GlobeSt broke the news that the former Italian Embassy in Adams Morgan has traded for $7.8 million to Bethesda-based Valor Development, which plans to convert the 35,000 square foot building into condos. On their website, Valor is calling it “The Flats at Il Palazzo”:

The Flats at Il Palazzo is Valor Development’s newest project. The site is home to the former Italian Embassy and will be converted to luxury condominium units over 2 phases. Phase I will entail the renovation and conversion of the existing Italian Embassy; blending the character and charm of the historic building with the sophistication, class, and modern finishes that one expects in this premium location. Units in The Flats at Il Palazzo Phase I are planned to deliver to the marketplace in Summer, 2011.

Summer 2011! Quick turnaround. Valor hasn’t moved quite as quickly on the other project it has in the area, the Crest on 13th St., which is scheduled for delivery in the fall.

For more history on the Flats, check out Kent Boese‘s write-up from after the property went on the market last year. Apparently, the Ambassador sought another location when he was mugged in Meridian Hill Park.