$72.6 Million Non-Performing Office Loan | Washington, D.C.

Asset Description

Jones Lang LaSalle (“JLL”) has been retained on an exclusive basis by the Seller to arrange the sale of a $72.6 million non-performing office loan (the “Loan” or “Note”). The Loan is secured by the first priority deed of trust on the fee-simple interest in a class A office property in Washington, D.C. (the “Property” or “Collateral”). In November 2024, the Loan went non-performing as a result of a payment default. In December 2024, Trigild was appointed by the court to serve as acting receiver.

The Collateral is comprised of a 12-story office building located in Southwest Washington, D.C. Constructed in 2007, the Property is conveniently located blocks away from the national mall and benefits from breathtaking views of the U.S. Capitol and Potomac River, facilitated through the Property’s state-of-the-art viewing balcony. As of January 2025, the Property is 79.2% occupied with multiple investment grade tenants and benefits from a WALT of 5.0 years.

The offering presents investors the opportunity to buy a non-performing Loan at a favorable basis, significantly below replacement cost, with a potential path to ownership.

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Attributes

Loan status

Non-Performing

Unpaid principal balance

NZ$127,221,697

Maturity date

01/09/2025

Current interest rate

3.83%

Building area gross

21,732 m²

Occupancy

79.2%

WALT

5 years

Call for offers

25/03/2025

Media

Investment Highlights

Path To Ownership

The non-performing Loan provides investors the ability to potentially step into ownership position on a class-A office building at an attractive basis.

Strong In-Place Tenancy

With an occupancy of 79.2%, the Property benefits from a well-diversified tenant base, including three investment grade tenants that occupy 40.4% of the total rentable area.

Exceptional Access to Public Transit and Transportation

The Property is conveniently located within a five-minute walk of two metro stations, L’Enfant Plaza and Federal Center, providing access to five of the six metro lines. Additionally, the Property has convenient vehicular access to major thoroughfares such as I-695 and I-395.

Dynamic Location and Submarket

Historically known as a federal agency enclave with 19 other federal agencies headquartered within blocks of the Property, the Southwest Submarket today is a dynamic focal point for new development and home to The Wharf, a transformative $2.5 billion, 3.2 million square foot mixed-use development along Washington’s Southwest Waterfront.

Transaction Timeline

Indicative Bids: March 25, 2025

Best & Final Bids: April 8, 2025

Award Winning Property with a Prime Unobstructed Viewing Corridor

Awarded “Best Office Building” by McGraw Hill at the time of construction, the strategically designed Property boasts a modern state-of-the-art terrace with unobstructed views of the U.S. Capitol and Potomac River.

Receivership In-Place

Trigild was appointed by the court to serve as acting receiver.