Downtown D.C. Office Building Ownership Transferred

A new partnership has taken control of the 700 Sixth St. NW office property following a deed-in-lieu-of-foreclosure.

Updated on Oct. 6, 2026 in Commercial

Isometric editorial illustration of a modern glass and steel office building on a city block, representing commercial real estate market shifts. — Assembly Real Estate and FitzWalter Capital Partners have acquired the 306,000-square-foot office building at 700 Sixth St. NW in Washington following a deed-in-lieu-of-foreclosure. AI Illustration. Upload story photo >

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Assembly Real Estate and FitzWalter Capital Partners have acquired the 306,000-square-foot office building located at 700 Sixth St. NW in Washington. The transfer occurred after the partnership purchased the building's existing mortgage note, ending the ownership tenure of Affinius Capital.

Why it matters

This transaction highlights the ongoing recalibration of the D.C. office market, where property valuations and financing structures are shifting to reflect current vacancy levels. The deal provides new capital stability for a prominent building located near the Capital One Arena.

The acquisition involved a $145.8 million note balance purchased for $79.5 million, with the new partnership securing a $54.2 million loan to facilitate the deal. This property currently maintains a 79% occupancy rate compared to the broader D.C. office market vacancy rate of 21.8%.

The players

Assembly Real Estate

A real estate investment firm that focuses on acquiring and managing large-scale commercial office properties.

FitzWalter Capital Partners

An international investment firm based in London and Hamburg that manages distressed debt and property assets.

Affinius Capital

An institutional real estate investment firm and the former owner of the office building at 700 Sixth St. NW.

Eversheds Sutherland

A major global law firm currently maintaining a significant lease of 143,000 square feet within the building.

Citi Real Estate Funding Inc.

A financial institution providing lending services for commercial property acquisitions and debt refinancing.

The details

The ownership shift was executed through a deed-in-lieu-of-foreclosure, a mechanism where the borrower surrenders the property to the lender to avoid formal foreclosure proceedings. The acquiring partnership assumed control after purchasing the debt at a significant discount from the outstanding note balance. Law firm Eversheds Sutherland remains a major tenant, occupying 143,000 square feet of the total space.

2009: The office building was originally developed.
June 2011: USAA Real Estate purchased the office property.
2019: Principal Real Estate Investors provided a $140 million refinance.
Early 2024: Cadwalader moved to a smaller office space.
October 2, 2026: The deed-in-lieu-of-foreclosure transaction was executed.

The Home Front

This acquisition follows the pattern set by the current 21.8% D.C. office market vacancy rate, where lenders and investors are actively restructuring debt on commercial properties to align with current demand. These adjustments mark a departure from the high-valuation era of the late 2010s.

While this transaction primarily impacts commercial tenants, residents should note that major downtown office shifts often influence local neighborhood traffic and nearby retail demand near the Capital One Arena. Monitor future site development filings if you live or work in the vicinity of the 700 Sixth St. NW corridor.

The takeaway

The transition of 700 Sixth St. NW reflects a wider effort by investors to stabilize commercial assets in a changing urban landscape. For those monitoring local real estate, tracking large-scale lease renewals and note purchases can provide insight into the vitality of the city center.