Berkadia Arranges $92M Construction Loan for Carr Properties' 299-Unit Foggy Bottom Multifamily Development

Berkadia has arranged a $92 million construction loan for the development of a 299-unit Class-A multifamily community at 2121 Virginia Avenue NW in Washington, D.C.'s Foggy Bottom neighborhood, the firm announced Sept. 14, 2026.

PNC provided the five-year construction loan, with United Bank participating in the financing. The borrower is Carr Properties, which acquired the vacant office building on the site in fall 2025 for $23.5 million. Combined with the $92 million construction facility, the implied capital committed to the project exceeds $115 million before fees and soft costs.

Berkadia Team and Deal Structure

Managing Director Brian Gould and Vice President Pat Cunningham of Berkadia's DC Metro team led the financing effort on behalf of Carr Properties. Senior Managing Directors Brian Crivella and Patrick McGlohn, Managing Directors Yalda Ghamarian and Bill Gribbin, and Associate Director Natalie Hershey also contributed to the deal team.

"2121 Virginia has a combination of fundamentals that made this an especially compelling financing opportunity: an exceptional sponsor in Carr Properties and a significant built-in demand base from George Washington University and the surrounding employers," Gould said. "The project's 20-year tax abatement further strengthens the economics, and the successful execution of a $92 million construction loan reflects lender confidence in both the sponsorship and the long-term demand for new housing in Foggy Bottom."

Office-to-Residential Conversion in Foggy Bottom

The project represents the redevelopment of the former Pan American Health Organization headquarters, a vacant Class B, eight-story office building that is now being demolished. In its place, Carr Properties is developing a nine-story, approximately 230,000-square-foot multifamily building. The U.S. Commission of Fine Arts reviewed and approved the office-to-residential conversion during meetings in January and July 2026.

The development includes approximately 30 affordable units among its 299 total homes, qualifying the project for a 20-year tax abatement through Washington, D.C.'s Housing in Downtown incentive program. City officials have identified 2121 Virginia Avenue as one of the larger office-to-residential conversions undertaken under that program.

Demolition was underway as of April 2026, with construction scheduled to begin in September 2026. First units are anticipated in early 2028.

Amenities and Location

The development will feature approximately 16,000 square feet of amenities, including a penthouse pool, lounge and club room overlooking the National Mall, a fitness and wellness center with sauna, coworking and private meeting spaces, a library, a game room, and outdoor courtyards.

Located one block from George Washington University, the property sits within roughly 750,000 square feet of retail and dining in Foggy Bottom and the West End. Major nearby employers include the U.S. State Department, the World Bank, the International Monetary Fund, and GW Hospital. The site is two blocks from the Foggy Bottom-GWU Metro Station, providing access to the Blue, Orange, and Silver lines, and is within walking distance of Georgetown and Dupont Circle. The property carries a Walk Score of 95 and a Transit Score of 84.

Market Context

The financing reflects converging forces shaping Washington, D.C.'s multifamily investment landscape. Elevated office vacancy has created acquisition opportunities in the city's core, with Carr Properties purchasing the vacant building at a basis that underscores the diminished demand for older office product. D.C.'s Housing in Downtown tax abatement program has provided a material economic incentive for sponsors and lenders to pursue adaptive reuse projects. The institutional demand base surrounding 2121 Virginia Avenue — anchored by George Washington University, federal agencies, and international organizations — has also supported lender confidence in the project's long-term residential demand.

PNC and United Bank's willingness to underwrite a $92 million, five-year construction facility signals continued appetite for well-located, incentive-backed multifamily development in the nation's capital.

Sources

Berkadia – 2121 Virginia Avenue, Washington, D.C. | Financed by Berkadia 2026