Trendy D.C. Hotel Sells to Lender at Foreclosure Auction
Acore Capital dropped a $1 million credit bid to take over the property and the $86 million in debt to it
By Nick Trombola January 24, 2025 1:18 pm
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A trendy hotel in Washington, D.C.’s Adams Morgan neighborhood has sold at foreclosure auction — and no, not to Elon Musk.
The Line DC hotel, a 220-key property at 1770 Euclid Street NW, was acquired by its lender Acore Capital earlier this week via a $1 million credit bid, which inherently also includes assuming the $86 million loan note tied to the building, according to Bisnow. There were no other bidders at the auction.
The property, a 110-year-old former Christian Science church, was redeveloped as a hotel in 2017 by Friedman Capital, Sydell Group, Affinius Capital and now-defunct Foxhall Partners. The group secured an $80 million loan from Deutsche Bank (DB) in 2016 for the project, and refinanced with Acore’s loan in 2019. Acore took control of the property, which also houses restaurant and bar No Goodbyes, last year due to outstanding debt.
A report from food and dining publication Eater in early January caused a stir when it claimed that Musk was interested in purchasing the property with intentions to transform it into a “private social club.” Although ultimately Musk did not place a bid at the auction, the report was enough to whip up over 2,300 signatures on a petition to stop the world’s richest man, and head of the Trump Administration’s new Department of Government Efficiency, from acquiring the hotel.
A representative for Friedman did not immediately respond to a request for comment. A spokesperson for Acore confirmed the acquisition but declined to comment further.
In other Trump-related D.C. hotel news, his family business is reportedly in talks to repurchase the rights to the Waldorf Astoria Washington DC, formerly known as the Trump International Hotel. Eric Trump allegedly met with owners BDT & MSD Partners in early January to discuss a deal, according to the Wall Street Journal.
The Trump Organization in 2022 sold its leasehold on the property, which is owned by the federal government, to CGI Merchant Group for $375 million, though the property ultimately ended up in BDT & MSD’s hands at foreclosure auction just two years later.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
