Marbury Plaza owner MP PPH files Chapter 11 bankruptcy, eyes sale

By Sarah Lizee

Olympia, Wash., Sept. 1 – MP PPH LLC filed Chapter 11 bankruptcy on Thursday in the U.S. Bankruptcy Court for the District of Columbia.

The debtor owns the Marbury Plaza, a 674-unit low-income tax credit and market-rate multifamily apartment complex in Washington, D.C.

MP PPH said it is currently working to rehabilitate the property in compliance with orders issued in a Superior Court case.

The debtor has elected to seek sale of the property and has engaged Marcus and Millichap Real Estate Investment Services of North Carolina, Inc. to market the property for sale through the bankruptcy proceedings.

MP PPH is hoping to close the sale of the property by the end of the year or shortly thereafter.

The company is seeking court approval to continue using its $10 million prepetition credit facility as a debtor-in-possession facility.

The lender is PP & H Realty, LLC, the 100% equity owner of the debtor.

Interest on the DIP loan will be 7%. If the debtor elects to extend the maturity date to July 31, 2025, the interest rate will rise to 8%, effective July 31, 2024.

The loan provides for a balloon payment of all outstanding principal and interests on or before the earlier of a sale of the property or July 31, 2024.

In its petition, the company listed 50 to 99 creditors, $100 million to $500 million in assets and $50 million to $100 million in liabilities.

Its largest unsecured creditor is ACM Services, Inc, based in Rockville, Md., with a $1.79 million hygiene service mold and asbestos remediation claim. No other creditors were listed with unsecured claims of $1 million or more.

Stinson LLP is representing the company.

The Melville, N.Y.-based single asset real estate company filed Chapter 11 bankruptcy under case number 23-00246.

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