Lender Takes Control Of K Street Office Building From Korean Investor
A downtown D.C. office building that Korean investor Mirae Asset Global Investments acquired as part of a 2015 real estate fund has been taken over by its lender.
Bridge Investment Group, which provided Mirae with a $68.5M refinancing loan in 2020 on 1750 K St. NW, has gained control of the asset through a statutory warranty deed, according to documents filed with the D.C. Recorder of Deeds Tuesday.
The consideration amount is listed in deed records as $57.7M, but the deed filing says "the true consideration for this conveyance is [Bridge's] forbearance of foreclosure against [Mirae] and forbearance of an action on the debt."
Neither Mirae nor Bridge responded to requests for comment.
The move comes nine years after the Korean investment firm purchased the 166K SF property blocks from the White House for $115M, as the first in a new U.S. real estate fund: Mirae Asset Maps Frontier US Private Real Estate Trust No. 5.
The asset’s valuation decline has been previously disclosed. In May 2023, the property’s value had fallen to 25% of its purchase price, The Korea Economic Daily reported at the time. That contributed to the overall fund posting losses of more than 70.2% at the time.
D.C.’s Office of Tax revenue assessed the property at $78.5M for fiscal year 2025. That is down from a peak valuation of $114.5M in 2021.
1750 K St. lost its anchor tenant when law firm Wiley Rein announced plans in 2020 to vacate 144K SF, the entire building apart from one floor, in a move half a mile away to Tishman Speyer’s 2050 M St. NW.
In 2010, the law firm had inked a 10-year lease renewal, set to start in 2014 and end in June of this year, for the 144K SF footprint. The lease was one of a pair downtown for the firm, which had 335K SF total.
1To1 Fitness is located at the property, as is PlanIt World Consulting, according to their websites. The property underwent a $4M renovation in 2010. It is managed by JBG Smith.
