The loan Douglas Development took out to refinance a 40K SF office building on downtown D.C.’s K Street corridor is now in special servicing. It is the latest in a series of Douglas’ loans that have faced financial issues over the past year.

The D.C.-based real estate firm, run by the Jemal family, took out a $13M loan in 2015 for the property at 1424 K St. NW, according to Morningstar Credit. 

Commentary from special servicer LNR Securities Holdings LLC, posted in Morningstar's CMBS loan database, says the loan wasn't paid in full when it matured on Feb. 6.

“It shouldn’t be any surprise that a downtown office building in DC that is coming off of a low rate CMBS loan maturity has been sent to special servicing,” Douglas Development principal Norman Jemal said in a statement to Bisnow. “We are in discussions with the special servicer and will work to a favorable outcome.”

Read more about the property’s financial situation.

— Emily Wishingrad

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