WBJ: Senate Square Headed Toward Foreclosure

• November 13th 2009

by Mark Wellborn

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It appears that another one of DC’s large apartment complexes is heading toward foreclosure. Less than a week after reports that Allegro Apartments will be auctioned off on November 18th, word comes from the Washington Business Journal that Senate Square, the 432-unit apartment complex on the 200 block of I Street NE was recently appointed a receiver by a DC judge. Developed by Broadway Management out of New York, the project is located next to Jim Abdo’s Landmark Lofts at Senate Square.

Here is a brief description from the WBJ of the events leading up to the building being put in receivership:

“By the time a receiver was appointed on Oct. 27, Broadway Management was at least $8.4 million behind in its payments on the $120 million mortgage.

Broadway had not made a payment on the note since April, and the reserve account to cover revenue shortfalls — which was virtually the only cash available for mortgage payments — was exhausted in March. Broadway did not oppose the receivership appointment.”

As the Journal explains, the receivership step is one that is being used rather frequently for delinquent buildings during the economic downturn. The receiver essentially takes control of the building in question and can operate it, hire workers and providers and even sell it. Court documents indicate that the building remains “substantially vacant”, so it will be interesting to see what happens.

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/wbj_senate_square_headed_toward_foreclosure/1515.