Carr Properties Lands $92M PNC Loan for Foggy Bottom Conversion

Carr Properties has closed a $92 million construction loan led by PNC Bank, with United Bank participating, to convert its former office building at 2121 Virginia Avenue NW in Washington’s Foggy Bottom neighborhood into a 299-unit apartment tower, according to Commercial Observer and Commercial Real Estate Direct.

Why it matters

The loan lands while Carr is doing the opposite elsewhere in its DC office book. Bisnow reported the firm is selling and refinancing properties to manage debt maturities after J.P. Morgan Asset Management exited its 35.5% ownership stake in a February deal, taking three office buildings debt-free in the process. That a bank syndicate still underwrote new construction debt on a DC asset shows lenders will fund office-to-residential conversions in this market even as they retreat from standing office debt, provided the sponsor pairs the loan with a public tax abatement. For developers weighing their own DC office-to-resi plays, this is a live comp on what gets financed right now.

The numbers

PNC Bank led the five-year loan with United Bank participating, arranged by Berkadia’s Brian Gould and Pat Cunningham. The project carries a 20-year tax abatement under the District’s Housing in Downtown program. The nine-story International Style building, long used as overflow office space for the Pan American Health Organization, will come down to make way for 299 units, including 30 affordable units at a 10% set-aside, while the existing underground parking structure stays in place. Carr bought the site from the Pan American Health Organization in November 2025 for $23.5 million. Gould said the financing “reflects lender confidence in both the sponsorship and the long-term demand for new housing in Foggy Bottom.”

What’s next

Demolition started in March 2026, with Clark Construction as general contractor and Michael Graves Architecture designing the tower. Leasing is targeted for 2028. Watch whether Carr’s other DC office refinancings, still working through the maturity wall Bisnow flagged, land on similar terms, or whether this deal proves to be the exception rather than the template. For more financing activity across the country, see the national hub.