BDT & MSD Partners Buys Old Post Office from Feds

Byron Trott and Michael Dell’s firm has struck a deal with the federal government for the Old Post Office.

Leaseholder BDT & MSD Partners acquired the land and building at 1100 Pennsylvania Avenue NW in Washington, D.C., from the General Services Administration for $80 million, the Wall Street Journal reported. The company — already the owner of a $285 million note and buyer of the leasing rights for $100 million at a foreclosure auction — essentially adds to the value of the holding.

That should come in handy for BDT & MSD, which does not plan to be a long-term shepherd of the property, now a Waldorf Astoria hotel. The firm has already been approached by potential buyers for a $400 million sale of the property, people familiar with the matter told the outlet.

The federal government initiated the process to offload the property at the start of this year.

President Donald Trump’s family firm sold the leasing rights of the hotel to Raoul Thomas’ CGI Merchant Group for $375 million in 2022. But the Miami-based CGI ran into problems almost immediately; in 2024, the company lost the leasing rights to a foreclosure action after defaulting on the $285 million loan. The Trump Organization then sued CGI when the latter defaulted on a $28 million loan.

At the end of 2024, the Trump Organization was reportedly considering options for a business deal involving the Waldorf Astoria, either through a licensing deal or buying back the leasing rights. There had been no formal outreach at that time, though, and nothing ever transpired. It’s unclear if the company would still be interested in a return.

The hotel was a major source of controversy during Trump’s first presidential term, when lobbyists, politicians and foreign entities flocked to the property, sparking ethics concerns around the administration.

Under BDT & MSD’s ownership, the public will retain access to the property’s famed clock tower. Hilton will also continue to run the property under its long-term management agreement; the property regularly rakes in some of the highest hotel rates in the capital.

— Holden Walter-Warner