The General Services Administration (GSA) on Wednesday announced the sale of the Old Post Office Building located at 1100 Pennsylvania Avenue in Washington, D.C.
The building was previously the Trump International Hotel from 2016 to 2022 until the Trump family firm sold the leasing rights for $375 million. The hotel reopened later in 2022 as the Waldorf Astoria Washington D.C., under the management of Hilton.
GSA said that its sale of the building included terms that “permanently secured public access to the iconic clock tower while establishing strong protections for the building’s architectural heritage through a binding preservation covenant.”
The deal also includes a dedicated fine arts covenant that will retain the American public’s ownership of artwork within the facility, including Robert Irwin’s “48 Shadow Planes” and a historic Benjamin Franklin Statue.
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GSA’s sale is moving forward under the terms of the existing ground lease, which gives BDT MSD Partners, a merchant bank, the right of first offer.
The Wall Street Journal reported that BDT & MSD Partners acquired the building and land for $80 million, according to people familiar with the matter. The report noted the bank is discussing selling the property for a total of $400 million.
Hilton currently has a long-term agreement in place with the hotel to operate it as the Waldorf Astoria, and that arrangement would continue with a new leaseholder, the Journal reported.
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The Old Post Office Building was completed in 1899 and originally served as the headquarters for the U.S. Post Office Department and the post office for Washington, D.C.
It is listed in the National Register of Historic Places and its Romanesque Revival architecture makes it one of the most recognizable buildings on Pennsylvania Avenue, featuring a prominent clock tower and atrium. The facility is also located near the White House and other Washington, D.C. landmarks.
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According to GSA’s announcement, before the property was redeveloped into a hotel, taxpayers were absorbing about $6 million a year in losses on the building.
Since then, there has been over $250 million in private sector capital invested in the property and taxpayer revenues in the last decade, including the current sale, are expected to exceed $110 million.
GSA has listed dozens of other federally-owned properties for sale since early last year as the Trump administration looks to reduce federal spending on underutilized office space and real estate.
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