Government Dumps DC Office Building for Conversion

Two major commercial real estate stories are colliding in the nation’s capital: office-to-residential conversions and the government’s mission to offload assets.

Dalian Development paid $24 million to acquire 301 7th Street SW in Washington, D.C, the Wall Street Journal reported. The deal for the 940,000-square-foot building breaks down to just over $25 per square foot.

The seller of the vacant office property was the General Services Administration, the agency responsible for managing the federal government’s real estate portfolio. The property is more than 50 years old and served the GSA itself, as well as other agencies, over its half century in government hands.

It’s time as an office building appears to be over. Dalian is planning to convert the property into a multifamily complex, though it will require a major gutting to make that conversion solid, according to chief executive officer Hossein Fateh; the building needs more than $200 million in maintenance, according to the GSA.

Dalian is also considering putting a museum in part of the building, possibly one for kids to enjoy. The firm plans to preserve the building’s murals while renovating everything else, a process that will take at least half a decade.

Since a botched rollout a year ago, the GSA has shifted towards a more intentional and deliberate approach to paring down the government’s real estate portfolio, which spans more than 350 million square feet through owned or leased properties.

The federal government revealed a disposition list in March 2025 of 443 “non-core” assets, totaling nearly 80 million square feet of rentable space across 47 states, Washington, D.C., and Puerto Rico. The list quickly drew controversy and was rescinded.

Properties up for sale today include the Ziggurat Building in California and a Coast Guard building on Boston Harbor. GSA is also in contract to sell the Liberty Loan building in southwest D.C.

— Holden Walter-Warner