Brookfield has quietly cashed out of the 12-story office building at 1140 Connecticut Avenue NW, long-time home of the DC Improv comedy club, selling it for roughly $21 million to an investor group tied to Clark Construction. The deal, reported July 23, 2026, marks a sharp markdown on Brookfield’s books, since the company paid significantly more for the same address only five years ago.
According to the Washington Business Journal, the buyer is an investor group connected to Clark Construction, and the price landed at about $21 million. The property bundles ground-floor retail with upper-floor offices and in recent years has been home to a mix of nonprofit and cultural tenants, with the comedy club as its best-known name.
Brookfield Paid Far More In 2021
Brookfield picked up 1140 Connecticut Avenue in 2021 as part of its acquisition of WashREIT’s D.C. office portfolio. The purchase agreement filed with the SEC allocates roughly $38.8 million to this building alone. That number appears in Exhibit A-4 of the filing, which lays out how the broader multi-building portfolio sale was carved up on paper.
Deal Fits A Larger Local Reset
The sale slots neatly into a broader pattern downtown, as big landlords peel back their exposure to aging office towers and test out conversions or other uses while demand for traditional office space softens. Industry coverage and local reporting have chronicled a steady stream of asset sales and a growing wave of office-to-residential conversion efforts in Washington, D.C., per reporting by The Washington Post.
What It Means For DC Improv And The Block
Lease records from the 2021 transaction list PMF Inc., doing business as The Improv, with a term that runs into 2031, which gives the club a solid cushion before any major change in plans could hit its tenancy. The buyer’s ties to Clark Construction, a firm that publicly highlights office-to-residential conversion work around the region, naturally fuel speculation about a future overhaul of the property, although no redevelopment plans have been announced.
Clark Construction’s own materials showcase several conversion projects in the D.C. area, a track record that brokers often point to when investor groups with construction muscle surface on the buy side. For now, though, the 1140 Connecticut deal is one more data point in a choppy downtown office market, as institutional owners unload buildings at reset prices and local players step in. Public filings, future permit activity and any statements from the new owner will eventually reveal whether this corner of Connecticut Avenue stays an entertainment anchor or gets scripted for a new role.
