T
he Line DC, a trendy hotel in Washington D.C.'s Adams Morgan neighborhood, is headed to auction after its owners failed to meet loan payments. Acore Capital brought in JLL to market the 220-room hotel at 1770 Euclid Street NW ahead of a public auction on January 23. The property was developed by a team including Sydell Group and Foxhall Partners, who secured an $80 million loan from Deutsche Bank in 2016, refinanced with Acore's $86 million loan in 2019.

    However, the hotel's financial performance fell short of expectations, according to Matt Wexler, a former managing partner at Foxhall. The hotel was known for its restaurants, including James Beard Award winner Spike Gjerde's eatery, which closed in 2020. Despite being dubbed the "hippest" hotel in D.C. by Forbes in 2021, The Line DC is now facing foreclosure.

    The auction will take place in front of a New York City courthouse, despite the property being located in Washington D.C. The listed owner in JLL's notice of public auction is a limited liability company tied to USAA, Affinius Capital's parent company. This comes on the heels of another high-profile hotel foreclosure in D.C., where CGI Merchant Group lost leasing rights to the Waldorf Astoria Washington DC after defaulting on loan payments.