As millions of Americans stayed home to avoid Covid-19 in 2020, one of the most iconic buildings in the nation's capital, Union Station, sat virtually empty. The Beaux Arts-style rail terminal with offices and retail space was one of the jewels in the real estate portfolio of billionaire Ben Ashkenazy (net worth: $2.6 billion), who purchased an 84-year lease on the property for $160 million in February 2007.
The lack of passengers quickly took its toll. In May 2020, Ashkenazy defaulted on $430 million in loans on the station that he had refinanced in 2018, according to court records in a foreclosure lawsuit filed against him by the lender, New York-based Rexmark. Seven months later, Ashkenazy lined up a deal with an unnamed sovereign wealth fund to take a 50% stake in the terminal for more than $700 million. But that deal collapsed in 2021-and in another twist, Amtrak moved to take over Union Station for $250 million via eminent domain in April 2022.
Now the landmark is at the heart of a legal battle between the federal government, Ashkenazy and Rexmark, which maintains that it purchased Union Station for $140.5 million at a foreclosure auction last June. One thing is certain: The commuters aren't coming back. Amtrak's annual passenger numbers decreased from more than 5 million in 2019 to 1.8 million in 2021, a 66% drop. Ridership on two key routes through Union Station dropped 26% to 9.2 million through 2022.
Denne historien er fra June - July 2023-utgaven av Forbes US.
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Denne historien er fra June - July 2023-utgaven av Forbes US.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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