WBJ: Senate Square Headed Toward Foreclosure

• November 13, 2009

by Mark Wellborn

It appears that another one of DC’s large apartment complexes is heading toward foreclosure. Less than a week after reports that Allegro Apartments will be auctioned off on November 18th, word comes from the Washington Business Journal that Senate Square, the 432-unit apartment complex on the 200 block of I Street NE was recently appointed a receiver by a DC judge. Developed by Broadway Management out of New York, the project is located next to Jim Abdo’s Landmark Lofts at Senate Square.

Here is a brief description from the WBJ of the events leading up to the building being put in receivership:

“By the time a receiver was appointed on Oct. 27, Broadway Management was at least $8.4 million behind in its payments on the $120 million mortgage.

Broadway had not made a payment on the note since April, and the reserve account to cover revenue shortfalls — which was virtually the only cash available for mortgage payments — was exhausted in March. Broadway did not oppose the receivership appointment.”

As the Journal explains, the receivership step is one that is being used rather frequently for delinquent buildings during the economic downturn. The receiver essentially takes control of the building in question and can operate it, hire workers and providers and even sell it. Court documents indicate that the building remains “substantially vacant”, so it will be interesting to see what happens.

5 Comments

1. Liz said at 4:13 pm on Friday November 13, 2009:

   You left out the part of the article that says that “substanstially vacant” means 87.5 percent leased as of Nov. 17, according to the management company.  I am not a real estate lawyer, but as I understand it, residential tenants in DC have the right of first refusal if their units change ownership.  It will be interesting to see what happens.

1. Lauren said at 4:42 pm on Friday November 13, 2009:

   Yeah, I noticed that part about 87% leased in the article too. I wonder which account is correct? If they’re really 87% leased would they still be having trouble paying their bills? Maybe if they had to give out too many concessions (months free, etc) or if maintenance costs ran over projections?

1. Simon Landau said at 7:27 pm on Friday November 13, 2009:

   This is an interesting situation.  I’m very interested to see how things pan out, and to see if any other buildings join Allegro and get put up for auction.

1. chnna@googlegroups.com said at 1:02 pm on Monday November 16, 2009:

   FYI…

1. Mark S. said at 3:26 pm on Monday November 16, 2009:

   I wonder what if any effect this potential forclosure will have on ABDO’s wonderful Landmark Lofts condominiums low, low condo fees that include shared use of the exercise areas, roof top pool and expansive decks, front desk concierge services and underground parking facilities again shared with both Senare Square towers?