A new majority partner has been secured and construction loan financing of $175.6 million obtained for the redevelopment of an office building in downtown Washington, D.C., into a mixed-use property. A consortium comprising Stonebridge, The Bernstein Companies, and Criterion Real Estate Capital has sold a 72 per cent stake in the conversion of the property at 1990 K Street NW to an entity managed by MetLife Investment Management for $58.7 million, according to filings reported by the Business Journals.
The financing was led by Kennedy Wilson Capital, alongside U.S. Fire Insurance, North River Insurance, Odyssey Reinsurance, and Allied World Assurance. Cushman & Wakefield's D.C.-based Capital Markets and Debt Advisory team was responsible for structuring the financing.
Extensive Redevelopment and Political Support
The redevelopment project, with total costs amounting to approximately $250 million and rebranded as 1999 Eye Street NW, involves replacing the former office building with a 14-storey, 412,000-square-foot mixed-use property. Plans include 340 market-rate flats, 44 affordable units, and 50 student housing units with a total of 200 beds. This will be complemented by 15,600 square feet of retail space and 189 parking spaces.
The Bernstein Companies acquired the site in 2001 for $55.8 million; Stonebridge and Criterion joined the ownership group last year. The conversion is part of Mayor Muriel Bowser's “Housing in Downtown” programme. This programme provides a 20-year tax abatement for office-to-residential conversions or redevelopments.
Significance for Urban Development
Demolition of the original building commenced in September 2025. This undertaking is the second-largest project under D.C.'s “Housing in Downtown” programme, which offers a 20-year tax incentive for qualified commercial-to-residential conversions and redevelopments. Only the planned conversion of the Universal Buildings on Connecticut Avenue into approximately 600 units surpasses this project in size within the programme.
Such projects underscore the city administration's endeavour to revitalise downtown Washington, D.C., by creating new housing and responding to the evolving needs of the real estate market.
