Pearson's Building in DC's Property Tax Auction This Week
Updated: Dec 17, 2019
The DC Office of Tax and Revenue has not received a property tax payment on the Pearson's Wine and Spirits building at 2436 Wisconsin Avenue since September of 2017. Currently the city is owed $83,000 in back taxes, and demanded $56,000 by the end of May to avoid the tax sale. The owners are attempting to sell the 4900 square foot building for $3.5 million now and lease back from the new owner to continue to run the liquor business.
The DC property tax sale is not a final verdict though. Owners may redeem the property after the auction by paying the city the tax owed, and paying the auction buyer a large amount of interest as well as their attorney fees. Is this hole too deep already? The current financing on the property is a bit hazy in the public records and would require a title attorney to explain, though EagleBank, the note holder, has stated in a subordination agreement back in 2015 that "the borrower has requested and/or obtained certain loans from the bank in the aggregate amount of $3,280,000."
7/18/19: Editor's Note: The owners have stated they have a plan underway for bringing the unpaid property taxes current and are committed to staying here and serving the neighborhood. Pearson's has been operating in this location in one form or another since 1946!
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