Rumors of this first came my way over the weekend, and now WBJ has the somewhat official word, in this article
about the closing of a $60 million construction loan to allow the completion of the 200-unit Velocity condo building
at First and L streets: "Rockville-based Cohen Cos. is currently negotiating a deal with a first-class hotel operator for Phase II and is in negotiations for a full building user for the 280,000 square-foot, Class A office building in Phase III." Phase II, on the north side of the block, facing K Street, was originally planned to be a twin of the building currently under construction; the three levels of underground parking are already built, which presumably would speed up any sort of construction timetable for a hotel on that spot. Phase III is the section of the block facing Half Street. The article also says that the condo building is currently 25 percent leased.