Notable Neighborhoods: Washington, DC

Watergate Hotel co-op units go on sale this month.

A prestigious address, world-class Potomac River views, famous neighbors, and history can all be yours.

The Watergate Hotel is being converted into residential co-ops. The hotel is one of six buildings that comprise the famous Watergate complex on the banks of the Potomac River in Washington, DC. Monument Realty purchased the hotel in 2004, and is redeveloping the property for residential use.

The Watergate complex already includes three residential co-op buildings. Current residents include Secretary of State Condoleeza Rice. Past residents have included Ruth Bader Ginsburg, Bob and Elizabeth Dole, Monica Lewinsky, and Paul O’Neill.

Monument has not yet released details on the units for sale. But individual units are expected to start at $700,000 with the most expensive unit priced at over $9 million. The building will be owned as a cooperative, rather than a condominium. We expect at a large percentage of the units will have superb river views. According to representatives at Monument, sales will begin in late February.

On the negative side, the building is a bit dated, and its concrete exterior has definitely weathered. Also, the co-op ownership can make it difficult for purchasers to get financing for their units since many area financial institutions do not lend for co-ops. Finally, the monthly fees on the existing Watergate co-ops are on the high side. It is not yet known whether the fees on the newly converted units will be comparable.

The Watergate Complex was developed in the early 1960’s by the Italian firm Societa Generale Immobiliare and was designed by Italian architect Luigi Moretti. It is named for the last lock on the defunct Chesapeake and Ohio Canal, which diverted water from the Potomac River into the Tidal Basin at flood tide (the “water gate”). The June 17, 1972 break-in at the Watergate headquarters of the Democratic National Committee resulted in the 1974 resignation of President Richard Nixon. This incident forever cemented the Watergate’s place in American history. Even today, political scandals (both in the U.S. and abroad) are given the suffix “-gate” in reference to the famous complex.