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The General Services Administration (GSA) on Wednesday announced the sale of theOld Post Office Buildinglocated at 1100 Pennsylvania Avenue in Washington. D.C.
The building was previously theTrump International Hotelfrom 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. 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". a historic Benjamin Franklin Statue.
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The Old Post Office Building is a recognizable landmark on Pennsylvania Avenue.(Kevin Carter/Getty Images / Getty Images)
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 Journalreported that BDT & MSD Partners acquired the building. 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,. that arrangement would continue with a new leaseholder, the Journal reported.
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The Old Post Office Building contains historic art, including a statue of Benjamin Franklin.(Kevin Dietsch/Getty Images)
The Old Post Office Building was completed in 1899 and originally served as the headquarters for theU.S. Post OfficeDepartment and the post office for Washington, D.C.
It is listed in the National Register of Historic Places. 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 otherWashington, D.C.landmarks.
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The Waldof Astoria. the former Trump International Hotel at the Old Post Office Building in Washington, D.C., as seen on Aug. 18, 2022.(Kent Nishimura / Los Angeles Times via Getty Images)
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 andtaxpayer revenuesin the last decade, including the current sale, are expected to exceed $110 million.
GSA has listed dozens of otherfederally-owned propertiesfor sale since early last year as the Trump administration looks to reduce federal spending on underutilized office space. real estate.
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