Apollo Looks To Foreclose On D.C. Office Building Where WeWork Closed
The lender on a 7-year-old D.C. office building where WeWork closed its coworking operation earlier this year has initiated foreclosure proceedings.
An affiliate of Apollo Global Management filed a foreclosure affidavit for 660 North Capitol St. NW, a 202K SF property owned by Republic Properties tied to a $95M loan, deed records show.
Public records filed Monday with the D.C. Recorder of Deeds show a foreclosure affidavit delivered by lender 660 NC LLC, an affiliate of Apollo Insurance Solutions Group LLC, to building owner 660 North Capitol Street Property LLC, an affiliate of Republic Properties Corp. A lease assignment document filed Monday assigns the rights to the property at 660 North Capitol to Apollo.
Also filed Monday was a document appointing Miles & Stockbridge attorneys Jessica Duvall and John Farnum as substitute trustees on the loan.
The filing of a foreclosure affidavit indicates a lender is initiating a foreclosure and is typically filed before or along with a foreclosure notice, according to D.C. law. Deed records don't show a foreclosure notice filed for this property.
Republic Properties CEO Steven Grigg declined to comment, as did Duvall. Apollo didn't respond to requests for comment, nor did Jeffrey Horowitz, an attorney for Apollo who signed Monday's records.
D.C-based Republic Properties broke ground on the building on spec in 2014 and delivered it in 2016. The project near Union Station cost $95.5M to build, according to the developer’s website.
JLL manages leasing at the property, and the brokerage's website shows over 43K SF immediately available across four different floors, equating to 21% of the building.
Republic Properties signed its first two tenants to the building in 2015 when the National Association of Counties and the National League of Cities agreed to take a combined 78K SF.
In 2019, WeWork took the entire first floor, totaling 25K SF, Bisnow reported at the time. The WeWork space is no longer on the coworking giant’s website, and a WeWork spokesperson said it reached an agreement to exit the lease this spring.
The space is one of at least nine D.C. locations that WeWork has closed since 2020, and the company last week proposed to exit dozens of other leases around the country as it filed for bankruptcy.
The North Capitol Street building's other tenants include Hyundai, Mylan and the Internet Association, according to Republic Properties’ website. The Governors Highway Safety Association also lists the property as its headquarters.
