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The owner of a L'Enfant Plaza office building with over $100M of outstanding debt was served with a foreclosure notice last month, and the property will likely have a new owner before June.
Normandy Real Estate Partners served the foreclosure notice to the owner, an affiliate of Heyman Enterprise, and a substitute trustee's sale has been scheduled later this month, the Washington Business Journal reports.
The 285K SF building at 950 L'Enfant Plaza SW is over 80% leased to tenants including the Department of Energy and Federal Aviation Administration. It sits about two blocks from the L'Enfant Plaza Metro station and just south of the under-construction International Spy Museum.
New Jersey-based Normandy Real Estate Partners also owns the building at 1332 F St. NW, where it recently signed ping pong parlor SPiN. Alex Cooper Auctioneers scheduled the substitute trustee's sale for May 23 after Normandy served the foreclosure notice.
Heyman still owes over $100M on the property, backed by a pre-recession CMBS loan. Normandy took control of the debt after it went through multiple trustee assignments, and it will likely emerge as the buyer at the sale, given that other buyers would have to bid a higher price to cover the outstanding debt.
D.C.'s CMBS delinquency rate has been among the highest in the country, though it has begun to decline in recent months. Loans on two Northern Virginia office buildings went delinquent last month.
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