The Mortgage Bankers Association has egg on its face this morning: A year ago the trade group sold its (somewhat) brand new "green" office building for just $41 million, taking a $34 million loss on the deal.
Late yesterday CoStar Group, the company that bought the Washington property, announced on its website that it had flipped the building for a stunning $101 million to a German firm called GLL Real Estate Partners.
Officials from the MBA refused to comment on the sale though one source close to the organization confirmed to National Mortgage News that the deal looks "bad" but quipped "the devil is in the details."
Back in 2007 the trade group signed a deal to build its $75 million headquarters, garnering financing from PNC Bank. When the real estate bubble burst and the recession struck, it had a hard time finding tenants and servicing the debt on the mortgage, sources confirmed.
It then sold the building in early 2009 to CoStar at a huge loss. The 10-story, 160,000 square foot HQ is located at 1331 L Street in downtown Washington. Although the D.C. office market was hurt by the recession, it has since recovered quickly.
When the deal to construct the building was signed, MBA chairman Kieran Quinn told NMN, "It is a gorgeous building. In 20 years, it will be a $300 million building. It is absolutely the right thing to do."
