L'Enfant Plaza Office Building Facing Foreclosure Sale With $94M Owed
The D.C. area has the highest rate of delinquent CMBS loans in the U.S., and one Southwest D.C. office building is falling victim to that trend.
A special servicer has moved to foreclose on the Heyman Enterprises-owned building at 950 L'Enfant Plaza one year after the property's debt expired, the Washington Business Journal reports.
A Heyman affiliate owes $94.4M from a 2006 loan taken out on the property. A foreclosure auction had been planned for Wednesday, but that was cancelled and a new date has not yet been set.
The 285K SF office building sits just south of the site where JBG Smith is building a new home for the International Spy Museum. Its tenants include the Department of Energy and the Federal Aviation Administration.
The expired debt on the property represents one of more than 40 delinquent CMBS loans in the D.C. area with a cumulative principal balance of more than $2B, according to credit rating agency DBRS. The surge of delinquencies comes from 10-year loans issued before the recession that projected higher occupancy and rents than buildings were able to achieve. With a 12.07% delinquency rate, the D.C. area far outpaces any other region, in part because its office market has struggled to recover following sequestration.