The General Services Administration (GSA) announced the sale of the Old Post Office Building at 1100 Pennsylvania Avenue in Washington, D.C., a property that previously housed the Trump International Hotel from 2016 to 2022 before being rebranded as the Waldorf Astoria Washington D.C. under Hilton management later in 2022 [1]. The sale includes provisions to permanently secure public access to the building's iconic clock tower and to protect its architectural heritage through a binding preservation covenant. Additionally, a fine arts covenant ensures continued public ownership of significant artworks within the facility, such as Robert Irwin's '48 Shadow Planes' and a historic Benjamin Franklin Statue [1].
The transaction is proceeding under the terms of the existing ground lease, which grants BDT MSD Partners, a merchant bank, the right of first offer. According to The Wall Street Journal, BDT & MSD Partners acquired the building and land for $80 million, and discussions are underway to potentially sell the property for a total of $400 million [1]. Hilton's long-term agreement to operate the hotel as the Waldorf Astoria will remain in place with any new leaseholder [1].
The Old Post Office Building, completed in 1899 and listed on the National Register of Historic Places, is recognized for its Romanesque Revival architecture and prominent clock tower. It is situated near the White House and other notable Washington, D.C. landmarks [1]. Prior to its redevelopment into a hotel, the building cost taxpayers approximately $6 million annually in losses. Since then, over $250 million in private sector capital has been invested, and taxpayer revenues from the property over the past decade, including the current sale, are expected to exceed $110 million [1].
The GSA has been actively listing federally-owned properties for sale since early last year as part of efforts to reduce federal spending on underutilized office space and real estate [1].
CONCLUSION
The sale of the Old Post Office Building marks a significant transaction in Washington, D.C.'s real estate market, with strong protections for public access and historic preservation. The deal reflects ongoing efforts by the GSA to optimize federal property holdings and generate revenue, while maintaining the building's legacy and public value.