Post Brothers lands funding for one of the largest office conversion projects in the U.S.
The office building at 1825 Connecticut Ave. NW, and its sister property, are slated to be converted into hundreds of units. (CoStar)
One of Washington, D.C.’s largest office-to-residential conversion projects has secured more than $560 million in financing, marking a major milestone for adaptive reuse development in the nation’s capital. Post Brothers, a Philadelphia-based multifamily developer, closed the financing for what is being described as one of the largest office-to-apartment conversions in the United States.
Record-Breaking PACE Financing
Post Brothers secured $465.3 million in Property Assessed Clean Energy (PACE) financing from Nuveen Green Capital to support the redevelopment of two office buildings along Connecticut Avenue, just north of Dupont Circle. The project will convert the properties into 532 residential units, according to filings recorded in late December with the D.C. Recorder of Deeds.
Nuveen Green Capital said the transaction represents the largest commercial PACE financing ever completed. The PACE structure allows property owners to access long-term, low-cost financing for energy efficiency, renewable energy, and water conservation improvements, with repayment terms extending through 2058 for this project.
Additional Capital Secured
In addition to PACE funding, Post Brothers also obtained a $96.65 million loan from an affiliate of Mavik Capital Management, which refinanced a $79 million loan previously issued by Kawa Capital Management earlier in the fall. Mavik stated it provided a $110 million loan, though public records reflect a lower figure. Kawa confirmed the refinancing in correspondence with CoStar News.
“As the largest office-to-residential conversion outside of New York City with a highly structured capital stack, this project reflects the type of complex investment strategy we pursue,” said Vik Uppal, Founder and CEO of Mavik Capital Management. The firm recently closed its second special opportunities fund, VS2, with $685 million in investor commitments.
Washington Emerges as a Conversion Leader
Office-to-residential redevelopment has gained momentum in Washington, D.C., driven by elevated office vacancy rates, particularly among older buildings, and government-backed incentives. The city’s Housing in Downtown (HID) tax abatement program has spurred significant activity, with eight conversion projects launched since March, representing 1,745 proposed residential units.
In September 2024, Mayor Muriel Bowser announced that the Post Brothers project was conditionally awarded a 20-year property tax abatement under the HID program.
Project Details and Timeline
The redevelopment, known as The Geneva, involves the conversion and expansion of mid-20th-century office buildings located at 1825 and 1875 Connecticut Ave. NW. The completed 15-story multifamily property is expected to include:
- 429 market-rate apartments
- 42 extended-stay residential units
- 61 affordable housing units
- 57,000 square feet of commercial space
Post Brothers acquired the nearly 700,000-square-foot office complex in 2022 for just over $200 million. While an official construction start date has not been confirmed, The Wall Street Journal reported the $750 million project is nearing groundbreaking.
“The financing came together with exceptional speed, closing in less than 30 days after term sheets were signed,” said Matt Pestronk, President of Post Brothers, noting the alignment among lenders and partners.
Earlier this year, the developer also received a two-year zoning extension from the city’s Board of Zoning Adjustment, citing prior challenges in securing financing due to broader economic and market conditions.
