The General Services Administration (GSA) announced Wednesday the sale of Old post office building located at 1100 Pennsylvania Avenue in Washington, DC
The building was previously the Trump International Hotel from 2016 to 2022 until the Trump family business sold the rental rights for $375 million. The hotel later reopened in 2022 as the Waldorf Astoria Washington DC, under Hilton’s management.
GSA said the sale of the building included terms that “permanently ensured public access to the iconic clock tower while establishing strong protections for the building’s architectural heritage through a binding preservation covenant.”
The agreement also includes a dedicated fine arts agreement that will retain ownership by the American public of artworks at the facility, including Robert Irwin’s “48 Shadow Planes” and a historic statue of Benjamin Franklin.
TRUMP REVEALS NEW WHCA DINNER VENUE AFTER CHAOS DERAIL GALA
The Old Post Office Building is a recognizable landmark on Pennsylvania Avenue. (Kevin Carter/Getty Images / Getty Images)
The sale of GSA is taking place under the terms of the existing ground lease, which gives BDT MSD Partners, an investment 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 states that the bank plans to sell the property for a total of $400 million.
Hilton currently has a long-term agreement with the hotel to operate it under the Waldorf Astoria name, and that agreement would continue with a new tenant, the Journal reported.
TRUMP ORGANIZATION CLOSES $375M SALE OF DC HOTEL WHICH WILL BECOME A WALDORF ASTORIA
The Old Post Office Building contains historic artwork, 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 of the US Post Office Washington, DC Department and Post Office
It is listed on the National Register of Historic Places, and its Romanesque Revival architecture makes it one of the most recognizable buildings on Pennsylvania Avenue, with a prominent clock tower and atrium. The facility is also located near the White House and other Washington, D.C. benchmarks.
TRUMP ORGANIZATION CONSIDERING DEAL TO CONVERT DC WALDORF-ASTORIA INTO TRUMP INTERNATIONAL HOTEL: REPORT
The Waldof Astoria, the former Trump International Hotel located in the Old Post Office Building in Washington, DC, seen on August 18, 2022. (Kent Nishimura/Los Angeles Times via Getty Images)
According to the GSA announcement, before the property was converted into a hotel, taxpayers were absorbing approximately $6 million per year in losses on the building.
Since then, more than $250 million of private sector capital has been invested in the property and taxpayers’ income over the past decade, including the current sale, are expected to exceed $110 million.
GSA has listed dozens of other federal properties for sale since early last year as the Trump administration seeks to cut federal spending on underutilized office space and real estate.
GET FOX BUSINESS ON THE GO BY CLICKING HERE