Allegro Apartments Hits the Auction Block

• November 10th 2009

by Mark Wellborn

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It appears that incentives like free rent and free parking are not enough to keep Allegro Apartments in the black. The Washington Business Journal recently reported that the Columbia Heights complex has not rented enough apartments “to pay the bills” and will be up for auction on November 18th.

From the WBJ:

Metro Properties, Inc. was served a foreclosure notice in October from one of its lenders, New York-based iStar FM Loans. And in a sign of how the economy still hasn’t kicked the crutch of the housing market, the problems are still going up the ladder: iStar FM is also in danger of a cash shortage. The result is that the Allegro Apartments, the largest apartment building in Columbia Heights, is headed to auction Nov. 18.

This news is fairly surprising. A few months ago, the luxury apartment building had a grand opening that did not exactly signal money troubles. The fete was attended by about 500 people and sponsored by luxury vodka Grey Goose. Attendees told UrbanTurf that they loved the development and its amenities (enormous courtyard, fitness center, underground parking, 24-hour desk).

However, it seems that despite the amenities and incentives, the rents were still a little too high (studios start at $1,525, one-bedrooms at $1,775 and two-bedrooms at $2,450) for most people’s budgets.

We will monitor the situation and upcoming auction and update you as developments occur.

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/allegro_apartments_hits_the_auction_block/1499.