A five-story office building on Georgetown's waterfront is on its way to becoming 22 for-sale condominiums, after its developer secured $20.6 million in green financing to help pay for the overhaul. One Street Commercial Properties plans to convert the 70,000-square-foot building at 3333 K St. NW — a 1980s-era brick structure along the Potomac River — into condos with ground-floor retail, adding a sixth floor for residences along the way.
The financing, structured as Commercial Property Assessed Clean Energy debt, was announced Thursday by DC Green Bank and PACE Equity Finance, according to Bisnow. One Street also secured a separate $39 million loan from Hickory CRE Lending in August, and Kevin Brandes, One Street's managing director of commercial properties, told the outlet that part of the Hickory loan was used to pay off the acquisition loan on the property. The C-PACE financing itself was recorded in D.C. deed records last month.
What the Green Financing Actually Pays For
Under D.C.'s C-PACE framework, commercial property owners can borrow up to 35% loan-to-value for energy efficiency, water conservation, and renewable energy upgrades, with the non-recourse capital repaid through a special tax assessment tied to the property itself for as long as 30 years, according to PACE Equity. At 3333 K Street, the funding will support upgrades to HVAC systems, elevators, plumbing, lighting, and the building envelope — upgrades the project estimates will save nearly $160,000 a year in operational costs, per Bisnow's report. DC Green Bank CEO Brandi Colander said the financing tool makes “transformational projects possible,” the same report notes.
DC Green Bank has administered the C-PACE program since October 2021, and it has now facilitated more than $100 million in cumulative clean energy and resiliency financing across District commercial developments, according to DC Green Bank. That's still a fraction of the record set citywide in January, when Nuveen Green Capital provided $465 million in C-PACE financing for The Geneva, a 532-unit office-to-residential conversion at 1825–1875 Connecticut Avenue NW, per Nuveen Green Capital.
A Building With a Long History as Legal Aid's Home
Legal Services Corp. was the longtime occupant of 3333 K Street before moving out in 2023, relocating its national headquarters to leased office space at International Square on Eye Street NW, according to UrbanTurf's reporting cited in the dossier. One Street bought the vacant building for $29.2 million in May 2025, and Rich Markus Architects designed the overhaul that would strip the original penthouse level and build two new floors — turning the five-story office building into a six-story residential structure with two ground-floor retail spaces and a rooftop terrace, pool, and garden.
The Old Georgetown Board granted concept approval for the conversion in April, after three rounds of concept review, and final permit approvals are conditioned on a physical materials mockup covering brick, roofing color, and window frames. Georgetown's historic overlay requires sign-off from both the Old Georgetown Board and the U.S. Commission of Fine Arts, a regulatory layer that shapes timelines differently than conversions elsewhere in the District. One Street expects the 3333 K Street conversion to be delivered by the end of 2027.
Part of a Broader Wave Along the Waterfront and Beyond
3333 K Street isn't the only Georgetown office building shifting toward housing. Related Fund Management and Network Realty Partners plan to convert the historic Flour Mill mixed-use complex at 1000 Potomac St. NW into an all-residential project with 135 units, while Varsity Investments Group plans a conversion of the office building at 1101 30th St. NW along the C&O Canal, though its eventual unit count hasn't been disclosed. Nearby, Rockpoint, LCOR, and Potomac Investment Properties are converting 500,000 square feet of office space at 1000–1050 Thomas Jefferson St. NW into 299 units — a project Hoodline previously reported would bring nearly 300 apartments to the neighborhood, and one that Multi-Housing News notes represents the first Georgetown multi-family project to deliver over 150 housing units in more than a century.
Georgetown's retail vacancy sat at 8.3% in spring 2026, notably lower than the citywide retail vacancy rate of 14% over the same period, factors that help explain why One Street is building in ground-floor retail alongside the condos. Average home prices in Georgetown run around $1.5 million, with average rents near $3,500 a month, context that underscores why boutique for-sale conversions have made more financial sense here than large rental towers. Just last month, Douglas Development sold another Georgetown office building — the 29,000-square-foot property at 2715 M St. NW — for $12 million to a developer planning six townhouses and two penthouses, a deal Hoodline covered in its report on the townhouse conversion sale.
D.C.'s Place in a National Conversion Boom
Washington, D.C. ranks second nationally behind the New York metropolitan area in total office-to-residential conversion pipeline units, with 32 adaptive reuse projects scheduled for completion regionwide in 2026 and beyond, according to CBRE. Much of that citywide activity leans on Mayor Muriel Bowser's “Housing in Downtown” tax abatement program, launched in 2024, which offers qualifying conversions a 20-year property tax freeze backed by $41 million in District investment aimed at delivering 8,400 new housing units by 2028, per the D.C. Executive Office of the Mayor. Georgetown's tighter historic constraints, by contrast, have steered its wave of conversions toward smaller, boutique projects like 3333 K Street's 22 units rather than the mega-conversions reshaping downtown.
