ARLINGTON, VA-The proposed $101-million bid for of WorldCom Inc.’s former MCI headquarters in Pentagon City by Tishman Speyer affiliate TST/Pentagon City has fallen through, according to court documents. A US Bankruptcy Court judge opposed, leaving the two-building, 540,000-sf property open for lease. And while court documents do not clearly explain the reasons behind the decision, rumor has it that WorldCom attorneys believe they can get more for their money.

“Referring to a hearing on the matter held on Oct. 1, Judge Arthur J. Gonzalez later signed-off on an official document stating, “the Court, having found and determined that the legal and factual bases set forth in the record of the hearing, warrant denial of the motion.” WorldCom attorneys now await a ruling from the court, scheduled for November 12, on the company’s request to hire a joint venture led by Hilco Real Estate LLC to take control of the property’s fate. Already, the buildings are listed–without lease or sales pricing–on Hilco’s website. It is rumored that WorldCom lawyers believe leasing the property would increase the complex’s value. Other press reports hint that the company is currently attempting to orchestrate a leasing deal with the Transportation Security Administration, which is in the market for about half a million sf of office space.

Located at 601 and 701 South 12 Street, off the off I I-395, the former MCI structures were constructed twenty years ago. Among the complex’s amenities are 1,100 underground parking spaces. The two 12-story, class A towers are referred to as Pentagon City One and Pentagon City Two.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.