Association HQ Sold Short, Sells Again
A building in downtown Washington DC that the Mortgage Bankers Association appears to have sold short has sold again for a good deal more money.
In October 2009, the MBA, an organization which includes some credit union members, wrote its members that it was going to sell its brand new headquarters building at 1331 L Street in Northwest DC.
The building, which had won an award for environmental construction, had cost the association some $79 million, an amount that the association financed to the tune of $75 million when it bought the building in May of 2008.
The association declined to reveal the price of the building when it sold it to CoStar Group Inc., a provider of real estate data, but media outlets cited public documents to report that the sale brought more than $41 million.
Now, less than a year after it purchased the building, CoStar has sold it to a German pension fund management firm for $101 million, more than double what it paid for it and roughly 25% more than the loan the MBA used to buy it in the first place.
CoStar told media outlets that it has already signed a long-term lease with the new owners which purchased the building for its income generating capability. The MBA has yet to comment on the sale.