Goldman Sachs to foreclose on $302 million loan in Washington, D.C.

A major office building of more than half a million square feet in downtown Washington, D.C., is on the verge of a foreclosure auction. The alternate trustee of the $302 million loan, secured by Columbia Property Trust, filed a foreclosure notice and affidavit with the D.C. Recorder of Deeds on Tuesday.

The lenders, a consortium including Goldman Sachs, Citi Real Estate Funding, and Deutsche Bank, appointed the alternate trustee last week. The approximately 580,000-square-foot property is scheduled for a foreclosure auction on December 20 with Alex Cooper Auctioneers.

Columbia Property Trust has not yet given any interviews to discuss the matter. However, according to investigations, the property was acquired in 2017 for $421 million in collaboration with Allianz Real Estate. The building, constructed in 1975, underwent a $33 million renovation in 2016 by its former owner. The loan was initiated in December 2021 with an original balance of $287 million.

Due to this situation, the building is about to lose a key tenant, as the law firm Zuckerman Spaeder is vacating its 52,000-square-foot office and moving to a newer office less than half a mile away. Other tenants still remaining in the building include the U.S. Postal Service, The Brattle Group, Wilkinson Barker Knauer, Berkeley Research Group, and Emily’s List, among others.

Following the sale of Market Square, located near the National Mall, for $323 million, the 1800 M St building, which is preparing for foreclosure, is one of the two remaining for Columbia Property Trust in Washington, D.C., as it also owns 80 M St. SE in the Navy Yard area.

Over the past year, a series of large downtown office buildings have been sold through foreclosure, including 1800 M St. For example, the four buildings that make up the 888,000-square-foot L’Enfant Plaza were sold at auction in October for $83.7 million, less than a quarter of their last appraised value. Another is Brookfield’s 383,000-square-foot property on K Street, which was also sold to the lender at a foreclosure auction for $44 million.

Available Foreclosures: 

Washington D.C.: 2 homes available.

By Elías DaSilva | 25 de Noviembre de 2024