D.C. Hotel The Line Set for Foreclosure Auction Next Month
Acore Capital had provided $86M in debt
By Nick Trombola December 13, 2024 12:57 pm
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A former church turned hotel in Washington, D.C., is headed to foreclosure auction next month.
Acore Capital — the lender behind $86 million of debt tied to The Line DC in the District’s trendy Adams Morgan neighborhood — has opted to send the hotel to auction on Jan. 23, according to Bisnow. JLL (JLL) is marketing the 220-key hotel at 1770 Euclid Street NW, which has also housed restaurant, bar and cafe No Goodbyes since 2021.
The property’s most recently assessed value was about $48.1 million, records show.
Sydell Group, Friedman Capital, Affinius Capital and the now-defunct Foxhall Partners in 2017 redeveloped the 110-year-old building that previously operated as a Christian Science church. Deutsche Bank (DB) provided an $80 million loan in 2016, records show, but the debt was refinanced with Acore’s loan in 2019. The outstanding balance of the loan, or its maturation date, were not immediately clear.
Representatives for Sydell, Foxhall, Friedman, Affinius did not respond to requests for comment. A spokesperson for Acore declined to comment.
The Line is certainly not the only hotel in D.C. in distress, and it joins the dozens of other commercial assets in the District on the foreclosure auction block, or to otherwise suffer from massively dropped property values.
In August, for example, private equity firm Rockpoint sold the Beacon Hotel on Rhode Island Avenue NW to Three Wall Capital for $26.8 million, or $13 million less than it bought it for in 2018. Then, of course, there’s the Waldorf Astoria Washington, D.C., formerly the Trump International Hotel, which that same month was picked up by debt holder BDT & MSD Partners at a foreclosure auction for $100 million. CGI Merchant Group and Hilton had acquired the leasehold interest on the hotel from the Trump Organization in 2022 for $375 million.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
