The Mortgage Bankers Association sold its Washington D.C. Headquarters at a multi-million dollar loss to commercial real estate firm CoStar Group, according to the WSJ.
The bankers group apparently parted with the property for $41.3 million, well below the reported $79 million paid back in 2007, while it was still under construction.
The sprawling 170,000-square foot, 10-story building at 1331 L St. NW was completed in the summer of 2008, and put up for sale just over a year later.
At the time, MBA chief John Courson warned it was dealing with a “challenging leasing environment,” adding that continued ownership of the building would be “imprudent” and hinder its services over the long term.
The MBA’s membership has dwindled in recent years as a result of the mortgage crisis, falling from roughly 3,000 to about 2,400 members.
At the same time, the MBA has laid off about 30 percent of staff.
When the MBA first secured the property valued at $100 million, it was required to come in with a larger-than-expected down payment and a less favorable mortgage rate because of the timing of the deal.
So much for it’s always a good time to buy…
CoStar said it was able to take advantage of what it saw “as a historic opportunity to secure an exceptional asset at a greatly reduced price.”