GSA just sold a vacant D.C. federal building and says more sales are coming

The General Services Administration on Wednesday announced that a development firm has purchased the agency’s National Capital Region / Regional Office Building, which officials said is the first major sale of a federal property in Washington, D.C., during the second Trump administration. 

“Great stewardship means letting go. It means letting go of things that no longer serve the public,” said GSA Administrator Ed Forst at the announcement, which was held at the property. “The American taxpayers have been carrying the cost of this vacant building for far too long.”

GSA reported that the sale would save the federal government more than $200 million in delinquent maintenance repairs and $5.5 million in annual operating costs. 

Sen. Joni Ernst, R-Iowa, who is a proponent of selling excess federal real estate, brought a “SOLD” sign with her to Wednesday’s announcement.  

“One building sold, and many more now to go,” she said. 

GSA officials said that the 940,000-square-foot office facility at one time housed the Homeland Security Department but has been vacant since March 2025. 

Based on documents posted with D.C.’s Recorder of Deeds, according to a report from the real estate data firm CoStar, an affiliate of Dalian Development purchased the property for approximately $24 million. 

Eric Mulata, the company’s vice president for development, said on Wednesday that the sale could’ve taken years but that GSA managed it in “60 days, from contract to close.” He added that the building would be turned into space for housing, retail and entertainment. 

Continuing a priority of the Biden administration, the Trump administration has sought to slash the number of buildings that the federal government owns. Real property management has been on the Government Accountability Office’s high-risk list since 2003. 

The purchased GSA Regional Office Building is across the street from the Robert C. Weaver Federal Building, which also has been put up for sale. That property serves as the headquarters for the Housing and Urban Development Department, whose workforce is in the process of being relocated to Alexandria, Va. Union officials and Democratic senators, however, have said that department leaders are not being forthcoming with operational or budget details about the move. 

GSA also recently announced that it has taken preliminary steps to clear employees out of the Agriculture Department’s South Building (one of two USDA headquarters in Washington, D.C.) as part of an effort to sell or otherwise dispose of the property.