950 L’Enfant Plaza is an eight-story Class B office building located in the Southwest submarket of Washington, DC that was 88% leased to government-backed credit tenancy at acquisition. The investment was sourced through a strategic partnership with the controlling class bondholder on a number of CMBS trusts, through the assignment of their Fair Value Purchase Option. The defaulted senior note, which was secured by the property, was acquired at a 14% discount to par.
The property was foreclosed within two months after acquiring the note and we successfully renewed two GSA leases representing approximately 50% of the building. The business plan was completed ahead of schedule, and the property was sold to an institutional asset manager.