Science Nonprofit Acquires DC Office Building in Foreclosure Auction – Commercial Observer

A science advocacy nonprofit recently became the owner of a 91,000-square-foot office building in Washington, D.C., that it previously financed. An affiliate of Society for Science filed a foreclosure notice on 1776 Massachusetts Avenue NW last month after the previous owner, ELV Associates, defaulted on a $29.1 million loan provided by the nonprofit. Another affiliate of Society for Science won the building at auction with a bid of $10 million, which is significantly less than the building’s assessed value of $29.3 million and the $45.5 million that ELV purchased it for in 2012.

It is currently unclear how Society for Science became ELV’s lender, as representatives for the nonprofit did not immediately respond to a request for comment and ELV could not be reached. The default and foreclosure on 1776 Massachusetts is just one of many recent financial distress situations in Washington, D.C.

State Farm Life Insurance also acquired a 10-story, 123,000-square-foot office building in a foreclosure auction, and another 10-story office tower owned by Ares Management and Monument Realty is on the brink of foreclosure. The Portrait Building at 701 Eighth Street NW was handed back to lender Voya Investment Management in lieu of foreclosure, with over $33 million of the loan still outstanding before the property was surrendered.

These financial struggles highlight a trend of distress in the District, with various office buildings facing foreclosure and changes in ownership due to unpaid loans. The impact of these situations on the commercial real estate industry remains to be seen.