- Dalian Development bought the vacant GSA Regional Office Building for $24M, or about $25 PSF.
- The 940 KSF Washington, DC building will be converted from office to multifamily use.
- Renovation will cost over $200M and is expected to take more than five years.
- A museum, targeting families, may be included as part of the conversion.
Major Government Asset Sale
According to The Real Deal, Dalian Development acquired the former GSA Regional Office Building at 301 7th Street SW. The deal marks a major step in office-to-residential conversions and the federal government’s asset sales strategy.
The 50-year-old, 940 KSF building previously housed government agencies. Dalian purchased the property for $24M as the GSA reduces its large real estate portfolio.
Extensive Renovation Ahead
The office conversion project will require extensive gutting, as the GSA estimates more than $200M in maintenance and upgrades are needed. Dalian aims to transform the property into multifamily residential units and preserve existing murals. The process is projected to take at least five years, with the possibility of incorporating a museum designed for children.
Broader DC Real Estate Trend
This deal aligns with a broader federal push to offload underused properties. In 2025, the GSA listed more than 400 non-core assets for sale, including this building. This strategy comes as billions in federally leased office space face uncertainty due to potential lease reductions. The shift reflects changing office demand across the country. Other government-owned assets remain available in markets like California and Boston.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
