TCC, Rubenstein Partners Buy Distressed Asset for $12M

GREENBELT, MD-When the market crash happened in 2008 one oft-cited silver lining was the deals—deeply discounted, distressed deals—expected to come to market. As we know such transactions rarely happened except occasionally for certain savvy and lucky buyers. Trammell Crow Co. and joint venture partner, Rubenstein Partners, is one such buyer. This is their story.

The two companies have snagged Maryland Trade Center III, an office building here that was a stabilized property only a few years ago, from the special servicer. Price paid for the 184,000-square foot, 40% occupied building? $11.8 million.

The asset was marketed by CBRE last summer and a buyer was secured for a much higher number, Trevor Vietor, senior vice president of TCC tells GlobeSt.com. That deal fell through, however, and the special servicer—an out of town entity—decided to take whatever credible offer that came its way. Enter TCC and Rubenstein. “It was a matter of us moving quickly and not requiring any financing,” Vietor says. “We were paying cash so the special servicer held its nose at our number but accepted the offer.”

Originally developed in 1989, the building got into trouble when Northrop Grumman’s vacated the top four floors in 2009. The good news for the new owners is that the majority of the vacant space is located on the building’s most attractive floors. They plan to refurbish the space and lease it, Vietor says. He declined to say how much will be invested in the repositioning because the plans are still in the design stage.

Morgan Gick McBeath and Associates will redesign the lobbies, elevators, common areas and restrooms.  CBRE’s Tim Jaeger and Todd Bosley will market the property for lease. This will be the first project for TCC and Rubenstein Partners. Also on TCC’s  development team are Marie Karl, Greg Crum and Megan Sanders.