Developer plans a 320-unit residential tower in Foggy Bottom as office-to-housing trend accelerates.
Washington, D.C.-based developer Carr Properties has acquired a vacant office building in the Foggy Bottom neighborhood with plans to transform it into a 320-unit luxury multifamily complex, marking the latest example of office-to-residential redevelopment in the nation’s capital.
Carr purchased the property at 2121 Virginia Ave. NW from the Pan American Health Organization for $23.5 million, according to public records and CoStar data. The nine-story, 143,366-square-foot office building is currently unoccupied and slated for demolition in the second quarter of 2026. Carr plans to retain the site’s below-grade parking garage as part of the redevelopment.
“This investment allows us to bring our hospitality-driven approach to a dynamic neighborhood that is experiencing strong housing demand and limited new supply,” said Oliver Carr, CEO of Carr Properties, in a statement.
The new development will feature high-end amenities, including a rooftop deck and pool, fitness center, resident lounge, and on-site parking for 70 vehicles. The project will also include 33 designated affordable housing units, providing a mix of luxury and accessible living options in one of D.C.’s most desirable areas.
Carr Properties is among several developers in the Washington metropolitan region pursuing office-to-residential conversions amid a sustained drop in demand for traditional office space. The District government has introduced tax incentives to encourage such conversions, though Carr has not yet indicated whether it will apply for this program for the 2121 Virginia Ave. project.
This is the firm’s third major office redevelopment announced in the past year. Earlier in 2025, Carr secured financing to convert the building at 425 Montgomery St. in Alexandria, Virginia, into a 237-unit apartment complex, and received approvals to replace 3033 Wilson Blvd. in Arlington with a 309-unit multifamily property.
Savills’ Parker Lange, Vernon Knarr, and Julie Rayfield represented the seller in the 2121 Virginia Ave. transaction.
Source: Original reporting by Jonathan Lehrfeld, CoStar News.
