Washington, D.C.’s L’Enfant Plaza is headed to the auction block.
A large portion of the complex is set to be moved via a foreclosure auction next month, the Washington Business Journal reported. It’s yet another sign of distress in the area’s commercial real estate market as property owners tried to survive until the Federal Reserve interest rate cut, which came this week, but too late for many.
Alex Cooper Auctioneers will run the bidding process.
Owner JBG Smith Properties wrote off the complex last year, essentially kissing goodbye to two office buildings, retail space and common areas. The larger loan backing the property has an outstanding balance of $238 million, according to a foreclosure notice.
Blackstone Mortgage Trust originated the relevant loan in 2015. The property’s last appraisal came in at $365.6 million. JBG Smith took impairment losses of at least $15 million in each of 2021 and 2022, according to earnings statements.
L’Enfant Plaza spans nearly 888,000 square feet and four separate parcels. These buildings were constructed in the 1960s and 1970s as part of the federal government’s wider redevelopment of Southwest D.C.
The retail component of the property includes an underground food court. Office tenants include the National Transportation Safety Board and District government, and the property also counts multiple garages and air rights.
Read more
Commercial
Washington D.C.
More DC offices are headed to the auction block
Commercial
Washington D.C.
New York developer loses 1-year-old D.C. multifamily complex
Development
South Florida
Rishi Kapoor’s Miami Beach co-living project dev site heads to auction
The Hilton National Mall/The Wharf, which was recently renovated, sits atop the complex but is deeded separately and not part of what’s up for auction.
JBG Smith’s portfolio comprises 13.4 million square feet of office, multifamily and retail space, as well as 9.3 million square feet of mixed-used development in the pipeline. The firm, led by Matt Kelly, serves as the developer of Amazon’s HQ2 in Crystal City, Virginia.