D.C. Council Approves $275 Million Bond for Judiciary Square Office Conversion
The District of Columbia Council has authorized up to $275 million in tax-exempt bond financing to transform a long-vacant Judiciary Square office building into student housing. According to Bisnow, the project at 600 E St. NW will provide 415 units for university students and faculty, anchored by a new Sprouts Farmers Market.
)
Context from Industry Pulse
The 600 E St. NW conversion is part of a surge in office-to-residential projects in Washington, D.C., a city trailing only New York in its conversion pipeline. According to Bisnow, local officials are leveraging these redevelopments to counter vacancy issues, with 3.1 million square feet of additional projects currently proposed. The developer, Madrone, is specializing in this niche, with similar student-focused residential projects recently completed or underway in Melbourne, Memphis, Murfreesboro, and Atlanta. This specific Judiciary Square project is situated in a high-density zone where nearby former federal buildings, such as 450 Fifth St. NW, are also slated for residential transitions to support growing university populations.
The D.C. Council approved the issuance of tax-exempt revenue bonds to facilitate the redevelopment of a 325,000-square-foot office building that has remained empty for nearly ten years. As Bisnow reports, the 1970s-era property was formerly the home of the U.S. Department of Justice before the agency relocated to NoMa. The new development, led by California-based nonprofit Madrone, aims for an August 2028 delivery.
The financing package addresses several phases of the project, including $44 million for the acquisition of the land and building from S.C. Herman & Associates. Further allocations include $13 million for demolition and $81 million for the renovation process. The developer is expected to repay the financing provided by the city. The project also includes $6 million designated for tenant improvements for the 25,000-square-foot grocery store anchor.
Beyond residential units and retail space, the conversion plans include a fitness center, coworking areas, and a 140-space underground parking garage. The move to approve the resolution on an emergency basis was intended to finalize financing within the current month, ensuring the developer can meet the projected construction timeline. Council members noted the project addresses a specific need for grocery options and affordable student housing in the downtown core.
This initiative reflects a broader trend in Washington, D.C., which currently holds the second-largest office-to-residential conversion pipeline in the country. Bisnow notes that approximately 3.5 million square feet of such conversions are currently under construction across the city, with millions more in the proposal phase. Many of these projects are supported by municipal tax abatement programs designed to revitalize the downtown area through increased residential density.
The Industry Pulse Bottom Line
This $275 million financing approval demonstrates Washington D.C.'s aggressive use of tax-exempt bonds and abatements to solve chronic office vacancies by pivoting toward high-density student housing and essential retail infrastructure.