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Article posted on August 1, 2013 by BizJournals.com.
Songy HighRoads LLC is weighing plans to convert an 11-story office building on K Street near McPherson Square into a 160-room limited-service hotel after buying the building from an affiliate of the Retirement Systems of the City of Detroit.
Songy, based in Atlanta and partnering with New York-based Elliott Management Corp. on the venture, settled on 1522 K for its location and conversion potential, CEO David Songy told me Thursday. Songy said he has not ruled out upgrading and maintaining the 91,000-square-foot building as office space but is leaning toward hospitality and expects to make a decision one way or the other in the next 45 days.
"We think this is a very good location for offices because it's on K Street, but we also think it's a very good location for a limited-service hotel," Songy said.
Songy beat out several other bidders for 1522 K St. NW in an offering brokered by Transwestern. The sale price was not disclosed but sources told Bisnow the sale price was around $23.5 million. That is nearly $7 million less than it last sold for in 2008. Songy declined to comment on the building's sale price.
The mid-block building is book-ended by Archibald's Gentlemen's Club and Fast Eddie's Sports & Billiards on one side and by the St. Regis Washington hotel on the other. Some real estate experts speculated on whether that would limit redevelopment options or hamper interest in the building. Songy said he was not concerned about the building being hemmed in.
Songy has been looking for investment opportunities in the District for about a decade. The firm specializes in office and hotel projects and teamed up this past spring with the Carlyle Group to buy a mixed-use complex in Houston called the Galleria Plaza.
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