through projects that produce solid, long-term returns for our clients while improving the communities in which we invest and develop.

Since 2000, National’s investment team has been constructing investment portfolios of diverse property assets — primarily multifamily, data centers, office, healthcare, and medical buildings. National manages separate accounts and multiple commingled investment vehicles, including a data center fund. National seeks to create value for investors by adhering to a rigorous investment process and development principles guided by profits, integrity, community, and collaboration. National is an independently operated subsidiary of the National Electrical Benefit Fund (“NEBF”), a pension trust with assets that are managed by National on a discretionary basis. For more information, please visit www.natadvisors.com.