Carr Properties Targets Foggy Bottom for Major Office to Residential Adaptive Reuse Project

Carr Properties acquires 2121 Virginia Ave. for $23.5M, planning an adaptive reuse project to transform a vacant D.C. office building into a luxury community.

By: AXL Media

Published: Mar 13, 2026, 11:41 AM EDT

Source: https://www.multihousingnews.com/

The Transaction and Site Acquisition

The acquisition represents a strategic pivot for the site, which was sold by the Pan American Health Organization in a deal brokered by Savills. The $23.5 million price tag for the 1986 built mid rise reflects the current market valuation for well located assets with redevelopment potential. Savills' leadership team, including Parker Lange and Julie Rayfield, facilitated the sale of the asset, which had previously traded in 2020. The decision to move toward residential use underscores the shifting demand for high density housing in the District’s core over traditional office space.

Strategic Redevelopment and Luxury Positioning

The planned redevelopment will transform the nine story office site into an upscale residential community. While the project is positioned as a luxury development, it will include 33 units specifically designated for affordable housing, meeting local regulatory requirements and social needs. The new community is designed to feature high end shared amenities, including a fitness center, a resident lounge, and a rooftop deck paired with a swimming pool. By preserving the existing subterranean garage, the developers will provide 70 on site parking spaces while reducing the complexity of the initial construction phase.

Regional Context and Foggy Bottom Connectivity

The location at 2121 Virginia Ave. NW places the future residents within the Foggy Bottom neighborhood, one of the most connected areas in the Mid Atlantic. Situated only one mile from both the White House and the Lincoln Memorial, the property benefits from proximity to major federal employment hubs and academic institutions. Its location near Interstate 66 further enhances its appeal for commuters, providing a competitive advantage for Carr Properties as they look to attract a high earner tenant base in a supply constrained market.