Private equity real estate firm Broadway Real Estate Partners, has sold off Washington, DC office building, 1615 L Street, to Eliot Spitzer’s family business for $180 million after defaulting on part of its debt, according to The Wall Street Journal.
1615 L Street
The a 13-story building has 412,000 square feet of rentable space with tenants including public relations firm Fleishman-Hillard as well as law firms Haynes & Boone, and Paul, Weiss, Rifkind, Wharton & Garrison.
Broadway originally purchased the building from Beacon Capital Partners in November 2006 for $209 million but has recently fallen on hard times, seeing several buildings foreclosed on by lenders. Beacon had bought the property for $123.8 in March 2004.
Transactions have been few and far between due to a dearth of financing. However, the Spitzers were able to close the purchase as the result of taking on the building’s $138 million mortgage and paying the $42 million balance in cash.
The purchase is the first highly visible action taken by former New York governor Eliot Spitzer who last year resigned his position following a prostitution scandal. Eliot Spitzer’s father is prominent real estate developer Bernard Spitzer.
The elder Spitzer is best known for his holdings on the East side of New York including a stake in the Crown Building once owned by Philippine dictator Ferdinand Marcos.