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ublished Oct 21 2025 3:30 PM
Washington Business Journal reports that the sale of two Alexandria properties could settle more than $3 million in federal tax debt owed by former Connection Newspapers CEO Peter Labovitz, a real‑estate developer. Labovitz, who filed Chapter 11 bankruptcy in January, says proceeds from his 14,000‑sq‑ft Old Town home at 510 Wolfe Street and the Kings Row Development at 1604‑1610 King Street will satisfy the Department of Justice in the Eastern District of Virginia.
The DOJ alleges Labovitz has engaged in fraudulent conveyances and nominee transactions to obstruct tax collection and avoid foreclosure. In 2011 he pleaded guilty to owing the IRS $940,000 in unpaid employment taxes from 2002‑2008 and received a six‑month prison sentence.
The Wolfe Street property, once listed for $10.5 million by Corcoran McEnearney and later reduced to $8.5 million, is the largest residence in Old Town. In July, Labovitz’s bankruptcy counsel filed a reorganization plan earmarking the sale proceeds for the IRS. Dechantal Associates LLC—of which Labovitz is a principal—owns the Kings Row site. The company hired broker Feldman Ruel last week to market the property, valued at $4.4 million, though Labovitz says the sale is unrelated to his bankruptcy.
Dechantal received city approval earlier this year to convert five townhouse lots at 1604‑1614 King Street into ten row houses and an eight‑story, 44‑unit apartment building with two levels of underground parking, plus an exterior courtyard.
The DOJ is requesting that U.S. District and Bankruptcy courts assume control of Labovitz’s interests in the Wolfe Street home and the office building at 1700 Diagonal Road, which sold for $21 million in 2019. The government shutdown has temporarily paused the proceedings; an October 7 motion seeks a stay until DOJ attorneys can resume civil litigation duties.
Reporter James Cullum, who has covered Northern Virginia for nearly two decades and joined ALXnow in 2020, has reported on national investigations, international events, and major U.S. incidents, including the January 6 Capitol riot.
#court #federalcourt #OldTown #realestate
