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Republic Properties appears to be having a tough time paying off its debt for Portals I, the first part of its 1.5M SF Southwest DC mixed-use project.
Lenders will foreclose on the 450k SF office building at 1250 Maryland Ave SW, which has a $162.3M outstanding balance on its mortgage, the Washington Business Journal reports.
The building is occupied by federal government tenants, including the FAA and private contractors. The FCC occupies all of Portals II, although the GSA is trying to move the agency to NoMa and Republic Properties is suing over the search requirements.
This foreclosure hints at a potential trend of expiring 10-year CMBS loans made before the financial crisis. It was one of 35 properties downgraded by Moody's in September, a pool with a total combined loss of $252M. [WBJ]
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