Jemal Real Estate Strategies and DivcoWest Create Venture to Convert DC Office Building to Residential

WASHINGTON--(BUSINESS WIRE)--Jemal Real Estate Strategies and DivcoWest have announced a joint venture to convert 1255 23rd Street NW, a 342,000-square-foot office building in Washington, D.C.'s West End, into approximately 323 apartments. The project will include up to three dozen affordable units. Madison Realty Capital provided a $40 million loan to support the property’s acquisition and predevelopment.

The building is in a superior location for residential apartments, sitting between Georgetown, George Washington University, and Dupont Circle in an area with limited housing supply, especially affordable units and one that benefits from access to employment centers, transit, retail and some of Washington's most established neighborhoods.

FILLAT+ Architecture serves as project architect. CBG Building Company is general contractor.

“This partnership reflects our confidence in Washington, DC, and our conviction in the importance of giving existing buildings a second life," said Norman Jemal, Senior Managing Principal of Jemal Real Estate Strategies. "Adaptive reuse will play an increasingly important role in the future of Washington's neighborhoods. Despite being an office building, 1255 23rd Street NW has the geometry and bones for a stunning residential building, a use that aligns the building with the future needs of the community. We're excited to pair our experience in complex urban redevelopment with DivcoWest's deep expertise to truly serve the community and contribute to the city's long-term vitality.”

Jemal Real Estate Strategies Inc ("JRES") is a private investment platform founded by Norman Jemal, Senior Managing Principal at Douglas Development, to pursue opportunistic real estate and structured investment opportunities. Since launching in late 2025, JRES has sponsored the conversion of an office and mixed-use building in Syracuse, NY, and a 20-story office tower in Richmond, VA, creating nearly 350 residential units. JRES is also repositioning and leasing an office building in Arlington, VA.

DivcoWest, a DivCore Capital company and vertically integrated real estate firm investing in many asset classes across the US, primarily in innovation markets, is the current owner of the property and will retain an equity interest alongside JRES.

“Office-to-residential conversion offers a real opportunity to address the need for housing in our cities. By bringing together our teams' capabilities, we will create both affordable and market-rate apartments at 1255 23rd Street NW and position the property for the long term,” said Nico Papageorge, Managing Director, DivcoWest.

“1255 23rd Street NW presents a compelling opportunity to bring new life to a well-located property in Washington’s West End,” said Samir Tejpaul, Head of Investments at Madison Realty Capital. “The property combines a building configuration that lends itself to residential use with direct access to major employers, transit, and surrounding neighborhoods. With Jemal Real Estate Strategies and DivcoWest leading the project, our financing will help deliver much-needed housing in a market with limited opportunities for residential development.”

Built in 1982, the 8-story building includes 257 covered parking spaces and is located just a few blocks from the Foggy Bottom-GW University Metro station with access to the Blue, Orange, and Silver lines. Approximately 22,000 s.f. of ground floor retail will remain in place.

Additional project details will be announced as plans advance.

About DivcoWest

Founded in 1993 by Stuart Shiff, DivcoWest, a DivCore Capital Company, is a vertically integrated, real estate investment firm headquartered in San Francisco, with offices in Cambridge, Los Angeles, Menlo Park, Washington DC, Austin, and New York City. Known for long-standing relationships and experience across the risk-spectrum in innovation markets, DivcoWest combines entrepreneurial spirit with an institutional approach to commercial real estate. DivcoWest aims to create environments that inspire ingenuity, promote growth, and enhance health and well-being. Since inception, DivcoWest and its predecessor have acquired approximately 77.6 million square feet of commercial space, primarily throughout the United States. DivcoWest's real estate portfolio currently includes existing and development properties in the office, R&D, lab, industrial, retail, and multifamily spaces. www.divcowest.com. Follow @DivcoWest on LinkedIn.

About Jemal Real Estate Strategies

Jemal Real Estate Strategies Inc ("JRES") is a private investment platform founded by Norman Jemal, Senior Managing Principal at Douglas Development, to pursue opportunistic real estate and structured investment opportunities. Building on decades of experience acquiring, repositioning, financing, and operating commercial real estate, JRES gives institutional and private capital a dedicated platform to invest alongside Norman Jemal on transactions distinguished by hands-on asset management, flexible capitalization, and differentiated sourcing. Since launching in 3Q25, JRES has sponsored three primary investments: 4100 N. Fairfax Drive, strategic repositioning of an office building in Arlington, Virginia, centered on leasing, repositioning, and long-term value creation; 420–430 E. Genesee St., adaptive reuse of a historic Boys Club and an office building in Syracuse, New York, into 57 apartment units; and 707 E. Main Street, adaptive reuse of a 20-story office tower in Richmond, Virginia, into 288 apartment units and 210 hotel keys.

About Madison Realty Capital

Madison Realty Capital is a real estate private credit manager focused on US-based commercial real estate lending strategies. As of June 30, 2026, the firm and its controlled affiliates (collectively, "Madison") manage $24 billion in assets on behalf of a global institutional investor base. Since 2004, Madison has completed $91 billion of real estate transactions. Madison seeks to deliver value at every phase of the property lifecycle by providing tailored financing solutions to borrowers across the capital stack. To learn more, follow Madison Realty Capital on LinkedIn and visit www.madisonrealtycapital.com.