Sunday, November 8, 2009

WBJ: Allegro facing foreclosure

The Washington Business Journal reports that the Allegro on 14th Street is facing foreclosure despite over the half the units being rented:

"...the building's developer, Metro Properties Inc., hasn't rented enough apartments to pay the bills. The company 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. Alex Cooper Auctioneers ran advertisement listing it Friday."


Anonymous said...

So, any idea what happens when it goes up for auction? Does it just transfer to new management when it gets bought? Do the tenants/Thai Tanic II get to stay? Can it be converted to condos?

Alex said...

Chances are it would change owners and none of the tenants would change. Anyone who buys it would have to be pretty crazy to kick out the tenants of a building that's already 50 percent vacant.