Friday, August 21, 2009

Southwest IM Pei Apartment Sold at Foreclosure


The View from SW waterfront is slightly less auspicious now for Fairfield Residential. A source familiar with the project has confirmed that The View, designed by IM Pei in the '60's and purchased by Fairfield in 2003, has been sold at foreclosure to Titex Marina View, LLC, an Atlanta, GA based LLC and subsidiary of Titex Real Estate Advisors of Delaware. According to SWDCBlog, in a late night, covert lit drop (notes slipped under residents' doors), Fairfield notified current residents of the ownership change and assured tenants they could continue to rent, for now.

Fairfield purchased The View, located at 1100 6th Street SW, and the adjacent parking lots neighboring the Southwest Waterfront project, and hired Esocoff and Associates to redesign the aged building as a mixture of new construction and interior renovations on the two landmarked forty-six year-old I.M. Pei towers. Another residential tower (see rendering below) was to have replaced the surface parking, but that never quite got off the ground and the parking lots are still going strong.

Fairfield modified its PUD in late 2008 because the south tower of the project had initially been planned as a condo, but market forces required financing as rental apartments. At the time, Graham Brock of Fairfield discussed the limitations of the financial system and how they had affected the project. Brock said the "existing residents in the Pei towers wanted the option of home ownership, but then we struggled to find ways to finance that building and get those residents to qualify for loans. The market changed and the deal we had come up with wasn't as strong anymore." It would appear even the rental option was not strong enough to sustain Fairfield's hold on Pei's work. In retrospect, maybe condos, now scarcer, would have been the better option.

Beginning in mid-April 2008, Marina View Trustee LLC and Marina View Towers LLC (co-grantors of the property with Fairfield) refinanced their $14.5 million loan with Wachovia Mutlifamily Capital, Inc. The next day, Wachovia signed over its Deed of Trust with Marina View Towers for the sum of $10 to Fannie Mae, and with it the first lien of the Deed of Trust. On July 14th of this year, Fannie Mae signed over the Deed of Trust to Tritex Marina View. On July 28, Tritex designated substitute trustees from the law firm Lerch, Early & Brewer, Chtd. Tritex has been involved in a series of large real estate transactions over the past few years, taking advantage of a commercial market that is weak, and getting weaker.

1 comments:

Anonymous said...

Fairfield has been retained as management.

 

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