OakNorth Bank, Hickory CRE Lending Provide $37.8M Co-Loan for Georgetown Office-to-Condo Conversion

OakNorth Bank and Hickory CRE Lending have provided a $37.8 million co-loan to ONE Street Commercial Properties to support the redevelopment of 3333 K Street NW, a five-story office building on Washington, D.C.'s Georgetown waterfront, the firms announced Oct. 12, 2026. The financing will fund the building's conversion into a luxury condominium project with retail space.

OakNorth and Hickory CRE Lending Co-Loan Details

The $37.8 million co-loan from OakNorth Bank and Hickory CRE Lending will support the adaptive reuse of the approximately 70,000-square-foot former office building, which the sponsor acquired in 2025. The proposed scheme will add a sixth story and create 23 luxury condominiums, including two affordable units, together with retail space, according to the announcement.

The project has received approvals from the Advisory Neighborhood Commission, the Old Georgetown Board and the Commission of Fine Arts. The Old Georgetown Board approved the conversion after nearly a year of review, with approval reported during the week of March 31, 2026.

David Hogan, Loan Originator at Hickory CRE Lending, said the financing required a flexible structure. "This is an exciting adaptive-reuse project in an outstanding Georgetown location, backed by an experienced local sponsor and project team. The financing required a flexible structure that reflected the development program and wider capital stack, and we are pleased to partner with OakNorth to provide a solution tailored to ONE Street's plans. We look forward to supporting the team through the delivery of the project," Hogan said.

Dylan Jagjivan, Director of Debt Finance at OakNorth, cited the submarket and the sponsor's record. "Georgetown is one of Washington, D.C.'s most established and sought-after residential submarkets, with significant barriers to new supply. ONE Street has a strong track record across the D.C. real estate market and considerable experience delivering complex redevelopment projects. Combined with an experienced project team and the quality of the underlying location, this made for a compelling opportunity to support the transformation of a vacant office asset into much-needed new housing. It has been a pleasure working with the ONE Street and Hickory teams, and we look forward to seeing the development progress," Jagjivan said.

3333 K Street NW: Property and Program

Constructed in 1988, 3333 K Street NW sits at the southern end of historic Georgetown, fronting K Street/Water Street NW. The C&O Canal runs to the north, and the Potomac River and Georgetown Waterfront Park lie to the south. The building was formerly occupied by the Legal Services Corporation and includes two parking levels, a visitor surface lot, and a private courtyard and terrace overlooking the C&O Canal. Its size has been reported at 69,754 square feet.

The development is expected to offer a 24/7 concierge, valet parking, a fitness center, a swimming pool, a resident lounge and club room, and 70 parking spaces. Public descriptions of the unit count have varied: the financing announcement describes 23 condominiums, while other descriptions have referenced 22 units plus retail, and earlier approval coverage referenced a 30-unit concept.

Kevin Brandes, Managing Director of ONE Street Commercial Properties, said the sponsor was pleased to move forward after securing approvals. "3333 K Street presents a rare opportunity to deliver an exceptional residential development in one of Washington, D.C.'s most desirable and supply-constrained neighborhoods. Having secured key approvals for the conversion, we are excited to move forward with our plans for the property. OakNorth and Hickory CRE Lending understood both the strength of the location and our vision for the project, and we are grateful for their support in bringing the next phase of the project to life," Brandes said.

Additional Capital: C-PACE Financing

The project's capital stack includes more than the co-loan. DC Green Bank and PACE Equity Finance closed $20.6 million of C-PACE financing for the project in September 2026. That facility is earmarked for energy and building-system upgrades, including the building envelope, HVAC, lighting, plumbing and elevators. The improvements are projected to reduce operating costs by nearly $160,000 annually, and the project is expected to include at least five electric-vehicle chargers. Separately, deed records identified a $39 million Hickory loan in August. The C-PACE announcement projects completion in fall or winter 2027.

About ONE Street Commercial Properties

ONE Street Commercial Properties is a Washington, D.C. Metro-based commercial real estate firm focused on brokerage, advisory, asset management, investments, acquisitions and development services. The firm has more than $250 million in assets under management and, over the past eight years, has completed more than $2 billion in residential and commercial sales and $500 million in real estate development, with experience across office-to-residential and other adaptive-reuse projects in the D.C. market.

OakNorth, launched in September 2015, describes itself as the bank for entrepreneurs, by entrepreneurs. The bank says it has provided over $22 billion in lending to entrepreneur-led businesses across the U.K. and U.S.

Washington Office Market Context

The conversion comes as the District's office market remains weak despite early signs of stabilization. CBRE reported second-quarter 2026 net absorption of 65,101 square feet and a 40-basis-point decline in vacancy to 22.2%. Cresa recorded positive absorption of 229,543 square feet for the quarter but reported overall vacancy of 21.9%, with Class B vacancy at 24.3% and Trophy vacancy at 16.0%.

Downtown office occupancy, based on building-entry data, was approximately 48.5% in March 2026. Georgetown's office vacancy was 19.9% in 2025, and tenants shed approximately 11.1 million square feet of District office space between 2020 and 2025. The District has removed nearly 1.5 million square feet of office inventory, primarily through conversions, while CoStar projected another 1.7 million square feet of negative net absorption in 2026.

For the Georgetown project, the conversion replaces a single-use office asset with a limited supply of for-sale residential units in a neighborhood where historic-preservation review and limited developable land constrain new construction. Final unit count, affordable-unit commitment and delivery schedule are details to watch, as they have varied across public descriptions.

Sources

• OakNorth press release: https://oaknorth.com/press/georgetown-waterfront-residential-conversion/