Vacant Downtown D.C. Office Building Finds Buyer After Hines Handed Control To Lender

A prominent office building in Downtown D.C. is slated for conversion after anchor tenant Williams & Connolly vacated and Hines relinquished control of the asset.

The building above the Metro Center station, 725 12th St. NW, is under contract to sell to a partnership of Madison Marquette and Highland Square Holdings, which filed a Board of Zoning Adjustment application to turn it into live-work loft units, the Washington Business Journal first reported.

A source close to the deal told Bisnow the sale price is around $70M, well below the $135M loan that Hines had taken out on the building from lender Allianz Real Estate in 2016.

The office building at the corner of 12th and G streets NW, also called 700 11th St., became vacant last year after law firm Williams & Connolly completed its relocation to the second phase of The Wharf. The ground-floor retail space is also dark at the building.

Last September, Real Estate Alert reported that Hines was handing back the keys to the lender. It reported at the time that Allianz retained Eastdil Secured to market the property and was seeking a $90M sale price...
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RSK: Interesting, because many lenders do not want to have the keys handed back in lieu of foreclosure. I think you may see this happen soon in our market.