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'Enfant Plaza in Washington D.C.'s commercial real estate market is facing distress. A significant portion of the complex will be sold through a foreclosure auction next month, according to the Washington Business Journal. This comes as property owners struggled to stay afloat until the recent Federal Reserve interest rate cut.
The auction will be managed by Alex Cooper Auctioneers. JBG Smith Properties wrote off the complex last year, abandoning two office buildings, retail space, and common areas due to a $238 million loan with an outstanding balance. Blackstone Mortgage Trust originated the loan in 2015, while the property's last appraisal valued it at $365.6 million.
L'Enfant Plaza spans nearly 888,000 square feet across four parcels, built in the 1960s and 1970s as part of Southwest D.C.'s redevelopment. The complex includes an underground food court, office space for the National Transportation Safety Board and District government, multiple garages, and air rights.
The auction does not include the Hilton National Mall/The Wharf, which sits atop the complex but is deeded separately. JBG Smith's portfolio consists of 13.4 million square feet of office, multifamily, and retail space, as well as 9.3 million square feet of mixed-use development in the pipeline.
