A former DOJ office building in Judiciary Square is set to be converted into 415 student housing units and a grocery store. The building, located at 600 E St. NW, has been vacant for nearly a decade.
Madrone, a Berkeley, California-based nonprofit developer, received D.C. Council approval for up to $275 million in bond financing to turn the building into apartments for college students, faculty, and staff.
The building will be anchored by a 25,000 SF Sprouts Farmers Market. The project will also include a fitness center, coworking spaces, and a 140-space underground garage.
Project Details
The 325,000 SF building was formerly occupied by the U.S. Department of Justice, which vacated the premises with its move to NoMa. The building is still owned by local D.C. firm S.C. Herman & Associates.
Council Chairman Phil Mendelson introduced the legislation to approve the issuance, sale, and delivery of tax-exempt revenue bonds on an emergency basis. The resulting funding will go toward acquisition, demolition, renovation, and a tenant improvement allowance for the Sprouts store.
Councilmember Brooke Pinto said she is excited about the project, citing expected growth from universities in the area and the need for a grocery store to support downtown conversions.
Financing and Timeline
According to a memorandum accompanying the legislation, $44 million of the funding will be used for land and building acquisition, $13 million for demolition, and $81 million for renovation. The Sprouts tenant improvement will be $6 million.
The project is expected to be completed by August 2028. Madrone will be expected to pay back the financing provided by D.C.
The conversion at 600 E St. NW is part of a larger trend in the city, which ranks second in the U.S. for its office-to-residential conversion pipeline. According to Avison Young’s third-quarter report, 3.5 million SF of conversions are underway in the city, and 3.1 million SF more have been proposed.
Developer’s Portfolio
Madrone is also behind several other student housing projects, including a 553-bed residence hall at Florida Institute of Technology’s Melbourne campus and a 542-bed apartment-style campus at the University of Memphis.
The company has several other projects underway, including a 554-bed project at Middle Tennessee State University and a 793-bed project in Atlanta serving Morehouse and Spelman colleges.
With the approval of the bond financing, Madrone can now move forward with the project. The company is committed to delivering a high-quality project that will meet the needs of the local community.
