Bridge Investment Group Takes Over 166K-SF DC Office
By Anna Staropoli August 22, 2024 1:11 pm
reprints
Bridge Investment Group is going from lender to owner at Downtown Washington, D.C.’s 1750 K Street.
After supplying the asset’s refinancing loan in 2020, Bridge has now taken over the 165,604-square-foot office building, according to D.C. Recorder of Deeds documents referenced by Bisnow. Four years ago, Bridge provided a $68.5 million loan for the property to Korean company Mirae Asset Global Investments.
Deed documents also cite $57.7 million as the building’s consideration amount — a mere fraction of Mirae’s original purchasing price. In 2015, the investment company bought the 12-story office tower for $115 million through a real estate fund. Since then, the property’s value has plummeted.
“The true consideration for this conveyance is [Bridge’s] forbearance of foreclosure against [Mirae] and forbearance of an action on the debt,” the deed filing states, per Bisnow.
The property peaked in 2021, when D.C.’s Office of Tax and Revenue valued it at $114.5 million. Now, the office has updated that value to $78.5 million for 2025’s financial year.
The drastic dropoff speaks to changes in the building’s tenants and the market for Downtown D.C. office space. In 2020, D.C. law firm Wiley Rein announced that it would leave its 144,000-square-foot office on K Street and move to 2050 Main Street Northwest.
Meanwhile, in the second quarter of 2024, D.C. office vacancy rates hit a peak. A CBRE report estimated 22.4 percent of the city’s office space was empty in the nation’s capital.
Currently, personal training gym 1To1 Fitness, public relations firm PlanIt World Consulting and Industrial Truck Association, among others, call the address home. JBG Smith manages the property, which sits between 17th Street and 18th Street Northwest in the heart of D.C., just north of the White House.
Spokespeople for Mirae and Bridge did not immediately respond to requests for comment.
Anna Staropoli can be reached at astaropoli@commercialobserver.com.
