Avison Young Markets 191,000-SF D.C. Office for 260-270 Homes After $53.6 Million Loan Default
Updated
Updated · Bisnow · Jul 20
Avison Young Markets 191,000-SF D.C. Office for 260-270 Homes After $53.6 Million Loan Default
1 articles · Updated · Bisnow · Jul 20
Summary
2025 M St. NW, a 191,000-square-foot West End office building in receivership, has been put up for sale with a pitch to convert it into roughly 260 to 270 apartments.
Avison Young says the property should be fully vacant by January 2027, while zoning already allows multifamily use and the site qualifies for D.C.'s 20-year Housing in Downtown tax abatement.
The sale is being guided by receiver Trigild IVL after the building was placed into receivership in November as owner Michael Klein's affiliate struggled with the asset.
A $63.6 million CMBS loan used to help buy the property for $106 million in 2015 matured in April 2025, and the defaulted debt now carries a $53.6 million balance.
The listing reflects a broader distress play in cities such as Washington, Philadelphia and Chicago, where brokers are increasingly marketing troubled offices as residential conversion candidates.