Jemal Real Estate Strategies and DivcoWest Launch DC Office-to-Residential Conversion Venture
Jemal Real Estate Strategies and DivcoWest have formed a joint venture to transform an existing office building in Washington, D.C.’s West End into a new residential development, adding hundreds of apartments to a market where housing availability remains limited.
The partnership will convert 1255 23rd Street NW, an eight-story, 342,000-square-foot office property, into approximately 323 residential apartments. The redevelopment is expected to include as many as 36 affordable housing units, creating a mix of market-rate and affordable homes in one of the city’s established neighborhoods.
Madison Realty Capital has provided a $40 million loan to support the acquisition and predevelopment of the property. The financing will help advance the project as the development team moves forward with plans to reposition the existing commercial building for residential use.
Office Building to Become Residential Community
The adaptive reuse project reflects a growing interest in converting underutilized office properties into housing, particularly in urban markets where demand for residential space remains strong.
Located in Washington’s West End, 1255 23rd Street NW sits between several major destinations, including Georgetown, George Washington University and Dupont Circle. The property also benefits from proximity to employment centers, public transportation, retail destinations and established residential neighborhoods.
The location provides several advantages for a residential development. Residents will have access to nearby businesses, services, educational institutions and transportation connections, while the conversion will introduce additional housing without requiring the construction of an entirely new building.
FILLAT+ Architecture is serving as the project architect, while CBG Building Company has been selected as the general contractor.
Norman Jemal, Senior Managing Principal of Jemal Real Estate Strategies, said the partnership reflects confidence in Washington, D.C., and the potential for existing buildings to serve new purposes as neighborhood needs change.
According to Jemal, adaptive reuse is expected to become increasingly important to the future of Washington’s neighborhoods. He noted that although 1255 23rd Street NW was originally developed as an office property, its existing configuration and structure provide a foundation for residential redevelopment.
Expanding Adaptive Reuse Strategy
Jemal Real Estate Strategies Inc. (JRES) is a private investment platform founded by Norman Jemal, who is also Senior Managing Principal at Douglas Development. The platform focuses on opportunistic real estate and structured investment opportunities.
Since launching in late 2025, JRES has expanded its activities in the adaptive reuse sector. The company has sponsored the conversion of an office and mixed-use property in Syracuse, New York, as well as a 20-story office tower in Richmond, Virginia.
Those projects are expected to create nearly 350 residential units. JRES is also repositioning and leasing an office building in Arlington, Virginia.
The Washington, D.C., project adds another major office-to-residential conversion to the company’s growing portfolio. The strategy allows JRES to leverage existing building infrastructure while addressing demand for additional housing in established urban locations.
DivcoWest Retains Equity Interest
DivcoWest, a DivCore Capital company and vertically integrated real estate investment firm, is the current owner of 1255 23rd Street NW and will retain an equity interest in the property alongside JRES.
The firm invests across multiple real estate asset classes in markets throughout the United States, with a primary focus on innovation-oriented markets.
Nico Papageorge, Managing Director at DivcoWest, said office-to-residential conversion projects can provide an opportunity to address housing needs in cities while giving existing properties a new long-term purpose.
The partnership will seek to create both affordable and market-rate apartments at the Washington property. The redevelopment is also intended to reposition the building for long-term use while maintaining important elements of the existing property.
Financing Supports Predevelopment
Madison Realty Capital provided $40 million in financing for the acquisition and predevelopment phase of the project.
Samir Tejpaul, Head of Investments at Madison Realty Capital, said the property presents an opportunity to bring new life to a well-located building in Washington’s West End.
Tejpaul highlighted the building’s configuration and access to major employers, public transportation and surrounding neighborhoods as factors supporting its conversion to residential use.
The financing will support the development team as it advances planning and other predevelopment activities required to transform the existing office property into a residential community.
Transit and Retail Access
Built in 1982, the eight-story building currently includes 257 covered parking spaces. Its location also provides convenient access to the Foggy Bottom-GW University Metro station, which is only a few blocks away.
The station provides access to Washington’s Blue, Orange and Silver Metro lines, connecting the property to major employment, residential and commercial areas throughout the region.
Approximately 22,000 square feet of ground-floor retail space will remain in place as part of the redevelopment. Retaining the retail component will allow existing commercial activity to continue while the upper portions of the property are converted to residential use.
The combination of housing, retail and transit access is expected to support the building’s transformation into a more active mixed-use destination.
Supporting Washington’s Housing Needs
The planned conversion of 1255 23rd Street NW demonstrates how adaptive reuse can play a role in addressing housing demand while making productive use of existing commercial buildings.
The project will add approximately 323 apartments, including up to three dozen affordable units, while preserving ground-floor retail and making use of existing infrastructure.
For Jemal Real Estate Strategies and DivcoWest, the venture also represents an opportunity to combine expertise in real estate investment, redevelopment and property operations. With Madison Realty Capital providing acquisition and predevelopment financing, the project brings together capital and development partners to advance the transformation of an existing office asset.
As Washington’s real estate market continues to evolve, projects such as 1255 23rd Street NW illustrate how older commercial properties can be repositioned to meet changing demand. The planned conversion will introduce new residential space into the West End while maintaining retail uses and taking advantage of the area’s strong transportation and neighborhood connections.
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