Renovated DC Office Sells for a Bargain at Foreclosure
Asset traded for $65 million in 2010
By Greg Cornfield June 21, 2024 5:05 pm
reprints
State Farm Life Insurance has acquired a 10-story office in Washington, D.C., at a foreclosure auction after the previous owners defaulted on a loan provided by the new owner.
State Farm will put down $17.6 million to acquire the 123,000-square-foot building at 1750 H Street NW, three blocks from the White House.
The building’s proposed assessed value for next year is $53.5 million, per the Business Journals, which first had news of the foreclosure sale. Its assessed value was $63.7 million in 2023. It last traded hands for $65 million in 2010.
Office Properties Income Trust (OPI) owned half of the property in a joint venture with AEW, but defaulted on the building’s loan provided by the new owner, State Farm. It had a remaining balance of $32.7 million that was set to mature in August 2027.
Media representatives for State Farm did not immediately return a request for comment.
OPI last year reported that the fair value of its investment in the 1750 H Street NW joint venture “was lower than our carrying value.”
Defaults and distress have defined the office market in D.C. this year. For example, the 10-story Liberty Building is on track to foreclosure, and a $243 million loan backing the Lafayette Centre has transferred to special servicing and is on the brink of default.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
