The Department of Housing and Urban Development's headquarters in Washington, D.C., is up for sale, with the Trump administration adding what HUD Secretary Scott Turner calls the "ugliest building in D.C." to its list of federal properties being sold in a push to reduce the government's real estate holdings.
The HUD headquarters is in the Robert C. Weaver Federal Building, and was added to a list of federal properties Thursday that the General Services Administration has targeted for "accelerated disposal," Bloomberg reported.
The property is in a prime location, sitting just two blocks from the National Mall and atop the L'Enfant Plaza metro station, but a buyer will need deep pockets to restore it for modern needs.
The building, a local landmark with a concrete facade, needs up to $500 million in deferred maintenance that will include new elevators, electrical and mechanical work, and foundation waterproofing work.
In addition, the building costs an estimated $56 million a year to operate, according to officials, but even with HUD staffers back in the office full-time, the building is only being used at half of its official capacity.
Other federal regulations could keep buyers from lining up for the Weaver Building. It is listed as a landmark on the National Register of Historic Federal Places, so under a preservation law passed in 1966, the building cannot be sold unless a historic preservation covenant is in place.
The GSA also last month listed the 57-year-old building as one of 443 federal properties as "non-core," floating them as properties that could go up for sale.
The list was withdrawn just hours later, with the administration saying it needed time to "understand the nuances of the assets listed."
But now, the sale is being fast-tracked. Federal law requires agencies to offer properties first to nonprofit and government entities rather than the private sector, but the GSA said it is accepting bids while working through the mandates.
Turner, who has called for a new headquarters, said HUD is "committed to rightsizing government operations and ensuring our facilities support a culture of optimal performance and exceptional service."
The location for a new HUD headquarters, as well as the time for a move, remain under discussion.
Administration officials say keeping the agency in the Washington area is a "top priority," but others familiar with discussions say HUD is also considering locations such as Akron, Ohio; Houston, or Kansas City, Missouri.
GSA Public Buildings Service Commissioner Michael Peters said the government wants to move HUD to a "more appropriately sized, better equipped, and maintained space."
President Donald Trump issued a directive Tuesday giving agencies such as HUD flexibility about where to locate their offices.
His order revoked executive orders by former Presidents Jimmy Carter and Bill Clinton that required preference for government offices to be located in downtown or historic districts.