Fannie Mae dumps plans for new office complex

January 21, 2005

Financial situation influences decision


Inman News

Troubled mortgage giant Fannie Mae has withdrawn plans to build an office complex in Washington, D.C., in an effort to cut costs, according to the commercial real estate developer close to the deal.

Fannie Mae, which last fall said it would have to restate earnings due to an accounting error, withdrew a nonbinding letter of intent to lease office space at the Waterfront Mall in Southeast Washington, according to Bresler & Reiner, which holds significant interest in the property.

Bresler & Reiner, together with its joint venture partners in the Waterfront Mall project, the Kaempfer Co. and Forest City Enterprises, intend to continue the redevelopment of the Waterside Mall and actively seek other tenants. Bresler & Reiner develops and owns commercial, residential and hospitality properties in the Washington, D.C., Orlando, Florida and Philadelphia, metropolitan areas.

Fannie Mae, the nation's largest source for home loan financing, last month replaced its chairman and CEO, and is under investigation by the Justice Department and the Securities and Exchange Commission.

The company also announced this week it would cut its quarterly dividend by half in order to free up capital needed to meet new regulator requirements.

Copyright 2005 Inman News


Contact ALTA at 202-296-3671 or communications@alta.org.

North American Title Insurance Company (NATIC) is a seasoned title insurance underwriter, helping title agents to achieve their individual business goals for more than 50 years. Today, the company conducts real estate settlement services in 39 states and the District of Columbia through a network of experienced, independent agents. SoftPro is the nation's leading provider of real estate closing and title insurance software. With more than 14,000 customer sites and over 60,000 users nationwide, this award-winning software offers a suite of products designed to increase your volume and revenue by reducing the time it takes to do closings. SoftPro has been recognized by the American Business Awards every year since 2007 - winning awards for Superior Customer Service, Support and Product Development.