JPMorgan Chase attempts to block opening of strip club near its DC offices

A legal battle continues over plans to open a 1,200-person capacity strip club at 1412 Eye St. NW, adjacent to JPMorgan Chase & Co.'s Washington DC offices, with a restrictive property covenant currently blocking the establishment, reports the Washington Business Journal. The case concerning the covenant is now before the DC Court of Appeals.

Iraklion LLC, which purchased the property in Zei Alley NW for $8.2 million in 2022, intends to open the 12,000-square-foot club. However, a restrictive covenant was added to the property's deed in 2008, prohibiting any "nightclub or discotheque" or any establishment selling alcohol after midnight due to past public safety concerns linked to a previous club, Club Zei.

Several entities connected to the 2008 seller sued to enforce this covenant in November 2023. Iraklion argued that significant neighborhood changes since 2008, including improved crime rates and commercial development, rendered the covenant unenforceable. DC Superior Court Judge Carl Ross disagreed, ruling on 22 November 2023 that the covenant's "plain language unambiguously prohibits" the proposed club and that its original purpose remains substantially beneficial. Iraklion appealed this decision in December 2023.

JPMorgan Chase, whose DC offices are in the neighboring Bowen Building, supports Judge Ross's ruling and has sought to join the case at the appellate level should the decision be overturned. The financial giant is also separately appealing a decision by the District’s Alcoholic Beverage and Cannabis (ABC) board that approved a liquor license transfer for the club. That appeal is currently on hold pending the outcome of the covenant case. The ABC board had previously rejected the license transfer in 2020, citing proximity to a residential building, but later issued an advisory opinion that seemingly contradicted its earlier order, leading to the approval JPMorgan now contests.