Eagle Cliff Buys DC Office Building at Foreclosure Sale for $30M
By Keith Loria December 22, 2023 12:12 pm
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Eagle Cliff Real Estate Partners has acquired a Downtown Washington, D.C., office building through foreclosure at the bargain price of $30 million, according to the D.C. Recorder of Deeds.
Apollo Global Management (APO) initiated the foreclosure proceedings on the 202,000-square-foot 660 North Capitol Street NW in November, tied to a $95 million loan that developer Republic Properties had on the property, according to public filings. The private equity firm had taken over the loan from a consortium of lenders that provided the financing in 2019.
The balance owed on the note was $91.97 million when the property went to auction this week.
Republic Properties delivered the building in 2016, and one of its largest tenants was WeWork, which left its 25,000 square feet earlier this year.
Eagle Cliff already plans to make major upgrades to the property starting in early 2024. Those include lobby renovations, improvements to the penthouse and rooftop terrace, and a turnkey spec suite program aimed at attracting and retaining tenants.
“We believe that those who want to be in a positive work environment are going to be attracted to the best assets, and this was developed to best-in-class quality,” Paul Teti, co-founder and partner of Eagle Cliff Real Estate Partners, told Commercial Observer. “The location is excellent, close to Union Station and Capitol Hill.”
D.C.-based OTJ Architects will be doing the renovations.
The building features floor-to-ceiling windows, a fitness center and a conference center.
Tenants in the building include the National Association of Counties, the National League of Cities, the Governors Highway Safety Association and Hyundai. Currently, 22 percent of the building is available.
This is Eagle Cliff’s only property in the District. The company was formed in late 2022 by Teti, former executive vice president of real estate operations at Columbia Property Trust, and Giorgios Vlamis, former co-founder and partner of Senlac Ridge Partners, who both have done numerous deals in D.C. in the past.
D.C.-based Republic Properties has done a great deal of development in its 40-plus-year history. Among its developments are the 252,000-square-foot 1825 K Street NW office building and the 276,000-square-foot 1425 New York Avenue NW office building in the District and the 530,000-square-foot, eight-building Campus at Dulles Park in Herndon, Va.
JLL (JLL)’s Doug Mueller will serve as leasing agent for the building.
Keith Loria can be reached at Kloria@commercialobserver.com.
