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Portrait Building Relinquished to Lender
The owner of downtown D.C.’s Portrait Building, a 135,000-square-foot office across G Street NW from the National Portrait Gallery, has relinquished the property to its lender, Washington Business Journal reported. Regency Portrait LLC, an affiliate of Clarion Partners, turned the building over to Oconee Real Estate Holdings VIII – Portrait LLC, an affiliate of Atlanta’s Voya Investment Management LLC.
Regency Portrait LLC acquired the property at 701 Eighth St. NW in February 2013 for $98.5 million, with the aid of a $59.1 million loan from HSBC Bank USA. In February 2020, the property owner refinanced that mortgage, which had a $39.1 million balance outstanding at the time, with a $41 million loan issued by Voya Investment Management.
Despite its location and recent renovation, including a new tenant lounge and event space, the Portrait Building currently has about 58,000 square feet available now or in the next several months, according to an Avison Young leasing brochure, putting its vacancy rate at about 42%.
- ◦Development
